SKY TV Announces 2018 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 2017
Previous Reporting Period 6 months to 31 December 2016

Amount (000s) Percentage change
Revenue from ordinary
activities
$433,085 5.5% decrease
Net Profit (loss) $66,700 12.2% increase
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
$66,562 12.2% increase
Net profit (loss) attributable
to security holders.
$66,562 12.2% increase

Interim/Final Dividend Amount per security Imputed amount per
security
Interim $.075 $.029167

Record Date 15 March 2018
Dividend Payment Date 23 March 2018

Comments: Refer management commentary attached.

2018 Interim Results Commentary

SKY is pleased to report an improvement in its half year results to 31 December 2017 with net profit
after tax increasing by 12% to $66.7 million. While revenue declined 5.5% to $433.1 million, operating
costs declined by 8% to $330.8 million. Costs were lower in all core categories, with significant savings
in programming (down $14.6 million, 8%) and subscriber related costs (down $7.0 million, 14%). The
cost savings reflect a lower subscriber base and also the costs of the 2016 Summer Olympics being in
the comparative period.

Capital expenditure declined from $52.6 million in the comparative period to $28.2 million, reflecting a
decline in customer acquisitions and also lower project capex in the period.

Total subscriber numbers declined by 37,359 in the period from 31 December 2016 to 31 December
2017. This decline included the loss of 10,608 subscribers following the closure of the on-line DVD
rental business, Fatso. The decline in subscribers also reflects continued competition from OTT
providers, changes that were made to the pricing of FanPass where we removed the option of
purchasing daily and weekly passes, and also the continued growth in piracy.

On 27 February 2018 the Board of Directors approved a change to the pricing and packaging of SKY’s
services. Currently all customers buy the Basic package for $49.91 per month and then add options of
Sport, Movies and other premium channels. We are replacing SKY Basic with two new packages called
SKY Starter (which is now our minimum package and carries a smaller number of channels at a cost of
$24.91 per month) and SKY Entertainment (featuring UKTV, Discovery, Crime + Investigation and many
other popular channels at a cost of $25.00 per month). Together SKY Starter and SKY Entertainment
are the same cost and channel line-up as the current Basic package, so current SKY subscribers will
have no change to the cost of their current package. The new line-up is available to new customers
from 1 March 2018, and existing customers can change their packages from the same date if they
wish. However, customers who continue to buy SKY Starter and SKY Entertainment as well as either
SKY Sport or Movies will receive our premium drama channel SoHo for free. The SoHo channel
currently costs $9.99 per month.

The Board and management believe this new pricing structure will assist in attracting new customers
by offering a cheaper entry point for customers who do not want the full SKY package.

During the period the Board also completed an assessment of the carrying value of SKY’s $1.4 billion
goodwill asset. This assessment included the likely impact of the new pricing and packaging on future
subscriber numbers, churn and ARPU. The Board believe the impact of these changes will be positive
on the value of SKY but recognise there is uncertainty and any adverse changes in key assumptions
around churn, subscriber numbers and ARPU could give rise to an impairment of goodwill. The Board
will reassess the carrying value of goodwill at year end when there will be more evidence of the impact
of the pricing and packaging changes on the key assumptions.

On 28 February 2018 the Board announced it will pay a fully imputed interim dividend of 7.5 cents per
share. This is a reduction from the 12.5 cents per share paid as a final dividend in September 2017. As
communicated to shareholders at the October AGM, the SKY Board believes that while we continue to
operate in a rapidly changing and uncertain media environment the company needs to have the
flexibility to meet competitive challenges and the balance sheet strength to successfully negotiate

renewal of key content deals in the future. The Board believes in order to achieve these objectives and
place SKY in a much stronger strategic position it is necessary to reduce debt more rapidly than was
possible under the prior period pay- out ratio.

