SKY TV Annouces 2017 Interim Results

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Appendix 1 Release to NZX

Half Year Preliminary Announcements and Half Year Results



Sky Network Television Limited
Results for announcement to the market

Reporting Period 6 months to 31 December 2016
Previous Reporting Period 6 months to 31 December 2015

Amount (000s) Percentage change
Revenue from ordinary
activities
$458,183 3.7% decrease
Net Profit (loss) $59,459 31.9% decrease
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
$59,300 31.9% decrease
Net profit (loss) attributable
to security holders.
$59,300 31.9% decrease

Interim/Final Dividend Amount per security Imputed amount per
security
Interim $0.15 $0.058333

Record Date 15 February 2017
Dividend Payment Date 22 February 2017

Comments: Refer management commentary attached.

SKY NETWORK TELEVISION LIMITED
INTERIM REPORT DECEMBER 2016

NEW PLATFORMS.
MORE CONTENT,
MORE CHOICE.
IT’S FAST FORWARD
FOR SKY.

2 Chief Executive’s Review
7 Subscriber Base
7 History of Dividend Payments
8 Consolidated Interim Statement of Comprehensive Income
9 Consolidated Interim Balance Sheet
10 Consolidated Interim Statement of Changes in Equity
11 Consolidated Interim Statement of Cash Flows
12 Notes to the Interim Financial Statements
18 Independent Review Report
19 Directors and Executives
20 Directory
CONTENTS

2 SKY INTERIM REPORT 2016
CHIEF
EXECUTIVE’S
REVIEW

SKY INTERIM REPORT 2016 3
Dear shareholders
As I write this we are still awaiting the outcome

of the review of the proposed merger between
SKY and Vodafone by the Commerce Commission.
The original date given for the release of the result
was to be in November. It has now been pushed
back to 23 February 2017.
While I believe the Commerce Commission
decision will have a greater long-term impact
on the value of your investment in SKY than just
this interim six month result; the purpose of this
CEO letter, as always, is to provide you insights
beyond the raw numbers.
In my last few letters to you I have discussed

how SKY and for that matter all the media industry,
was going through a disruption phase. Be it SKY,

a free to air advertising supported television
channel, a newspaper or a magazine, even radio
– all traditional media companies are under some
form of stress from digital disruption.
This digital disruption has also brought a massive
increase in the supply of additional viewing

options for consumers and spending options
for advertisers. Yet without much increase in overall
demand. Since SKY has the lion’s share of the
New Zealand subscription television customers, it
faces the biggest challenges. In this letter I will try
and update you on what we are doing to improve
your company’s position, and to counter this
often accentuated view of disruption on SKY – a
company some would have you believe is the only
one affected by such disruption.
In the 30 June Annual Report SKY reported 852,679
subscribers. For the period ending 31 December
this number fell to 816,135. It is important to
understand this change. We do not break out the
categories of subscribers for competitive reasons
but in the annual letter I did disclose that the bulk

of net subscriber gains came from Internet delivered
services such as FAN PASS and NEON. Likewise,

in the December figure it was FAN PASS and NEON
that accounted for more than half of this loss.
In a mature pay television market, subscriptions

will tend to peak in the middle of the winter (the
earlier it gets dark and the rainier it is, the better
we like it). Similarly, services like FAN PASS and
NEON are even more seasonal. FAN PASS allows
customers to buy our SKY Sport tier by the
month, week or day. It has been quite successful
in attracting non SKY subscribers. But there will
always be greater interest in the service during

the winter months when Netball, Rugby and Rugby
League are of peak interest.
NEON is also event driven. The biggest entertainment

event each year is Game of Thrones, which also
hits this market in the middle of the winter this
year. This will mean that NEON will also hit its peak
subscribers around June and July as well. Despite
a compelling array of other HBO, Showtime, CBS,
Warner’s, AMC and other studio dramas; and
the biggest blockbuster movies in their first pay
window, Game of Thrones will always over index
in attracting NEON subscribers compared to any
other single piece of entertainment content. It is

a unique international television phenomenon,
the likes of which may never be seen again.

4 SKY INTERIM REPORT 2016
OUR STRATEGY TO DEAL WITH THIS DISRUPTION IS TO HARNESS
THIS DIGITAL REVOLUTION FOR THE BENEFIT OF OUR SUBSCRIBERS.
For several reasons such as high churn rates,
NEON and FAN PASS are not as profitable as
traditional SKY subscribers. Hence the subscriber
gains last June and the subscriber losses in
December, whilst still an important metric, do
not impact us as much as if they were traditional
subscribers.
Earlier I mentioned that all media companies

were facing digital disruption. In our industry
the biggest impact is that it has never been
easier to start a “subscription business”, both
domestically and internationally. These new
businesses fall under half a dozen commercial
models, and to date it is uncertain which will
survive, let alone be ultimately profitable. The
biggest challenge we face with each of these
models is that they all need to be fed content

to be able to offer a product.
Recognising this, a few years ago your company
went out and bought a temporary insurance
policy by determining what content (be it sport
or entertainment) was the most important to
SKY. We contracted this content on a long term
basis and with the flexibility that would allow us
to deliver that content in an array of different
options like NEON and FAN PASS. In some cases
other parties with different economic models
outbid us for pockets of content but before too
long some of this content like Golf and the English
Premier League have since landed back on SKY’s
subscription television platform.
This insurance policy came at a cost but one

I would pay again if I could go back in time.
The biggest impact during this period was the
steep increase in SANZAR Rugby rights. This
increase straddles our fiscal year so half of the
impact hit in the financial year between January
2016 and June 2016 and the other half in the latest
period between July 2016 and December 2016.
The good news is that at least the Rugby rights
are flat for another four years. Also impacting the
profit of $59 million in the latest period was the
cost of the four yearly event of the 2016 Summer
Olympics in August.
The Summer Olympics are a good example of
how we are dealing with increased costs. With
technical improvements and investments we
created more ways to watch the Olympics than
ever before. SKY Sport customers enjoyed
unprecedented coverage across SKY Sport 3

and SKY Sport 4 as well as ten comprehensive
Rio 2016 Olympic Games Pop-Up channels.
A SKY Olympics App, SKY Go and SKY On
Demand offered additional ways to view and
free to air channel Prime offered comprehensive
coverage with up to 15 hours daily.
Our strategy to deal with this disruption is to
harness this digital revolution for the benefit of
our subscribers, and SKY Go was the first step.
This app allows SKY customers to access their
favourite live channels no matter where they
are in New Zealand. As mentioned, during the
Summer Olympics over 600,000 viewer hours
of content was consumed online in one month.
This monthly record was not broken until January
2017 when over 640,000 viewer hours of content
was consumed, presumably customers watching
Cricket or movies at the beach.
The second step was increasing our share of the
“on demand” world. For years we owned the On
Demand category with our MY SKY decoders,
but increasingly the Internet has stolen market
share from us. Last year we downloaded a new
operating system to our decoders that allowed
them to connect to the Internet. Currently, SKY
subscribers who have activated this option
download on average an additional 2.5 pieces
of content each week, which is equivalent to
one night of television viewing. At last count,
depending on what packages customers have,
they can avail themselves to another 4,700 pieces
of content.
And finally, the third leg of our strategy was
to create a package of services that would
accommodate individuals whose lifestyle
or living circumstances does not lend itself
to the SKY traditional package. It might be a
university student living in a dorm, or a young

