Sky Network Television Ltd · NZX:SKT
Sky Network Television — FY2009 Earnings Presentation
35 slides from Sky Network Television's earnings presentation, 2009
Slide 1: Sky Network Television Annual Results 2009
SKY NETWORK TELEVISION ANNUAL RESULTS 2009
Slide 2: John Fellet, CEO
JOHN FELLET CEO
Slide 3: Subscribers
Subscribers 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 UHF Satellite Wholesale My SKY
Slide 4: Total Net Gain
Total Net Gain 48,102 42,566 43,941 37,365 30,326 2005 2006 2007 2008 2009
Slide 5: Total Net Gain
Total Net Gain 5,380 31,985 30,326 2008 2009 SKY Net Gain Fatso
Slide 6: Subscriber Growth
Subscriber Growth ‘000 2008 2009 % Change UHF Residential 31.1 22.8 (26.7%) DBS (Satellite) Residential 578.1 623.6 7.9% DBS Wholesale 120.2 111.3 (7.4%) Commercial/Other 19.2 21.3 10.9% Total Subscribers 748.6 779.0 4.1%
Slide 7: Moving Annual Churn
1/06/2009 1/02/2009 1/10/2008 1/06/2008 1/02/2008 1/10/2007 Moving Annual Churn 1/06/2007 1/02/2007 1/10/2006 1/06/2006 1/02/2006 1/10/2005 1/06/2005 1/02/2005 1/10/2004 1/06/2004 1/02/2004 1/10/2003 1/06/2003 1/02/2003 1/10/2002 1/06/2002 1/02/2002 1/10/2001 1/06/2001 1/02/2001 1/10/2000 1/06/2000
Slide 8: Monthly Churn
Monthly Churn 2.50% 2.00% 1.50% 1.00% 0.50% c ct n r b n ov g ar p ay l Ju Ap De Fe Se Ja Ju Au O M M N 2008 2009
Slide 9: 2009 Monthly Churn Split
2009 Monthly Churn Split 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% ov pr ug p ec l ct n b n ar ay Ju Se Ja Fe Ju O A M N D A M DBS (Satellite) UHF My Sky
Slide 10: Additional Outlets
Additional Outlets 103,974 84,770 100,000 73,751 75,000 58,309 49,669 50,000 25,000 0 2005 2006 2007 2008 2009 UHF Satellte
Slide 11: Advertising Revenue
Advertising Revenue $NZ million $23 $27 $22 $7 $40 $41 $40 $36 $36 2005 2006 2007 2008 2009 Year End 30 June SKY PRIME Note: 2005 restated for merger & IFRS, Prime included from 2006
Slide 12: Total ARPU
Total ARPU $64.00 $62.10 $60.50 $58.30 $56.86 2005 2006 2007 2008 2009
Slide 13: Total Revenue
Total Revenue $NZ million $659 $692 $619 $549 $492 2005 2006 2007 2008 2009 Note: 2005 restated for merger & IFRS, Prime included from 2006
Slide 14: Programming Costs % Revenue
Programming Costs % Revenue 34% 33% 32% 33% 32% 2005 2006 2007 2008 2009 Note: 2005 restated for merger & IFRS, Prime included from 2006
Slide 15: EBITDA
EBITDA $NZ million $266.6 $261.0 $247.7 $249.4 $219.8 2005 2006 2007 2008 2009 Note: 2005 restated for merger & IFRS, Prime included from 2006
Slide 16: Net Profit/(Loss)
Net Profit/(Loss) $NZ million $74.5 $97.7 $88.1 $77.9 $60.2 2005 2006 2007 2008 2009 Note: 2005 restated for merger & IFRS, Prime included from 2006
Slide 17: Layered Costs
Layered Costs Depreciation studio 2009 Profit Marketing SKY HD OSB Vans HD Upgrade HD Linking contracts Transponder PROFIT MYSKY Decoders 2008 PROFIT Marketing SKY Profit 2009 Profit Decoders 2008 PROFIT HD Linking Depreciation OSB Vans HD Transponder contracts MYSKY Upgrade studio HD
Slide 18: Capital Expenditure
Capital Expenditure $NZ million $132.2 $119.5 $86.8 $81.4 $76.0 2005 2006 2007 2008 2009 (excluding transponders) Note: 2005 restated for merger & IFRS
Slide 19: Sky's Share of All Television
1/0 0 5 10 15 20 25 30 35 7/ 2 000 1/1 0/ 2 000 1/0 1/ 2 001 1/0 4/ 2 001 1/0 7/ 2 001 1/1 0/ 2 001 1/0 1/ 2 002 1/0 4/ 2 002 1/0 7/ 2 002 1/1 0/ 2 002 1/0 1/ 2 003 1/0 4/ 2 003 1/0 7/ 2 003 1/1 0/ 2 003 1/0 1/ 2 % Share of viewing in all NZ Homes 004 1/0 4/ 2 004 1/0 7/ 2 004 All Sky TV 1/1 0/ 2 00
Slide 20: Viewerhours generated by Subscriber