SKY TV
PO Box 9059
Newmarket
Auckland 1149
New Zealand

10 Panorama Road
Mt W ellington
Auckland 1060
New Zealand

T. +64 9 579 9999

sky.co.nz









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SKY NETWORK TELEVISION LIMITED
INTERIM REPORT DECEMBER 2017
INTERIM
REPORT

Chief Executive’s Review3
Subscriber Base7
History of Dividend
Payments
7
Consolidated Interim
Statement of
Comprehensive Income
8
Consolidated Interim
Balance Sheet
9
Consolidated Interim
Statement of Changes in
Equity
10
Consolidated Interim
Statement of Cash Flows
12
Notes to the Interim
Financial Statements
13
Independent Review
Report
19
Directors and Executives21
Directory22
CONTENTS

2 SKY INTERIM REPORT DECEMBER 2017
CHIEF
EXECUTIVE’S
REVIEW

SKY INTERIM REPORT DECEMBER 2017 3
I want to update you on our results for the
six month period ending 31 December 2017.
My goal, as always, is to give you an insight
beyond what the numbers show.
For the last few years in my letters to you
I have spoken about the digital disruption
that has affected all traditional media, be it
newspaper, radio, free-to-air television or
pay television.
The rapid growth of fast broadband opened
the door to new business models. One of the
immediate impacts was the skyrocketing cost
of content, due to the increased demand for
content rights.
The boom in the value of content has
attracted more entrants who are producing
more content. But, of course, even though
there are more platforms and more content,
there is no increase in the number of hours
in the day for viewers to experience that
content, resulting in all incumbents losing
customers.
The challengers tend to service niche
segments at a smaller price instead of the
broad “cradle to grave” offerings that SKY
provides. They are also based on Video on
Demand, which allows for savings on
content costs.
Imagine if you were programming a linear
cooking channel. You would have to acquire
enough content to cover 24 hours a day for
365 days of the year, or 8,760 hours. Even if
you repeat the same programme four times a
year and repeat it a couple times on each day
you show it, you still need 730 hours of fresh
content year. Alternatively you could probably
launch a viable On Demand cooking platform
for a few dollars a month with only 200 hours
of content. Add a good analytics package
that only surfaces the content viewers have
not seen and makes recommendations based
on what they have watched previously, and
you have a nice business model.
We like the concept of On Demand business
models and were quick to embrace them.
The fastest growing parts of our business
have been FAN PASS for sports and NEON
for entertainment, and we will be enhancing
them further this year.
However, we also cater to our core traditional
customers who continue to enjoy linear
channels and love MY SKY. We have already
enhanced their viewing with Video on
Demand. We have seen strong growth in MY
SKY customers connecting their boxes to
their home Wi-Fi, which, depending on the
packages they subscribe to, now allows
them to access over 6,000 hours of content
On Demand.
Dear Shareholders,

4 SKY INTERIM REPORT DECEMBER 2017
Our goal is to keep delivering to our core
satellite subscribers while building products
and services that appeal to other customer
segments. In the last six months our churn,
or disconnects, have lowered to an almost
all-time low – but our total subscriber count
declined because we didn’t attract enough
new customers who find the new On Demand
models appealing.
In order to return to the growth path we
are planning to launch new price options,
new packages and new services that will be
available on more devices than ever before.
The first of these is the introduction of new
pricing and packaging, as outlined in Note 13
of this report, and which will be available from
1 March 2018.
Regardless of the delivery platform, in this
age of “peak content” it is important to have
the best content and I think we do. Don’t
take my word for it, but just watch any of
the awards shows like the Emmys, BAFTAs
or Screen Actors Guild. I cannot remember
a year where our content did not win
more awards than all the other competing
platforms.
This content in part was sourced from the
best content makers in the world such as
HBO, Showtime, FX, MGM and AMC. We have
established and long term relationships with
each of them, and value them highly.
If there were awards ceremonies for the best
sports content our position would be even
stronger than in entertainment. We have
exclusive contracts for the sports content
that matters the most to New Zealanders.
Now I would like to talk about the story
behind the numbers reported in the six
month period ending 31 December 2017.
The first thing to remember is that Pay
Television is a seasonal business. Anywhere
in the world Pay Television operators tend
to have more subscribers in the winter
than they do in the summer. With this in
mind and for the purpose of the narrative
I will be comparing the six month period
ending 31 December 2017 with the identical
prior period for the six months ending
31 December 2016.
I am pleased with the increase in net profit
to $66.7 million from $59.5 million the year
before. However it should be known that as
these types of business mature they tend to
become more profitable because of lower
sales commissions, and fewer trouble calls
and enquiries from customers. In addition,
we have shut down marginal businesses
like FATSO, our mail-delivery DVD rental
business. And we have taken a conscious
decision to stop chasing marginal subscribers
with deep discount offers. We would rather
offer other products and services better
suited to their situation.
Content costs have also declined from 40% of
revenues to 39% of revenues. This continues
to be an area we are focused on.
We have seen a jump in free cash flow from
$68.4 million to $81.7 million. Most of our
capital expenditure related to assisting
Vodafone launch their next generation
decoder, and while we were reimbursed
by Vodafone it did impact on the ability of
our staff to work on other internal projects.
This dropped our own capital spend down to
$28.2 million from $52.6 million last year.