SKY INTERIM REPORT 2016 5
professional who is flatting. To address their
needs we launched NEON, a Subscription Video
On Demand service; and FAN PASS, an over
the top Internet delivered sports service. These
new services are not without their challenges.
However, our unwavering belief throughout

the history of this company is to deliver great
value to our customers. Ensuring they have
something great to watch each day, no matter
what mood they are in or who they are with.

To do this we will continually evolve and adapt
the way we deliver content to meet the needs,
lifestyles and expectations of today’s and
tomorrow’s customers.
HIGHLIGHTS
• The Rio 2016 Olympic Games were broadcast
during August on over 12 SKY channels, free to
air on Prime and through SKY Go, On Demand,
and a SKY Olympic App. Working with the
National Foundation for the Deaf we were able
to offer captions on Prime for the first time.
SKY was asked to be the host producer of the
international feed for three Olympic events; the
Open Water Swim, Triathlon and Rugby Sevens.
• In the middle of 2016 both the PGA and LPGA
Golf Tours were secured back on SKY.
• In August 2016 we launched premium beIN
SPORTS channels dedicated entirely to Football
and bringing fans unprecedented live coverage
and analysis of some of the best Football
leagues and tournaments in the world.

One channel is dedicated to the Premier
League, and another features some of the

best Football competitions across the world.
• We agreed a deal with Prime and BBC
Worldwide Australia & New Zealand (ANZ) in
December 2016. This will see a range of BBC
Worldwide’s best factual and documentary
series, including Sir David Attenborough’s
highly acclaimed Planet Earth II, premiere
exclusively on the free-to-air channel in

New Zealand.
• Global youth media company VICE partnered
with SKY to bring New Zealanders a new
lifestyle and cultural TV channel VICELAND
which launched on 1 December 2016.
VICELAND is a channel for and by young people
curious about life right now, and has been
made available to all SKY Basic customers.
In September 2016, valued board member

John Waller sadly passed away. I personally
want to thank John for his unwavering dedication
to SKY. As I said at the time we have lost our

most trusted advisor, mentor and friend.
A man whose unwavering commitment to our
company since 2009, and whose governance

and insight, remains a testimony to his stature
in the New Zealand business community.
DIVIDENDS
The board of directors has evaluated the
performance of the business over the six

months to 31 December 2016 and its prospects
for the full year. On 31 January 2017 the board
announced a fully imputed interim dividend of

15 cents per share (prior interim dividend
15 cents) with the record date being 15 February
2017 and a payment date of 22 February 2017.

A supplementary dividend of 2.65 cents per share
will be paid to non-resident shareholders.
John Fellet
Chief Executive Officer

6 SKY INTERIM REPORT 2016
INTERIM
FINANCIAL
STATEMENTS TO
31 DECEMBER 2016

SKY INTERIM REPORT 2016 7
SUBSCRIBER BASE
The following operating data has been taken from the company records and is not audited.
31 Dec 1631 Dec 1531 Dec 1431 Dec 1331 Dec 12
Total subscribers
816,135860,445856,348857,115846,988
Average monthly revenue per residential subscriber
(1)
79.09

79.5679.4377.5175.78
Gross churn
(2)
17.7%15.4%13.7%13.3%14.6%
(1)

Dec 2016 and Dec 2015 include IGLOO, NEON and FAN PASS not included in previous periods.
(2)

Gross churn relates to satellite subscribers only and refers to the percentage of residential subscribers over the 12-month period
ended on the date shown who terminated their subscription, net of existing subscribers who transferred their service to new
residences during the period.
HISTORY OF DIVIDEND PAYMENTS
By calendar year in cents per share
20162015201420132012
Interim dividend (paid in March)
15.015.014.012.011.0
Final dividend (paid in September)
15.015.015.012.011.0
Total ordinary dividend
30.030.029.024.022.0
Add special dividend
- - - - 32.0
Total dividend for the year
30.030.029.024.054.0

8 SKY INTERIM REPORT 2016
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2016 (unaudited)
IN NZD 000Notes
31 Dec 2016
(6 months)
31 Dec 2015
(6 months)
30 Jun 2016
(1 year)
(audited)
Total revenue
4
458,183475,554928,200
Expenses
Programming
181,553162,905331,050
Subscriber related costs
48,93753,403106,340
Broadcasting and infrastructure
50,37447,76596,040
Depreciation and amortisation
52,20749,181100,241
Other costs
27,45630,61469,484
360,527343,868703,155
Operating profit
97,656131,686225,045
Finance costs, net
9,31010,31520,055
Profit before tax
88,346121,371204,990
Income tax expense
28,88734,03457,867
Profit for the period
59,45987,337147,123
Attributable to:
Equity holders of the Company
59,30087,092146,718
Non-controlling interests
159245405
59,45987,337147,123
Earnings per share
Basic and diluted earnings per share (cents)
15.2422.3837.70
OTHER COMPREHENSIVE INCOME
Profit for the period
59,45987,337147,123
Items that may be reclassified subsequently to profit and loss
Cash flow hedges
7,008(24,654)(49,989)
Gain on available for sale investments
2,142--
Income tax effect
(2,562) 6,903 13,997
Other comprehensive income for the period, net of income tax
6,588(17,751)(35,992)
Total comprehensive income for the period
66,04769,586111,131
Attributable to:
Equity holders of the Company
65,88869,341110,726
Non-controlling interests
159245405
66,04769,586111,131

