SKY AGM PRESENTATION – 18 October 2018

REACHING
EVERYKIWI
SKY NETWORK TELEVISIONLIMITED
Annual General Meeting2018

JOHN FELLET

SKY Network Television Limited | Annual General Meeting 2018 |3
UNDERLYING NET PROFIT
116.3
119.3
100.0
105.0
110.0
115.0
120.0
125.0
20172018
Millions

SKY Network Television Limited | Annual General Meeting 2018 |4
601.2
553.9
400.0
430.0
460.0
490.0
520.0
550.0
580.0
610.0
640.0
20172018
OPERATING COSTS
Millions

SKY Network Television Limited | Annual General Meeting 2018 |5
128.8
79.7
58.2
201620172018
CAPITAL EXPENDITURE
Millions

Big Pacific©2018 NHNZ Ltd.

SKY Network Television Limited | Annual General Meeting 2018 |7
PRE TAX CASHFLOW
TAX
PAYMENT
TAX
PAYMENT
2017
2018
Millions
183.4
204.1
© Photosport.nz
© Photosport.nz

SKY Network Television Limited | Annual General Meeting 2018 |8
GOODWILL
IMPAIRMENT
20172018
893.5839.7
601.2553.9
292.3285.8
105.1102.4
19.617.5
51.346.6
116.3119.3
0360.0
116.3(240.7)

SKY Network Television Limited | Annual General Meeting 2018 |9
201820172016201520142013201220112010
Interim7.515.015.015.014.012.011.08.07.0
Final7.512.515.015.015.012.011.010.57.0
Ordinary Total15.027.530.030.029.024.022.018.514.0
Special32.025.0
TOTAL15.027.530.030.029.024.054.043.514.0
DIVIDEND

The BrokenwoodMysteries©2018 South Pacific Pictures

Internet or no internet,
we have New Zealand
covered
100% NZ Reach
767,727
CUSTOMERS –JUNE 2018

SKY Network Television Limited | Annual General Meeting 2018 |12
15.9%
15.4%
20172018
CHURN OF SATELLITE SKY

SKY Network Television Limited | Annual General Meeting 2018 |13
MOVING ANNUAL CHURN
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Jun 98
Jun 18

SKY Network Television Limited | Annual General Meeting 2018 |14
893.5
839.7
20172018
REVENUE
Millions
© Photosport.nz

SKY Network Television Limited | Annual General Meeting 2018 |15
ARPU FROM SKY TRADITIONAL SUBSCRIBERS
$75.83
$77.52
$79.54
$81.67
$83.48
$83.09
201320142015201620172018

SKY Network Television Limited | Annual General Meeting 2018 |16
TOTAL ARPU
$75.83
$77.52
$79.54
$78.63
$78.82
$76.34
201320142015201620172018

SKY Network Television Limited | Annual General Meeting 2018 |17
TOTAL TELEVISION ADVERTISING REVENUE
(YOY Quarterly change)
-10%
-5%
0%
5%
10%
15%
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
Sept 15 Qtr
Dec 15 Qtr
Mar 16 Qtr
Jun 16 Qtr
Sept 16 Qtr
Dec 16 Qtr
Mar 17 Qtr
Jun 17 Qtr
Sept 17 Qtr
Dec 17 Qtr
Mar 18 Qtr
Jun 18 Qtr

SKY Network Television Limited | Annual General Meeting 2018 |18
ADVERTISING REVENUE
41.6
43.2
45.2
49.3
46.7
39.0
26.4
27.3
24.3
24.7
21.4
18.0
201320142015201620172018
SKYPrime
Millions

SKY Network Television Limited | Annual General Meeting 2018 |19
39%
39%
20172018
PROGRAMMING COSTS
% REVENUE

SKY Network Television Limited | Annual General Meeting 2018 |20
CRICKET
NETBALLLEAGUE
RUGBY
TENNIS
GOLF
FOOTBALL
A WORLD CLASS
SPORTS OFFERING

SKY Network Television Limited | Annual General Meeting 2018 |21
VIEWERSHIP ON SKY NZ
2017/18
0.24%
0.37%
0.01%

Pag

OUR STRATEGY
MULTIPLE PROPOSITIONS AND
PRICES
UNDERSTANDING OUR
CUSTOMERS AND DELIVERING
GREAT EXPERIENCES
WORLD CLASS CONTENT THAT
MATTERS
OUR STRATEGY

UNDERSTANDING
OUR CUSTOMERS
AND DELIVERING
GREAT EXPERIENCES
WATCH IT YOUR WAY

MULTIPLE PROPOSITIONS AND
PRICES
UNDERSTANDING OUR
CUSTOMERS AND DELIVERING
GREAT EXPERIENCES
WORLD CLASS CONTENT THAT
MATTERS
OUR STRATEGY
STABILISE CORE
EARNINGS
ADD PROFITABLE
INCREMENTAL
CUSTOMERS
TRANSITION TO
VOD CENTRIC
WORLD

SKY Network Television Limited | Annual General Meeting 2018 |26
RECENT DEALS
SPORT KIWIS
LOVE
&
ACCESS TO THE
BEST
ENTERTAINMENT
CONTENT
•UK Super League
•French Top 14
•Guinness Pro 14
•W orld Snooker
Tour
•UCI Cycling
•Australian Open
Tennis
•Roland Garros
•Moto GP
•FIM Speedway
•NASCAR
•Le Mans
•US Open Golf
•Youth Olympics
•UEFA Champions League
•UEFA Europa League
NEAR
WIDE

INCREASE
IN DRAMA

SKY Network Television Limited | Annual General Meeting 2018 |28
BLACK
FERNS
NOVEMBER 2018
TOUR
Chicago, USA
Tripleheader at Soldier Field
4
th
November 2018
Toulon, France
StadeFelix Mayol
9
th
November 2018
Grenoble, France
Stadedes Alpes
17
th
November 2018
© Photosport.nz

SKY Network Television Limited | Annual General Meeting 2018 |29
MAORI ALL
BLACKS
NOVEMBER 2018
TOUR
Chicago, USA
Tripleheader at Soldier Field
4
th
November 2018
Brazil, South America
11
th
November 2018
Chile, South America
18
th
November 2018
© Photosport.nz

SKY Network Television Limited | Annual General Meeting 2018 |30
ALL
BLACKS
“END OF YEAR 2018
TOUR”
Tokyo, Japan
Ajinomoto Stadium
3
rd
November 2018
Twickenham, London
Twickenham Stadium
10
th
November 2018
Dublin, Ireland
Aviva Stadium
17
th
November 2018
Rome, Italy
OlimpicoStadio
24
th
November 2018
© Photosport.nz

Pag

OUR STAFF HAVE PRODUCED OVER 400
LOCAL BROADCASTS IN THE PAST YEAR
15 SEPTEMBER 2018 -WAS OUR BUSIEST DAY
295CREW WORKING
6LIVE EVENTS = 20HOURS LIVE TV
ALL LOCAL SPORT
ALL ON SKY IN ONE DAY
#SKYCREW

REACHING
EVERYKIWI
SKY NETWORK TELEVISIONLIMITED
Annual General Meeting2018