SKY INTERIM REPORT DECEMBER 2017 5
The net subscriber count was down by
37,359 for the year from 31 December 2016
to 31 December 2017. Reporting of subscriber
numbers is always a lightning rod for analysis
by media pundits. And make no mistake,
it is important. But to give you some colour,
slightly under 30% of the decrease came
from the closure of FATSO. We could have
made this figure look better by keeping
FATSO open.
The foundation of the FATSO business
started in 2004, we acquired management
control in 2008 and it has been run well and
profitably by a devoted team. In this age of
Ultra Fast Broadband it seems nostalgic that
in December 2016 10,608 customers were
still “downloading” their favourite movie and
television series via NZ Post. Most of these
customers lived in rural areas. Once the
business stopped contributing to the group
we felt it was better to reallocate resources
to some of our new internet models.
It is also important to remember that on
31 December 2016 FAN PASS subscriber
numbers included individuals who had
purchased FAN PASS for the night or week
in the previous 90 days. Again, if the goal
was to maximise the number of subscribers
we should have kept the daily and weekly
pass experiment going. We determined
this activity actually destroyed value and
discontinued it in May 2017.
I conclude with some comments about our
increasingly diverse customer base. While
the traditional SKY satellite package is ideal
for many families, it is not suited for the
entertainment needs of all Kiwis. We have
already launched FAN PASS and NEON and
they now represent the fastest growing
areas of our business. We are focused on
continually understanding and meeting the
needs of the full range of Kiwi customers, and
you will see us offer an increasing number of
different options in the coming year.
In light of this focus, we have been
conservative in our recent marketing efforts
to ensure that we do not entice the wrong
customer into a certain option just because
we offered an aggressive discount. While
this cost us subscribers in the short term,
providing the right customer with the right
package option will increase cash flow and
lower churn in the long run.
And finally I would like to talk to you about
dividends. On 28 February 2018 the Board
announced it will pay a fully imputed interim
dividend of 7.5 cents per share. As discussed
at the October AGM, the SKY Board believes
that as we continue to operate in a rapidly
changing and uncertain media environment,
the company needs to divert funds from
dividends to further debt retirement to ensure
we have the flexibility to meet competitive
challenges, and have the balance sheet
strength required to successfully negotiate
renewal of key content deals in the future.
Thank you for your continued support
of our business.
John Fellet
Chief Executive Officer

