Sky Network Television Ltd · NZX:SKT
Sky Network Television — FY2026 Earnings Presentation
36 slides from Sky Network Television's earnings presentation, Aug 28, 2026
Slide 1: Sky Network Television FY26 Results Presentation
Sky Network Television FY26 Results Presentation For the year ended 30 June 2026 28 August © SKY 20212026
Slide 2: Agenda
Agenda ‣ Results highlights ‣ Financial and operational performance ‣ Outlook, guidance and capital management ‣ Looking ahead ‣ Questions
Slide 3: A year of strategic wins and strong financial performance
Result Highlights A year of strategic wins and strong financial performance Strong financial performance achieved in a difficult market delivers EBITDA1 growth Strengthened Sports portfolio with key sports locked in through expanded, longer term deals. Refreshed entertainment strategy and conten
Slide 4: Financial Highlights
Financial Highlights Strong results delivered by a match fit team • Revenue1 up 9%, driven by contribution from $826.1m +9% $157.0m +6% Sky Free and continued growth in Broadband and Streaming UNDERLYING REVENUE1 UNDERLYING EBITDA1 FY26 Sky Standalone: $748.9m (1%) FY25: $148.5m • EBITDA1 up 6% and
Slide 5: Three-year targets largely achieved
Three-year targets largely achieved Proven ability to drive margin despite challenging economy FY26 Year 3 Year 2 Year 1 3-Year Comments Target FY261 FY251 FY24 status - 3 Revenue Growth2 1-2% pa . 1 -0.8% -1.5% +1.6% Not yet where we planned on a stand alone basis % - Programming Costs to 0 47% - 4
Slide 6: Financial and operational performance
Financial and operational performance P6 © SKY 2024
Slide 7: Key Drivers of EBITDA improvement
Key Drivers of EBITDA1 improvement 6% increase in underlying EBITDA driven by revenue uplift and focus on costs EBITDA1 MOVEMENTS (UNDERLYING) ($m) • Growth in underlying EBITDA of 6% reflects: 71.0 - Incremental revenue contribution from Sky Free -1.5 in the first 11-months of ownership -7.9 -5.6 -
Slide 8: Revenue
Revenue1 9% increase in underlying Revenue as Sky Free adds diversity and scale REVENUE MOVEMENTS (UNDERLYING1) ($m) • 9% increase in underlying Revenue was driven by the Sky Free acquisition, with a modest net reduction for 74.6 1.0 826.1 Sky standalone of (0.8%) with improving trend in H2 755.1 10
Slide 9: Sky Box customer retention continues to improve
REVENUE Sky Box customer retention continues to improve CUSTOMERS (000) UNDERLYING REVENUE ($m) & ARPU1 • Sky Box customer retention continued to improve 510 499 515 with annualised churn of 10.2% the lowest since 470 446 479 448 422 FY22 acting to slow customer and revenue decline $83 $84 $85 • Tak
Slide 10: Sky Sport Now revenue grows by 13%
REVENUE Sky Sport Now revenue grows by 13% REVENUE ($m) & ARPU1 CUSTOMERS1,2 (000) • Revenue growth of 13% was driven by 9% customer 76 growth, price increases, and incremental revenue 159 68 146 from day pass sales 58 125 44 $48 113 • Removal of weekly pass in Jan 2025 contributed to $45 31% increa
Slide 11: Neon revenue increases 2% through H2 rebound
REVENUE Neon revenue increases 2% through H2 rebound REVENUE ($m) & ARPU1 CUSTOMERS (000) • Neon’s customer base rebounded 17% in the second 57 52 51 52 half of FY26 (from 215k in H1), delivering 5 consecutive 318 months of customer growth 258 259 252 $18 • Revenue and ARPU uplift included a 20% inc
Slide 12: Broadband delivers double digit revenue and customer growth
REVENUE Broadband delivers double digit revenue and customer growth REVENUE ($m) & ARPU CUSTOMERS (000) 47 59 • Broadband revenue growth of 28% reflects 15% higher average customer numbers in a competitive 51 37 market 28 36 • APRU increased 1.4% to $71.32 through a $5 price 20 26 increase in Oct 20
Slide 13: Advertising Revenue 131% higher through acquisition
REVENUE Advertising Revenue 131% higher through acquisition REVENUE ($m) ADVERTISING NOW 16% OF TOTAL REVENUE (FROM 8%) • Significant revenue growth reflects 11 months of Sky 132 Free ownership and modest growth from Sky standalone, a positive result given FY25 included 28 16% revenue related to Par
Slide 14: Programming cost reduction contains expanded business cost base
Operating Expenses Programming cost reduction contains expanded business cost base OPERATING EXPENSES (UNDERLYING1) ($m) • Lower programming costs in the Standalone business and above plan delivery of year one group synergies 3.9 670.3 limited the total cost increase to 10% following 17.1 26.4 acqui
Slide 15: Capital Expenditure: Returned to a lower, more normal profile
Capital Expenditure Returned to a lower, more normal profile CAPITAL EXPENDITURE ($m) CAPEX TO REVENUE % 83 78 SKY STANDALONE: • Underlying capex spend reduced 9% to $59.1m due to: 77 0 5 • Lower spend on customer equipment 7.5% 13 64 • Early replacement of transmission equipment in 4 FY25 to suppor
Slide 16: Cash Flow: Increased free cash flow
Cash Flow Increased free cash flow CASH FLOW ($m) • The core business generated $55.1m of free cash flow, 145 up 122% from $24.8m in FY25 • Free cash flow benefitted from improved earnings, lower capex, no tax payments, and favourable working capital movements, partially offset by higher lease princ
Slide 17: Three year dividend target exceeded: 113% growth since FY23
Dividends Three year dividend target exceeded: 113% growth since FY23 $m FY26 DELIVERING DIVIDEND GROWTH (cps) 32.0 FY26 Free Cash Flow $55.1 Add backs for one-off items: 22.0 19.0 17.0 Sky Free integration incl capex $17.3 15.0 Organisational Change $4.2 13.5 Optus Customer credits and capex $2.3 1
