Sky Network Television Ltd · NZX:SKT
Sky Network Television — Shareholder Meeting (October 2018)
33 slides from Sky Network Television's shareholder meeting presentation, Oct 18, 2018
Slide 1: Reaching Every Kiwi - Annual General Meeting 2018
For personal use only REACHING EVERY KIWI SKY NETWORK TELEVISION LIMITED Annual General Meeting 2018
Slide 2: John Fellet
For personal use only JOHN FELLET
Slide 3: Underlying Net Profit
25.0 UNDERLYING NET PROFIT For personal use only 20.0 Millions 15.0 10.0 119.3 116.3 05.0 00.0 2017 2018 SKY Network Television Limited | Annual General Meeting 2018 | 3
Slide 4: Operating Costs
0 OPERATING COSTS 0 For personal use only Millions 0 0 0 601.2 0 553.9 0 0 0 2017 2018 SKY Network Television Limited | Annual General Meeting 2018 | 4
Slide 5: Capital Expenditure
CAPITAL EXPENDITURE For personal use only Millions 128.8 79.7 58.2 2016 2017 2018 SKY Network Television Limited | Annual General Meeting 2018 | 5
Slide 6: Big Pacific
For personal use only Big Pacific ©2018 NHNZ Ltd.
Slide 7: Pre Tax Cashflow
PRE TAX CASHFLOW 204.1 For personal use only Millions 183.4 TAX PAYMENT TAX PAYMENT 2017 2018 © Photosport.nz © Photosport.nz SKY Network Television Limited | Annual General Meeting 2018 | 7
Slide 8: Net profit reconciliation: goodwill impairment
For personal use only 2017 2018 893.5 839.7 601.2 553.9 GOODWILL 292.3 105.1 285.8 102.4 IMPAIRMENT 19.6 51.3 17.5 46.6 116.3 119.3 0 360.0 116.3 (240.7) SKY Network Television Limited | Annual General Meeting 2018 | 8
Slide 9: Dividend
DIVIDEND For personal use only 2018 2017 2016 2015 2014 2013 2012 2011 2010 Interim 7.5 15.0 15.0 15.0 14.0 12.0 11.0 8.0 7.0 Final 7.5 12.5 15.0 15.0 15.0 12.0 11.0 10.5 7.0 Ordinary Total 15.0 27.5 30.0 30.0 29.0 24.0 22.0 18.5 14.0 Special 32.0 25.0 TOTAL 15.0 27.5 30.0 30.0 29.0 24.0 54.0 43.5 1
Slide 10: The Brokenwood Mysteries
For personal use only The Brokenwood Mysteries ©2018 South Pacific Pictures
Slide 11: Customers - June 2018
For personal use only 767,727 CUSTOMERS – JUNE 2018 100% NZ Reach Internet or no internet, we have New Zealand covered
Slide 12: Churn of Satellite Sky
CHURN OF SATELLITE SKY For personal use only 15.9% 15.4% 2017 2018 SKY Network Television Limited | Annual General Meeting 2018 | 12
Slide 13: Moving Annual Churn
MOVING ANNUAL CHURN 35.00% For personal use only 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Jun 98 Jun 18 SKY Network Television Limited | Annual General Meeting 2018 | 13
Slide 14: Revenue
REVENUE For personal use only 893.5 Millions 839.7 2017 2018 © Photosport.nz SKY Network Television Limited | Annual General Meeting 2018 | 14
Slide 15: ARPU from Sky Traditional Subscribers
ARPU FROM SKY TRADITIONAL SUBSCRIBERS For personal use only $83.48 $83.09 $81.67 $79.54 $77.52 $75.83 2013 2014 2015 2016 2017 2018 SKY Network Television Limited | Annual General Meeting 2018 | 15
Slide 16: Total ARPU
TOTAL ARPU For personal use only $79.54 $78.63 $78.82 $77.52 $76.34 $75.83 2013 2014 2015 2016 2017 2018 SKY Network Television Limited | Annual General Meeting 2018 | 16
Slide 17: Total Television Advertising Revenue
For personal use only -10% 10% 15% -5% 0% 5% Sep 10 Qtr Dec 10 Qtr Mar 11 Qtr Jun 11 Qtr Sep 11 Qtr Dec 11 Qtr Mar 12 Qtr Jun 12 Qtr Sept 12 Qtr Dec 12 Qtr Mar 13 Qtr Jun 13 Qtr Sept 13 Qtr Dec 13 Qtr Mar 14 Qtr Jun 14 Qtr (YOY Quarterly change) Sept 14 Qtr Dec 14 Qtr Mar 15 Qtr Jun 15 Qtr Sept 15 Q