SKY INTERIM REPORT 2016 9
Peter Macourt
Chairman
For and on behalf of the board 21 February 2017
Susan Paterson
Director
CONSOLIDATED INTERIM BALANCE SHEET
As at 31 December 2016 (unaudited)
IN NZD 000Notes31 Dec 201631 Dec 2015
30 Jun 2016
(audited)
Current assets
Cash and cash equivalents
10
30,07436,34722,863
Trade and other receivables
10
68,42470,06570,030
Programme rights inventory
64,89866,86879,765
Derivative financial instruments
10
2,33415,712 2,982
165,730188,992175,640
Non-current assets
Property, plant and equipment
270,409 298,139 283,316
Intangible assets
1,482,358 1,439,283 1,473,172
Available for sale investment
9
6,905-4,832
Derivative financial instruments
10
8,785 15,779 6,604
1,768,457 1,753,201 1,767,924
Total assets
1,934,187 1,942,193 1,943,564
Current liabilities
Borrowings/bonds
7/10
- 199,763 199,912
Trade and other payables
10179,672 195,047 200,817
Income tax payable
8,752 7,679 7,071
Derivative financial instruments
10 6,011 3,788 9,670
194,435 406,277 417,470
Non-current liabilities
Borrowings
7/10
254,578 39,421 49,468
Bonds
7/10
98,843 98,570 98,705
Derivative financial instruments
10 7,746 8,281 10,951
Deferred tax
39,986 41,226 36,047
401,153 187,498 195,171
Total liabilities
595,588 593,775 612,641
Equity
Share capital
577,403 577,403 577,403
Hedging reserve
(66) 13,129 (5,112)
Retained earnings
759,888 756,162 757,417
Total equity attributable to equity holders of the Company
1,337,225 1,346,694 1,329,708
Non-controlling interest
1,374 1,724 1,215
Total equity
1,338,599 1,348,418 1,330,923
Total equity and liabilities
1,934,187 1,942,193 1,943,564

10 SKY INTERIM REPORT 2016
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2016 (unaudited)
ATTRIBUTABLE TO OWNERS OF THE PARENT
IN NZD 000Notes
Share
capital
Hedging
reserve
Retained
earningsTotal
Non-
controlling
interest
Total
equity
Balance at 1 July 2016
577,403(5,112)757,4171,329,708 1,215 1,330,923
Profit for the period
- - 59,30059,30015959,459
Gain on available for sale investment,
net of tax
9
--1,5421,542-1,542
Cash flow hedges, net of tax
- 5,046 - 5,046 - 5,046
Total comprehensive income for
the period
- 5,046 60,842 65,88815966,047
Transactions with owners in their
capacity as owners
Dividend paid
- -(58,371)(58,371)- (58,371)
Supplementary dividends
- - (7,532)(7,532)- (7,532)
Foreign investor tax credits
- - 7,532 7,532 - 7,532
- -(58,371)(58,371)- (58,371)
Balance at 31 December 2016
577,403(66)759,8881,337,2251,3741,338,599
For the six months ended
31 December 2015 (unaudited)
Balance at 1 July 2015
577,40330,880727,4411,335,724 1,479 1,337,203
Profit for the period
- - 87,09287,09224587,337
Cash flow hedges, net of tax
-(17,751) - (17,751) -(17,751)
Total comprehensive income for
the period
-(17,751) 87,092 69,34124569,586
Transactions with owners in their
capacity as owners
Dividend paid
- -(58,371)(58,371) - (58,371)
Supplementary dividends
- - (7,376)(7,376) -(7,376)
Foreign investor tax credits
- -7,3767,376 - 7,376
- - (58,371)(58,371)-(58,371)
Balance at 31 December 2015
577,40313,129756,1621,346,6941,7241,348,418
For the year ended 30 June 2016
(audited)
Balance at 1 July 2015
577,40330,880727,4411,335,724 1,479 1,337,203
Profit for the year
- - 146,718146,718405147,123
Cash flow hedges, net of tax
-(35,992) - (35,992) -(35,992)
Total comprehensive income for
the period
-(35,992) 146,718 110,726405111,131
Transactions with owners in their
capacity as owners
Dividend paid
- -(116,742)(116,742) (669) (117,411)
Supplementary dividends
- - (14,965)(14,965) -(14,965)
Foreign investor tax credits
- -14,96514,965 - 14,965
- - (116,742)(116,742)(669)(117,411)
Balance at 30 June 2016
577,403(5,112)757,4171,329,7081,2151,330,923

SKY INTERIM REPORT 2016 11
CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended 31 December 2016 (unaudited)
IN NZD 000Notes
31 Dec 2016
(6 months)
31 Dec 2015
(6 months)
30 Jun 2016
(1 year)
(audited)
Cash flows from operating activities
Profit before tax
88,346121,371204,990
Adjustment for non-cash items:
Depreciation and amortisation
52,20749,181100,241
Unrealised foreign exchange (gain)/loss
(490)190305
Interest expense
10,58810,15020,379
Bad debts and movement in provision for doubtful debts
5787952,427
Amortisation of bond issue costs
226288573
Other non-cash items
(1,934)(1,471)419
Movement in working capital items:
Increase in receivables
(550)(1,140)(2,736)
(Decrease)/increase in payables
(14,283)14,24023,576
Decrease/(increase) in programme rights
14,8675,945(6,952)
Cash generated from operations
149,555199,549343,222
Interest paid
(10,361)(10,618)(20,920)
Income tax paid
(18,200)(31,272)(46,458)
Net cash from operating activities
120,994157,659275,844
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
24 - -
Acquisition of available for sale investment
9
--(4,832)
Acquisition of property, plant, equipment and intangibles
8
(52,640)(59,535)(128,803)
Net cash used in investing activities
(52,616)(59,535)(133,635)
Cash flows from financing activities
Advances received – bank loan
7
220,00033,000103,000
Repayment of borrowings – bank loan
7
(15,000)(43,000)(103,000)
Repayment of bonds
(200,000)--
Payment of finance lease liabilities
-(3,294)(3,294)
Payment of bank facility fees
(264)(631)(1,571)
Dividend paid to minority shareholders
--(669)
Dividends paid
(65,903)(65,747)(131,707)
Net cash used in financing activities
(61,167)(79,672)(137,241)
Net increase in cash and cash equivalents
7,211 18,452 4,968
Cash and cash equivalents at beginning of the period
22,863 17,895 17,895
Cash and cash equivalents at end of the period
30,074 36,347 22,863

