Sky Reports Growth in Streaming Services

Sky New Zealand
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









Sky reports growth in streaming services; tracking towards 1 million customers
12 February 2020
Key points:
• Sky achieving growth, with total subscribers increased to 795,000, including 74%
1

increase in streaming customer numbers
• Delivering strong progress across all strategic objectives
• Acquisitions of RugbyPass and Lightbox open door for further growth in New
Zealand and offshore
• Revenues of $385m with reconfirmation of Full Year 2020 guidance range of $750m
and $770m
• EBITDA
2
of $89.7m, with Full Year 2020 guidance confirmed at $170m-$190m
• NPAT of $11.9m
• Business repositioned to be a leading New Zealand multimedia organisation,
transforming rapidly to meet current and future needs of customers
• On trajectory to achieve 1 million customers in 2021

Sky has today reported financial results for the six months ended 31 December 2019,
delivering strong growth in streaming customer numbers of 74% and overall growth in the
customer base to 795,000 from 750,000 a year ago. The Lightbox acquisition will continue
the momentum.
Martin Stewart, Sky’s Chief Executive said “We are pleased to have grown our customer
numbers and to have made strong progress across all of our strategic objectives. Our
ambition is to connect New Zealanders with the sport and entertainment content they love,
in ways that work for them.
“Our new and enhanced streaming services are attracting new customers to Sky, and we are
also firmly focused on super-serving our satellite customers. One of the pleasing outcomes
is seeing the 25% growth in satellite customers who are also streaming our content on Sky
Go, and we’ve had excellent feedback about new features like the ability to cast to big
screens and download-to-go.
“The Lightbox acquisition and our investment in ground-breaking new digital services gives
us confidence that we will continue our growth trajectory. We have reached 925,000
customers this month, an all-time high for Sky, and have now set our sights on reaching the
1 million mark.”

Revenue of $384.8m is down 5% from $403m in the previous period, but with positive signs
with satellite churn performance improving from 15% to closer to 13% as a result of
initiatives to attract and retain customers.
“Slowing the decline in satellite customer numbers is an important achievement, as it shows
that we can manage the transition to a streaming future while continuing to serve satellite
customers well and earning their loyalty every day.”
Operating costs, excluding depreciation, have increased 7% in the period to $295.1m,
including some one-off expenditure and investments that open the door to future growth.
Programming rights have increased as anticipated, as Sky continues to ensure it secures the
rights that matter to New Zealand fans. Marketing spend has been boosted after a long
period of under-investment.
“Today’s results reflect a business in transformation. In the last year Sky has undergone
significant change to reposition for growth in an increasingly competitive market. Many of
the one-off costs we report today are a consequence of these changes, and we will continue
to maintain the balance between careful control of costs and new investment to position Sky
for future growth.”
Investment for Growth
The investment in RugbyPass provides the opportunity to grow Sky’s business beyond New
Zealand’s borders, with more than 30 million people engaging with RugbyPass content every
month. Initiatives like the launch of the RugbyPass TV channel in a number of Asian markets
on 31 January, timed to coincide with the Six Nations and start of the Super Rugby season,
shows Sky leveraging its capabilities to expand the RugbyPass customer base. In this
example, adding linear TV to the RugbyPass portfolio enables the business to expand its
reach in certain markets and create a blended TV and digital experience for rugby fans.
The Lightbox acquisition, which was announced in December and completed on 31 January
2020, accelerates the shift to streaming and enables the development of a super-charged
entertainment service combining the best of Neon and Lightbox content.
The development of Sky’s new digital platform is progressing well, with details expected to
be released in the next quarter.
Securing the rights that matter, and fuelling sport in New Zealand
The announcement in October of Sky’s revolutionary broadcast deal for SANZAAR Rugby
rights was a clear demonstration of the strategy to retain the rights that matter. Sky also
extended its partnership with Netball New Zealand, the New Zealand Olympic Committee
and IOC, and secured the rights to ICC Cricket and Cricket Australia.
“We have also invested strategically to grow and nurture New Zealand sport at all levels.
The strength and sustainability of the sports sector is as vital to Sky as it is to the wellbeing
of the communities in which we operate. Our investment in the Sky Sport Next programme
helps to grow more than 50 sports across the country, and we are also supporting a number
of teams such as the Sky Sport Breakers, Wellington Phoenix, Kiwi Ferns, Warriors Women,
Tall Ferns and White Sox.”