6 SKY INTERIM REPORT DECEMBER 2017
INTERIM
FINANCIAL
STATEMENTS TO
31 DECEMBER 2017

SKY INTERIM REPORT DECEMBER 2017 7
SUBSCRIBER BASE
The following operating data has been taken from the company records and is not audited.
31 Dec 1731 Dec 1631 Dec 1531 Dec 1431 Dec 13
Total subscribers
(1)
778,776816,135860,445856,348857,115
Average monthly revenue per residential
subscriber
76.6979.0979.5679.4377.51
Gross churn
(2)
15.0%17.7%15.4%13.7%13.3%
(1)
Includes subscribers to SKY’s non-core subscriber services IGLOO, NEON and FAN PASS.
(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
20172016201520142013
Interim dividend (paid in March)
15.015.015.014.012.0
Final dividend (paid in September)
12.515.015.015.012.0
Total ordinary dividend
27.530.030.029.024.0
On 28 February 2018 the Board announced it will pay a fully imputed interim dividend of 7.5 cents
per share. As communicated to shareholders at the October AGM, the SKY Board has been
considering the level of debt appropriate to meet the challenges ahead. While operating earnings
increased for the half year, this was a result of tight cost control and the Summer Olympics in the
corresponding prior period. The media environment continues to evolve rapidly and increasing
competition for audiences from traditional media and on-line platforms continues unabated.
While the Board is disappointed to reduce dividends it is essential the company further reduce
debt to ensure we have the ability to meet these competitive challenges and has the balance sheet
strength required to successfully negotiate the renewal of key content rights in the future.

8 SKY INTERIM REPORT DECEMBER 2017
CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2017 (unaudited)
IN NZD 000Notes
31 Dec 2017
(6 months)
31 Dec 2016
(6 months)
30 Jun 2017
(1 year)
(audited)
Total revenue
4
433,085458,183893,485
Expenses
Programming
166,907181,553349,426
Subscriber related costs
41,97448,937100,161
Broadcasting and infrastructure
46,11750,37497,578
Depreciation and amortisation
51,22452,207105,148
Other costs
24,58327,45653,980
330,805360,527706,293
Operating profit
102,28097,656187,192
Finance costs, net
9,5529,31019,620
Profit before tax
92,72888,346167,572
Income tax expense
26,02828,88751,228
Profit for the period
66,70059,459116,344
Attributable to:
Equity holders of the Company
66,56259,300116,026
Non-controlling interests
138159318
66,70059,459116,344
Earnings per share
Basic and diluted earnings per share (cents)
17.1015.2429.82
OTHER COMPREHENSIVE INCOME
Profit for the period
66,70059,459116,344
Items that may be reclassified subsequently
to profit and loss
Cash flow hedges
13,8657,008(5,486)
(Loss)/gain on available for sale investments
(219)2,142 2,147
Income tax effect
(3,821)(2,562)935
Other comprehensive income for the period,
net of income tax
9,8256,588(2,404)
Total comprehensive income for the period
76,52566,047113,940
Attributable to:
Equity holders of the Company
76,38765,888113,622
Non-controlling interests
138159318
76,52566,047113,940

SKY INTERIM REPORT DECEMBER 2017 9
CONSOLIDATED INTERIM BALANCE SHEET
As at 31 December 2017 (unaudited)
IN NZD 000Notes31 Dec 201731 Dec 2016
30 Jun 2017
(audited)
Current assets
Cash and cash equivalents
10
22,36230,0745,444
Trade and other receivables
10
64,45268,42469,475
Programme rights inventory
71,27664,89879,003
Derivative financial instruments
10
4,5152,334 176
162,605165,730154,098
Non-current assets
Property, plant and equipment
224,401 270,409 238,066
Intangible assets
11
1,478,843 1,482,358 1,488,273
Available for sale investment
9
6,758 6,905 6,552
Derivative financial instruments
10
1,384 8,785 211
1,711,386 1,768,457 1,733,102
Total assets
1,873,991 1,934,187 1,887,200
Current liabilities
Trade and other payables
10
177,406 179,672 186,187
Income tax payable
7,867 8,752 21,770
Derivative financial instruments
10
2,435 6,011 9,038
187,708 194,435 216,995
Non-current liabilities
Bank loans
190,755 254,578 199,685
Bonds
7/10
99,115 98,843 98,978
Derivative financial instruments
10
2,100 7,746 5,981
Deferred tax
38,553 39,986 37,683
330,523 401,153 342,327
Total liabilities
518,231 595,588 559,322
Equity
Share capital
577,403 577,403 577,403
Hedging reserve
921 (66)(9,062)
Retained earnings
776,008 759,888 758,247
Total equity attributable to equity holders of the Company
1,354,332 1,337,225 1,326,588
Non-controlling interest
1,428 1,374 1,290
Total equity
1,355,760 1,338,599 1,327,878
Total equity and liabilities
1,873,991 1,934,187 1,887,200
Peter Macourt
Chairman
For and on behalf of the board 27 February 2018
Susan Paterson
Director

