Sky Network Television Ltd · NZX:SKT

Sky Network Television — Shareholder Meeting (November 2008)

39 slides from Sky Network Television's shareholder meeting presentation, Nov 6, 2008

  1. Slide 1: Chairman's Address

    CHAIRMAN’S ADDRESS I am pleased to report that SKY generated highly satisfactory results in the year to 30 June 2008, achieving increased revenues and profits despite the For personal use only impact of the recession. Revenue increased $40.3 million to $658.8 million, a gain of 6.5% compared to the

  2. Slide 2: Chairman's Address (continued)

    definition television as part of a comprehensive 24 month plan to convert the television station from analogue to digital. I am pleased to be able to report that SKY has completed the upgrade of its For personal use only television station, replacing the old tape based technology with a server based

  3. Slide 3: Chairman's Address (continued)

    the launch of new channels every year, are all examples of SKY’s ongoing commitment to deliver more viewing options to New Zealanders. All this would not have been possible without the tremendous hard work For personal use only contributed by John Fellet, SKY’s management team and our employees and

  4. Slide 4: SKY Network Television Annual General Meeting 2008

    For personal use only SKY NETWORK TELEVISION ANNUAL GENERAL MEETING 2008

  5. Slide 5: CEO John Fellet

    For personal use only CEO JOHN FELLET

  6. Slide 6: SKY Highlights

    SKY Highlights For personal use only 1. 6 new channels - Crime & Investigation - Vibe - CNBC - SKY Movies Greats - SKY Sport Highlights - Fashion TV 2. SKY Online launched 3. SKY Sport Magazine 4. Netball World Champs Nov 2007 5. Inaugural ANZ Championship 6. Screen Enterprises (Fatso, DVD Unlimited

  7. Slide 7: Subscribers

    Subscribers For personal use only 750,000 700,000 650,000 600,000 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 UHF Satellite Whole

  8. Slide 8: Total Net Gain

    Total Net Gain For personal use only 50,000 45,000 48,102 Subscribe 40,000 43,941 42,566 35,000 39,642 37,365 30,000 33,711 25,000 20,000 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08

  9. Slide 9: Monthly Net Gain

    Monthly Net Gain For personal use only 10,000 9,000 Rugby World Cup 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 -1,000 -2,000 ay ug p ov b pr ec n ct n ar l Ju Se Fe Ju Ja O M M A N D A 2008 2007

  10. Slide 10: Weekly Net Gain

    For personal use only W -1,000 -500 0 500 1,000 1,500 2,000 ee k W 1 ee k W 2 ee k W 3 ee k W 4 ee k W 5 ee k W 6 ee k W 7 2009 ee k W 8 ee k W 9 ee k W 10 ee k W 11 Weekly Net Gain ee k W 12 2008 ee k W 13 ee k W 14 ee k W 15 ee k W 16 ee k W 17 ee k 18 Olympics

  11. Slide 11: Moving Annual Churn

    Jun-08 Dec-07 Jun-07 Dec-06 Jun-06 Moving Annual Churn Dec-05 Jun-05 Dec-04 Jun-04 Dec-03 Jun-03 Dec-02 Jun-02 Dec-01 Jun-01 Dec-00 Jun-00 Dec-99 Jun-99 Dec-98 Jun-98 32% 30% 28% 26% 24% 22% 20% 18% 16% 14% 12% 10% For personal use only

  12. Slide 12: 2008 Monthly Churn Split

    2008 Monthly Churn Split For personal use only 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% ay ug p ov b pr ec n ct ar n l Ju Se Fe Ju Ja O M M A N D A DBS (Satellite) UHF My Sky

  13. Slide 13: Weekly Churn

    For personal use only W 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% ee k 1 W ee k 2 W ee k 3 W ee k 4 W ee k 5 W ee k 6 W ee k 7 2009 W ee k 8 W ee k Weekly Churn W 9 ee k 10 W ee k 11 W ee k 2008 W 12 ee k 13 W ee k 14 W ee k 15 W ee k 16 W ee k 17

