Sky TV's Profits Increase on Lower Depreciation and Interest Costs, but Subscriptions Underwhelm

Sky TV's underlying net profit after tax, or NPAT, increased 10.8% in the first half of fiscal 2015 helped by falling depreciation and interest costs because of lower capital expenditure and debt levels. Earnings before interest, tax, depreciation and amortisation were flat compared with the previous corresponding period. Revenue grew by just 2% with core subscriptions down slightly offset by an increase in average revenue per user, or ARPU. We were anticipating a slight increase in subscriptions in the half year. Expenses were well contained with critical programming costs coming in at 32% of sales, largely consistent with previous periods.