Sky Network Television Ltd · NZX:SKT

Sky Network Television — FY2015 Earnings Presentation

40 slides from Sky Network Television's earnings presentation, Nov 6, 2015

  1. Slide 1: SKY Annual Results 2015

    SKY ANNUAL RESULTS 2015 |

  2. Slide 2: Revenue

    REVENUE 950 Millions 928 909 900 885 850 843 797 800 750 700 2011 2012 2013 2014 2015 | © SKY 2015 Annual Results 2015

  3. Slide 3: Total ARPU

    TOTAL ARPU $85.00 $80.00 $79.54 $77.52 $75.83 $75.00 $71.93 $70.45 $70.00 $67.61 $65.00 $60.00 $55.00 $50.00 2010 2011 2012 2013 2014 2015 | © SKY 2015 Annual Results 2015

  4. Slide 4: SKY Premium Products Ratio

    SKY PREMIUM PRODUCTS RATIO 3.71 3.69 HD ACCESS TICKET | © SKY 2015 Annual Results 2015

  5. Slide 5: Advertising Revenue

    ADVERTISING REVENUE Millions 80.0 70.0 60.0 23.3 27.3 24.3 26.4 50.0 23.7 40.0 30.0 43.9 41.6 43.2 45.2 20.0 39.0 10.0 - 2011 2012 2013 2014 2015 Sky Prime | © SKY 2015 Annual Results 2015

  6. Slide 6: Total Television Advertising Revenue

    -20% -15% -10% 10% 15% -5% 0% 5% Jun 08 Qtr Sep 08 Qtr Dec 08 Qtr Mar 09 Qtr Jun 09 Qtr (YOY QUARTERLY CHANGE) Sep 09 Qtr Dec 09 Qtr Mar 10 Qtr | © SKY 2015 Annual Results 2015 Jun 10 Qtr Sep 10 Qtr Dec 10 Qtr Mar 11 Qtr Jun 11 Qtr Sep 11 Qtr Dec 11 Qtr Mar 12 Qtr Jun 12 Qtr Sept 12 Qtr Dec 12 Qtr M

  7. Slide 7: The Year End Position

    THE YEAR END POSITION June 2014 June 2015 % Change Residential Digital 321.7 258.3 (19.7%) Residential MYSKY 504.7 549.9 9.0% Commercial & Other 38.6 43.3 12.2% TOTAL SUBSCRIBERS 865.1 851.6 (1.6%) | © SKY 2015 Annual Results 2015

  8. Slide 8: Total Disconnects

    TOTAL DISCONNECTS (WEEKLY FOR THE YEAR ENDING JUNE 15) 3.0 2.5 2.0 2012/13 1.5 2013/14 2014/15 1.0 Thousands 0.5 0.0 | © SKY 2015 Annual Results 2015

  9. Slide 9: Moving Annual Churn

    0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Jun-98 35.00% Oct-98 Feb-99 Jun-99 Oct-99 Feb-00 Jun-00 Oct-00 Feb-01 Jun-01 Oct-01 Feb-02 | © SKY 2015 Annual Results 2015 Jun-02 Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Feb-07 Jun-07 MOVING ANNUAL CHU

  10. Slide 10: Programming Costs % Revenue

    PROGRAMING COSTS % REVENUE 34% 32% 30% 33% 32% 31% 32% 28% 32% 26% 24% 22% 20% 2011 2012 2013 2014 2015 | © SKY 2015 Annual Results 2015

  11. Slide 11: EBITDA

    EBITDA 390.0 Millions 379.0 379.8 380.0 370.0 360.0 353.1 350.0 340.0 336.0 330.0 321.7 320.0 310.0 300.0 290.0 2011 2012 2013 2014 2015 | © SKY 2015 Annual Results 2015

  12. Slide 12: Net Profit

    NET PROFIT Millions 200.0 180.0 171.8 161.4 160.0 137.2 140.0 120.3 123.7 120.0 100.0 80.0 60.0 40.0 20.0 - 2011 2012 2013 2014 2015 | © SKY 2015 Annual Results 2015

  13. Slide 13: Financial Detail

    > FINANCIAL DETAIL

  14. Slide 14: Results Summary

    RESULTS SUMMARY 2014 2015 % Change Revenue 909.0 927.5 2.0% Operating Expenses 530.0 547.7 3.3% EBITDA 379.0 379.8 0.2% Depn & Amort 126.1 119.2 (5.5%) EBIT 252.9 260.6 3.0% Interest 28.4 21.7 (23.6%) Tax 63.1 67.1 6.3% NET PROFIT after TAX 161.4 171.8 6.4% | © SKY 2015 Annual Results 2015

  15. Slide 15: Revenue Analysis

    REVENUE ANALYSIS 2014 2015 % Change Residential Satellite 744.9 760.0 2.0% subscriptions Other subscriptions 64.5 71.2 10.4% Installation 8.2 7.0 (14.6%) Advertising 70.5 69.5 (1.4%) Other Income 20.9 19.8 (5.3%) TOTAL REVENUE 909.0 927.5 2.0% | © SKY 2015 Annual Results 2015

