We may dump Rio Olympics: Sky TV boss
On the back of lower-than-expected financial guidance for 2013, pay-TV company Sky confirms Olympics coverage was an "expensive lesson" costing millions of dollars.
Investors reacted strongly, with Sky shares (NZX: SKT) dropping 24 cents, or almost 5%, to $5.01 this morning, after starting the year at $5.30.
Sky Network Television, which is controlled by Rupert Murdoch's News Corp, reported a 3% lift in annual profit today.
Sky ceo John Fellet said in a post-result briefing the deal to cover the London Olympics was done in 2007, when advertising revenue and subscriber numbers were trending up.
While Prime had record viewer figures, and the Olympics were the best viewed since the time-zone friendly Sydney Games in 2000, he says they were an "expensive lesson".
"In hindsight, we over-committed to the event."
Sky, which had 10 Olympics-dedicated channels for London, might even bow out for the Rio de Janeiro Games should the numbers not stack up, he says.
"If we're unable to find a favourable outcome we'll pass on it next time."
The average analysts' predictions for FY13 leading into today were EBITDA $359 million and NPAT of $138 million.
However, Sky's guidance is EBITDA between $335 million and $340 million and NPAT $120 million and $125 million.
Mr Fellet says 50% to 75% of the difference between analysts' expectations and Sky's guidance was down to the Olympics.
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Comments and questions9
Please John take Rio - we need the choice of channels BUT in most cases take the international commentary feed. Using people who hadn't a clue about the sport they we talking about was a disgrace -eg Tony Johnson on final day of 3 day event - he didn't have clue as to how the scoring worked & kept announcing the wrong country in the lead. His offsider (who understood) seemed to give up correcting him in fraustration.
In fact John - it time you cleaned out your whole sports dept. Generally hopeless & tired - and the 2 fools who did the opening & closing ceremonies... please. There must be someone out there who can go 2 mins without uttering a completely inane comment
The sports and post-production departments are somewhat infamous for not training presenters, overly inept old-school male managers, and general sexism. OSH would have a field day if they were to do an investigation on working conditions, especially for over night shift workers.
Olympics coverage was superb, and I agree with wNc that international commentary is generally fine.
Sky should look to their customer service tools before asking too many questions elsewhere. It's become the monopoly we love to hate.
yeah, you could just re-run the 2012 london olympics to bring things in line with all the other old repeat cr*p you keep showing every night....obviously no one complains....
I agree the sports stable is tired. Indeed the emphasis on football of all codes is frankly a bore. I have had more than my fill of the Rugby junk, NRL, and the never ending soccer.
Get over it and start to think some other codes we experienced for the first time through the London Games
I did enjoy the free Prime streaming on iSky
So you are discoving that people wont over pay for sports coverage, funny that.
Andncut down on those business lunches too.