Sky TV says 2017 charges higher than forecast due to accounting error

Thursday 20th October 2016

Sky Network Television increased its annual forecast for depreciation, amortisation and impairment charges, citing a timing error.

The Auckland-based pay-television broadcaster expects the costs will amount to $109.1 million in the year ending June 30, 2017, ahead of its earlier forecast of $101.3 million, owing to an error in the start date of depreciation for some assets transferred from work in progress to fixed assets, it said in a statement. The error has no cash flow impact, it said.

The earlier forecast was prepared as part of documents outlining plans for the proposed merger of Sky TV and Vodafone New Zealand. Sky TV said today that the figure could be revised further if the merger is given the go-ahead because it would have to reassess the fair value of its assets and liabilities.

Sky TV wants to merge with the New Zealand unit of Vodafone Group to create the country's largest telecommunications and media group, and the proposal is currently awaiting regulatory approval, with a decision due in November.

BusinessDesk.co.nz

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