Sky revenues rise 5% in 9-mths, profits lower

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News of the partnership came as the FTSE 100-listed company said it remained on track to meet its annual targets, after double-digit revenue growth in the first nine months of its financial year.

Operating profit dropped 11 percent to around £1.0 billion as Sky was hit by additional costs of £494 million linked to screening live Premier League matches featuring sides including Manchester United, Liverpool, Arsenal and Leicester.

"We have concluded a number of long term rights renewals and are announcing today a major new multi-year co-production deal with HBO, as well as a ground breaking virtual reality experience in partnership with Sir David Attenborough and the Natural History Museum", Sky CEO Jeremy Darroch said in a statement.

"Looking forward, we enter the final quarter of our fiscal year in good shape".

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Sky had 22.423 million retail customers at the end of March, up by 769,000 year-on-year and 106,000 in the last quarter alone.

Sky and HBO said the partnership would provide "an unrivalled opportunity for production companies to have their content broadcast by two of the leading brands in worldwide television".

The update to the City came ahead of a deadline next month for United Kingdom regulators to respond to an intervention notice from ministers relating to 21st Century Fox's prospective takeover of Sky. Revenues from the UK & Ireland lifted 4 percent. "Despite the broader consumer environment remaining uncertain, we continue to deliver on our strategy and are on track for the full year".

The deal has already been cleared by several European authorities. It noted that reports on the deal from United Kingdom telecoms regulator Ofcom and the UK's Competition & Markets Authority have been requested by the United Kingdom government, with a deadline of May 16.

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