In This Article:
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Revenue: Down 2% year-on-year, impacted by satellite migration and economic climate.
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EBITDA: $60.7 million, down 25% year-on-year, with expectations of improvement in H2 due to lower programming costs.
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Programming Costs: Up $12 million year-on-year, heavily weighted towards H1, expected to decrease significantly in H2.
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Free Cash Flow: $63 million, similar to last year, with strong cash flow generation supporting dividend confidence.
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Interim Dividend: $0.185 per share, with a full-year expectation of at least $0.21 per share.
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Customer Churn: 83% of customers have been with Sky for at least five years, with an average churn of 8%.
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Sky Sport Now Revenue: Record revenue result with a 6% increase in unique customers year-on-year.
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Neon Customer Growth: Over 2% growth in the past six months, slower than expected.
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Sky Broadband Customers: Over 44,000 customers, contributing positively to Skybox retention.
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Advertising Revenue: Increased to 14% share of the linear advertising revenue pool, with a 39% increase since focus acceleration.
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CapEx: $21 million in H1, with satellite migration spend expected to be within the $10 million to $20 million range by year-end.
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Liquidity: Closing cash balance of $28 million, with a $100 million bank facility undrawn.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sky Network Television Ltd (ASX:SKT) successfully accelerated its satellite migration project, Project Migrate, which is on track to be completed by early April.
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The company maintained its interim dividend in line with expectations, reflecting confidence in its financial stability.
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Sky Network Television Ltd (ASX:SKT) reported strong growth in its streaming and broadband segments, with Sky Sport Now achieving a record revenue result.
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The company has implemented technical fixes to improve signal strength, significantly reducing customer service call volumes.
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Sky Network Television Ltd (ASX:SKT) secured exclusive content deals, including the return of the Black Caps and White Ferns cricket teams, enhancing its sports content lineup.
Negative Points
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The accelerated timeline for Project Migrate disrupted original FY25 plans, impacting revenue-generating initiatives.
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Sky Network Television Ltd (ASX:SKT) experienced a significant increase in customer service calls and technician callouts due to satellite signal issues, leading to additional costs.
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The company's revenue was down 2% year-on-year, partly due to the economic climate and delays in revenue initiatives.
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Programming costs were heavily weighted towards the first half, impacting underlying EBITDA, which was down 25% year-on-year.
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Sky Network Television Ltd (ASX:SKT) faced challenges in customer retention, with a noted slowdown in customer loss but still dealing with churn.