SKT - Restatement of P/E and EPS Metrics Following Capital Return

Friday 25th November 2022

Sky Network Television Limited (Sky) notes that following the cancellation of 29,115,132 shares (16.67% of shares on issue prior to the cancellation) on 22 November 2022 as part of the return of approximately $70 million to shareholders via a court approved scheme of arrangement (Scheme), the Company’s P/E and EPS metrics displayed on NZX.com have been calculated based on an adjusted earnings basis.

As mentioned in the NZX Operations (NZXO) memo issued on 22 November, NZX uses a standard procedure to adjust its metrics for capital returns. This methodology effectively removes the impact of the capital return. Sky understands ASX uses a similar methodology to calculate the metrics displayed on www.asx.com.au.

Sky’s own assessment of its FY22 metrics pro forma for the capital return produces the following results which it believes are more reflective of the current Sky capital structure and a more relevant datapoint for investors and market participants.

Sky’s assessment of the impact of the capital return on FY22 Reported Earnings:

FY22 Reported Earnings: $62.2m

Less: net interest expense on returned cash (after tax)1: -

FY22 adjusted Reported Earnings: $62.2m

Shares outstanding: 145.6m

Earnings per share: $0.427

SKT share price (market close 22 November 2022): $2.300

Price / earnings ratio: 5.39x

1. Sky’s capital return was funded from cash reserves which earned a negligible return in FY22.

ENDS

Restatement of P/E and EPS Metrics Following Capital Return

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