Sky Network Television Ltd · NZX:SKT
Sky Network Television — FY2016 Earnings Presentation
33 slides from Sky Network Television's earnings presentation, Aug 26, 2016
Slide 1: Sky Annual Results 2016
For personal use only SKY ANNUAL RESULTS 2016 |
Slide 2: Total Subscribers
TOTAL SUBSCRIBERS 855.00 For personal use only 852,679 851,561 850.00 845.00 840.00 835.00 830.00 June 2015 June 2016 John Davidson/www.photosport.nz | Page 2 SIVLER FERNS © SKY 2016 Annual Results 2016
Slide 3: Revenue
REVENUE For personal use only 940 Millions 927.5 928.2 920 909 900 885 880 860 843 840 820 800 2012 2013 2014 2015 2016 | © SKY 2016 Annual Results 2016
Slide 4: Total ARPU
TOTAL ARPU For personal use only $85.00 $79.54 $78.63 $80.00 $77.52 $75.83 $75.00 $71.93 $70.00 $65.00 $60.00 $55.00 $50.00 2012 2013 2014 2015 2016 2016 Includes IGLOO, NEON and FAN PASS not included in previous periods | © SKY 2016 Annual Results 2016
Slide 5: ARPU from Sky Traditional Subscribers
ARPU FROM SKY TRADITIONAL SUBSCRIBERS For personal use only $85.00 $81.67 $79.54 $80.00 $77.52 $75.83 $75.00 $71.93 $70.00 $65.00 $60.00 $55.00 $50.00 2012 2013 2014 2015 2016 | © SKY 2016 Annual Results 2016
Slide 6: Sky Premium Products per Subscriber
SKY PREMIUM PRODUCTS PER SUBSCRIBER For personal use only 3.9 3.81 3.8 3.72 3.6 Jun-15 Jun-16 | Photography © Offside Sports Page 6 RWC 2015
Slide 7: Advertising Revenue
ADVERTISING REVENUE For personal use only Millions 80.0 70.0 60.0 24.7 23.3 27.3 24.3 26.4 50.0 40.0 30.0 45.2 49.3 20.0 43.9 41.6 43.2 10.0 - 2012 2013 2014 2015 2016 Sky Prime | © SKY 2016 Annual Results 2016
Slide 8: Total Television Advertising Revenue
For personal use only 0% 5% 10% 15% -10% -5% Sep 10 Qtr Dec 10 Qtr Mar 11 Qtr Jun 11 Qtr (YOY QUARTERLY CHANGE) Sep 11 Qtr Dec 11 Qtr Mar 12 Qtr | © SKY 2016 Annual Results 2016 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 Sept 14 Qtr Dec 14 Qt
Slide 9: Programming Costs % Revenue
PROGRAMING COSTS % REVENUE For personal use only 36% 34% 32% 36% 30% 32% 28% 32% 33% 31% 26% 24% 22% 20% 2012 2013 2014 2015 2016 | © SKY 2016 Annual Results 2016
Slide 10: EBITDA
EBITDA For personal use only 400.0 Millions 380.0 360.0 338.7 340.0 Merger costs 320.0 300.0 379.0 379.8 280.0 353.1 336.0 260.0 325.3 240.0 220.0 200.0 2012 2013 2014 2015 2016 | © SKY 2016 Annual Results 2016
Slide 11: Net Profit
NET PROFIT For personal use only Millions 190.0 170.0 157.0 150.0 Merger costs 130.0 110.0 171.8 161.4 147.1 90.0 137.2 123.7 70.0 50.0 2012 2013 2014 2015 2016 | © SKY 2016 Annual Results 2016
Slide 12: Financial Detail
For personal use only FINANCIAL DETAIL
Slide 13: Results Summary
RESULTS SUMMARY For personal use only 2015 2016 % Change Revenue 927.5 928.2 0.1% Operating Expenses 547.7 602.9 10.1% EBITDA 379.8 325.3 (14.4%) Depn & Amort 119.2 100.2 (15.9%) EBIT 260.6 225.1 (13.6%) Interest 21.7 20.1 (7.4%) Tax 67.1 57.9 (13.7%) NET PROFIT after TAX 171.8 147.1 (14.4%) | © SKY
Slide 14: Revenue Analysis
REVENUE ANALYSIS For personal use only 2015 2016 % Change Core satellite revenue 760.0 753.1 (0.9%) Other subscriptions 71.2 79.3 11.4% Advertising 69.5 74.0 6.5% Installation and other revenue 26.8 21.8 (18.7%) TOTAL REVENUE 927.5 928.2 0.1% | © SKY 2016 Annual Results 2016
Slide 15: Expense Analysis
EXPENSE ANALYSIS For personal use only 2015 2016 % Change Programming 296.6 331.1 11.6% Subscriber related costs 107.1 106.3 (0.7%) Broadcasting and 91.2 96.0 5.3% infrastructure Depreciation and amortisation 119.2 100.2 (15.9%) Other costs 52.9 69.5 31.4% TOTAL EXPENSE 667.0 703.1 5.4% | © SKY 2016
