Sky Network Television Limited Analysis

Overview

The company was formed in 2005 to facilitate the merger of listed companies Sky Network Television Ltd and Independent Newspapers Ltd (which held 78.4% of Sky). Under the merger scheme, MergeCo was to acquire all of the shares in INL and all of the Sky minority shares. INL and Sky would then be amalgamated into MergeCo to create a single listed entity for the Sky business. MergeCo then would be renamed "Sky Network Television Ltd" and conduct Sky's existing and ongoing business. For each Sky share, holders received one ordinary share in MergeCo and $1.28 cash. For each INL share, holders received 0.8360 of an ordinary share in MergeCo and $1.78 cash.

SKT dervies the majority of its revenue through residential satellite subscriptions with other revenue coming from UHF subscriptions, other types of SKY subscription, installation and advertising.

Performance

The following information was extracted from Sky Network Television Limited's full year results, released 22 August 2025

Key points (financials provided on an adjusted basis3)

• Revenue of $755.1 million, (down 1.5%)

• EBITDA of $148.5 million (down 3%)

• Sky’s free cash flow funded FY25 dividend of 22 cents per share (fully imputed), representing a year-on-year increase of 15.8%.

Chief Executive Sophie Moloney said: “The results we report today have been delivered against the backdrop of our satellite migration challenges as well as the continued pressure on household wallets for many New Zealanders. I am grateful for the tenacity of my team to not only achieve results within the February Guidance ranges, but for also continuing to deliver on several important projects and milestones during FY25.

“These include securing key content rights, increasing our Advertising market share and introducing new features like Digital Ad Insertion (DAI) for Sky Sport Now, increasing the penetration of our new Sky Experience to 37% of our Box base, and of course the significant diligence work that led to the acquisition of Discovery NZ.

“In breaking news, this morning’s signing of a new five-year partnership with New Zealand Rugby (on behalf of the SANZAAR Unions) is also a major achievement. It ensures we can continue to deliver every big moment of rugby to our customers, and it includes a necessary reshaping of this important deal while also ensuring Sky achieves our target of 47 to 49% of content costs as a percentage of revenue.

“We have made good progress against the other targets in this second year of our three-year targets. Progress on capex intensity and employee engagement targets are already consistent with our FY26 ambition, and while Revenue and EBITDA Margin remain challenging, and will likely be at the lower end of the range, they are still held in our sights. Customer NPS has improved since the completion of the satellite migration, and – very pleasingly – we are firmly on track to deliver on the dividend target of 30 cents.