Sky News Update: £500 Million Buy Back Programme
Sky News Update
Sky News Update: Broadcasting company Sky are planning to buy back half a billion pounds worth of shares in order to come top in rivalry between BT.
Sky have just announced that they are planning in buying back five hundred million pounds worth or shares from investors, a strategy derived from experiencing a rise in their annual profits. Sky explain this increase to be from the massively high and continuously increasing demand of on-demand viewers and individuals watching Sky TV through their mobile phones, as well as other devices like iPads. Because of this, the consumer is investing more into their viewing experience and purchasing more and more ‘add on’ features, options and packages to their original subscription.
The company have add an extremely good financial year so far, in terms of new subscriptions and their performance. This is shown by the huge influx of subscriptions rising by twenty-eight million in just one year. The company explain this by how they are constantly developing and investing into new technologies to bring their consumers the best deals, products and packages they can deliver.
The people at Sky therefore have positive views and outlooks of the future of the company and are therefore fully supporting the choice to buy back shares within a buyback programme.
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However, this buyback scheme is also taking place due to the highly competitive market they are in. With rival BT launching their sports package next month, they are feeling the pressure and will be watched closely in the coming months as to whether they continue to attract new customers. They are also not currently performing as well as they previously were earlier this year with only fifty-one thousand new customers in the forth quarter of the financial year, a significantly large twenty-one thousand below former predictions.
Sky have admitted that the next couple of months are going to be extremely tough, especially with BT launching their new sports package, in which they have already experienced a one hundred million pound rise in profits. Sky have also recently put up their prices for it’s television packages, arguably a risky move when competition is so high. The big risk is, will consumers stay loyal to Sky, or will they switch to whoever is providing the best deal and experience.
For more information on Sky and the packages and products they have to offer you can visit their official website by clicking here
, or you can call the Sky telephone number
to talk to a member of their customer services team.
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