D ec 1000 1200 1400 0 200 400 600 800 -0 M 2 ar -0 3 Ju n- 0 Se 3 p- 03 D ec -0 M 3 ar -0 4 Ju n- 04 Se p- 04 D ec -0 M 4 ar -0 5 Sport Ju n- 0 Se 5 p- 05 D ec -0 M 5 ar -0 6 Ju n- 06 Se p- Movies 06 D ec Source: Nielsen TV Ratings, All New Zealanders 5+/SKY TV -0 M 6 ar -0 7 Ju n- 0 Se 7 p- 07 D ec
Slide 21: Jason Hollingworth, CFO
JASON HOLLINGWORTH CFO
Slide 22: Results Summary
Results Summary $NZ Million 2008 2009 % Change Revenue 658.8 692.0 5.0% Operating Expenses 392.2 431.0 9.9% EBITDA 266.6 261.0 (2.1%) Depn & Amort 78.0 96.1 23.2% EBIT 188.6 164.9 (12.6%) Interest 43.6 36.6 (16.1%) Tax 46.4 37.7 (18.8%) Other 0.9 2.5 177.8% Net Profit after Tax 97.7 88.1 (9.8%)
Slide 23: Revenue Analysis
Revenue Analysis $NZ million 2008 2009 % Change Residential satellite subscriptions 488.1 535.0 9.6% Other subscriptions 74.1 69.0 (6.9%) Installation 16.1 16.2 0.6% Advertising 66.5 57.8 (13.1%) Other income 14.0 14.0 0.0% Total Revenue 658.8 692.0 5.0%
Slide 24: Expense Analysis
Expense Analysis $million 2008 2009 % Change Programme rights 169.5 179.3 5.8% Programme operations 40.2 50.7 26.1% Subscriber management 45.1 54.5 20.8% Sales and marketing 39.8 41.7 4.8% Advertising 19.8 17.2 (13.1%) Broadcasting and infrastructure 61.5 70.3 14.3% Depreciation and amortisation 78.
Slide 25: Capital Expenditure Analysis
Capital Expenditure Analysis $ NZ million 2008 2009 %Change Subscriber Equipment 62.6 109.7 75.2% Studio Upgrade 42.6 8.6 (79.8%) Building 2.7 0.9 (66.7%) Other 11.6 13.0 12.1% Total Capital Expenditure 119.5 132.2 10.6%
Slide 26: DBS (Satellite) Install Costs
DBS (Satellite) Install Costs $512 $506 $487 $454 $439 $463 2004 2005 2006 2007 2008 2009 Decoder Material/Labour
Slide 27: Cash Flow Analysis
Cash Flow Analysis $NZ Million 2008 2009 Capex 108 146 35.2% Debt reduction 30 2 (93.3%) Dividend 52 60 15.4% Cash inc/(dec) 2 (4) (300%) Operating Cash Flow 192 204 6.3%
Slide 28: Prime Financials
Prime Financials $NZ Million 2008 2009 Revenue 27.0 22.0 Rights 11.8 12.7 Operations 4.4 7.6 Program Costs 16.2 20.3 Margin 10.8 1.7
Slide 29: Foreign Currency Hedging
Foreign Currency Hedging • Sky’s hedging positions at 30 June 2009 • 91% hedged for 0 -12 months $US exposures @ .6440 • 54% hedged for 13-24 months $US exposures @ .6568 • 0% hedged for 25-36 months $US exposures • 98% hedged for 0 -12 months $A exposures @ .8547 • 82% hedged for 13-24 months $A ex
Slide 30: MYSKY HDi
MYSKY HDi % HDi % % % % Churn Subs New Multiroom HD Ticket Upfront Budget 7.4% 80,000 10% 45% 15% 15% FY09 June 09 9.9% 84,002 21% 41% 17% 12%
Slide 31: John Fellet, CEO
JOHN FELLET CEO
Slide 32: SKY Highlights
SKY Highlights 1. Commissioning of the Digital Television Station 2. Launch of “HD” television - Sky Sport 1 - Sky Sport 2 - SKY Movies 1 - SKY Movies Greats - TV 3 HD - TV1 & 2 HD 3. New Channels - The Country Channel 1 Oct 08 - Comedy Central 1 Apr 09 - Ownership of the Arts Channel - TVNZ 6 - TVN
Slide 33: 2009 Key Messages
2009 Key Messages • Net profit of $88.1m, down 10% • Subscriber numbers up 4.1% to 779k. • Over 100,000 MYSKY Subscribers • ARPU up 3.1% to $64.00, DBS ARPU up 0.7% to $66.57 • Churn decreased from 14.9% to 14.0% • SKY share of total television viewing constant at 28%
Slide 34: Dividend
DIVIDEND The SKY Board has declared a fully imputed final dividend of 7.0 cps. Record date is 4 September 2009. Payment date is 11 September 2009. Total dividend for the year is 14.0 cps
Slide 35: Sky Network Television Annual Results 2009
SKY NETWORK TELEVISION ANNUAL RESULTS 2009
Sky Network Television — FY2009 Earnings Presentation on 6ix