SKY AGM Presentation 2017

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SKY TELEVISION
ANNUAL GENERAL MEETING
2017

THE EVOLVING SKY CUSTOMER BASE
Page 2
JUNE2016JUNE 2017NET GAIN
852,679824,782(27,897)
* Igloo service was closed on 31 March 2017
© SKY 2017 AGM

MOVING ANNUAL CHURN
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Jun-98
Nov-98
Apr-99
Sep-99
Feb-00
Jul-00
Dec-00
May-01
Oct-01
Mar-02
Aug-02
Jan-03Jun-03
Nov-03
Apr-04
Sep-04
Feb-05
Jul-05
Dec-05
May-06
Oct-06
Mar-07
Aug-07
Jan-08Jun-08
Nov-08
Apr-09
Sep-09
Feb-10
Jul-10
Dec-10
May-11
Oct-11
Mar-12
Aug-12
Jan-13Jun-13
Nov-13
Apr-14
Sep-14
Feb-15
Jul-15
Dec-15
May-16
Oct-16
Mar-17
Aug-17
© SKY 2017 AGM
Page 3

MOVING ANNUAL CHURN
13.50%
14.00%
14.50%
15.00%
15.50%
16.00%
16.50%
17.00%
17.50%
18.00%
18.50%
JulAugSepOctNovDecJanFebMarAprMayJun
2016/17
2017/18
© SKY 2017 AGM
Page 4

CHURN BY TENURE
© SKY 2017 AGM
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2016
Page 5

KIWI VIEWERS GET VALUE FROM VIEWING IN DIFFERENT WAYS
NEUTRALAVIDSOCIALONLINEFANATICALHABITUALMODERN
COUPLESLEARNERSOWLSADDICTS
HEARTLANDERHEARTLANDERHOMEMAKERS
SKY CUSTOMER SEGMENTATION PROFILES

WHICH IS SERVICING THE CHANGING FACE OF THE
SKY CUSTOMER
Page 7
Fanatical and Habitual
Heartlanders
Online Addicts
Neutral Couples
Modern Homemakers
Avid Learners
Social Owls
NZ POPULATION*
SKY CUSTOMERS
© SKY 2017 AGM
* SKY Internal customer research data

SKY BOX CUSTOMER
MONTHLY CONTENT USAGE
Page 8
143m HOURS
Recorded to
Planner
130m HOURS of
Live Viewing
0
50
100
150
200
250
300
© SKY 2017 AGM

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CONNECTIVITY ON SKY BOXES
18%
29%
50%
0%
10%
20%
30%
40%
50%
60%
Feb 2016Aug 2016Aug 2017
Page 9
OLYMPICS 2016
© Photosport.nz
© SKY 2017 AGM

SKY IPCUSTOMER
MONTHLY CONTENT USAGE
Page 10
512k
576k
209k
1,157k
On Demand
NEON
Fan Pass
SKY GO
0200400600800100012001400
Average requests per month 2016/17
On DemandNEONFan PassSKY GO
775k
1,699k
258k
795k
On Demand
NEON
Fan Pass
SKY GO
020040060080010001200140016001800
July 2017 month requests
© SKY 2017 AGM

Peak Viewing 1800-2229
SOURCE Nielsen TAM
PEAK PEOPLE USING TELEVISIONS (PUTS) TREND
ALL 5+
0
5
10
15
20
25
30
35
40
45
50
12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152
Calendar Weeks
201520162017
%

|
3.72
3.81
3.93
SKY PREMIUM PRODUCTS PER SUBSCRIBER
Page 12
LIONS 2017
© Offside Sports Photography
© SKY 2017 AGM

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ARPUFROM SKYTRADITIONAL 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
20132014201520162017
© SKY 2017 AGM
Page 13

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REVENUE
885
909
927.5
928.2
893.5
650
700
750
800
850
900
950
20132014201520162017
Millions
© SKY 2017 AGM
Page 14

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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
20132014201520162017
SkyPrime
Millions
© SKY 2017 AGM
Page 15

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TOTAL TELEVISION ADVERTISING REVENUE
(YOY QUARTERLY CHANGE)
-10%
-5%
0%
5%
10%
15%
Sep 10 QtrDec 10 Qtr
Mar 11 Qtr
Jun 11 Qtr
Sep 11 QtrDec 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
Sept 15 Qtr
Dec 15 Qtr
Mar 16 Qtr
Jun 16 Qtr
Sept 16 Qtr2
Dec 16 Qtr3
Mar 17 Qtr4
Jun 17 Qtr5
Sep 17 Qtr
© SKY 2017 AGM
Page 16

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PROGRAMMING COSTS % REVENUE
36%
39%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
20162017
© SKY 2017 AGM
Page 17
© Photosport.nz

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NET PROFIT
147.1
116.3
-50.0
-
50.0
100.0
150.0
200.0
20162017
Millions
© SKY 2017 AGM
Page 18
© 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
20162017
Millions
© SKY 2017 AGM
Page 19
© Photosport.nz

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© SKY 2017 Annual Results 2017
Page 20
STRATEGY AND TRENDS

SKY’S EPG

PARTNERSHIP WITH VODAFONE

Page 23
THE CONTINUED JOURNEY WITH CISCO

PARTNERSHIP WITH TRUSTPOWER

PEAK TV
Page 25
268
349
389
421
455
534
0
100
200
300
400
500
600
201220132014201520162017
© SKY 2017 AGM

THE BEST OF PREMIUM DRAMA
Page 26
GAME OF
THRONES®
LEGION
FARGO
BIG LITTLE
LIES
WESTWORLDTABOO
THE NIGHT
OF®
GENIUS
DOCTOR
WHO
FEUD
THE
AMERICANS
BILLIONS
HOMELAND
RAY
DONOVAN
TWIN PEAKS
THE
LEFTOVERS

A BUSY YEAR ON SKY SPORTS

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END OF YEAR RUGBY TOUR INTERNATIONAL TESTS AND TEST MATCHES
© Photosport.nz
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WINTER OLYMPICS
FEBRUARY 2018

RENEWED WITH SKY
RENEWED WITH SKY

TM & © Cartoon Network (s15)
NEW TO SKY
Page 32
DC Series © and TM DC Comics © Warner Bros. Ent Inc.
Shameless © Warner Bros. Entertainment Inc.
.
THE FLASH
DC LEGENDS OF
TOMORROW
SHAMELESS
ARROWSUPERGIRL
SUPERNATURAL

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NEW TO SKY

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© SKY 2017 Annual Results 2017
Page 34
OUR PEOPLE

SKY TELEVISION
ANNUAL GENERAL MEETING
2017