10 SKY INTERIM REPORT DECEMBER 2017
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017 (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 2017
577,403(9,062)758,2471,326,5881,2901,327,878
Profit for the period
- - 66,562 66,56213866,700
Loss on available for sale
investment, net of tax
9
--(158)(158) - (158)
Cash flow hedges, net of tax
- 9,983 - 9,983 - 9,983
Total comprehensive income
for the period
- 9,983 66,404 76,38713876,525
Transactions with owners in
their capacity as owners
Dividend paid
- - (48,643)(48,643) - (48,643)
Supplementary dividends
- - (6,836)(6,836) - (6,836)
Foreign investor tax credits
- - 6,836 6,836 - 6,836
- - (48,643)(48,643) - (48,643)
Balance at 31 December 2017
577,403921776,0081,354,3321,4281,355,760
For the six months ended
31 December 2016 (unaudited)
Balance at 1 July 2016
577,403(5,112)757,4171,329,7081,2151,330,923
Profit for the period
- - 59,300 59,30015959,459
Gain on available for sale
investment, net of tax
9
- - 1,542 1,542 - 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

SKY INTERIM REPORT DECEMBER 2017 11
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (CONTINUED)
For the six months ended 31 December 2017 (unaudited)
ATTRIBUTABLE TO OWNERS OF THE PARENT
IN NZD 000Notes
Share
capital
Hedging
reserve
Retained
earningsTotal
Non-
controlling
interest
Total
equity
For the year ended
30 June 2017 (audited)
Balance at 1 July 2016
577,403(5,112)757,4171,329,7081,2151,330,923
Profit for the year
- - 116,026 116,026318116,344
Gain on available for sale
investment, net of tax
9
-- 1,546 1,546-1,546
Cash flow hedges, net of tax
- (3,950) - (3,950) - (3,950)
Total comprehensive income
for the period
- (3,950) 117,572 113,622318113,940
Transactions with owners in
their capacity as owners
Dividend paid
- - (116,742)(116,742)(243)(116,985)
Supplementary dividends
- - (15,330)(15,330) - (15,330)
Foreign investor tax credits
- - 15,33015,330 - 15,330
- - (116,742)(116,742)(243)(116,985)
Balance at 30 June 2017
577,403(9,062)758,2471,326,5881,2901,327,878

