Sky Network Television Ltd · NZX:SKT
Sky Network Television — H1 FY2014 Earnings Presentation
39 slides from Sky Network Television's earnings presentation, Feb 24, 2014
Slide 1: Interim Results December 2013
For personal use only INTERIM RESULTS DECEMBER 2013 |
Slide 2: Subscribers
For personal use only SUBSCRIBERS
Slide 3: The Interim Position
THE INTERIM POSITION For personal use only Dec 2012 Dec 2013 % Change Residential - Digital 264.8 198.6 -25.0% Residential - MYSKY 424.0 486.3 14.7% Wholesale 130.2 135.4 4.0% Commercial & Other 28.0 36.9 31.8% TOTAL SUBSCRIBERS 847.0 857.1 1.2% |
Slide 4: The SKY Journey So Far
For personal use only Subscribers in Thousands 0 100 200 300 400 500 600 700 800 900 | Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 UHF Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Std SKY Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 THE SKY JOURNEY SO FAR Jun-05 Jun-06 Dec-06 Wholesale SKY Jun-07 Dec-07 Jun-08 Dec
Slide 5: Net Gain by Month
NET GAIN BY MONTH For personal use only 30 Thousands 25 20 2009 2010 15 2011 10 2012 2013 5 2014 0 5 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun |
Slide 6: Products
For personal use only PRODUCTS
Slide 7: SKY Premium Products
SKY PREMIUM PRODUCTS HD Access Ticket For personal use only 2.95 Millions 2.9 2.85 2.8 2.75 2.7 2.65 Dec-12 Dec-13 |
Slide 8: Total ARPU
TOTAL ARPU For personal use only $80.00 $77.51 $75.78 $75.00 $71.81 $70.00 $69.45 $67.35 $65.00 $63.49 $60.00 $55.00 $50.00 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 |
Slide 9: Churn
For personal use only CHURN
Slide 10: Churn: Moving Annual
For personal use only 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% | Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 MOVING ANNUAL Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-1
Slide 11: Churn: Monthly Device
CHURN MONTHLY DEVICE For personal use only 1.5% 1.7% 1.6% 1.4% 1.5% 1.3% 1.4% 1.2% 1.3% 1.2% 1.1% 1.1% 1.0% 1.0% 0.9% 0.9% 0.8% Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 0.8% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2011 2012 2013 2014 MYSKY SKY |
Slide 12: Financial Graphs
For personal use only FINANCIAL GRAPHS
Slide 13: Revenue
REVENUE For personal use only Millions 1000 900 800 885 843 700 797 742 600 659 692 500 400 300 200 443 456 100 0 2008 2009 2010 2011 2012 2013 Interim 2014 |
Slide 14: Advertising Revenue
ADVERTISING REVENUE For personal use only Millions 80 70 67 67 68 60 63 58 50 54 40 30 20 38 35 10 0 2008 2009 2010 2011 2012 2013 Interim 2014 |
Slide 15: Total Television Advertising Revenue
For personal use only -5% 0% -20% -15% -10% 5% 10% Jun 08 Qtr 15% Sep 08 Qtr | Dec 08 Qtr Mar 09 Qtr (YOY QUARTERLY CHANGE) Jun 09 Qtr Sep 09 Qtr Dec 09 Qtr Mar 10 Qtr Jun 10 Qtr 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
Slide 16: Programming Costs % Revenue
PROGRAMING COSTS % REVENUE For personal use only 32% 33% 33% 33% 32% 32% 32% 30% 30% 28% 26% 24% 22% 20% 2008 2009 2010 2011 2012 2013 Interim 2014 |
Slide 17: EBITDA
EBITDA For personal use only Millions 353.1 336.0 321.7 287.5 266.6 261.0 177.5 190.4 2008 2009 2010 2011 2012 2013 Interim 2014 |
Slide 18: Net Profit
NET PROFIT For personal use only Millions 160 140 137.2 120 120.3 123.7 100 103.0 97.7 80 88.1 60 40 82.1 67.4 20 0 2008 2009 2010 2011 2012 2013 Interim 2014 |
Slide 19: Financial Detail
For personal use only FINANCIAL DETAIL
Slide 20: Interim Results Summary
