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Sky Network Television Limited (NZX: SKT) Announces 2021 Interim Results

Tuesday 23rd February 2021

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Sky Network Television Limited delivered a strong first half performance for the six months ended 31 December 2020, as announced at the earnings upgrade on 3 February 2021 and continuing the positive momentum of the business.

“We are encouraged with the solid results achieved in the first half. Sky has a unique role to play as the content aggregator which can deliver to all of New Zealand, and Sophie Moloney and her team have a clear focus to maintain performance in the coming months and years,” said Philip Bowman, Sky Chairman.

Key results

• Revenue of $356.9m (from $384.8m) including strong growth in streaming revenue and gradual recovery in commercial and advertising

• EBITDA of $116.3m, up 30% (from $89.7m)

• Net profit after tax of $39.6m, up 234% (from $11.9m)

• 18% reduction in operating expenses to $242.8m (from $295.1m), with permanent savings of $18m representing 42% of the underlying movement

• Strong positive indicators of reaching a stable Sky Box (satellite) customer base, including strengthened acquisitions and continued reduction in churn

• Confirmation of OSB sale to NEP post-balance date in line with the move to a lower capital base

Outlook

Sky will continue to focus on revenue stabilisation through protecting and satisfying its important Sky Box customer base. Sky expects organic growth in Neon and Sky Sport Now, and ongoing recovery in Advertising and Commercial revenues, during the remainder of FY21.

Additional investment will be undertaken in H2 FY21 for Sky Broadband ahead of projected revenue growth.

Sky will maintain an ongoing sharp focus on unlocking further savings as it absorbs costs associated with programming rights increases through the renewed SANZAAR deal and a more fulsome calendar of sports.

Sky confirms the FY21 guidance4 provided on 3 February 2021 of revenue in the range of $695m-$715m, earnings before interest, tax, depreciation and amortisation (EBITDA) of between $170m-$182.5m, net profit after tax (NPAT) of between $37.5m-$45.0m, and capital expenditure in the range of $45m-$55m.

Sky remains in a strong financial position following its capital raise last year. It has grown cash balances on hand to $123m (as at 31 December 2020), which along with undrawn debt facilities enables it to repay the $100m of bonds that mature in March 2021 and provides significant headroom going forward.

Please see the links below for details:

Market Release

Results Announcement

Interim Report

Results Presentation

ASX Appendix 4D - Other Information

Directors' Declaration

Source: Sky Network Television Limited



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