12 SKY INTERIM REPORT DECEMBER 2017
CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended 31 December 2017 (unaudited)
IN NZD 000
31 Dec 2017
(6 months)
31 Dec 2016
(6 months)
30 Jun 2017
(1 year)
(audited)
Cash flows from operating activities
Profit before tax
92,72888,346167,572
Adjustment for non-cash items:
Depreciation and amortisation
51,22452,207105,148
Unrealised foreign exchange (gain)/loss
286(490)(212)
Interest expense
9,57310,58821,010
Bad debts and movement in provision for doubtful debts
3945781,732
Amortisation of bond issue costs
137226361
Other non-cash items
(2,680)(1,934)54
Movement in working capital items:
Decrease/(increase) in receivables
2,215(550)(2,204)
Decrease in payables
(8,630)(14,283)(7,749)
Decrease in programme rights
7,72714,867762
Cash generated from operations
152,974149,555286,474
Interest paid
(7,147)(10,361)(22,704)
Income tax paid
(36,000)(18,200)(18,509)
Net cash from operating activities
109,827120,994245,261
Cash flows from investing activities
Proceeds from sale of property, plant and equipment
16 24 42
Acquisition of property, plant, equipment and intangibles
(28,163)(52,640)(79,682)
Net cash used in investing activities
(28,147)(52,616)(79,640)
Cash flows from financing activities
Advances received – bank loan
62,000 220,000 261,000
Repayment of borrowings – bank loan
(71,000)(15,000)(111,000)
Repayment of bonds
- (200,000)(200,000)
Payment of bank facility fees
(283)(264)(725)
Dividend paid to minority shareholders
- - (243)
Dividends paid
(55,479)(65,903)(132,072)
Net cash used in financing activities
(64,762)(61,167)(183,040)
Net increase/(decrease) in cash and cash equivalents
16,918 7,211 (17,419)
Cash and cash equivalents at beginning of the period
5,444 22,863 22,863
Cash and cash equivalents at end of the period
22,362 30,074 5,444

SKY INTERIM REPORT DECEMBER 2017 13
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the six months ended 31 December 2017 (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 2017 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
27 February 2018.
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 2017. They have been prepared in accordance with generally accepted accounting
practice in New Zealand, 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 2017. 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 2017.

14 SKY INTERIM REPORT DECEMBER 2017
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017 (unaudited)
4. REVENUE
IN NZD 000
31 Dec 2017
(6 months)
31 Dec 2016
(6 months)
30 Jun 2017
(1 year)
(audited)
Residential satellite subscriptions
350,689371,214725,066
Other subscriptions
42,71042,18282,247
Advertising
31,46135,08668,084
Other revenue
8,2259,70118,088
433,085458,183893,485
5. GROUP STRUCTURE
At 31 December 2017 SKY had the following subsidiaries:
• SKY Ventures Limited
• IGLOO Limited (non-trading)
• Media Finance Limited (non-trading)
• Outside Broadcasting Limited
• Screen Enterprises Limited (non-trading)
• 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
$7,844,000 (31 December 2016: $7,827,000; 30 June 2017: $12,504,000).

SKY INTERIM REPORT DECEMBER 2017 15
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017 (unaudited)
7. BORROWINGS
Bonds
Terms and conditions of outstanding bonds are as follows:
Bonds31 Dec 201731 Dec 2016
30 Jun 2017
(audited)
Nominal interest rate
6.25%
6.25%
6.25%
Market yield
5.07%
4.57%
4.92%
Issue date
31 Mar 1431 Mar 1431 Mar 14
Date of maturity
31 Mar 2131 Mar 2131 Mar 21
in NZD 000
Carrying amount
99,115 98,843 98,978
Face value
100,000 100,000 100,000
Fair value
103,520 106,460 104,529
8. CAPITAL EXPENDITURE
The Group acquired the following property, plant and equipment and intangibles during the period;
Group
IN NZD 000
31 Dec 2017
(6 months)
31 Dec 2016
(6 months)
30 Jun 2017
(1 year)
(audited)
Capital projects in progress
9,69011,5085,228
Land and buildings
3559711
Broadcasting and studio equipment
1518993,457
Plant and equipment and other
8792,0844,234
Decoders
8,17113,63415,929
Installation costs
9,30517,24129,355
Intangibles
673,31716,447
28,29848,74275,361
Movement in capital expenditure creditors
(135)3,8984,321
Cash outflow in the period
28,16352,64079,682
9. AVAILABLE FOR SALE INVESTMENT
In March 2016 SKY Ventures acquired a 15.79% interest in 90 Seconds Limited (a cloud video
production company) for a cost of $4.8 million. This investment was subsequently diluted to
13.54%. 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 2017 was $6,758,107. (31 December 2016 $6,905,225; 30 June 2017
$6,552,176).

