Sky Network Television Ltd · NZX:SKT
Sky Network Television — Investor Day (June 2021)
84 slides from Sky Network Television's investor day presentation, Jun 29, 2021
Slide 1: Sky Investor Day presentation
Sky New Zealand PO Box 9059 Newmarket Auckland 1149 New Zealand 10 Panorama Road Mt Wellington For personal use only Auckland 1060 New Zealand T. +64 9 579 9999 sky.co.nz Sky Investor Day presentation 29 June 2021 Sky will hold a virtual investor day event today, beginning at 9:00am and concluding a
Slide 2: Contact details
ENDS Authorised by: James Bishop, Company Secretary For further information, please contact: Chris Major Director of External Affairs For personal use only +64 29 917 6127 chris.major@sky.co.nz Investors can also submit queries to: investorrelations@sky.co.nz
Slide 3: Investor Day June 2021
For personal use only 29 June 2021 1
Slide 4: Agenda
For personal use only Agenda 1. Our Strategy Sophie Moloney 9:05am 2. Our Customers Maria Barlow-Cooper 9:15am 3. Our Content & Partnerships Jonny Errington 9:30am 4. Connecting Customers and Content Streaming Customers Ricki Taiaroa 10:00am Sky Box Customers Corrie Labuschagne 10:10am Sky Broadband
Slide 5: For personal use only
For personal use only Our Our Our Streaming Sky Box Sky Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband Experience Box People Performance
Slide 6: For personal use only
For personal use only • • • • • • •
Slide 7: Strategic priorities and FY24 targets
For personal use only Stabilising Sky Box Growing Neon and Sky Sport Continuing to deliver the customers and returning to Now customers by content that matters to growth, including through 10% – 15% CAGR customers the new Sky Box Growing revenue by Achieving annualised non- Maintaining capex within
Slide 8: Our strategy
Our strategy customers content creators and distributors mos? Our customers @ We connect New Zedlandendnth the sport and entertainment they love, in ways that work for them, right across the country WHAT WE'RE FOCUSING ON Nurturing and (2) Being the preferred Growing revenues 4) Being a place growin
Slide 9: Presentation team
Presentation team For personal use only Our Strategy Our Customers Our Content & Partnerships Streaming Customers Sky Box Customers Sophie Moloney Maria Barlow-Cooper Jonny Errington Ricki Taiaroa Corrie Labuschagne Sky Broadband New Sky Box Our People Financial Performance Chair Daniel Kelly Bridge
Slide 10: Our strategy
Our strategy MosT? Our CU We connect New lander port and entertainment they love, in ways that work for them, right across the count WHAT WE'RE FOCUSING ON Nurturing and ® Being the preferred Growing revenues (4) Being a place growing our Sky partner for key and reducing where our crew are Box and S
Slide 11: Sky brings New Zealanders choice and ease of viewing
Sky continues to bring New Zealanders choice and ease of viewing with the ultimate aggregator play For personal use only
Slide 12: Maria Barlow-Cooper
Maria Barlow-Cooper For personal use only 01. 02. 03. What the data How our data How insights are is telling us and insights informing our about existing toolkit supports customer life- and potential greater stage customers customer- opportunities centricity Our Our Our Streaming Sky Box Sky Sky Fan
Slide 13: One third of NZ households are Sky Box customers
1/3rd of all NZ households are Sky Box customers and another 1/3rd are open to becoming customers1 For personal use only • •
Slide 14: Largest population growth in 65+ age groups
The largest population growth to come is in the 65+ age groups For personal use only • 2030 2010 2010 2030 80+ • 75-79 70-74 65-69 • 60-64 55-59 50-55 45-49 40-44 35-39 30-34 25-29 20-24 Male Female
Slide 15: Serving existing strongholds while widening appeal
We must continue to serve existing customer strongholds while extending appeal to a wider audience For personal use only • •