Outlook
Sky has confirmed the FY2020 guidance provided in November 2019. FY2020 revenue is
expected to be within the guidance range of $750m - $770m, and EBIDTA is expected to be
within the guidance range of $170m - $190m.
Capex is expected to remain within the target range of 7-9% of revenue. No dividend will be
paid, consistent with the Company’s strategy to reinvest in the business.

“We are pleased to report strong progress across all of our strategic objectives, and
investors and customers can expect to see further progress in 2020. We have a clear focus
on satisfying the needs of our customers and partners in order to achieve long-term value
for our shareholders.”
ENDS
1
All percentage changes compare to the prior comparable period (six months to 31 December 2018) unless
otherwise stated.
2
EBITDA is a non-GAAP financial measure and is defined by the Company as Earnings before income tax, interest
expense, depreciation, amortisation and impairment, unrealised gains and losses on currency and interest rate
swaps. The directors and management believe that this measure provides useful information on the underlying
performance of the Group. You should not consider this in isolation from, or as a substitute for, the information
provided in the unaudited consolidated financial statements for the six months ended 31 December 2019, which are
available at https://www.sky.co.nz/investor-relations/results-and-reports.

For investor enquiries, please contact:
Blair Woodbury
Chief Financial Officer
P: +64 9 579 9999
E: blair.woodbury@sky.co.nz

For media enquiries, please contact:
Sue Hamilton
External Relations
M: +64 27 549 3330
E: Sue.Hamilton@sky.co.nz

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)


Results for announcement to the market
Name of issuer Sky Network Television Limited
Reporting Period 6 months to 31 December 2019
Previous Reporting Period 6 months to 31 December 2018
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$384,839 4.5% decrease
Total Revenue $384,839 4.5% decrease
Net profit/(loss) from
continuing operations
$11,868 77.9% decrease
Total net profit/(loss) $11,715 78.1% decrease
Interim Dividend
Amount per Quoted Equity
Security
Nil interim dividend
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$(0.205) $(0.187)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further explanation refer the interim financial statements and
the results presentation attached.
Authority for this announcement
Name of person authorised
to make this announcement
Blair Woodbury
Contact person for this
announcement
Blair Woodbury
Contact phone number 027 250 0966
Contact email address Blair.Woodbury@sky.co.nz
Date of release through MAP 12/02/2020

Unaudited financial statements accompany this announcement.

---

Sky / 2020 Interim Report/ 1
Interim Report
SKY NETWORK TELEVISION LIMITED

Sky / 2020 Interim Report/ 2
In my address to the Annual General Meeting
in late 2019, I commented that the status
quo of the last decade was not an option.
Technology, consumer behaviour and
commercial pressures are all changing at
an unprecedented pace and Sky had until
recently been slow to adapt. Subsequent
events continue to support this analysis.
Sky takes pride in connecting
New Zealanders with the sport
and entertainment content they
love, in ways that work for them.
To deliver on this goal in an increasingly online
world, Sky has continued to drive the important
transition to a streaming future, delivering
further increases in streaming customers and
revenues. Greater focus on our DTH customers
has also reduced churn and subscriber attrition.
Securing or renewing a number of key content
rights in an increasingly competitive and global
environment were important achievements
in the period. In particular, the extended
relationship with SANZAAR and New Zealand
Rugby will provide content that is so important
to New Zealand fans, as well as allow Sky to
support the development of the game and the
next generation of players in New Zealand.
Strategic initiatives like the purchase of Lightbox
and the acquisition of global streaming service
RugbyPass create opportunities for growth,
both in New Zealand and beyond our borders.
The Interim Results we present today reflect
a business in transformation. Over the past
twelve months Sky has undergone significant
change to reposition itself for growth in an
increasingly competitive market. Many of the
one-off costs we report today are a consequence
of these changes, and it is likely that there will
be further restructuring costs to come. The
objective of the Board and Management is to
maintain a balance between prudent control
of the business cost base and new investment
to position the Company for future growth.
As we enter the second half of the financial year
Management has a firm focus on the execution
of its growth plans, with ambitious targets
to increase customer numbers and improve
customer satisfaction levels. Investors and
customers can expect to see innovations in our
digital services, fresh approaches to pricing and
content packaging, as well as the introduction of
initiatives designed to reward our loyal customers
and attract more New Zealanders to Sky.
The path ahead is not an easy one and there
are many competitive challenges including
a significant increase in content costs. The
strategy that we are pursuing is a long-term
one to drive value for our stakeholders, rather
than one of unsustainable short-term profit
maximisation. The refreshed Sky team is
energised and focused on implementing clear
plans to strengthen the base business whilst
generating new revenue streams. Delivering this
strategy will also require a strengthened capital
structure; Management, together with the
Board, is currently evaluating best how to align
the capital structure with these requirements.
On behalf of the Board, I would like to thank you
for your continuing support and look forward to
again updating you on progress later in the year.
Philip Bowman
CHAIRMAN
Chairman Update