12 SKY INTERIM REPORT 2016
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2016 (unaudited)
1. GENERAL INFORMATION
SKY Network Television Limited (“SKY”) is a company, incorporated and domiciled in New Zealand. The address of its
registered office is 10 Panorama Road, Mt Wellington, Auckland, New Zealand. The consolidated interim financial statements
of the Group for the six months ended 31 December 2016 comprise SKY and its subsidiaries.
SKY is a company registered under the Companies Act 1993 and is a reporting entity under Part 7 of the Financial Markets
Conduct Act 2013.
SKY is a leading media company in New Zealand and operates as a provider of multi-channel, pay-per-view and free-to-air
television services in New Zealand.
These consolidated interim financial statements were approved by the Board of Directors on 21 February 2017.
2. BASIS OF PREPARATION
These consolidated interim financial statements have been prepared in accordance with the requirements of Part 7 of the
Financial Markets Conduct Act 2013, the NZX Main Board Listing Rules and the ASX Listing Rules.
These consolidated interim financial statements of SKY are for the six months ended 31 December 2016. They have been
prepared in accordance with New Zealand generally accepted accounting practice, NZ IAS 34 Interim Financial Reporting
and International Accounting Standard 34 (IAS 34). They do not include all of the information required for full annual financial
statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the year
ended 30 June 2016. For the purposes of financial reporting SKY is a profit-oriented entity.
The preparation of interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting requires management
to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various
other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the
judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may
differ from these estimates.
These financial statements have been prepared under the historical cost convention except for the revaluation of certain
financial instruments (including derivative instruments).
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in these consolidated interim financial statements are the same as those
applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2016.
4. REVENUE
IN NZD 000
31 Dec 2016
(6 months)
31 Dec 2015
(6 months)
30 Jun 2016
(1 year)
(audited)
Residential satellite subscriptions
371,214383,492753,115
Other subscriptions
42,18238,78979,286
Advertising
35,08642,32274,046
Other revenue
9,70110,95121,753
458,183475,554928,200

SKY INTERIM REPORT 2016 13
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2016 (unaudited)
5. GROUP STRUCTURE
At 31 December 2016 SKY had the following subsidiaries:
• SKY Ventures Limited
• IGLOO Limited
• Media Finance Limited (non-trading)
• Outside Broadcasting Limited
• Screen Enterprises Limited
• SKY DMX Music Limited (50.5%)
• Believe It or Not Limited (51.0%)
6. RELATED PARTY TRANSACTIONS
There were no loans to directors by the Group or associated parties at any of the reporting dates above.
The gross remuneration of directors and key management personnel during the period was $7,827,000 (31 December 2015:
$8,266,000; 30 June 2016: $12,798,000).
7. BORROWINGS
Bonds
Terms and conditions of outstanding bonds are as follows:
31 Dec 201631 Dec 2015
30 Jun 2016
(audited)
Bond A
Nominal interest rate
-
3.38%
3.38%
Issue date
-16 Oct 200616 Oct 2006
Date of maturity
-16 Oct 201616 Oct 2016
IN NZD 000
Carrying amount
- 199,763 199,912
Face value
- 200,000 200,000
Fair value
- 197,548 199,000
Market yield
-5.05%4.97%
Bond B
Nominal interest rate
6.25%6.25%6.25%
Issue date
31 Mar 201431 Mar 201431 Mar 2014
Date of maturity
31 Mar 202131 Mar 202131 Mar 2021
IN NZD 000
Carrying amount
98,843 98,570 98,705
Face value

100,000 100,000 100,000
Fair value
106,460 107,657 109,644
Market yield
4.57%4.60%4.01%
On 31 March 2014 the Group issued bonds for a value of $100 million which were fully subscribed (Bond B).
On 16 October 2006, the Group issued bonds for a value of $200 million which were fully subscribed (Bond A).
These bonds were repaid on 16 October 2016. Repayment was effected by a drawdown on the Group’s bank facility.
Bank Loans
During the period bank borrowings of $200 million were drawn down to repay Bond A.

14 SKY INTERIM REPORT 2016
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2016 (unaudited)
8. CAPITAL EXPENDITURE
The Group acquired the following property, plant and equipment and intangibles during the period:
Group
IN NZD 000
31 Dec 2016
(6 months)
31 Dec 2015
(6 months)
30 Jun 2016
(1 year)
(audited)
Capital projects in progress
11,50813,22510,655
Land and buildings
593962,986
Broadcasting and studio equipment
89953703
Plant and equipment and other
2,0842,1912,039
Decoders
13,63430,83167,292
Installation costs
17,24114,47532,559
Intangibles
3,31786415,949
48,74262,035132,183
Movement in capital expenditure creditors
3,898(2,500)(3,380)
Cash outflow in the period
52,64059,535128,803
9. AVAILABLE FOR SALE INVESTMENT
In March 2016 SKY Ventures acquired a 15.79% interest in 90 Seconds Pty Limited (a cloud video production company) for
a cost of $4.8 million. This investment is classified as an available for sale financial asset recognised initially and subsequently
at fair value with changes in fair value recognised in other comprehensive income. The fair value as at 31 December 2016
was $6,905,225.

SKY INTERIM REPORT 2016 15
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2016 (unaudited)
10. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS
The Group’s activities expose it to a variety of financial risks, market risk (including currency risk, fair value interest rate risk,
cash flow interest rate risk and price risk) credit risk and liquidity risk.
The consolidated interim financial statements do not include all financial risk management information and disclosures
required in the annual financial statements, they should be read in conjunction with the Group’s annual financial statements
as at 30 June 2016. There have been no changes in any risk management policies since year end.
Financial assets of the Group include cash, and cash equivalents, trade and other receivables, available for sale investment
and derivative financial assets. Financial liabilities of the Group include trade and other payables, borrowings, bonds and
derivative financial liabilities. The Group does not hold or issue financial instruments for trading purposes.
Based on NZ IFRS 13 Fair Value Measurement, the fair value of each financial instrument is categorised in its entirety based
on the lowest level of input that is significant to that fair value measurement. The levels are defined as follows:
Level 1: Quoted prices (unadjusted in active market for identical assets and liabilities;
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (that is unobservable inputs),
for example discounted cash flow.
SKY’s financial assets and liabilities carried at fair value are valued on a level 2 basis other than the available for sale
investment (refer note 9) that is valued on a level 3 basis.
Financial instruments measured at fair value
The following financial instruments are subject to recurring fair value measurements:
IN NZD 00031 Dec 201631 Dec 201530 Jun 2016
Derivative financial instruments (Level 2)
Current assets
2,33415,7122,982
Non-current assets
8,78515,7796,604
Current liabilities
(6,011)(3,788)(9,670)
Non-current liabilities
(7,746)(8,281)(10,951)
(2,638)19,422(11,035)
Available for sale investment (Level 3)
Non-current assets
6,905-4,832