Slide 16: Sky Nation panel connects us to customer feedback
Our Sky Nation panel connects us to valuable customer feedback For personal use only
Slide 17: Transforming data into rich insights
We’ve transformed our wealth of data into rich insights with Dot Loves Data’s help For personal use only
Slide 18: Life-stages influence customer preference
Life-stages influence customer preference and our engagement strategy For personal use only
Slide 19: Acquiring, growing, nurturing and retaining customers by segment
We understand how to acquire, grow, nurture and retain customers in each segment For personal use only
Slide 20: There is significant opportunity
There is significant opportunity For personal use only A large proportion of NZ Evolving our offering to meet the Combining the strength of the households are still open to Sky, needs and expectations of an bundle and partnerships with representing a significant increasingly diverse New Zealand affi
Slide 21: Jonny Errington
Jonny Errington For personal use only Decisions Changes in the Sky’s that deliver content positioning value for landscape within the New customers and Zealand market Sky Our Our Our Streaming Sky Box Sky Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband E
Slide 22: Data driven approach to the value of content
Our data driven approach lets us understand the value of content For personal use only
Slide 23: Using data tools to determine non-renewal impact
Using data tools to determine non-renewal impact – Sport X For personal use only • • • • • • • • • • • •
Slide 24: The changing content landscape
The changing content landscape For personal use only • • • • •
Slide 25: The power of the bundle
The power of the bundle sets us apart, providing a one stop shop for customers For personal use only • • • •
Slide 26: Sky is a content business
Sky is a content business For personal use only • • • • • •
Slide 27: Expanded partnership with NRL and NZRL
Exciting, newly expanded partnership with NRL and NZRL For personal use only • •
Slide 28: Appeal of partnership with benefits model
The appeal of Sky's partnership with benefits model For personal use only • • •
Slide 29: Content year targets
For personal use only 3 Year Targets Content availability Content rights Programming costs
Slide 30: For personal use only
For personal use only 01. 02. 03. Our Our Our Streaming Sky Box Sky Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband Experience Box People Performance
Slide 31: Embracing the best of Sky delivered differently
Embracing the best of Sky delivered in a different way For personal use only • • 40.0 25.0 35.0 • 5.0 30.0 -15.0 25.0 -35.0 20.0 15.0 -55.0 10.0 -75.0 5.0 -95.0 - -115.0
Slide 32: Neon strengthening market position
Neon has continued to strengthen its market position since launching the merged platform For personal use only • Monthly Active Average Tenure Paid Subscriber Engagement1 (months)2 Growth • •
Slide 33: Data-powered content discovery
Data-powered content discovery is growing audience engagement and retention For personal use only ‘Grow the audience’ ‘Stimulate and broaden’ ‘Retain and winback’ We’ve automated the identification, stimulation and retention of customers
Slide 34: Engagement and retention for A Discovery of Witches
Growing engagement and retention for ‘A Discovery of Witches’ audience For personal use only ‘Grow the audience’ ‘Stimulate and broaden’ ‘Retain and winback’ • • Discovery of Witches (DoW) viewership DoW audience: viewership of top three recommended affinity shows
Slide 35: Data-led scheduling for Drama Lovers
Data-led scheduling maximises support for key content adaptive releases for our ‘Drama Lovers’ For personal use only
Slide 36: Sky Sport Now growth in new customer pools