Sky / 2020 Interim Report/ 3
Martin Stewart
CHIEF EXECUTIVE
Laying the foundation for success
is a vital part of winning.
Ask any sportsperson. Before you are selected
to compete you must first do the preparation
and prove yourself worthy of selection.
We have spent the last year at Sky transforming the
business and building a platform for growth. The
pace has been fast and the change hasn’t always
been easy, but we enter 2020 feeling match fit.
We delivered on some important objectives, including
enhancing our streaming services, super-serving
our satellite customers, winning key rights including
Rugby and Netball, and opening the door to global
growth with the purchase of RugbyPass.
Achieving positive momentum
The Interim Results we report today show pleasing
progress in priority areas, particularly the growth
in streaming customers and revenue. Slowing
the decline in satellite customer numbers is also
an important achievement, as it shows that we
can manage the transition to a streaming future
while continuing to serve satellite customers
well and earning their loyalty every day.
We finished the half year with 795,000 subscribers,
and have since welcomed over 130,000 active Lightbox
customers as a result of that acquisition. The progress
we have achieved in the last six months, along with
our investment in future growth areas, sets us well on
the track to have one million subscribers by 2021.
Investing in our future
The Interim Results show an increase in expenditure,
some of which are one-offs associated with the
transformation of the business and our ambitions
for growth. Other increases reflect the realities of
our competitive market, with increases in content
costs and the need to boost marketing spend
after a long period of under-investment.
We have invested in a new Sky Digital team,
tasked with developing a ground-breaking
new digital platform for Sky. I look forward to
revealing details in the coming months.
We made some important investments in sport in
New Zealand, as the strength and sustainability
of the sports sector is as vital to us as it is to the
wellbeing of the communities in which we operate.
It is in everyone’s interests for sport to be nurtured,
and I’m particularly proud of the investment we have
made in Sky Sport Next to help grow 50 sports across
the country, along with our support for a number of
teams such as the Sky Sport Breakers, the Wellington
Phoenix, the Kiwi Ferns, the Warriors Women NRL and
Future Warriors, the Tall Ferns and the White Sox.
We have a unique partnership with New Zealand Rugby
and are committed to working with them to grow
and develop the game and its fan base. Our renewed
rights agreement was a significant achievement
in the period, as were our renewed relationships
with Netball, the New Zealand Olympic Committee
and IOC, and the ICC and Cricket Australia.
The path ahead
We have entered the second half of the financial
year with enthusiasm and confidence.
We completed the Lightbox deal on 31 January and will
launch a super-charged streaming service that brings
together the best of Neon and Lightbox, providing
New Zealanders with a superb line-up of entertainment
content. It is good to be working with Spark to deliver
the new service to their customers as part of the deal,
and I look forward to launching it in the coming months.
There is significant opportunity with RugbyPass,
with more than 30 million people engaging with
RugbyPass content every month. Initiatives like the
launch of the RugbyPass TV channels in Asian markets,
timed to coincide with the Six Nations and the
start of the 2020 SuperRugby season, demonstrate
how we will leverage Sky’s capabilities to grow
RugbyPass paying audiences. Adding linear TV to the
RugbyPass portfolio in this way enables the business
to expand its reach in certain markets and create a
blended TV and digital experience for rugby fans.
While we have secured key rights that matter to
our customers in the last few months, the nature
of our business means rights will regularly be up for
negotiation. We will continue to make careful choices
about what we fight for and how much we spend.
In all aspects of our business, we will continue to
maintain the balance between careful control of costs
and new investment to position Sky for future growth.
Across everything we do, our goal is to
connect New Zealanders with the sport and
entertainment content they love, in ways that
work for each of them. That means super-serving
our satellite customers and having a laser
focus on growing our streaming services.
I look forward to a positive and successful 2020.
CEO
Update

Our 2020
Interim
Financials
For the six months ended 31 December 2019 (unaudited)
Sky / 2020 Interim Report/ 4

