Sky reports drop in profits because of Premier League costs and weak advertising market

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A Sky Sports cameraman with a steady cam at Anfield, Liverpool. Sky has said rising costs from screening Premier League football and a "weaker UK advertising market" has dragged on profits.
A Sky Sports cameraman with a steady cam at Anfield, Liverpool. Sky has said rising costs from screening Premier League football and a "weaker UK advertising market" has dragged on profits.
Thursday, April 20, 2017 at 11:30AM

Sky has said rising costs from screening Premier League football and a "weaker UK advertising market" has dragged on profits.

The broadcaster saw an 11 per cent drop in operating profit to £1.01bn in the nine months to March 31 as it pointed to a £494m bill linked to Premier League costs.

On a statutory basis, operating profit fell from £802m to £703m.

Boss Jeremy Darroch said: "We enter the final quarter of our fiscal year in good shape. Despite the broader consumer environment remaining uncertain, we continue to deliver on our strategy and are on track for the full year."

Revenue rose by five per cent to £9.6bn during the period, with more than 100,000 new customers joining Sky in the third quarter.

Sky also announced a 250m US dollar partnership with American production company HBO.

The partnership will bring together the Game Of Thrones broadcaster and producer, and aims to bring more "world-class drama series" to customers.

Sky is the subject of a £11.7bn takeover bid from Rupert Murdoch's 21st Century Fox.

Fox is aiming to seize control of the 61 per cent of Sky it does not already own and the bid comes five years after Mr Murdoch's last tilt at taking the business over through News Corporation.

The deal has the green light from EU regulators, but Ofcom and the CMA have until May 16 to investigate the deal.

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