Sky shares down by 5% as fewer sign for pay TV

Sky shares have dived by 5 per cent after it said fewer customers were signing up to the pay-TV platform. The firm said 177,000 new customers joined in the third quarter, 160,000 fewer than the previous period.

Joe Rundle, head of trading at ETX Capital, said: "Today's weakness in its share price perhaps reflects how investors are wondering just how long its traditional pay-TV model can withstand the onslaught from the army of cord cutters." Mr Rundle flagged the rise of Netflix as a particular concern.

Analysts pointed to an upcoming auction for rights to air football matches from Germany’s Bundesliga. German authorities have said the rights will not go to a single bidder.

The fall in the share price came despite Sky reporting a 12 per cent rise in operating profit to £1.1 billion in the nine months to March. – (PA)