  14. Slide 14: Total ARPU

    Total ARPU For personal use only $63.00 $62.00 $61.00 $60.00 $59.00 $62.10 $58.00 $57.00 $56.00 $60.50 $NZ $55.00 $58.30 $54.00 $53.00 $56.86 $52.00 $51.00 $50.00 $54.55 $49.00 $51.83 $48.00 $47.00 2003 2004 2005 2006 2007 2008

  15. Slide 15: September Quarterly ARPU

    September Quarterly For personal use only ARPU $64.00 $63.00 $62.00 $63.18 $61.00 $60.00 $59.00 $60.50 $58.00 $57.00 $NZ $56.00 $55.00 $54.00 $53.00 $52.00 $51.00 $50.00 $49.00 $48.00 $47.00 2008 2009

  16. Slide 16: Additional Outlets

    Additional Outlets For personal use only 100,000 84,770 73,751 75,000 58,309 49,669 47,355 $NZ 50,000 41,598 25,000 0 2003 2004 2005 2006 2007 2008 UHF Satellte

  17. Slide 17: Advertising Revenue

    Advertising Revenue For personal use only $70 $60 $27 $23 $50 $NZ million $7 $40 $30 $40 $41 $20 $36 $40 $27 $10 $20 $0 2003 2004 2005 2006 2007 2008 Year End 30 June SKY PRIME

  18. Slide 18: Total Revenue

    Total Revenue For personal use only $700 $600 $500 $NZ million $400 $659 $300 $619 $549 $441 $492 $200 $391 $100 $0 2003 2004 2005 2006 2007 2008 Year End 30 June

  19. Slide 19: Programming Costs % Revenue

    Programming Costs % Revenue For personal use only 52% 50% 48% 46% 44% 42% 40% 38% 36% 34% 32% 43% 40% 30% 28% 34% 26% 32% 33% 32% 24% 22% 20% 2003 2004 2005 2006 2007 2008 Year End 30 June

  20. Slide 20: EBITDA

    EBITDA For personal use only $300.0 $250.0 $NZ million $200.0 $266.6 $150.0 $249.4 $247.7 $100.0 $219.9 $187.2 $150.8 $50.0 $0.0 2003 2004 2005 2006 2007 2008 Year End 30 June

  21. Slide 21: Satellite Impact

    Satellite Impact For personal use only Finance Lease 2007 2008 Interest 0.8 0 Depreciation 5.1 0 5.9 0 Operating lease (9 months in 2007) 18.8 24.6

  22. Slide 22: Net Profit/(Loss)

    Net Profit/(Loss) For personal use only $100.0 $90.0 $80.0 $NZ million $70.0 $60.0 $97.7 $50.0 $77.9 $60.2 $40.0 $74.5 $30.0 $35.3 $20.0 $10.0 $0.0 $0.7 2003 2004 2005 2006 2007 2008 Year End 30 June

  23. Slide 23: Capital Expenditure

    Capital Expenditure For personal use only $120 $100 $NZ million $80 $60 $119.5 $40 $86.1 $86.8 $81.4 $76.0 $57.4 $20 $0 2003 2004 2005 2006 2007 2008 Year End 30 June (excluding transponders and Prime assets)

  24. Slide 24: Dividend

    DIVIDEND For personal use only 14 12 10 8 cents 6 4 2 0 2006 2007 2008 Dividend CPS

  25. Slide 25: How appropriate is the level of gearing?

    How appropriate is the level of gearing? Ratio Too Ratio just Right Ratio Too For personal use only Low High Sky Network Ross Carmichael Singer (NZ) Pty Limited, April 2008