Sky / 2020 Interim Report/ 5
Consolidated interim statement
of comprehensive income
For the six months ended 31 December 2019 (unaudited)
in NZD 000Notes
31-Dec-19
(6 months)
31-Dec-18
(6 months)
30-Jun-19
(1 year Audited)
Total revenue4384,839403,032795,126
Expenses
Programming174,685161,727326,461
Subscriber related costs50,76742,06488,323
Broadcasting and infrastructure38,83746,81795,846
Depreciation, amortisation and impairment of assets61,33647,262131,103
Other costs30,83024,14154,328
4356,455322,011696,061
Operating profit before impairment28,38481,02199,065
Impairment of goodwill12– – 670,000
Operating profit/(loss)28,38481,021(570,935)
Finance costs, net8,8006,50712,442
Profit/(loss) before tax19,58474,514(583,377)
Income tax expense7,71620,91024,460
Profit/(loss) for the period11,86853,604(607,837)
Attributable to:
Equity holders of the Company11,71553,434(608,158)
Non-controlling interests153170321
11,86853,604(607,837)
Earnings per share
Basic and diluted earnings/(loss) per share (cents)92.8113.73(156.28)
OTHER COMPREHENSIVE INCOME
Profit/(loss) for the period11,86853,604(607,837)
Items that may be reclassified to profit and loss
Deferred hedging losses/(gains) transferred
to operating expenses during the period523(3,215)(2,745)
Exchange differences on translation of foreign
operations9283 – –
Income tax effect(146)900769
Net other comprehensive (loss)/income to be reclassified
to profit or loss in subsequent periods, net of income tax660(2,315)(1,976)
Items that may not be reclassified to profit or loss
Deferred hedging gains and losses transferred to
non-financial assets during the period(4,095)(6,036)(10,097)
Income tax effect1,1461,690 2,827
Net other comprehensive loss not being reclassified
to profit or loss in subsequent periods, net of income tax(2,949)(4,346)(7,270)
Total comprehensive income/(loss) for the period9,57946,943(617,083)
Attributable to:
Equity holders of the Company9,42646,773(617,404)
Non-controlling interests153170321
9,57946,943(617,083)

Consolidated interim balance sheet
As at 31 December 2019 (unaudited)
in NZD 000Notes31-Dec-1931-Dec-18
30-Jun-19
Audited
Current assets
Cash and cash equivalents133,8986,9574,283
Trade and other receivables59,73164,22661,996
Programme rights inventory6112,78683,60489,458
Income tax receivable294 – –
Derivative financial instruments132,8658,944 5,019
179,574163,731160,756
Non-current assets
Property, plant and equipment162,053 198,451 163,217
Intangible assets45,491 51,022 50,485
Right-of-use assets868,133 – –
Goodwill12433,812 1,065,331 395,331
Derivative financial instruments13261 2,127 1,564
709,7501,316,931 610,597
Total assets889,3241,480,662 771,353
Current liabilities
Interest bearing loans and borrowings7/131,103 1,674 1,701
Lease liabilities8 39,114 – –
Trade and other payables125,379 117,850 136,078
Contract liabilities51,788 58,373 54,396
Income tax payable – 7,362 11,052
Derivative financial instruments13 4,650 3,219 2,721
222,034188,478 205,948
Non-current liabilities
Interest bearing loans and borrowings7/13215,854 211,577 191,961
Lease liabilities8 41,619 – –
Other non-current liabilities11 5,283 – –
Derivative financial instruments13 2,546 3,435 2,952
Deferred tax10,37432,307 18,924
275,676 247,319 213,837
Total liabilities497,710 435,797 419,785
Equity
Share capital9 617,094 577,403 577,403
Reserves9 (2,149)2,371 (53)
Retained earnings(224,813)463,667 (227,111)
Total equity attributable to equity holders of the Company390,1321,043,441 350,239
Non-controlling interest1,482 1,424 1,329
Total equity391,6141,044,865 351,568
Total equity and liabilities 889,3241,480,662 771,353

Philip Bowman Martin Stewart
CHAIRMAN CHIEF EXECUTIVE
For and on behalf of the board 11 February 2020.