Sky Sport Now delivering sustainable growth in new customer pools For personal use only • • • Weekly Active Average Tenure Paid Subscriber Engagement1 (months)2 Growth
Slide 37: Data driven agility to grow customers and fan engagement
Using data driven agility to grow customers and increase fan engagement For personal use only • • • • • • • • • • • •
Slide 38: Streaming year targets
For personal use only 3 Year Targets 1 Maintain strong engagement for Neon / Sky Sports Now 1 Increase customer tenure for Neon & Sky Sports Now Grow Neon and Sky Sport Now customers Grow total Streaming revenue
Slide 39: Corrie Labuschagne
Corrie Labuschagne For personal use only 01. 02. How we are How Sky is stabililsing the unlocking Sky Box value to drive customer base retention and acquisitions Our Our Our Streaming Sky Box Sky Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband Experienc
Slide 40: Sky Box customer base is stabilising
The Sky Box customer base is stabilising For personal use only • • • 400.0 90.0 350.0 80.0 • 300.0 70.0 250.0 200.0 60.0 150.0 50.0 100.0 40.0 50.0 - 30.0
Slide 41: Initiatives supporting continued stabilisation
Recent initiatives are supporting continued stabilisation For personal use only • • • •
Slide 42: Improving retention through cost effective strategies
How Sky is improving retention through cost effective strategies For personal use only • •
Slide 43: Activating new customer acquisition
Our approach to activating new customer acquisition For personal use only Conversion Increase in digital Increase in outbound • on inbound sales contribution incremental ARPU • • • •
Slide 44: Sky Box year targets
For personal use only 3 Year Targets Sky Box customers stabilised and returned to growth Sky Box revenue stabilised Annualised Sky Box customer churn
Slide 45: Daniel Kelly
Daniel Kelly For personal use only 01. 02. 03. Our Our Our Streaming Sky Box Sky Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband Experience Box People Performance
Slide 46: Deliberate, phased approach to exceed expectations
We used a deliberate, phased approach to exceed customer expectation For personal use only • • • • • • • • • • • •
Slide 47: Partnerships model to deliver Sky Broadband
Using a partnerships model to deliver Sky Broadband provides a high quality experience with lower fixed cost For personal use only • • • • • •
Slide 48: Value proposition built with a non-telco approach
We built our value proposition using a ‘non-telco’ approach For personal use only ‘Deserving of the Best’ ‘Good honest Value’ ‘Hassle free setup and use’ ‘Showing the love’
Slide 49: Innovative service delivered through a hybrid model
Innovative service is delivered through a hybrid model For personal use only
Slide 50: Data and insight driven marketing strategy
Data and insight driven marketing strategy with responsive reporting For personal use only • • • • •
Slide 51: How we are doing - early response
How we are doing - early response1 For personal use only
Slide 52: Sky Broadband year targets
For personal use only 3 Year Target Attachment rate to Sky Box customer base Market share
Slide 53: Sophie Moloney
Sophie Moloney For personal use only Chief Executive Our Our Our Streaming Sky Box Sky Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband Experience Box People Performance
Slide 54: What if you could see your WiFi?
What if you could see your WiFi? For personal use only • • • •
Slide 55: Introducing WiFi Guy
Introducing WiFi Guy For personal use only 1. My Wave Limited has provided, and is continuing to provide, services and software to Sky Network Television Limited in relation to The Wi-Fi Guy and the proposed new Sky fan experience. Geraldine McBride is a director of both Sky Network Television Limit
Slide 56: Where else could this technology lead us?
