sky annual results 2017 - amazon s3 · dividend the board has declared a fully imputed final...

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SKY ANNUAL RESULTS

2017

THE EVOLVING SKY CUSTOMER BASE

JUNE 2016 JUNE 2017 NET GAIN

SKY satellite 739,532 705,652 (33,880)

Third party 37,674 30,925 (6,749)

Igloo* 8,628 0 (8,628)

Fatso 13,275 8,269 (5,006)

OTT(Neon and Fan Pass) 53,570 79,936 26,366

852,679 824,782 (27,897)

* Igloo service was closed on 31 March 2017

© SKY 2017 Annual Results 2017

MOVING ANNUAL CHURN

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Jun-9

8

Nov-9

8

Apr-

99

Sep-9

9

Feb-0

0

Jul-00

Dec-0

0

May-0

1

Oct-

01

Mar-

02

Aug-0

2

Jan-0

3

Jun-0

3

Nov-0

3

Apr-

04

Sep-0

4

Feb-0

5

Jul-05

Dec-0

5

May-0

6

Oct-

06

Mar-

07

Aug-0

7

Jan-0

8

Jun-0

8

Nov-0

8

Apr-

09

Sep-0

9

Feb-1

0

Jul-10

Dec-1

0

May-1

1

Oct-

11

Mar-

12

Aug-1

2

Jan-1

3

Jun-1

3

Nov-1

3

Apr-

14

Sep-1

4

Feb-1

5

Jul-15

Dec-1

5

May-1

6

Oct-

16

Mar-

17


CHURN BY TENURE


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2016

KIWI VIEWERS GET VALUE FROM VIEWING IN DIFFERENT WAYS

NEUTRALAVIDSOCIAL ONLINE FANATICAL HABITUAL MODERN

COUPLESLEARNERSOWLS ADDICTS HEARTLANDER HEARTLANDER HOMEMAKERS

SKY CUSTOMER SEGMENTATION PROFILES

WHICH IS SERVICING THE CHANGING FACE OF THE SKY CUSTOMER

Fanatical and HabitualHeartlanders

Online Addicts

Neutral Couples

Modern Homemakers

Avid Learners

Social Owls

NZ POPULATIONSKY CUSTOMERS


SKY BOX CUSTOMERMONTHLY CONTENT USAGE

143m HOURS Recorded to

Planner

130m HOURS of Live Viewing

0

50

100

150

200

250

300


|

CONNECTIVITY ON SKY BOXES

18%

29%

50%

0%

10%

20%

30%

40%

50%

60%

Feb 2016 Aug 2016 Aug 2017

OLYMPICS 2016

© Photosport.nz


SKY IP CUSTOMER MONTHLY CONTENT USAGE

512k

576k209k

1,157k

On Demand

NEON

Fan Pass

SKY GO

0 200 400 600 800 1000 1200 1400

Average requests per month 2016/17

On Demand NEON Fan Pass SKY GO

775k

1,699k

258k

795k

On Demand

NEON

Fan Pass

SKY GO

0 200 400 600 800 1000 1200 1400 1600 1800

July 2017 month requests


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3.72

3.81

3.93

SKY PREMIUM PRODUCTS PER SUBSCRIBER

LIONS 2017

© Offside Sports Photography


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ARPU FROM SKY TRADITIONAL SUBSCRIBERS

$75.83 $77.52

$79.54 $81.67

$83.48

$50.00

$55.00

$60.00

$65.00

$70.00

$75.00

$80.00

$85.00

$90.00

2013 2014 2015 2016 2017


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TOTAL ARPU

$75.83 $77.52

$79.54 $78.63 $78.82

$50.00

$55.00

$60.00

$65.00

$70.00

$75.00

$80.00

$85.00

2013 2014 2015 2016 2017


From 2016 ARPU now Includes IGLOO, NEON and FAN PASS not included in previous periods

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REVENUE

885

909927.5 928.2

893.5

650

700

750

800

850

900

950

2013 2014 2015 2016 2017

Millio

ns


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ADVERTISING REVENUE

41.6 43.2 45.2 49.3 46.7

26.4 27.3 24.3

24.7 21.4

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2013 2014 2015 2016 2017

Sky Prime

Millio

ns


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TOTAL TELEVISION ADVERTISING REVENUE(YOY QUARTERLY CHANGE)

