Sky Network Television Ltd · NZX:SKT
Sky Network Television — H1 FY2012 Earnings Presentation
33 slides from Sky Network Television's earnings presentation, 2012
Slide 1: Interim Results 2012
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Slide 2: Subscribers by platform
800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Interim 0 Results 2012 UHF Satellite Wholesale Satellite My SKY
Slide 3: Net Gain as at December 31
Net Gain as at December 31 16,215 16,819 10,493 9,708 5,976 5,033 Interim Results 2006 2007 2008 2009 2010 2011 2012
Slide 4: Net Gain by Month
Net Gain by Month 7000 6000 5000 4000 3000 2000 1000 0 -1000 -2000 -3000 Interim ct ec ov ug p l Ju Se O D Results N A 2011 2010 2012 2012
Slide 5: Subscriber Growth
Subscriber Growth Dec Dec % Change 2011 2010 DBS (Satellite) Residential 358.8 428.5 (16.3%) DBS Wholesale 127.3 121.5 4.8% DBS MYSKY 331.0 231.1 43.2% Commercial 29.1 26.3 10.6% Interim Total Subscribers 846.2 807.4 4.8% Results 2012
Slide 6: Moving Annual Churn
Dec-11 Dec-10 Dec-09 Dec-08 Dec-07 Dec-06 Dec-05 Dec-04 Dec-03 Moving Annual Churn Dec-02 Dec-01 Dec-00 Dec-99 Dec-98 32% 30% 28% 26% 24% 22% 20% 18% 16% 14% 12% 10% Results Interim 2012
Slide 7: Monthly Churn
Monthly Churn 2.50% 2.00% 1.50% 1.00% 0.50% Interim c ct n ov b r n g p ar ay l Ju Ap De Fe Se Ja Ju Au O M M Results 2010 N 2011 2012 2012
Slide 8: Monthly Churn by Category
Monthly Churn by Category 2.50% 2.00% 1.50% 1.00% 0.50% Interim c ct n b pr n v g ar p ay l Ju De No Fe Se Ja Ju Results Au O M A M 2012 Satellite MYSKY
Slide 9: Total Revenue
Total Revenue $797 $742 $659 $692 $619 $398 $427 Interim Results 2007 2008 2009 2010 2011 First 1/2 2012 2012
Slide 10: Install Revenue
Install Revenue $20.9 $13.8 $16.2 $16.2 $14.6 $6.9 $7.7 Interim 2007 2008 2009 2010 2011 First 1/2 Results Year End 30 June 2012 2012
Slide 11: Total ARPU
Total ARPU $71.81 $69.45 $67.35 $63.49 $61.96 Interim 2007 2008 2009 2010 2011 Results 2012
Slide 12: MY SKY ARPU
MY SKY ARPU $85.16 $84.71 $83.89 $75.19 Interim Results 2008 2009 2010 2011 2012
Slide 13: Programming Costs % Revenue
Programming Costs % Revenue 33% 32% 32% 33% 33% 32% 2007 2008 2009 2010 2011 First Half 2012 Interim Results Year End 30 June 2012
Slide 14: EBITDA
EBITDA $321.7 $287.5 $249.4 $266.6 $261.0 $161.2 $170.1 Interim 2007 2008 2009 2010 2011 First 1/2 2012 Year End 30 June Results 2012
Slide 15: Net Profit
Net Profit $120.3 $77.9 $97.7 $103.0 $88.1 $60.4 $62.7 Interim Results 2007 2008 2009 2010 2011 First 1/2 2012 Year End 30 June 2012
Slide 16: Advertising Revenue
Advertising Revenue $63 $64 $67 $58 $54 $35 $39 Interim Results 2007 2008 2009 2010 2011 First 1/2 2012 Year End 30 June 2012
Slide 17: Results Summary
Results Summary % Change $NZ Million 2011 2010 Revenue 426.9 397.9 7.3% Operating Expenses 256.7 236.8 8.4% EBITDA 170.2 161.1 5.6% Depn & Amort 66.2 62.2 6.4% EBIT 104.0 98.9 5.2% Interest 15.9 13.4 18.7% Tax 25.4 25.1 1.2% Interim Net Profit after Tax 62.7 60.4 3.8% Results 2012
Slide 18: Revenue Analysis
Revenue Analysis $ NZ million % Change 2011 2010 Residential Satellite subscriptions 339.6 316.6 7.3% Other subscriptions 30.2 29.7 1.7% Installation 7.8 6.9 13.0% Advertising 39.0 35.1 11.1% Other Income 10.3 9.6 7.3% Total Revenue 426.9 397.9 7.3% Interim Results 2012
Slide 19: Expense Analysis
Expense Analysis % Change $ NZ million 2011 2010 Programme rights 107.4 103.3 4.0% Programme operations 28.6 25.3 13.0% Subscriber management 31.3 31.8 (1.5%) Sales and marketing 23.5 19.7 19.3% Advertising 11.1 10.2 8.8% Broadcasting and infrastructure 42.5 35.7 19% Depreciation and amortisation 66
Slide 20: Capital Expenditure
Capital Expenditure $139.5 $132.2 $138.1 $119.5 $81.4 $69.5 $59.3 2007 2008 2009 2010 2011 First 1/2 Interim 2012 Results Year End 30 June 2012
Slide 21: Capital Expenditure Analysis
Capital Expenditure Analysis $ NZ million % Change 2011 2010 Install 26.1 24.6 6.1% Decoders 28.3 20.2 40.1% TV Station Upgrade 0.5 2.7 (81.5%) Building Improvements 0.9 1.7 (47.1%) i-SKY 0.0 3.9 100% OSB Truck 2.5 0.0 0% Igloo 4.8 0.0 0% Other 6.4 6.2 3.2% Interim Total Capital Expenditure 69.5 59.
