Sky Network Television Ltd · NZX:SKT

Sky Network Television — FY2025 Earnings Presentation

32 slides from Sky Network Television's earnings presentation, Aug 22, 2025

  1. Slide 1: Sky Network Television Results Presentation

    Sky Network Television Results Presentation For the year ended 30 June 2025 22 August 2025 © SKY 2021

  2. Slide 2: Agenda

    Agenda ‣ FY25 Overview ‣ Operational Performance ‣ Financial Performance ‣ Capital Management ‣ Acquisition update ‣ Outlook and Guidance ‣ Questions © SKY 2021

  3. Slide 3: Financial Summary

    Financial Summary Results delivered within guidance REVENUE (Adj1 ) EBITDA (Adj1) HIGHLIGHTS $755.1m $148.5m  Successfully completed complex migration to a new satellite and other FY24: $766.7m -1.5% FY24: $153.0m -3.0% significant projects NPAT (Adj1) FREE CASH FLOW2  Despite economic headwinds a

  4. Slide 4: Delivery against 3-year targets

    Delivery against 3-year targets Focus maintained in the face of satellite migration disruption; Firmly on track to deliver FY26 dividend target of 30 cps • FY25 performance in Capex as a FY26 Year 2 Year 1 3-Year percentage of Revenue and Employee Target FY251 FY24 status Engagement categories is al

  5. Slide 5: Revenue Bridge

    Revenue Bridge1 Growth in Streaming, Broadband, and Advertising, partially offset softness in Sky Box in a challenging period; Revenue diversity expands REVENUE BRIDGE1 ADJUSTED REVENUE1 ($m) 766.7 767 755 754 3.5 21 22 18 9.4 47 54 57 (0.6) 755.1 53 55 20 28 54 (3.6) 37 9.5 103 110 119 (28.7) (1.1)

  6. Slide 6: EBITDA Bridge

    EBITDA Bridge1 Disciplined cost management softened the EBITDA impact of revenue headwinds 153.0 7.3 8.3 2.8 148.5 • Adjusted FY25 EBITDA reduced as revenue pressure and investment in growth outpaced the impact of disciplined (11.6) cost control efforts. (11.3) • $15.6m benefit from lower programmin

  7. Slide 7: Sky's Supercharged Multi-Platform Strategy

    Sky’s Supercharged Multi-Platform Strategy TOTAL AUDIENCE SUBSCRIPTION FREE TO AIR REACH1 DIGITAL SKY POD 1.2 million Sport and Entertainment NEW SKY BOX Content LINEAR 2.2 million CLASSIC SKY BOX Results Presentation For the year ended 30 June 2025 1. Digital – Nielsen CMI AP15+. Weekly. Linear TV

  8. Slide 8: Sky's sport content is unrivalled

    Sky’s sport content is unrivalled No one else comes close to offering the quality and depth of year-round local and international sport – all the ‘headline grabbing’ content is on Sky Disciplined content strategy drives investment decisions, guided by powerful viewership data New partnerships includ

  9. Slide 9: Entertainment content enhances the value of the bundle

    Entertainment content enhances the value of the bundle Quality and breadth that keeps customers engaged Strong content line up from multiple global and local partners and Sky Originals productions Refreshed Entertainment strategy creates greater flexibility to secure and curate content that resonate

  10. Slide 10: Operational Performance

    Image update Operational Performance © SKY 2021

  11. Slide 11: Sky Box and Sky Pod

    Sky Box and Sky Pod Notwithstanding economic headwinds and satellite migration disruption, Acquisitions were stable and Disconnections improved SKY BOX ACTIVATIONS / DISCONNECTIONS (000) DISCONNECTS 17 IMPROVED • Activations stable at 21k, an impressive result in a challenging period, and with heavi

  12. Slide 12: Sky Box and Sky Pod

    Sky Box and Sky Pod New Sky Experience reaches 37% of customers; revenue softens ADJUSTED SKY BOX /POD REVENUE1 ($m) AND ARPU2 510 499 470 NEW DEVICE • New Sky Experience expands to 167k customers (148k Box / 18k Pod). $84.19 $83.09 CUSTOMERS $81.05 Total new devices in use, including multiroom rise

  13. Slide 13: Streaming – Sky Sport Now

    Streaming – Sky Sport Now Another year of double-digit Revenue growth and strong audience engagement SKY SPORT NOW REVENUE ($m) AND ARPU1 68 58 RECURRING SUBS Increase • Reconfigured subscription model to remove weekly passes (Jan 25), $44.74 44 delivering good growth in recurring monthly subscripti

  14. Slide 14: Streaming - NEON

    Streaming - NEON Steady performance with product mix growth in Basic with Ads tier NEON REVENUE ($m) AND ARPU 57 RECURRING 52 51 SUBS Increase • Subscriber base delivered modest growth of 0.4%. Unique viewers $16.65 were up 6% in the second half +0.4% $15.05 $15.57 • Product mix shift continues 18 m

  15. Slide 15: Advertising

    Advertising Revenue and Market share gains continue; Digital growing rapidly ADVERTISING REVENUE ($m) 57 60 54 47 1 5 50 REVENUE GROWTH • Delivered 7% revenue growth1 including strong digital growth to $5.1m 40 or 9% of Total Ad Revenue compared to $0.7m or 1% in FY24 through 30 47 53 52 +7% progres

