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General Information

Sky Network Television Limited
SKT
http://www.skytv.co.nz
Cable & Satellite
2,292
389

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$5.89 $5.88 $5.93 $5.84 $5.89 609429 - ( No change )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Hold
26/05/2015
2

Company Overview

Business Description
Sky Network Television Limited (SKT) is a provider of multi-channel, pay television and free-to-air television services in New Zealand. SKT distributes both local and international programme content to its subscriber base through a digital satellite network.
Strategy Analysis
SKT continues to grow thanks to its monopoly status and a strong management team that continues to execute well. Subscription revenues are growing nicely bolstered by MYSKY in the recent past and the advertising business is outperforming its free-to-air rivals thanks to increased popularity of both Prime and SKY channels. The company intends to continue delivering strong results by offering subscribers more content, giving viewers the choice of watching content on different platforms (for example ISKY) and introducing new products like multi room or SKY Lite etc. The idea is to lift subscription and ARPU overtime. We expect the company to continually launch new products in an attempt to entice subscribers. The company is spending a decent sum of money on brand building and advertising to drive sub penetration from 51% to between 75-80% over the longer term. Sky Network TV reported NPAT up 9% to NZ$68.2m for the half-year ended 31 December 2012. Revenues from ordinary activities were NZ$443.64m, up 3.9% from last year. This improved financial position is primarily due to the continued success of the MY SKY HDi decoders and an increase in average revenue per subscriber (ARPU). The increase in ARPU is mainly the result of SKY customers upgrading to new services such as MY SKY HD or to premium channels such as SoHo. Basic and Diluted EPS were 17.53 NZ cents compared to 16.08 NZ cents last year. Net operating cash flow was NZ$150.83m compared to NZ$140.72m last year. The interim dividend declared was 12 NZ cents, compared with 11 NZ cents last year.

Financial Summary

Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 152.5 39.5 -1.1% 14.9 27.7 4.7% 100.0%
2015 F 154.3 40.0 16.1% 14.7 28.0 4.7% 100.0%
2014 A 133.0 34.4 25.7% 15.8 23.2 4.3% 100.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Sky Network TV (SKT) $2,276M 0.3333 0.1460 0.0108 14.7727 12.8911 12.7534 4.61% 5.43% 5.49%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.59 13.10 1.99 1.72
Market 1.02 17.00 1.33 1.57
Sector 1.08 13.10 1.93 1.95

Directors

Name Position Start Date
Mr John Fellet Chief Executive Officer, Executive Director 25/04/2001
Mr Peter John Macourt Non-Executive Chairman 15/08/2002
Mr Robert William Bryden Non-Executive Deputy Chairman 24/03/1992
Mr Humphry John Davy Rolleston Non-Executive Director 08/09/2005
Ms Geraldine Celia McBride Non-Executive Director 13/09/2013
Mr John Anthony Waller Non-Executive Director 23/04/2009
Mr Derek Handley Non-Executive Director 13/09/2013

Management

Name Position
Cathryn Oliver Chief of Staff
Rawinia Newton Director of Advertising Sales
Gregory Drummond Director of Broadcasting and Media
Megan King Director of Content, Strategy, Planning and Delivery
Kirsty Way Director of Corporate Communications
Travis Dunbar Director of Entertainment Programming
Chris Major Director of Government Relations
Michael Watson Director of Marketing
Martin Wrigley Director of Operations
Richard Last Director of Sport
Matthew Orange Director of Strategy and Products
Charles Ingley Director of Technology
Cherie Lawrence Senior Legal Counsel ,Company Secretary

Substantial Shareholders

Holding Name
37,852,479 (9.73%) Hyperion Asset Management Limited
21,858,783 (5.62%) Cooper Investor Pty Ltd
20,662,098 (5.31%) Arnhem Investment Management Pty Ltd
19,547,678 (5.02%) Matthews International Capital Management LLC

Calendar of Events

Date Event
22 February 2016 Report (Interim)
23 September 2015 Report (Annual)
21 August 2015 Report (Prelim)
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