16 SKY INTERIM REPORT DECEMBER 2017
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017 (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 2017. 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 000
31 Dec 201731 Dec 201630 Jun 2017
Derivative financial instruments (Level 2)
Current assets
4,5152,334176
Non-current assets
1,3848,785211
Current liabilities
(2,435)(6,011)(9,038)
Non-current liabilities
(2,100)(7,746)(5,981)
1,364(2,638)(14,632)
Available for sale investment (Level 3)
Non-current assets
6,7586,9056,552

SKY INTERIM REPORT DECEMBER 2017 17
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017 (unaudited)
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 2017:
31 Dec 201731 Dec 201630 Jun 2017
IN NZD 000
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Financial assets
Cash and cash equivalents
22,36222,36230,07430,0745,4445,444
Trade and other receivables
57,68057,68062,61462,61463,09863,098
80,04280,04292,68892,68868,54268,542
Financial liabilities
Trade and other payables
(85,901)(85,901)(86,284)(86,284)(96,887)(98,667)
Bank borrowings
(190,755)(186,227)(254,578)(269,281)(199,685)(198,037)
Bonds
(99,115)(103,520)(98,843)(106,460)(98,978)(104,529)
(375,771)(375,648)(439,705)(462,025)(395,550)(401,233)
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 201731 Dec 201630 Jun 2017
Bond B
5.07%4.57%4.92%
Bank Borrowings
3.37%3.88%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.

18 SKY INTERIM REPORT DECEMBER 2017
11. INTANGIBLE ASSETS
The Directors have completed an assessment of the carrying value of goodwill using a fair value less
cost to sell basis to determine the recoverable amount consistent with the approach taken by the
Group in its consolidated financial statements for the year ended 30 June 2017.
In determining the recoverable amount of goodwill the Board and Management have taken into
account the likely impact of the recently announced changes to the pricing and product offering.
These price changes affect some of the key assumptions used to evaluate the carrying amount
of goodwill, in particular those assumptions relating to subscriber numbers, churn and ARPU. The
impact of these changes on the recoverable amount of goodwill is expected to be positive and the
Board’s assessment is that fair value less cost to sell continues to support the existing carrying value
of goodwill.
However, due to the uncertainty around the impact of the new pricing regime and product offering
planned results may not be achieved and actual results may be materially different from the plan.
Adverse changes in the key assumptions in particular churn, subscriber numbers and ARPU could
give rise to an impairment of goodwill. The Board will reassess the carrying value of goodwill at year
end when there will be more evidence of impact of the price changes on subscriber numbers, churn
and ARPU.
12. 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.
13. SUBSEQUENT EVENTS
On 28 February 2018 the Board of Directors announced that it will pay a fully imputed dividend
of 7.5 cents per share with the record date being 15 March 2018. A supplementary dividend of
1.3235 cents per share will be paid to non-resident shareholders subject to the foreign investor tax
credit regime.
On 27 February 2018 the Board approved a change to the pricing and packaging of SKY’s services.
Currently all customers buy the Basic package for $49.91 per month and then add options of
Sport, Movies and other premium channels. We are replacing SKY Basic with two new packages
called SKY Starter (which is now our minimum package and carries a smaller number of channels
at a cost of $24.91 per month) and SKY Entertainment (featuring UKTV, Discovery,
Crime + Investigation and many other popular channels at a cost of $25.00 per month).
Together SKY Starter and SKY Entertainment are the same cost and channel line-up as the
current Basic package, so current SKY subscribers will have no change.
The new line-up is available to new customers from 1 March 2018, and existing customers can
change their packages from the same date if they wish. However, customers who continue to buy
SKY Starter and SKY Entertainment as well as either SKY Sport or Movies will receive our premium
drama channel SoHo as a bonus. The SoHo channel currently costs $9.99 per month.
NOTES TO THE INTERIM FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017 (unaudited)