Slide 16: Capital Expense Analysis
CAPITAL EXPENSE ANALYSIS For personal use only 2015 2016 % Change Install 29.7 32.6 9.8% Decoders 22.8 63.8 179.8% Other 63.0 32.4 (48.6%) TOTAL CAPITAL 115.5 128.8 11.5% EXPENSE | © SKY 2016Annual Results 2016
Slide 17: Operating Cashflow
OPERATING CASHFLOW For personal use only 2015 2016 % Change Operating Cashflow 282.9 275.8 (2.5%) Capex -115.5 -133.6 15.7% Net debt drawn/(repaid) -30.0 0 (100%) Dividends -131.1 -131.7 0.5% Other -8.3 -5.6 (32.5%) NET CASH MOVEMENT -2.0 4.9 (345.0%) | © SKY 2016 Annual Results 2016
Slide 18: Funding Profile
FUNDING PROFILE For personal use only FACILITY DRAWN MARGIN MATURITY Bank Debt $350m (1) $50m 145bp Jul 2020 Bond - A $200m $200m 65bp Oct 2016 Fixed rate at Bond - B $100m $100m Mar 2021 6.25% (1) Reduced to $300m July 2016 | © SKY 2016Annual Results 2016
Slide 19: Foreign Currency Hedging
FOREIGN CURRENCY HEDGING For personal use only For USD exposures 95% hedged for 30 June 2016 @ 0.6740 55% hedged for June 2017 year @ 0.6993 39% hedged for June 2018 year @ 0.7038 For AUD exposures 92% hedged for 30 June 2016 @ 0.9251 42% hedged for 30 June 2017 @ 0.9260 Average $US payment rate for
Slide 20: Dividend
DIVIDEND For personal use only The Board has declared a fully imputed final dividend of 15.0 cps ($58.4m) to be paid and a supplementary dividend of 2.6471 to be paid to non-residents. Record date is 9 September 2016. Payment date is 16 September 2016. 2016 2015 2014 2013 2012 2011 2010 2009 2008 In
Slide 21: Strategy and Trends
For personal use only STRATEGY AND TRENDS
Slide 22: Total Disconnects
TOTAL DISCONNECTS (WEEKLY FOR THE YEAR ENDING JUNE) 2012/13 For personal use only 4.5 2013/14 4.0 2014/15 3.5 2015/16 2016/17 3.0 2.5 2.0 1.5 Thousands 1.0 0.5 0.0 © SKY 2016 Annual Results 2016
Slide 23: Sky Go
SKY GO 2.0 For personal use only Millions 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 July 2015 August September October November December January February March April 2016 May 2016 June 2016 2015 2015 2015 2015 2015 2016 2016 2016 | Page 23
Slide 24: Fan Pass
‘> FAN PASS Powered by SKY SPORT
Slide 25: New Sky Box Rollout
For personal use only New SKY BOX rollout 65% Completed |
Slide 26: Connectivity on Sky Boxes
CONNECTIVITY ON SKY BOXES For personal use only 35% 30% 25% 20% 15% 29% 10% 18% 5% 0% Feb 2016 Aug 2016 © Photosport.nz OLYMPICS 2016 Page 26
Slide 27: Sky's New World of Downloads
SKY’S NEW WORLD OF DOWNLOADS 30 For personal use only Millions 25 20 15 10 5 0 July 2015 August September October November December January February March April 2016 May 2016 June 2016 2015 2015 2015 2015 2015 2016 2016 2016 Page 27
Slide 28: Olympic Coverage on Sky
For personal use only • 12 Channels of Olympic coverage on SKY SPORT • Up to 15 hours of near-live coverage on PRIME • Olympic Video Player Andrew Cornaga/www.photosport.co.nz • SKY NEXT Athletes
Slide 29: Viewer Hours
VIEWERHOURS For personal use only WITH SKY 5.8 Million NO SKY 10.6 Million LINEAR SKY 17.9 Million OTT SKY 13.3 Million |
Slide 30: Golf Coverage on Sky
For personal use only GOLF COVERAGE ON SKY
Slide 31: Football Coverage on Sky
For personal use only FOOTBALL COVERAGE ON SKY
Slide 32: For personal use only
For personal use only
Slide 33: Sky Annual Results
For personal use only SKY ANNUAL RESULTS 2016
Sky Network Television — FY2016 Earnings Presentation on 6ix