16 SKY INTERIM REPORT 2016
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2016 (unaudited)
10. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (CONTINUED)
Financial instruments not measured at fair value
The following financial instruments are not measured at fair value in the consolidated interim financial statements.
These had the following fair values as at December 2016:
31 Dec 201631 Dec 201530 Jun 2016
IN NZD 000
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Financial assets
Cash and cash equivalents
30,07430,07436,34736,34722,86322,863
Trade and other receivables
62,61462,61463,20463,20461,75261,752
92,68892,68899,55199,55184,61584,615
Financial liabilities
Trade and other payables
(86,284)(86,284)(98,313)(98,313)(110,634)(110,634)
Bank borrowings
(254,578)(253,419)(39,421)(38,704)(49,468)(44,366)
Bonds
(98,843)(106,460)(298,333)(305,205)(298,617)(308,644)
(439,705)(446,163)(436,067)(442,222)(458,719)(463,644)
Prepaid expenses, deferred revenue, unearned subscriptions, tax payables and employee benefits do not meet the definition
of a financial instrument and have been excluded from the “Trade and other receivables” and “Trade and other payables”
categories above. Prior period balances for trade and other payables have been restated to exclude tax payables and
employee benefits so as to be consistent with the current period.
Due to their short-term nature, the carrying amounts of cash and cash equivalents, trade and other receivables and trade and
other payables is assumed to approximate their fair value.
The fair value of long-term borrowings are estimated by discounting future cash flows using current market interest rates
offered to the Group for debt with substantially the same characteristics and maturities. The interest rates used in estimating
the fair value of long-term debt were as follows:
Interest Rates
31 Dec 201631 Dec 201530 Jun 2016
Bond A
-5.05%4.97%
Bond B
4.57%4.60%4.01%
Bank Borrowings
3.38%4.19%3.84%
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable
inputs. The fair value of forward foreign exchange contracts is based on market forward foreign exchange rates at period end.

SKY INTERIM REPORT 2016 17
11. CONTINGENT LIABILITIES
The Group is subject to litigation incidental to its business, none of which is expected to be material. No provision has been
made in the Group’s financial statements in relation to any current litigation and the directors believe that such litigation will
not have a significant effect on the Group’s financial position, results of operations or cash flows.
12. SUBSEQUENT EVENTS
Acquisition of Vodafone: At a special meeting on 6 July 2016 SKY shareholders voted to approve the acquisition of
Vodafone NZ for a proposed transaction price of $3.44 billion, to approve the incurrence of new debt and to approve the
issue of new shares to Vodafone Plc.
Subject to regulatory approvals (which is expected to be by 23 February 2017), SKY will acquire all of the shares in Vodafone
NZ from Vodafone Europe B.V for a total purchase price of $3.44 billion, paid for through a mixture of cash and SKY shares.
The issue of shares will result in Vodafone owning 51% of the total number of shares in SKY. The purchase price will consist
of the issue of 405,023,041 shares at a price of $5.40 and a cash payment of $1.25 billion totalling approximately $3.44 billion.
The transaction will be financed by new debt of up to $1.8 billion which has been negotiated at favourable terms with
Vodafone Overseas Finance Limited. However SKY retains the right to renegotiate the revolving credit portion of this debt
with one or more third parties. The balance of the bank debt which is currently shown as a non-current liability is expected
to be settled shortly after the merger date.
For further details relating to this transaction please refer to the Explanatory Memorandum on SKY’s website
www.skytv.co.nz/investor.
On 31 January 2017 the Board of Directors announced that it will pay a fully imputed dividend of 15 cents per share with
the record date being 15 February 2017. A supplementary dividend of 2.6471 cents per share will be paid to non-resident
shareholders subject to the foreign investor tax credit regime.
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2016 (unaudited)

18 SKY INTERIM REPORT 2016
INDEPENDENT REVIEW REPORT
to the shareholders of Sky Network Television Limited
Report on the Interim Financial Statements
We have reviewed the accompanying condensed consolidated interim financial statements (“interim financial statements”) of
Sky Network Television Limited (“the Company”) on pages 8 to 17 which comprise the balance sheet as at 31 December 2016
and the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the
period ended on that date and selected explanatory notes for the Group. The Group comprises the Company and the entities
it controlled at 31 December 2016 or from time to time during the period.
Directors’ Responsibility for the Financial Statements
The Directors are responsible on behalf of the Company for the preparation and presentation of these interim financial
statements in accordance with New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting
(NZ IAS 34) and for such internal controls as the directors determine are necessary to enable the preparation of interim
financial statements that are free from material misstatement, whether due to fraud or error.
Our Responsibility
Our responsibility is to express a conclusion on the accompanying interim financial statements based on our review. We
conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410). NZ SRE 2410 requires us to conclude whether
anything has come to our attention that causes us to believe that the interim financial statements, taken as a whole, are not
prepared in all material respects, in accordance with NZ IAS 34. As the auditors of the Company, NZ SRE 2410 requires that
we comply with the ethical requirements relevant to the audit of the annual financial statements.
A review of interim financial statements in accordance with NZ SRE 2410 is a limited assurance engagement. The auditors
perform procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. The procedures performed in a review are substantially
less than those performed in an audit conducted in accordance with International Standards on Auditing (New Zealand).
Accordingly we do not express an audit opinion on these interim financial statements.
We are independent of the Group. Our firm carries out other services for the Group in the area of assurance and advisory
services. In addition, certain partners and employees of our firm may deal with the Group on normal terms within the ordinary
course of trading activities of the Group. The provision of these other services has not impaired our independence.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these interim financial statements of
the Company are not prepared, in all material respects, in accordance with NZ IAS 34.
Restriction on Use of Our Report
This report is made solely to the Company’s shareholders, as a body. Our review work has been undertaken so that we might
state to the Company’s shareholders those matters which we are required to state to them in our review report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
shareholders, as a body, for our review procedures, for this report, or for the conclusion we have formed.
For and on behalf of:
Chartered Accountants

Auckland
21 February 2017
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 (9) 355 8000, F: +64 (9) 355 8001, www.pwc.co.nz

