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Sky Network says profit may fall on increased costs

Thursday 6th November 2008

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Sky Network Television Ltd., New Zealand's biggest pay-TV company, said profit may decline this year on increased costs for MY SKY decoders and depreciation.

Profit will be in a range of NZ$90 million to NZ$100 million, from NZ$98 million last year, according to a presentation to shareholders by chief executive John Fellet. Depreciation will rise to NZ$90 million to NZ$95 million, from NZ$78 million.

Shares of the pay-TV company fell almost 5% to NZ$3.90 and have decline more than 30% this year, slightly below the performance of the NZX 50 Index.

Fellet predicts a net gain in subscribers of 30,000 in 2009, according to the presentation. MY SKY revenue is forecast at NZ$15 million.

By Jonathan Underhill

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