SKY INTERIM REPORT DECEMBER 2017 19
INDEPENDENT REVIEW REPORT
to the shareholders of Sky Network Television Limited
REPORT ON THE INTERIM FINANCIAL STATEMENTS
We have reviewed the accompanying consolidated interim financial statements (“interim financial
statements”) of Sky Network Television Limited (“the Company”) including its subsidiaries (“the
Group”) on pages 8 to 18, which comprise the consolidated interim balance sheet as at 31 December
2017 and the consolidated interim statement of comprehensive income, the consolidated interim
statement of changes in equity and the consolidated interim statement of cash flows for the period
ended on that date and selected explanatory notes to the interim financial statements for the Group.
DIRECTORS’ RESPONSIBILITY FOR THE INTERIM FINANCIAL STATEMENTS
The Directors are responsible on behalf of the Company for the preparation and presentation of
these interim financial statements in accordance with International Accounting Standard 34 Interim
Financial Reporting (IAS 34) and 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 IAS 34 and 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) and
International Standards on Auditing. 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 areas of
assurance over regulatory and trustee reporting and treasury 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.
EMPHASIS OF MATTER
We draw attention to note 11 to the interim financial statements which describes the uncertainty of the
impact of changes to the pricing and product offering on the key assumptions associated with value
drivers subscriber numbers, churn, and ARPU within the goodwill impairment model in determining
the recoverable amount. Our conclusion is not modified in respect of this matter.

20 SKY INTERIM REPORT DECEMBER 2017
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 IAS 34 and NZ IAS 34.
WHO WE REPORT TO
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
27 February 2018
INDEPENDENT REVIEW REPORT (CONTINUED)

SKY INTERIM REPORT DECEMBER 2017 21
DIRECTORS AND EXECUTIVES
DIRECTORS
John Fellet Chief Executive
Derek Handley
Peter Macourt Chairman
Geraldine McBride
Susan Paterson ONZM
Mike Darcey (Appointed 19 September 2017)
EXECUTIVES
John Fellet Director and Chief Executive Officer
Jason Hollingworth Chief Financial Officer and Company Secretary
Travis Dunbar Director Entertainment Programming
Richard Last Director of Sport
Chris Major Director of External Affairs
George MacFarlane Director of Strategy
Rawinia Newton Director of Advertising Sales
Cathryn Oliver Chief of Staff
Tex Texeira Director of Broadcast and Media
Michael Watson Director of Marketing
Julian Wheeler Chief Product and Technology Officer
Martin Wrigley Director of Operations

22 SKY INTERIM REPORT DECEMBER 2017
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 3329
Melbourne VIC 3001
Australia
Freephone: 1 800 501 366 (within Australia)
Tel: +61 3 0415 4083 (outside Australia)
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 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 2017


• Net tangible assets per security:

Current period $(0.320): 1

Previous period $(0.373): 1

APPENDIX 7 - NZX CONDUCT RULES
Number of pages including this one
(Please provide any other relevant
New Zealand Stock Exchange Listing Rule 7.12.2. For rights, Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumberDate
Nature of event
BonusIf ticked,Rights Issue
Tick as appropriateIssuestate whether:Taxable/ Non TaxableConversionInterestRenouncable
Rights IssueCapital
If ticked, stateFull
non-renouncable
changeCallDividend
x
whether:
Interim
x
YearSpecial
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Payment
Amount per security
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Credits
issue state strike priceWithholding Tax(Give details)
Timing
(Refer Appendix 8 in the Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
must be the last business day ofInterest Payable, Exercise Date,
a weekConversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of record date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
09 525 8324
Directors' Resolution
01201827
TO FAX ++64-4-473-1470
JASON HOLLINGWORTH
SKY NETWORK TELEVISION LIMITED
NZSKTE0001S6
Notice of event affecting securities
09 579 9999
$0.0052083$0.029167
15 March, 2018
$
23 March, 2018
Date Payable
Enter N/A if not
applicable
23 March, 2018
$0.075
NZD$0.013235
Retained earnings
$29,185,484
In dollars and cents