SKY INTERIM REPORT 2016 19
DIRECTORS AND EXECUTIVES
DIRECTORS
John Fellet Chief Executive
Derek Handley
Peter Macourt Chairman
Geraldine McBride
Susan Paterson ONZM
John Waller ONZM (Retired 15 September 2016)
EXECUTIVES
John Fellet Director and Chief Executive Officer
Jason Hollingworth Chief Financial Officer and Company Secretary
Travis Dunbar Director Entertainment Programming
Megan King Director of Content: Strategy, Planning and Delivery
Richard Last Director of Sport
Chris Major Director of Government Relations
Rawinia Newton Director of Advertising Sales
Cathryn Oliver Chief of Staff
Matthew Orange Director of Products and Ventures
Tex Texeira Director of Broadcast and Media
Michael Watson Director of Marketing
Kirsty Way Director of Corporate Communications
Julian Wheeler Director of Technology
Martin Wrigley Director of Operations

20 SKY INTERIM REPORT 2016
NEW ZEALAND REGISTERED OFFICE
10 Panorama Road
Mt Wellington
Auckland 1060
New Zealand
Tel: +64 9 579 9999 Fax: +64 9 579 8324
Website: www.skytv.co.nz
AUSTRALIAN REGISTERED OFFICE
c/- Allens Arthur Robinson Corporate Pty Limited
Level 28, Deutsche Bank Place
Corner Hunter and Philip Streets
Sydney, NSW 2000
Australia
Tel: +61 2 9230 4000 Fax: +61 2 9230 5333
AUDITORS TO SKY
PricewaterhouseCoopers
PricewaterhouseCoopers Tower
188 Quay Street
Auckland 1010
New Zealand
Tel: +64 9 355 8000 Fax: +64 9 355 8001
SOLICITORS TO SKY
Buddle Findlay
PricewaterhouseCoopers Tower
188 Quay Street
Auckland 1010
New Zealand
Tel: +64 9 358 2555 Fax: +64 9 358 2055
DIRECTORY
REGISTRARS
Shareholders should address questions relating
to share certificates, notify changes of address or
address any administrative questions to SKY’s share
registrar as follows:
NEW ZEALAND ORDINARY SHARE REGISTRAR
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, North Shore City 0622
New Zealand
Mailing address:
Private Bag 92119
Auckland Mail Centre
Auckland 1142
New Zealand
Tel: +64 9 488 8777 Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz
AUSTRALIAN BRANCH REGISTER
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street
Abbotsford, VIC 3067
GPO Box 2975EE
Melbourne VIC 3000
Australia
Freephone: 1300 850 505 (within Australia)
Tel: +61 3 9415 4000 Fax: +61 3 9473 2500
Email: enquiry@computershare.co.nz
BONDHOLDER TRUSTEE
The New Zealand Guardian Trust Company Limited
Level 7, Vero Centre, 48 Shortland Street
Auckland 1010
New Zealand
Mailing address:
P.O. Box 1934
Auckland 1140
New Zealand
Tel: +64 9 377 7300 Fax: +64 9 377 7470
Email: web.corporatetrusts@nzgt.co.nz

SKY INTERIM REPORT 2016 21

SKY NETWORK
TELEVISION LIMITED
PO Box 9059
Newmarket
Auckland 1149
New Zealand
10 Panorama Road
Mt Wellington
Auckland 1060
New Zealand
sky.co.nz

Other Information

Sky Network Television Limited
Half Year ended on 31 December 2016


• Net tangible assets per security:

Current period $(0.373): 1

Previous period $(0.238): 1

---

SKY TV
PO Box 9059
Newmarket
Auckland 1149
New Zealand

10 Panorama Road
Mt Wellington
Auckland 1060
New Zealand

T. +64 9 579 9999

sky.co.nz
skybusiness.co.nz







22 February 2017

Client Market Services
NZX Limited
announce@nzx.com

Market Announcements Office
ASX Limited
Level 4, 20 Bridge Street
Sydney, NSW
Australia




Confirmation of Guidance
SKY Network Television Limited (SKY) confirms the Guidance provided on 14 December
2016 that EBITDA will be 5% to 7% below the $296 million forecast for the year ended 30
June 2017 included in the Explanatory Memorandum dated 13 June 2016.

End.
For further information, please contact:

Jason Hollingworth
Chief Financial Officer
SKY Network Television
(09) 579 9999
021 312 928
jhollingworth@skytv.co.nz

---

SKY TELEVISION
INTERIM RESULTS
DECEMBER 2016

|
TOTAL SUBSCRIBERS
Page 2
852,679
816,135
600.00630.00660.00690.00720.00750.00780.00810.00840.00870.00
30-Jun-16
31-Dec-16
Last Week Tonight with John Oliver ©2017 Home Box O
ffice, Inc. All rights reserved. HBO® and all relat
ed programs are the property of
Home Box Office, Inc.

|
TRADITIONAL CHURN
10.0%11.0%12.0%13.0%14.0%15.0%16.0%17.0%18.0%19.0%
0.6%0.8%1.0%1.2%1.4%1.6%1.8%2.0%
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Monthly
Annualised

|
MYSKY CHURN
0.6%0.8%1.0%1.2%1.4%1.6%1.8%2.0%2.2%2.4%2.6%
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
MYSKY
SKY
Total

|
New
SKY BOX
rollout
87%
Completed
ON DEMAND
Catch Up
now available

|
CONNECTIVITY ON SKY BOXES
18%
29%
0%5%
10%15%20%25%30%35%
Launch Feb 16
Jan-17
Millions
Page 6
©Disney Enterprises, Inc.

