Sky Network Television Limited (NZX: SKY) Transformation accelerates - Sky raises FY22 guidance

Tuesday 7th December 2021

Following the completion of the first phase of a rigorous cost review and consideration by the Board, Sky New Zealand has today provided significantly improved guidance, lifting the midpoint of previous EBITDA and NPAT forecasts for the FY22 financial year by 27% and 96% respectively.

Highlights

• Operating costs reduction of an additional $35m to be delivered in FY22, including $26m of recurring cost reduction and $9m of one-off savings

• Full year impact of recurring annualised cost savings to deliver an additional $40m to $45m p.a.

• As a result, EBITDA guidance increases from $115m-$130m to $150m-$160m and NPAT guidance increases from $17.5m–$27.5m to $40m-$48m

• Additional recurring savings targeted for FY23 and beyond through longer-term transformation initiatives

• Sale of Sky’s Mt Wellington properties progressing well but not yet finalised and therefore not included in guidance. An announcement of the terms of sale is expected to be made shortly when negotiations and signature of a definitive agreement are complete

• Cost reset combined with revenue growth to deliver increased levels of free cash flow

Chief Executive Officer Sophie Moloney and Interim Chief Financial Officer Andrew Hirst will host an investor webcast and call at 10:00am (NZDT) to discuss today’s announcement. Details on how to participate are as follows:

To watch the live webcast: https://ccmediaframe.com/?id=1ZsVMI0l

To register for the conference call: https://s1.c-conf.com/diamondpass/10018373-wh3i4k.html

Registered participants will receive their dial in number upon registration. Only those participating via the conference call will be able to ask questions.

A replay of the briefing will be made available on the company’s website as soon as practicable after the event at: https://www.sky.co.nz/investor-centre/results-and-reports.

Please see the links below for details

Market Update Presentation 7 December 2021

Transformation accelerates Sky raises FY22 guidance 7 December 2021

Source: Sky Network Television Limited

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