Slide 22: Operating Cashflow
Operating Cashflow % Change $ NZ million 2011 2010 Operating Cashflow 140.7 132.3 6.3% Capex (70.0) (58.3) 20.1% Purchase of OSB 0 (13.4) (100%) Debt retirement 0 (35.2) (100%) Dividends paid (141.6) (28.1) 403.9% Debt advances 98.6 0 0% Capital introduced 12.3 0 0% Interim Net Cash Movement 38.9 (2
Slide 23: HDi subscribers and churn
% Churn 10.4% HDi Subs 313,711 60,000 % Multiroom 31% 50,000 40,000 % HD Ticket 18% 30,000 HD Ticket 20,000 % Upfront 7% 10,000 Interim 0 Jun-09 Dec-10 Jun-10 Dec-10 Jun-11 Dec-11 Results 2012
Slide 24: Funding
Funding FACILITY DRAWN MARGIN MATURITY Bank Debt $400m $300m 180bp Sept 2016 Bond $200m $200m 65bp Oct 2016 Interim Results 2012
Slide 25: Foreign Currency Hedging
Foreign Currency Hedging For USD exposures 95% hedged for 6 months to 30 June 2012 @ 0.7254 82% hedged for June 2013 year @ 0.7167 26% hedged for June 2014 year @ 0.7457 For AUD exposures 94% hedged for 6 months to 30 June 2012 @ 0.7738 46% hedged for June 2013 year @ 0.7804 Average $US pa
Slide 26: SKY Highlights
SKY Highlights 1. New Channels on SKY • SOHO • MTV Hits 2. Local Productions • Local SKY Production in 2011 = 25,773 Hours 3. SKY Sports ‐ Rugby World Cup 2011 ‐ Silver Ferns ‐ ASB Classic Tennis 2012 ‐ Heineken Tennis 2012 4. i‐SKY ‐ Usage doubling on SKY Movies, over previous months Interim 5. IGL
Slide 27: SKY Viewership Results
SKY Viewership Results 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Interim 10 Games Pool A 10 Games Pool B 10 Games Pool C 10 Games Pool D 4 Games QF 2 Games Semi 2 Games Finals Results 2012 Actual Forecast
Slide 28: RWC Impact on SKY Sport Subscribers
RWC Impact on SKY Sport Subscribers 600 755 740 580 725 560 710 540 695 520 680 665 500 650 480 635 460 620 Interim 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Results Weeks 2012 2010/11 2011/12 SKY Basic
Slide 29: Interim Results 2012
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Slide 30: Interim Results 2012
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Slide 31: FY12 Guidance
FY12 Guidance Analysts have the following mean forecasts for SKY : Analysts Previous (Oct 11) MEAN ($m) SKY Guidance ($m) EBITDA 340 335 ‐ 340 NPAT 126 120 ‐ 125 Capex 145 150 ‐ 160 Subscribers 858 860 Sky guidance is that we will be at the lower end of the range. Interim Results 2012
Slide 32: Interim Dividend
Interim Dividend The Board has declared a fully imputed interim dividend of 11.0 cps ($42.8m) to be paid and a supplementary dividend of 1.9412 to be paid to non-residents. Record date is 2 March 2012. Payment date is 9 March 2012. Interim Results 2012
Slide 33: Interim Results 2012
Interim Results 2012 |_——_| a
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