|
304,242
304,168
200,000.0
200,220.0
200,440.0200,660.0
200,880.0
201,100.0
201,320.0
201,540.0
201,760.0
201,980.0
202,200.0
202,420.0
202,640.0
202,860.0
203,080.0
203,300.0
203,520.0203,740.0
203,960.0
204,180.0
204,400.0
204,620.0
204,840.0
205,060.0
205,280.0
205,500.0
205,720.0
205,940.0
206,160.0
206,380.0
206,600.0
206,820.0
207,040.0
207,260.0
207,480.0
207,700.0
207,920.0
208,140.0
208,360.0
208,580.0
208,800.0
209,020.0
209,240.0
209,460.0
209,680.0
209,900.0
210,120.0
210,340.0
210,560.0
210,780.0
211,000.0
211,220.0
211,440.0211,660.0
211,880.0
212,100.0
212,320.0
212,540.0
212,760.0
212,980.0
213,200.0
213,420.0
213,640.0
213,860.0
214,080.0214,300.0
214,520.0214,740.0
214,960.0
215,180.0
215,400.0
215,620.0
215,840.0
216,060.0
216,280.0
216,500.0
216,720.0
216,940.0
217,160.0
217,380.0
217,600.0
217,820.0
218,040.0
218,260.0
218,480.0
218,700.0
218,920.0
219,140.0
219,360.0
219,580.0
219,800.0
220,020.0
220,240.0
220,460.0
220,680.0
220,900.0
221,120.0
221,340.0
221,560.0
221,780.0
222,000.0
222,220.0
222,440.0222,660.0
222,880.0
223,100.0
223,320.0
223,540.0
223,760.0
223,980.0
224,200.0
224,420.0
224,640.0
224,860.0
225,080.0225,300.0
225,520.0225,740.0
225,960.0
226,180.0
226,400.0
226,620.0
226,840.0
227,060.0
227,280.0
227,500.0
227,720.0
227,940.0
228,160.0
228,380.0
228,600.0
228,820.0
229,040.0
229,260.0
229,480.0
229,700.0
229,920.0
230,140.0
230,360.0
230,580.0
230,800.0
231,020.0
231,240.0
231,460.0
231,680.0
231,900.0
232,120.0
232,340.0
232,560.0
232,780.0
233,000.0
233,220.0
233,440.0233,660.0
233,880.0
234,100.0
234,320.0
234,540.0
234,760.0
234,980.0
235,200.0
235,420.0
235,640.0
235,860.0
236,080.0
236,300.0
236,520.0236,740.0
236,960.0
237,180.0
237,400.0
237,620.0
237,840.0
238,060.0
238,280.0
238,500.0
238,720.0
238,940.0
239,160.0
239,380.0
239,600.0
239,820.0
240,040.0
240,260.0
240,480.0
240,700.0
240,920.0
241,140.0
241,360.0
241,580.0
241,800.0
242,020.0
242,240.0
242,460.0
242,680.0
242,900.0
243,120.0
243,340.0
243,560.0
243,780.0
244,000.0
244,220.0
244,440.0
244,660.0
244,880.0
245,100.0
245,320.0
245,540.0
245,760.0
245,980.0
246,200.0
246,420.0
246,640.0
246,860.0
247,080.0247,300.0
247,520.0247,740.0
247,960.0
248,180.0
248,400.0
248,620.0
248,840.0
249,060.0
249,280.0
249,500.0
249,720.0
249,940.0
250,160.0
250,380.0
250,600.0
250,820.0
251,040.0
251,260.0
251,480.0
251,700.0
251,920.0252,140.0
252,360.0
252,580.0
252,800.0253,020.0
253,240.0
253,460.0
253,680.0
253,900.0
254,120.0
254,340.0
254,560.0
254,780.0
255,000.0
255,220.0
255,440.0
255,660.0
255,880.0
256,100.0
256,320.0
256,540.0
256,760.0
256,980.0
257,200.0
257,420.0
257,640.0
257,860.0
258,080.0
258,300.0
258,520.0258,740.0
258,960.0
259,180.0
259,400.0
259,620.0
259,840.0
260,060.0
260,280.0
260,500.0
260,720.0
260,940.0
261,160.0
261,380.0
261,600.0
261,820.0
262,040.0
262,260.0
262,480.0
262,700.0
262,920.0
263,140.0
263,360.0
263,580.0
263,800.0
264,020.0
264,240.0
264,460.0
264,680.0
264,900.0
265,120.0
265,340.0
265,560.0
265,780.0
266,000.0
266,220.0
266,440.0266,660.0
266,880.0
267,100.0
267,320.0
267,540.0
267,760.0
267,980.0
268,200.0
268,420.0
268,640.0
268,860.0
269,080.0269,300.0
269,520.0
269,740.0
269,960.0
270,180.0
270,400.0
270,620.0
270,840.0
271,060.0
271,280.0
271,500.0
271,720.0
271,940.0
272,160.0
272,380.0
272,600.0
272,820.0
273,040.0
273,260.0
273,480.0
273,700.0
273,920.0
274,140.0
274,360.0
274,580.0
274,800.0
275,020.0
275,240.0
275,460.0
275,680.0
275,900.0
276,120.0
276,340.0
276,560.0
276,780.0
277,000.0
277,220.0
277,440.0277,660.0
277,880.0
278,100.0
278,320.0
278,540.0
278,760.0
278,980.0
279,200.0
279,420.0
279,640.0
279,860.0
280,080.0280,300.0
280,520.0280,740.0
280,960.0
281,180.0
281,400.0
281,620.0
281,840.0
282,060.0
282,280.0
282,500.0
282,720.0
282,940.0
283,160.0
283,380.0
283,600.0
283,820.0
284,040.0
284,260.0
284,480.0
284,700.0
284,920.0
285,140.0
285,360.0
285,580.0
285,800.0
286,020.0
286,240.0
286,460.0
286,680.0
286,900.0
287,120.0
287,340.0
287,560.0
287,780.0
288,000.0
288,220.0
288,440.0
288,660.0
288,880.0
289,100.0
289,320.0
289,540.0
289,760.0
289,980.0
290,200.0
290,420.0
290,640.0
290,860.0
291,080.0291,300.0
291,520.0
291,740.0
291,960.0
292,180.0
292,400.0
292,620.0
292,840.0
293,060.0
293,280.0
293,500.0
293,720.0
293,940.0
294,160.0
294,380.0
294,600.0
294,820.0
295,040.0
295,260.0
295,480.0
295,700.0
295,920.0
296,140.0
296,360.0
296,580.0
296,800.0
297,020.0
297,240.0
297,460.0
297,680.0
297,900.0
298,120.0
298,340.0
298,560.0
298,780.0
299,000.0
299,220.0
299,440.0299,660.0
299,880.0
300,100.0
300,320.0
300,540.0
300,760.0
300,980.0
301,200.0
301,420.0
301,640.0
301,860.0
302,080.0
302,300.0
302,520.0302,740.0
302,960.0
303,180.0
303,400.0
303,620.0
303,840.0
304,060.0
304,280.0
304,500.0
304,720.0
304,940.0
305,160.0
305,380.0
305,600.0
305,820.0
306,040.0
306,260.0
306,480.0
306,700.0
306,920.0
307,140.0
307,360.0
307,580.0
307,800.0
308,020.0
308,240.0
308,460.0
308,680.0
308,900.0
309,120.0
309,340.0
309,560.0
309,780.0
310,000.0
Dec-15
Dec-16
SKY BASIC AND SPORTS PACKAGE
Page 7
SUPER RUGBY
www.photosport.nz

|
SKY’S NEW WORLD OF DOWNLOADS
Page 8
0.02.04.06.08.0
10.012.014.016.0
6 Months
Dec 2015
6 months
Dec 2016

|
3.72
3.8
2.5
2.7
2.9
3.1
3.3
3.5
3.7
3.9
Dec-15
Dec-16
SKY PREMIUM PRODUCTS PER SUBSCRIBER
Page 9
www.photosport.nz

|
TRADITIONAL SKY ARPU
$80.87
$83.58
$50.00
$55.00
$60.00
$65.00$70.00
$75.00
$80.00
$85.00
$90.00
Dec-15
Dec-16
Page 10
www.photosport.nz

|
TOTAL ARPU
$79.56
$79.09
$50.00
$55.00
$60.00
$65.00$70.00
$75.00
$80.00
$85.00
Dec-15
Dec-16
Page 11
www.photosport.nz
SIVLER FERNS

|
ADVERTISING REVENUE
42
35
05
1015202530354045
Dec 15
Dec-16
Millions
Page 12
Running With Bear Gryls ©2016 NBCUniversal Media, LLC