  16. Slide 16: Advertising (cont.) Commercial

    Advertising (cont.) Commercial Market trends support digital growth Stable performance a solid result DIGITAL VIDEO MARKET ($M) Expected inflection – digital COMMERCIAL REVENUE ($m) forecast to exceed linear 53 55 54 500 Sky enters 447 market 381 400 324 283 STREAMING TV 300 256 MARKET CAGR 212 226

  17. Slide 17: Sky Broadband

    Sky Broadband Surpassed 50k customer milestone following acceleration of customer growth BROADBAND REVENUE1 ($m) AND ARPU 37 REVENUE GROWTH • 34% Revenue growth achieved through successful campaigns as 28 customers seek value 20 $72.14 $75.05 +34% • 10% bundled attachment to Sky Box customers and co

  18. Slide 18: Financial Performance

    Image update Financial Performance © SKY 2021

  19. Slide 19: Financial Performance

    Financial Performance din Solid performance with all underlying results within Guidance FY25 FY25 % change Within $m FY24 (adjusted) (reported) (adjusted) Guidance • All metrics delivered within revised guidance  provided in February 2025 Revenue 755.1 750.7 766.7 -1.5% • Revenue result reflects ec

  20. Slide 20: Summary of adjustments

    Summary of adjustments To enable a like for like comparison of Sky’s underlying results $m Description • $4.4m Revenue impact of satellite migration (see next slide) Revenue and Other Income (0.5) • ($4.9m) one-off, non-cash benefit to Other Income resulting from a modified (shortened) lease term on

  21. Slide 21: Project Migrate

    Project Migrate Expected to be largely cash neutral by the end of FY26 $m FY24 FY25 FY26(E) Total Description • Includes technology and software infrastructure, capitalised installation costs from customer tech visits, dish hardware and equipment Capex costs (4.5) (13.2) (2) – (4) (19.7) – (21.7) •

  22. Slide 22: Expenses

    Expenses Disciplined cost management and strong focus on margin remain ADJUSTED OPERATING EXPENSES1 ($m) COST BASE 609 614 609 REDUCTION • Programming costs reduced by $7m, with savings achieved through data driven content renewal and acquisition choices, continued 52 80 55 87 53 -0.8% optimisation

  23. Slide 23: Capital Expenditure

    Capital Expenditure Adjusted capex as a percentage of revenue returned to 7-9% target range following a period of accelerated investment CAPITAL EXPENDITURE ($m) CAPEX1 TO • Adjusted capex as a percentage of revenue returned to the 7-9% 83 77 5 78 REVENUE target range following a period of accelerat

  24. Slide 24: Free Cash Flow

    Free Cash Flow Strong free cash flow generation despite challenging economic climate and cash impacts of satellite migration CASHFLOW BRIDGE FY24 - FY25 ($m) • Reported net cash from operations was strong at $120m, albeit lower than FY24 due to working capital movements and costs 3 associated with s

  25. Slide 25: Capital Management Update

    Capital Management Update Dividend growth continues through delivery of sustainable free cash flow Delivering Dividend Growth (cps) 30.0 $m FY25 22.0 FY25 Free Cash Flow1 $24.8 19.0 15.0 Add back: one-off satellite migration $21.5 13.5 12.0 impacts, transformation costs and M&A 9.0 transaction cash

  26. Slide 26: Sky Free (formerly Discovery NZ) acquisition update

    Sky Free (formerly Discovery NZ) acquisition update FY26 cashflow and future EBITDA impacts as referenced in transaction announcement FY26 PROFORMA UNDERLYING FREE CASH FY28 ASSUMED • FY26 revenue impact expected to be c. $85 million, noting FLOW IMPACT1 ($m) INCREMENTAL GROUP 11 month contribution

  27. Slide 27: Looking Ahead

    Looking Ahead © SKY 2021

  28. Slide 28: Outlook and FY26 Guidance

    Outlook and FY26 Guidance At this time we are guiding for ‘stand-alone’ Sky only – with an update for Sky Free (formerly Discovery NZ) to be provided at HY26 following PPA process FY26 guidance Sky • Revenue guidance reflects ongoing economic challenges, which are $m expected to continue at least th

  29. Slide 29: Share stories. Share possibilities. Share joy.

    OUR PURPOSE Share stories. Share possibilities. Share joy. OUR AMBITION To be Aotearoa NZ’s most engaging and essential media company STRATEGIC PATHWAYS Making Sky a Giving customers Meeting Giving customers Providing innovative great place to content they customers the experience solutions for our

  30. Slide 30: FY26 priorities provide the runway to accelerate growth

    FY26 priorities provide the runway to accelerate growth FY26 Priorities FY26 1. Grow crew engagement G Strategic Priorities 2. Supercharge new Sky Experience Accelerating 3. Deepen content engagement our growth from FY27 4. Accelerate advertising Successful Successful integration integration Results

  31. Slide 31: Questions

    Questions © SKY 2021

  32. Slide 32: Disclaimer

    Disclaimer This presentation has been prepared by Sky Network Television Limited and its group of companies (“the Company”) for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. Information in this presentation has been p

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