CEO Andrea Duilio: 'Sky Italia returns to positive EBITDA'

We have gone through a period of great transformation, it is undeniable. But, as I said, we have maintained a constant investment in content, which is the fundamental element for maintaining a strong relationship with customers, as in the connectivity business that we have since entered. All this has been possible thanks to the Italian leadership team, but above all to the great trust of the shareholder Comcast. Often, in fact, when the profit and loss accounts are not particularly brilliant, the instinct of many companies is to stop investing and optimise. The result we have achieved does not stem from this approach.

What result?

Closing 2024 with positive triple-digit Ebitda. A figure that is even more important because it was achieved not by cutting back, but by continuing to invest and growing revenues significantly across all business lines. I am referring to TV; to Now, our Ott, which has grown without cannibalising traditional pay TV; to Sky Media, our advertising concessionaire that among its assets to be "sold" also has the three free channels TV8, Cielo and Sky TG24; to Sky Business, which targets bars and hotels; and finally to connectivity, with Sky Wifi and Sky Mobile. Customers who also choose us for connectivity have 30% more loyalty. As we know, markets are 'mixing' and this strengthens our positioning with families.

We will then also need to arrive at a positive effect in the last line of the budget.

Already in 2025 we will have positive cash flow generation and, while discounting the amortisation of the many investments, net profit will also soon be in that direction.

But can Italy see an increase in pay TV customers? 

We have more customers today than we had three or four years ago. It is a growth that makes us very satisfied. Also because, among our TV customers, one in five families has already chosen us for connectivity services. And those who choose us on different touchpoints hardly ever leave us.

Can football still be the spring to propel this growth? 

As far as we are concerned, especially if we are talking about Now, the answer is yes, given how it is benefiting from the Champions League for which we have exclusive rights as well as the other European cups. But with tennis, the quality entertainment of X Factor, MasterChef and Beijing Express, and TV series such as the very successful one on 883, there is no shortage of reasons. What could unlock some potential customers, if we talk about football and sport today, is the fight against piracy. Over 2 million Italians today enjoy content without paying for it.

How do you assess all these discussions that are being made about the Piracy Shield platform being put on the index for also hitting sites and IPs that did not deserve to be shut down?

Italy has had incredible courage as a country to go against an intolerable system with such strong initiatives. The current laws and measures, including the Piracy Shield platform, are working. The reactions we are seeing testify to that. Piracy means underground, unpaid taxes, organised crime.

You have said you want to focus on broadband in Italy. But isn't that dangerous given the competitive crowding and the resulting problems for this market? 

We actually do it in a different logic. For us, broadband is an element of growth because it attracts different targets and therefore new customers. Further growth can be imagined in various ways. For example, by becoming Mvno on mobile, where today we have a very satisfying agreement with Fastweb, but where we see ourselves as mere resellers of the product. As far as fixed connectivity is concerned, we could also start selling Fwa (fixed wireless access) services, in order to grow in areas not covered by broadband both with connectivity and with the pay TV offer.

The year 2025 will also be the year in which the fate of the agreement with Warner Bros. Discovery. That also means Hbo content and cult series like Game of Thrones. 

Warner is an important partner in several areas. In addition to Hbo content, we also have sports and other entertainment channels. We are discussing at group level and will also discuss at local level. We are also very serene because the Hbo event series already on air, such as House of the Dragon, The Last of Us and The Penguin will also be on Sky with future seasons. However, it is worth remembering that the most viewed content by our subscribers are Italian series and films.