  26. Slide 26: Future

    For personal use only FUTURE

  27. Slide 27: For personal use only

    For personal use only

  28. Slide 28: MYSKY HDi

    MYSKY HDi For personal use only % HDi % % % % Churn Subs New Multiroom HD Ticket Upfront Budget 7.4%. 80,000 10% 45% 15% 15% FY09 YTD 08 4.7% 29,628 17% 48% 13% 16% Forecast 4.7% 80,000 10% 48% 13% 15% FY09

  29. Slide 29: MYSKY HDi Subscriber Mix

    MYSKY HDi Subscriber Mix For personal use only October 2008 •HDi ARPU forecast FY09 is Upfront 16% $81 (on target with plan) •HDi Revenues forecast FY09 MY SKY Migrants 25% $15m (vs plan of $17m) Paying 27% Campaign 32% 100%

  30. Slide 30: Viewer hours generated by subscriber per annum

    For personal use only 0 200 400 600 800 1000 1200 Dec-02 1400 Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Viewerhours Jun-04 Aug-04 Sport Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Movies Feb-06 Source: Nielsen TV Ratings, All New Zealanders 5+/SKY TV Apr-06 Jun-06 Aug-06 Oc

  31. Slide 31: Prime's Share

    Prime’s Share For personal use only 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% 3.00% Aug Sep Jan Feb Jun May Nov Dec Apr Mar Oct Jul 2005/06 2006/07 2007/08 Source: Nielsen TV Ratings, All New Zealanders 25-54 Peak

  32. Slide 32: Weekly Channel Share 2007/2008

    Weekly Channel Share 2007/2008 All Day For personal use only SKY Network increases this week to 30% share nationally. Prime increases this week to 6.1% share. All 5+ Nationally 2008 Beijing 50 TV1 TV2 TV3 C4 Prime SKY Olympic Games 45 40 35 30 % Shar 25 20 15 10 5 0 44 47 50 1 4 7 10 13 16 19 22 25

  33. Slide 33: Weekly Channel Share All Day

    Weekly Channel Share All Day 5+ Nationally For personal use only October October 2007 2008 Sky 24% 30% TVNZ 47.9% 43.2% Mediaworks 21.4% 18.9% Prime 5.7% 6.1%

  34. Slide 34: SKY Online

    SKY Online For personal use only Live streaming and content download via broadband internet Available now: •35 top Movies SKY Movies, MGM, Rialto •Cartoon Network •Discovery Channel •The Box •Air New Zealand Cup •200 sporting downloads Netball, Cricket, Rugby

  35. Slide 35: SKY's platforms

    SKY’s platforms For personal use only SKY UHF PRIME PRINT FTA TV SKY Telstra MOBILE TV CABLE SKY SKY.CO.NZ DTH MYSKY DVD SKY UNLIMITED ONDEMAND SKY ONLINE

  36. Slide 36: Leverage comprehensive infrastructure

    Leverage comprehensive infrastructure For personal use only EXCLUSIVE NEW SUBSCRIBER BASE TOP BRANDS MEDIA RIGHTS 750,000 700,000 650,000 600,000 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Ju

  37. Slide 37: Provide an integrated consumer experience

    Provide an integrated consumer experience For personal use only SKY UHF MARKETING PRIME PRINT FTA TV SKY TCL MOBILE TV CABLE CONTENT & TALENT SKY SKY.CO.NZ DTH TECHNOLOGY MYSKY DVD SKY UNLIMITED ONDEMAND SKY ONLINE

  38. Slide 38: FY09 Guidance

    FY09 Guidance For personal use only FY08a FY09f Revenue 659 695 - 705 EBITDA 267 265 - 275 Depreciation 78 90 – 95 Interest 44 40 NPAT 98 90 - 100 Capex 120 110 -120 NOTE FY09 Forecast includes: • Subscriber Net Gain forecast 30,000 • MY SKY HDi revenues $15m • HD fixed costs $6.5m • TV Station depr

  39. Slide 39: SKY Network Television Annual Results 2008

    For personal use only SKY NETWORK TELEVISION ANNUAL RESULTS 2008

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