Slide 18: Outlook, guidance and capital management
Outlook, guidance and capital management Results Presentation For the year ended 30 June 2026
Slide 19: Outlook and FY27 Guidance Update
Outlook and FY27 Guidance Update Outlook • Trading conditions continue to be challenging in the first $m FY27 guidance1 half FY27 and economic recovery remains uncertain • Optimisation opportunities remain a focus in FY27 following the successful integrations of Sky Free with Revenue 825 – 840 furth
Slide 20: 10% p.a. dividend growth target through to FY29, and paid quarterly
CAPITAL MANAGEMENT: 10% p.a. dividend growth target through to FY29, and paid quarterly SKY’S APPROACH TO CAPITAL ALLOCATION: Net cash from operations 10% p.a. dividend growth target from FY27 - FY29 and paid quarterly Capital expenditure Our policy is to distribute 60 – 90% of normalised free cash
Slide 21: Looking ahead: Beyond FY27
Looking ahead Beyond FY27 © SKY 2021
Slide 22: Our growth ambition to FY31
Our growth ambition to FY31 Informed by the growth opportunities identified to date: Aligned ambition to grow revenue significantly by FY31 20 – 30% of revenue to come from non-subscription sources Remaining focused on margin expansion, earnings growth, and disciplined capital management Planned del
Slide 23: Confidence in Sky's growth ambition is driven by
Confidence in Sky’s growth ambition is driven by: Match fit team with demonstrated ability to drive margin and free cash flow, despite revenue pressure Strategic, long-term sports rights secured Flexible, audience-led entertainment strategy with diversified studio relationships Greater audience scal
Slide 24: Sky's unrivaled position in Sport is stronger than ever
CONTENT: Sky’s unrivaled position in Sport is stronger than ever • Secured the strategically-important rights deals for key sports for the longer term, enabled by our strong financial position and with renewals staggered • Compelling, premium sport bundle, with value not built around one code or one
Slide 25: If you're a sports fan, or a sport partner, there is simply no better place
CONTENT: If you’re a sports fan, or a sport partner, there is simply no better place to be • Unmatched, year-round calendar of local and global sporting action across multiple codes and competitions – with the average fan following multiple sports • We go ‘beyond the whistle’, showcasing compelling
Slide 26: Refreshed Entertainment strategy to control our destiny
CONTENT: Refreshed Entertainment strategy to control our destiny • Refreshed multi-studio strategy reduces supply risk, increases access and creates agility • Audience-led and data-driven steady drumbeat of quality content • Acquiring content across both free and paid enhances flexibility and increa
Slide 27: Local content and curation delivers for our audiences
CONTENT Local content and curation delivers for our audiences • Sky and Three commissioned titles up more than 150% in FY26, supported by NZ on Air funding • 81% of New Zealanders like seeing ourselves on screen1 • Increasing presence in news through partnerships, as an essential media business play
Slide 28: We're reaching more New Zealanders than ever before
AUDIENCE: We’re reaching more New Zealanders than ever before • Delivering more choice across paid and free, broadcast and digital and via social media • Able to optimise and monetise content across a wider product set/ecosystem • Advertisers able to connect through a single integrated offering STRE
Slide 29: Sky's digital transition is well advanced
DIGITAL: Sky’s digital transition is well advanced • 70% of paid customers access Sky content via digital (including 41% via new Sky Box) • ThreeNow scale in fast-growing BVOD1. extends reach to new and more diverse audiences as does 4.1 million social media followers (up 52% since FY25). • Increase
Slide 30: Leading to: One audience-led, connected Sky ecosystem
Leading to: One audience-led, connected Sky ecosystem, enabled by data and technology, with less cost and complexity UNDERPINNED BY: Our Purpose: to share stories, share possibilities, and to share joy Our Enduring Commitment: to be a sustainably profitable, Aotearoa NZ-focused business Results Pres
Slide 31: Questions
Questions © SKY 2021
Slide 32: Appendix
Appendix Appendix Results Presentation For the year ended 30 June 2026
Slide 33: Financial Performance
Financial Performance din • Underlying EBITDA improved 5.8% and underlying FY26 FY25 % change FY26 FY25 NPAT was up 1.8% FY25. $m 1 1 Underlying Underlying Underlying 1 Statutory Statutory Revenue 826.1 755.1 9.4% 824.8 750.7 • Statutory Other Income includes a $31.4m gain on bargain purchase (revis
Slide 34: Summary of Adjustments
Summary of Adjustments din Non-recurring items (largely Sky Free acquisition1 and Optus satellite migration) have been adjusted to allow a like for like comparison of underlying performance $m FY26 Description FY25 Revenue $1.2m Optus: Customer credits $4.4m Optus: Customer credits Sky Free: ($31.4m
Slide 35: Reconciliation of Underlying Expenses
Reconciliation of Underlying Expenses din Table of underlying expenses1 by category (restated): $m H1FY25 H2FY25 FY25 H1FY26 H2 FY26 FY26 Programming Costs 210.3 176.7 386.9 202.4 192.4 394.8 Broadcasting & Infrastructure 49.3 51.8 101.1 62.3 65.1 127.5 Subscriber Related 38.7 32.7 71.3 37.0 39.9 77
Slide 36: 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 is current only at the date of
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