Slide 18: Advertising Revenue
ADVERTISING REVENUE For personal use only Millions 24.7 26.4 27.3 24.3 21.4 18.0 45.2 49.3 46.7 41.6 43.2 39.0 2013 2014 2015 2016 2017 2018 SKY Prime SKY Network Television Limited | Annual General Meeting 2018 | 18
Slide 19: Programming Costs % Revenue
PROGRAMMING COSTS For personal use only % REVENUE 39% 39% 2017 2018 SKY Network Television Limited | Annual General Meeting 2018 | 19
Slide 20: A World Class Sports Offering
For personal use only RUGBY CRICKET A WORLD CLASS TENNIS GOLF FOOTBALL SPORTS OFFERING LEAGUE NETBALL SKY Network Television Limited | Annual General Meeting 2018 | 20
Slide 21: Viewership on Sky NZ
VIEWERSHIP ON SKY NZ For personal use only 2017/18 0.24% 0.01% 0.37% SKY Network Television Limited | Annual General Meeting 2018 | 21
Slide 22: For personal use only
For personal use only
Slide 23: Our Strategy
OUR STRATEGY For personal use only WORLD CLASS CONTENT THAT MATTERS OUR STRATEGY OUR UNDERSTANDING CUSTOMERS AND DELIVERING GREAT EXPERIENCES MULTIPLE PROPOSITIONS AND PRICES
Slide 24: Understanding Our Customers
UNDERSTANDING OUR CUSTOMERS WATCH IT YOUR WAY AND DELIVERING GREAT EXPERIENCES For personal use only
Slide 25: Our Strategy
OUR STRATEGY For personal use only STABILISE CORE WORLD CLASS CONTENT THAT EARNINGS MATTERS UNDERSTANDING OUR ADD PROFITABLE CUSTOMERS AND DELIVERING INCREMENTAL GREAT EXPERIENCES CUSTOMERS MULTIPLE PROPOSITIONS AND PRICES TRANSITION TO VOD CENTRIC WORLD
Slide 26: Recent Deals
RECENT DEALS NEAR SPORT KIWIS For personal use only • UK Super League • Australian Open LOVE & Tennis • French Top 14 • Roland Garros • Guinness Pro 14 • US Open Golf ACCESS TO THE • Moto GP BEST WIDE • FIM Speedway • UCI Cycling ENTERTAINMENT • NASCAR • Le Mans CONTENT • UEFA Champions League • Wor
Slide 27: Increase in Drama
For personal use only INCREASE IN DRAMA
Slide 28: Black Ferns November 2018 Tour
For personal use only BLACK FERNS Chicago, USA Tripleheader at Soldier Field 4th November 2018 NOVEMBER 2018 Toulon, France Stade Felix Mayol TOUR 9th November 2018 Grenoble, France Stade des Alpes 17th November 2018 SKY Network Television Limited | Annual General Meeting 2018 | 28 © Photosport.nz
Slide 29: Maori All Blacks November 2018 Tour
MAORI ALL For personal use only BLACKS Chicago, USA NOVEMBER 2018 Tripleheader at Soldier Field 4th November 2018 TOUR Brazil, South America 11th November 2018 Chile, South America 18th November 2018 SKY Network Television Limited | Annual General Meeting 2018 | 29 © Photosport.nz
Slide 30: All Blacks End of Year Tour
ALL For personal use only BLACKS Tokyo, Japan Ajinomoto Stadium 3rd November 2018 Twickenham, London Twickenham Stadium 10th November 2018 “END OF YEAR 2018 Dublin, Ireland Aviva Stadium TOUR” 17th November 2018 Rome, Italy Olimpico Stadio SKY Network Television Limited | Annual General Meeting 2018
Slide 31: For personal use only
For personal use only Tt a Rye NEW ZEALAND ws SL, aw.
Slide 32: Our Staff Have Produced Over Local Broadcasts
For personal use only OUR STAFF HAVE PRODUCED OVER 400 LOCAL BROADCASTS IN THE PAST YEAR 15 SEPTEMBER 2018 - WAS OUR BUSIEST DAY 295 CREW WORKING 6 LIVE EVENTS = 20 HOURS LIVE TV ALL LOCAL SPORT ALL ON SKY IN ONE DAY #SKYCREW
Slide 33: Reaching Every Kiwi
For personal use only REACHING EVERY KIWI SKY NETWORK TELEVISION LIMITED Annual General Meeting 2018
Sky Network Television — Shareholder Meeting (October 2018) on 6ix