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Sky Network Television Limited (ASX:SKT)

ALERT: Price-sensitive ASX Announcement for SKT
Current share price for SKT : $2.900 0.09 (3.20%)+
Announcement
Release
28 Aug 2026 7:30AM
Price at Release
$2.810
Full Release
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Summary
Sky Network Television Limited’s FY26 preliminary final report and associated results materials show a strong full-year result for the 12 months ended 30 June 2026, with the expanded business benefiting materially from the acquisition and integration of Discovery NZ, now Sky Free, and from a more diversified mix across subscription, advertising, streaming, free-to-air and digital. Underlying revenue rose to $826.1 million, up 9%, and underlying EBITDA increased to $157.0 million, up 6% and towards the top end of guidance, while statutory NPAT rose 190% to $59.8 million, aided by one-off items including a $31.4 million gain on bargain purchase, with underlying NPAT up 2% to $41.8 million. The report highlights sharply higher advertising revenue of $131.7 million, digital advertising growth, improved free cash flow, year-one Sky Free integration synergies of $8.0 million, and a closing cash balance of $79.1 million. Sky declared a fully imputed final dividend of 17.0 cents per share, taking the full-year dividend to 32.0 cents per share, and outlined a capital management framework targeting 10% annual dividend growth over the next three years with quarterly dividends from FY27 and possible buybacks after FY27 interim results. Strategically, Sky emphasised long-term sports rights security, including New Zealand Rugby to 2030, Olympics to 2032, NRL to 2034 subject to shareholder approval, and Premier League to 2034, alongside a refreshed multi-studio entertainment model and the use of the enlarged audience base to drive future revenue and margin growth. FY27 guidance is for revenue of $825 million to $840 million, EBITDA of $155 million to $165 million, capital expenditure of $60 million to $65 million, and dividends of at least 35 cents per share.
Key Points
  • FY26 covers the 12 months ended 30 June 2026.
  • Underlying revenue increased 9% to $826.1 million.
  • Underlying EBITDA increased 6% to $157.0 million and was at the higher end of guidance.
  • Statutory NPAT increased 190% to $59.8 million, while underlying NPAT rose 2% to $41.8 million.
  • The result was supported by the acquisition and integration of Discovery NZ, now Sky Free.
  • Advertising revenue more than doubled to $131.7 million, with digital contributing 22% of advertising revenue.
  • Sky delivered $8.0 million of year-one integration synergies from Sky Free, above the earlier $3 million to $5 million expectation.
  • Normalised free cash flow increased 60% to $58.9 million and closing cash was $79.1 million.
  • The Board declared a fully imputed final dividend of 17.0 cents per share, taking the FY26 full-year dividend to 32.0 cents per share.
  • Sky now targets 10% annual dividend growth for the next three years and will move to quarterly dividends from FY27.
  • The Board may consider an on-market share buyback following FY27 interim results if there are no better capital uses.
  • Reported revenue was $824.845 million and total net profit attributable to shareholders was $59.375 million.
  • Net tangible assets per quoted equity security increased to $1.14626 from $0.95417.
  • The final dividend record date is 11 September 2026 and payment date is 25 September 2026.
  • Sky secured major long-term sports rights including New Zealand Rugby through 2030 and Olympic Games rights through Brisbane 2032.
  • Sky also secured a seven-year New Zealand NRL broadcast partnership through 2034, subject to shareholder approval.
  • As of the report date, Sky had also secured a six-year extension of exclusive Premier League rights through 2034.
  • Entertainment strategy was reset to a more flexible multi-studio model with partners including Paramount, Sony Pictures Television, NBCUniversal and BBC Studios.
  • Streaming revenue increased 8% to $128.3 million, with Sky Sport Now up 13% and Neon up 2%.
  • Broadband revenue increased 28% to $47.4 million, while venue revenue declined 2% to $52.8 million.
  • Subscription revenue across streaming, Sky Box and broadband was $622.2 million, down 0.6%.
  • Box revenue declined as a share of total revenue to 54%, reflecting greater revenue diversification.
  • Underlying operating expenses increased 10% to $670.3 million, mainly due to Sky Free, partly offset by cost reductions and synergies.
  • Programming expenses increased only 2% on an underlying basis to $394.8 million, with Sky standalone programming cost ratio at 47.3%, within the FY23 target range.
  • FY27 guidance is revenue of $825 million to $840 million, EBITDA of $155 million to $165 million, capex of $60 million to $65 million, and dividends of at least 35 cents per share.
  • Sky’s longer-term ambition through FY31 is to significantly grow revenue, with 20% to 30% from non-subscription sources, alongside margin expansion and earnings growth.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.