-10%

-5%

0%

5%

10%

15%

Se

p 1

0 Q

tr

De

c 1

0 Q

tr

Mar

11

Qtr

Ju

n 1

1 Q

tr

Se

p 1

1 Q

tr

Dec 1

1 Q

tr

Mar

12

Qtr

Ju

n 1

2 Q

tr

Se

pt

12 Q

tr

Dec 1

2 Q

tr

Mar

13

Qtr

Ju

n 1

3 Q

tr

Se

pt

13 Q

tr

Dec 1

3 Q

tr

Mar

14

Qtr

Ju

n 1

4 Q

tr

Se

pt

14 Q

tr

Dec 1

4 Q

tr

Mar

15

Qtr

Ju

n 1

5 Q

tr

Se

pt

15 Q

tr

Dec 1

5 Q

tr

Mar

16

Qtr

Ju

n 1

6 Q

tr

Se

pt

16 Q

tr2

Dec 1

6 Q

tr3

Mar

17

Qtr

4

Ju

n 1

7 Q

tr5



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PROGRAMMING COSTS % REVENUE

36%39%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2016 2017


© Photosport.nz

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EBITDA

325.3 292.3

-20.0

10.0

40.0

70.0

100.0

130.0

160.0

190.0

220.0

250.0

280.0

310.0

340.0

370.0

400.0

430.0

460.0

490.0

2016 2017

Millio

ns


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NET PROFIT

147.1

116.3

-50.0

-

50.0

100.0

150.0

200.0

2016 2017

Millio

ns


© Photosport.nz

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CASHFLOW

142.2

165.6

100.0

110.0

120.0

130.0

140.0

150.0

160.0

170.0

180.0

2016 2017

Millio

ns


© Photosport.nz

FINANCIAL DETAIL

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RESULTS SUMMARY

2016 2017 % Change

Revenue 928.2 893.5 (3.7%)

Operating expenses 602.9 601.2 (0.3%)

EBITDA 325.3 292.3 (10.1%)

Depn & Amort 100.2 105.1 4.9%

EBIT 225.1 187.2 (16.8%)

Interest 20.1 19.6 (2.5%)

Tax 57.9 51.3 (11.4%)

NET PROFIT after TAX 147.1 116.3 (20.9%)

© SKY 2017 Annual Results 2017© SKY 2017 Annual Results 2017

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REVENUE ANALYSIS

2016 2017 % Change

Core satellite revenue 753.1 725.1 (3.7%)

Other subscriptions 79.3 82.2 3.7%

Advertising 74.0 68.1 (8.0%)

Installation and other revenue 21.8 18.1 (17.0%)

TOTAL REVENUE 928.2 893.5 (3.7%)


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EXPENSE ANALYSIS

2016 2017 % Change

Programming 331.1 349.4 5.5%

Subscriber related costs 106.3 100.2 (5.7%)

Broadcasting and infrastructure 96.0 97.6 1.7%

Depreciation and amortisation 100.2 105.1 4.9%

Other costs 69.5 54.0 (22.3%)

TOTAL EXPENSE 703.1 706.3 0.5%


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CAPITAL EXPENDITURE

2016 2017 % Change

Install 32.6 29.3 (10.1%)

Decoders 63.8 19.7 (69.1%)

Other 32.4 30.7 (5.2%)

TOTAL CAPITAL

EXPENSE

128.8 79.7 (38.1%)


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OPERATING CASH FLOW

2016 2017 % Change

Net Cash from operating activities 275.8 245.2 (11.1%)

Net Cash used in investing activities (133.6) (79.6) (40.4%)

FREE CASH FLOW available

to Shareholders

142.2 165.6 16.5%


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FUNDING PROFILE

FACILITY DRAWN MARGIN MATURITY

Bank Debt $300m $200m 145bp Jul 2020

Bond $100m $100mFixed rate at

6.25%Mar 2021


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FOREIGN CURRENCY HEDGING

For USD exposures

93% hedged for 30 June 2018 @ 0.7057

57% hedged for June 2019 year @ 0.7081

37% hedged for June 2020 year @ 0.7051

For AUD exposures

91% hedged for 30 June 2018 @ 0.9393

39% hedged for 30 June 2019 @ 0.9264

Average $US payment rate for Opex for the year to June 17 @ 0.6844


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DIVIDEND

The Board has declared a fully imputed final dividend of 12.5 cps ($48.6m) to

be paid and a supplementary dividend of 2.2059 to be paid to non-residents.

Record date is 5 September 2017.

Payment date is 14 September 2017.

2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Interim 15.0 15.0 15.0 14.0 12.0 11.0 8.0 7.0 7.0 7.0

Final 12.5 15.0 15.0 15.0 12.0 11.0 10.5 7.0 7.0 7.0

Ordinary

Total

27.5 30.0 30.0 29.0 24.0 22.0 18.5 14.0 14.0 14.0

Special 0 0 0 32.0 25.0 0 0 0

TOTAL 27.5 30.0 30.0 29.0 24.0 54.0 43.5 14.0 14.0 14.0


STRATEGY AND TRENDS

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WINTER OLYMPICS FEBRUARY 2018

PEAK TV

268

349

389

421

455

534

0

100

200

300

400

500

600

2012 2013 2014 2015 2016 2017


THE BEST OF PREMIUM DRAMA

GAME OF THRONES

LEGIONFARGO

BIG LITTLE LIES

WESTWORLD TABOO

THE NIGHT OF

GENIUS

DOCTOR WHO

FEUDTHE

AMERICANS

BILLIONS HOMELAND

RAY DONOVAN

TWIN PEAKSTHE

LEFTOVERS

SKY CUSTOMER APPS LAUNCHED THIS YEAR

NEW LOOK SKY CUSTOMER EPG APP COMING SEPTEMBER 2017

PIRACY

SKY ANNUAL RESULTS

2017

sky annual results 2017 - amazon s3 · dividend the board has declared a fully imputed final...

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