INTERIM RESULTS SUMMARY For personal use only 2012 2013 % Change Revenue 443.3 456.4 3.0% Operating Expenses 266.2 266.0 (0.1%) EBITDA 177.1 190.4 7.4% Depn & Amort 67.6 61.8 (8.6%) EBIT 109.5 128.6 17.4% Interest 15.9 14.4 (9.4%) Tax 26.3 32.1 22.1% Non-Controlling Interest -0.8 -1.4 75.0% NET PROF
Slide 21: Revenue Analysis
REVENUE ANALYSIS For personal use only 2012 2013 % Change Residential Satellite 363.3 371.8 2.3% subscriptions Other subscriptions 31.0 31.7 2.3% Installation 4.7 4.3 (8.5%) Advertising 35.3 37.6 6.5% Other Income 9.0 11.0 22.2% TOTAL REVENUE 443.3 456.4 3.0% |
Slide 22: Expense Analysis
EXPENSE ANALYSIS For personal use only 2012 2013 % Change Programming rights 118.0 110.8 (6.1%) Programme operations 33.2 26.9 (19.0%) Subscriber management 30.9 33.1 7.1% Sales and marketing 16.5 20.4 23.6% Advertising 10.7 11.7 9.3% Broadcasting and 43.6 44.3 1.6% infrastructure Depreciation and 6
Slide 23: Capital Expense Analysis
CAPITAL EXPENSE ANALYSIS For personal use only 2012 2013 % Change Install 20.8 18.7 (13.5%) Decoders 12.8 9.5 (25.8%) Building Improvements 0.1 0.1 0.0% Broadcasting and 2.4 4.1 70.8% Technology equipment Other 7.0 15.2 117.1% TOTAL CAPITAL EXPENSE 43.1 47.6 10.4% |
Slide 24: Operating Cashflow
OPERATING CASHFLOW For personal use only 2012 2013 % Change Operating Cashflow 150.8 155.7 3.2% Capex (43.0) (47.6) 10.7% Net debt drawn/(repaid) 90.0 (45.0) (75.9%) Dividends (174.0) (51.8) (70.2%) Other (2.2) (2.2) 0.0% NET CASH MOVEMENT 21.6 9.1 (57.9%) |
Slide 25: Funding Profile
FUNDING PROFILE For personal use only FACILITY DRAWN MARGIN MATURITY Bank Debt $400m $227m 180bp Jul 2018 Bond $200m $200m 65bp Oct 2016 SKY is considering offering a BOND to the value of $100m |
Slide 26: Dividend
DIVIDEND For personal use only The Board has declared a fully imputed final dividend of 14.0 cps ($54.5m) to be paid and a supplementary dividend of 2.4706 to be paid to non- residents. Record date is 10 March 2014. Payment date is 17 March 2014. 2014 2013 2012 2011 2010 2009 2008 Interim 14.0 12.0
Slide 27: SKY Highlights
For personal use only SKY HIGHLIGHTS
Slide 28: For personal use only
For personal use only
Slide 29: For personal use only
The Bourne Legacy (m) An original story that introduces us to a new hero whose life-or-death stakes have been triggered by the events of the first three films. The Lord of the Scott Pilgrim vs th The Avengers Madagascar 3: Rings: The Return of | World (M) SKY Movies Europes Most the King (M) SKY Mov
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For personal use only
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Slide 32: Winter Olympics 2014
WINTER OLYMPICS 2014 SKY HOMES VIEWERHOURS For personal use only 2014 YTD 2010 YTD
Slide 33: Viewerhours
VIEWERHOURS For personal use only AVERAGE AUDIENCE OF 113,000 TUNED IN TO WATCH WARRIORS WARRIORS DAY 1 DAY 2
Slide 34: Cricket World Cup 2015
”* Fa SZ (ICC @ CRICKET WORLD NA W \ 2015
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For personal use only
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For personal use only
Slide 37: Glasgow 2014 Commonwealth Games
GLASGOW 2014 XX COMMONWEALTH GAMES ———a XW
Slide 38: Guidance
GUIDANCE Analysts’ have the following mean FY14 forecasts for SKY: For personal use only Oct Analysts New Guidance Mean Guidance $m Revenue 890-900 905 895-905 EBITDA 355-360 360 360-370 Depreciation 115-120 120-125 NPAT 145-155 153 155-160 Capex 100-120 108 100-110 Subscribers – SKY 10 8.6 10 IGLOO
Slide 39: Interim Results December 2013
For personal use only INTERIM RESULTS DECEMBER 2013
Sky Network Television — H1 FY2014 Earnings Presentation on 6ix