Millions
Taboo

|
TOTAL TELEVISION ADVERTISING REVENUE(YOY QUARTERLY CHANGE)
-10%
-5%
0%5%
10%15%
Mar 10 Qtr
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
Mar 13 Qtr
Jun 13 Qtr
Sept 13 Qtr
Dec 13 Qtr
Mar 14 Qtr
Jun 14 Qtr
Sept 14 Qtr
Dec 14 Qtr
Mar 15 Qtr
Jun 15 Qtr
Sep 15 Qtr
Dec15 Qtr
Mar 16 Qtr2
Jun 16 Qtr3
Sep 16 Qtr4
Dec16 Qtr5
Page 13

|
REVENUE
476
458
300320340360380400420440460480500
Dec-15
Dec-16
Millions
Page 14
Copyright: © eOne Films (EITS) Limited
Millions

|
PROGRAMMING COSTS % REVENUE
34%
39%
0%5%
10%15%20%25%30%35%40%
Dec-15
Dec-16
Page 15
© Photosport.nz
OLYMPICS 2016

|
EBITDA
180.9
149.9
50.0 70.0 90.0
110.0 130.0 150.0 170.0 190.0
Dec-15
Dec-16
Millions
Page 16
Must have TLC and OWN logo on frame
www.photosport.nz
Millions

|
NET PROFIT
87.3
59.5
-
10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
100.0
Dec-15
Dec-16
Millions
Page 17
Milions
© 2016 Marvel.

FINANCIAL DETAIL

|
INTERIM RESULTS SUMMARY
2015
2016
% Change
Revenue
475.6
458.2
(3.7%)
Operating Expenses
294.7
308.3
4.6%
EBITDA
180.9
149.9
(17.2%)
Depn & Amort
49.2
52.2
6.1%
EBIT
131.7
91.7
(25.8%)
Interest
10.3
9.3
(9.7%)
Tax
34.0
28.9
(15.0%)
NET PROFIT after TAX
87.3
59.5
(32.0%)
Page 19

|
REVENUE ANALYSIS
2015
2016
% Change
Residential Satellite subscriptions
383.5
371.2
(3.2%)
Other subscriptions
38.8
42.2
8.7%
Advertising
42.3
35.1
(17.1%)
Other Income
10.9
9.7
(11.0%)
TOTAL REVENUE
475.5
458.2
(3.6%)
Page 20

|
EXPENSE ANALYSIS
2015
2016
% Change
Programming rights
162.9
181.6
11.5%
Subscriber related costs
53.4
48.9
(8.4%)
Broadcasting and infrastructure
47.8
50.4
5.4%
Depreciation and amortisation
49.2
52.2
6.1%
Other costs
30.6
27.5
(10.3%)
TOTAL EXPENSE
343.9
360.5
4.8%
Page 21

|
CAPITAL EXPENSE ANALYSIS
2015
2016
% Change
Install
14.5
17.2
18.9%
Decoders
28.3
17.5
(43.2%)
Land and BuildingImprovements
0.3
0.1
(66.7%)
Broadcasting and Technology equipment
3.2
6.3
96.9%
Other
13.2
11.5
(7.5%)
TOTAL CAPITAL EXPENSE
59.5
52.6
(11.5%)
Page 22

|
OPERATING CASHFLOW
2015
2016
% Change
Operating Cashflow
157.7
121.0
(23.3%)
Capex
(59.5)
(52.6)
(11.5%)
Net debt drawn/(repaid)
(10.0)
5.0
(150.0%)
Dividends
(65.7)
(65.9)
0.3%
Other
(3.9)
(0.3)
(92.3%)
NET CASH MOVEMENT
18.5
7.2
(61.6%)
Page 23

|
FUNDING PROFILE
FACILITY
DRAWN
MARGIN
MATURITY
Bank Debt
$300m
$255m
145bp
Jul 2020
Bond - B
$100m
$100m
Fixed rate at
6.25%
Mar 2021
Page 24

|
FOREIGN CURRENCY HEDGING
For
For For For USD exposures
USD exposuresUSD exposuresUSD exposures
90% hedged for 6 months to 30 June 2017 @ 0.682386% hedged for June 2018 year @ 0.702539% hedged for June 2019 year @ 0.7044
For
For For For AUD exposures
AUD exposuresAUD exposuresAUD exposures
93% hedged for 6 months to 30 June 2017 @ 0.920877% hedged for 30 June 2018 @ 0.936317% hedged for 30 June 2019 @0.9137
Average $US payment rate for Opex for the 6 months t
o December 16 @
0.6824
Page 25

|
DIVIDEND
The Board has declared a fully imputed interim divi
dend of 15.0 cps ($58.4m)
to be paid and a supplementary dividend of 2.6471 t
o be paid to non-residents.
Record date is 15 February 2017. Payment date is 22 February 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
15.0
15.0
12.0
11.0
10.5
7.0
7.0
7.0
Ordinary Total
15.0
30.0
30.0
29.0
24.0
22.0
18.5
14.0
14.0
14.0
Special
0
0
0
0
0
32.0
25.0
0
0
0
TOTAL
15.0
30.0
30.0
29.0
24.0
54.0
43.5
14.0
14.0
14.0
Page 26

SKY HIGHLIGHTS

|
Average Audience YOY growth of
11%
all overseas NEWS CHANNELS
124%
US NEWS CHANNELS

SKY SPORT APPS

IGLOO

|
Gaycation ©VICELAND
Launched Dec 2016

|

|

|

|
SKY confirms the Guidance provided on 14 December 2
016 that EBITDA will
be 5% to 7% below the $296 million forecast for the
year ended 30 June
2017 provided in the EM dated 13 June 2016.
GUIDANCE

|
SKY TELEVISION
INTERIM RESULTS
DECEMBER 2016