  16. Slide 16: Expense Analysis

    EXPENSE ANALYSIS 2014 2015 % Change Programming 280.0 296.6 5.9% Subscriber related costs 104.7 107.1 2.3% Broadcasting and 88.5 91.2 3.1% infrastructure Depreciation and amortisation 126.1 119.2 (5.5%) Other costs 56.8 52.9 (6.9%) TOTAL EXPENSE 656.1 667.0 1.7% | © SKY 2015 Annual Results 2015

  17. Slide 17: Capital Expense Analysis

    CAPITAL EXPENSE ANALYSIS 2014 2015 % Change Install 36.9 29.7 (7.2%) Decoders 20.6 22.8 10.7% Other 35.5 63.0 77.5% TOTAL CAPITAL 93.2 115.5 23.9% EXPENSE | © SKY 2015 Annual Results 2015

  18. Slide 18: Operating Cashflow

    OPERATING CASHFLOW 2014 2015 % Change Operating Cashflow 305.3 282.9 (7.3%) Capex -93.0 -115.5 24.2% Net debt drawn/(repaid) -92.0 -30.0 (67.4%) Dividends -112.8 -131.1 16.2% Other -8.3 -8.3 0.0% NET CASH MOVEMENT -0.8 -2.0 (1.5%) | © SKY 2015 Annual Results 2015

  19. Slide 19: Funding Profile

    FUNDING PROFILE FACILITY DRAWN MARGIN MATURITY Bank Debt $250m $40m 145bp Jul 2020 Bond - A $200m $200m 65bp Oct 2016 Fixed rate at Bond - B $100m $100m Mar 2021 6.25% | © SKY 2015 Annual Results 2015

  20. Slide 20: Foreign Currency Hedging

    FOREIGN CURRENCY HEDGING For USD exposures 93% hedged for 30 June 2016 @ 0.7529 42% hedged for June 2017 year @ 0.7284 41% hedged for June 2018 year @ 0.7060 For AUD exposures 92% hedged for 30 June 2016 @ 0.9155 44% hedged for 30 June 2017 @ 0.9360 Average $US payment rate for Opex for the year to

  21. Slide 21: Dividend

    DIVIDEND The Board has declared a fully imputed final dividend of 15.0 cps ($58.4m) to be paid and a supplementary dividend of 2.6471 to be paid to non-residents. Record date is 4 September 2015. Payment date is 11 September 2015. 2015 2014 2013 2012 2011 2010 2009 2008 Interim 15.0 14.0 12.0 11.0 8

  22. Slide 22: Strategy

    > STRATEGY

  23. Slide 23: Traditional Sky and New Media

    NEW MEDIA NEON TRADITIONAL IGLOO SKY FAN PASS SKY GO © SKY 2015 Annual Results 2015

  24. Slide 24: © SKY 2015 Annual Results 2015

    © SKY 2015 Annual Results 2015

  25. Slide 25: The SKY Journey So Far

    THE SKY JOURNEY SO FAR UHF Std SKY Wholesale SKY MY SKY Other | © SKY 2015 Annual Results 2015

  26. Slide 26: Churn by Device

    CHURN BY DEVICE 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 MYSKY SKY | © SKY 2015 Annual Results 2015

  27. Slide 27: The Fall

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  28. Slide 28: Traditional Sky and New Media

    NEW MEDIA NEON TRADITIONAL IGLOO SKY FAN PASS SKY GO © SKY 2015 Annual Results 2015

  29. Slide 29: © SKY 2015 Annual Results 2015

    © SKY 2015 Annual Results 2015

  30. Slide 30: Tinkerbell Available on SKY Movies Disney

    Tinkerbell ©Disney. Available on SKY Movies Disney from July 2015. |

  31. Slide 31: Oprah: Where Are They Now; American Chopper

    Oprah: Where are They Now. American Chopper: Senior vs Junior. |

  32. Slide 32: Viacom International Media Networks

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  33. Slide 33: HBO as a major studio partner

    ‘HBO as a major studio partner contributes to SKY’s premium content offering’ |

  34. Slide 34: In Your Watchlist

    IN YOUR WATCHLIST mini . PREMIERE ROGUE COME WITH US a

  35. Slide 35: © SKY 2015 Annual Results 2015

    © SKY 2015 Annual Results 2015

  36. Slide 36: Watch On... and On... and On...

    WATCH ON... AND ON... AND ON... | © SKY 2015 Annual Results 2015

  37. Slide 37: © SKY 2015 Annual Results 2015

    © SKY 2015 Annual Results 2015

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  39. Slide 39: © SKY 2015 Annual Results 2015

    © SKY 2015 Annual Results 2015

  40. Slide 40: SKY Annual Results 2015

    SKY ANNUAL RESULTS 2015 |

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