Where else could this technology lead us? For personal use only • •
Slide 57: A new Sky fan experience emerges
A new Sky fan experience emerges For personal use only We also see exciting opportunities in: • • • • •
Slide 58: Next steps to revolutionise the Sky fan experience
Our next steps to revolutionise the Sky fan experience For personal use only • • • • “This is an incredibly exciting opportunity that will allow fans to be connected to our game and our club like never before. Growing fan experience and supporting deeper engagement at home and at the park is a massi
Slide 59: Technology transformation delivering a more nimble Sky
Technology transformation and additional capability is delivering a more nimble Sky For personal use only • Then Now • Future FY17 FY21 FY24 • • •
Slide 60: Bridget McNeill
Bridget McNeill For personal use only 01. 02. 03. Our customer- The product How we will led approach to proposition deliver on designing Sky’s and success new box experience Our Our Our Streaming Sky Box Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband E
Slide 61: Over 6000 conversations informed our design
Over 6000 conversations with New Zealanders informed our design For personal use only • • • •
Slide 62: Customers want a connected entertainment experience
Our customers want a connected entertainment experience For personal use only • • • •
Slide 63: Sky's new entertainment hub is the solution
Sky’s new entertainment hub is the solution For personal use only Personalisation Discovery Multi-device Performance
Slide 64: New Sky box market-leading experience
Our new Sky box will deliver a market-leading experience for customers For personal use only based on what you’ve watched for everyone in the family content
Slide 65: Positive response to benefits of the new Box
New Zealanders responded positively to the benefits Sky’s new Box will bring For personal use only
Slide 66: Building the new Sky Box with partners' help
We will build the new Sky Box with our partners’ help For personal use only ✓ ✓ ✓ ✓ • • • • • • •
Slide 67: Foundation for new Sky Box infrastructure
The foundation for the new Sky Box infrastructure is already there For personal use only • Satellite TV Digital Customer On demand channels Platform management Metadata • Analytics • •
Slide 68: New Sky Box year target
For personal use only 3 Year Target New Sky Box In New Zealand homes
Slide 69: Michael Frampton
Michael Frampton For personal use only 01. 02. 03. Our new Measures for Our Priorities operating model success Our Our Our Streaming Sky Box Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband Experience Box People Performance
Slide 70: Operating model with customers front and centre
An operating model1 with customers front and centre For personal use only • • • • 1. Model is indicative and does not reflect organisational structure
Slide 71: New People Strategy driving engagement
Our new People Strategy is driving engagement, which underpins performance For personal use only Engagement is rising Leadership Culture
Slide 72: Right-sizing, right-skilling and right-focussing
We’re right-sizing, right-skilling and right-focussing For personal use only Leadership Development Culture Enablement Alignment New Operating Model Work Environment Culture Tools for Productivity Leadership and Capability
Slide 73: Andrew Hirst
Andrew Hirst For personal use only 01. 02. 03. Revenue Costs Outlook for key stablisation and management financial metrics growth and capex investments Our Our Our Streaming Sky Box Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband Experience Box People P
Slide 74: Core revenues stabilised, with growth from new business
Core revenues stabilised, with growth from existing and new business For personal use only • • • • • • • • • • 1. Basis of FY21 guidance provided on 3 February 2021. 2. Streaming consists of Neon, Sky Sport Now, Retransmission and RugbyPass
Slide 75: Revenues continue to diversify
Revenues continue to diversify; proven ability to launch new offerings For personal use only • • • •
Slide 76: Programming costs largely locked in for 2-3 years
Programming costs largely locked in for next 2-3 years, targeting co- exclusivity savings and further non-programming cost savings For personal use only • • • • • • • • • 1. Basis of FY21 guidance provided on 3 February 2021
Slide 77: Cost efficiencies with a leaner operating model
Continue to deliver cost efficiencies as we move to a new, leaner operating model For personal use only • • FY18 FY21 FY241 • • 1. Forecast 2. Non-programming operating costs
Slide 78: Capital-light model focused on growth investment
We continue to move towards a capital-light model, and focus our investment in areas that enhance and grow revenue For personal use only Grow Enhance Maintain
Slide 79: Summary - outlook for key financial metrics
Summary – outlook for key financial metrics For personal use only • • • • • • • • • • 1. Basis of FY21 guidance provided on 3 February 2021
Slide 80: Sophie Moloney
Sophie Moloney For personal use only Chief Executive Our Our Our Streaming Sky Box Sky Fan New Sky Our Financial Summary Strategy Customers Content Customers Customers Broadband Experience Box People Performance
Slide 81: Our focus areas
For personal use only OUR FOCUS AREAS 1 Nurturing and growing Sky Box and • Streaming customers • • • • Being the preferred partner for key rights • 2 holders, content creators and • distributors • Growing revenues and reducing • 3 operating costs • • • • • Being a place where our crew are • 4 empow
Slide 82: For personal use only
For personal use only • • • • • • •
Slide 83: Questions
Questions Ajuo Ssn jeuosied 10) 81
Slide 84: Disclaimer
For personal use only • 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 in this presenta