Sky / 2020 Interim Report/ 6
Consolidated interim statement
of changes in equity
For the six months ended 31 December 2019 (Unaudited)
in NZD 000Attributable to owners of the parent
Notes
Share
capitalReserves
Retained
earningsTo t a l
Non-
controlling
interest
Total
equity
Balance at 1 July 2019577,403(53) (227,111)350,2391,329351,568
Impact of change in accounting policy3 – – (9,417)(9,417) – (9,417)
Adjusted balance 577,403(53) (236,528)340,8221,329342,151
Profit for the period – – 11,71511,715 153 11,868
Exchange difference on translation of foreign
operations9 – 283 – 283 – 283
Cash flow hedges, net of tax – (2,572) – (2,572) – (2,572)
Total comprehensive income for the period – (2,289)11,7159,426 153 9,576
Transactions with owners in their capacity as owners
Issue of ordinary shares related to business
combination9 24,378 – – 24,378 – 24,378
Issue of ordinary shares to NZ Rugby Union 9 15,436 – – 15,436 – 15,436
Transaction costs relating to share issues(123) – – (123) – (123)
Employee share scheme9 – 193 – 193 – 193
39,691 193 – 39,884 – 39,884
Balance at 31 December 2019617,094(2,149)(224,813)390,1321,482391,614
For the six months ended 31 December 2018
(unaudited)
Balance at 1 July 2018577,4039,032439,4181,025,8531,2541,027,107
Profit for the period – – 53,434 53,43417053,604
Cash flow hedges, net of tax – (6,661) – (6,661) – (6,661)
Total comprehensive income for the period – (6,661) 53,434 46,77317046,943
Transactions with owners in their capacity as owners
Dividend paid – – (29,185)(29,185) – (29,185)
Supplementary dividends – – (4,316)(4,316) – (4,316)
Foreign investor tax credits – – 4,316 4,316 – 4,316
– – (29,185)(29,185) – (29,185)
Balance at 31 December 2018577,4032,371463,6671,043,4411,424 1,044,865
For the year ended 30 June 2019 (audited)
Balance at 1 July 2018577,4039,032439,4181,025,8531,2541,027,107
(Loss)/profit for the year – – (608,158)(608,158)321 (607,837)
Cash flow hedges, net of tax–(9,246) –(9,246) –(9,246)
Total comprehensive (loss)/income for the year – (9,246)(608,158) (617,404) 321 (617,083)
Transactions with owners in their capacity as owners
Dividend paid – – (58,371)(58,371)(246)(58,617)
Supplementary dividends – – (8,552)(8,552) – (8,552)
Foreign investor tax credits – – 8,5528,552 – 8,552
Employee share scheme9 – 161 – 161 – 161
– 161(58,371)(58,210)(246)(58,456)
Balance at 30 June 2019577,403(53) (227,111)350,2391,329351,568
Consolidated interim statement
of cash flows
For the six months ended 31 December 2019 (unaudited)
in NZD 000Notes
31-Dec-2019
(6 months)
31-Dec-2018
(6 months)
30-Jun-2019
(1 year)
(audited)
Cash flows from operating activities
Profit/(loss) before tax19,58474,514(583,377)
Adjustment for non-cash items:
Depreciation and amortisation61,33647,262131,103
Impairment of goodwill – – 670,000
Impairment of programme rights6 1,396 5,715
Unrealised foreign exchange loss/(gain)644(349)(258)
Interest expense8,5887,22113,895
Bad debts and movement in provision
for doubtful debts5003931,186
Other non-cash items447(2,305)605
Movement in working capital items:
Decrease/(increase) in receivables2490(3,598)(65)
(Decrease)/increase in payables(11,595)8,2905,362
(Increase)/decrease in programme rights(7,407)(5,226)(16,795)
Cash generated from operations75,983126,202227,371
Interest paid(10,492)(8,817)(14,045)
Bank facility fees paid(25)(1,186)(800)
Income tax paid(23,500)(26,500)(34,500)
Net cash from operating activities41,96689,699178,026
Cash flows from investing activities
Proceeds from sale of property, plant
and equipment – 154 228
Acquisition of property, plant, equipment
and intangibles10(33,249)(38,763)(76,342)
Acquisition of subsidiary, net of cash acquired11(15,193) – –
Disposal of short term investment – 6,332 6,334
Net cash used in investing activities(48,442)(32,277)(69,780)
Cash flows from financing activities
Advances received – bank loan49,000 206,000 257,000
Repayment of borrowings – bank loan(23,000)(230,000)(300,000)
Payments for lease liability principal(19,366) – –
Vendor finance received – 3,206 3,205
Repayment of other borrowings(543)(864)(1,693)
Dividend paid to minority shareholders – – (246)
Dividends paid – (33,501)(66,923)
Net cash used in financing activities6,091 (55,159)(108,657)
Net (decrease)/increase in cash and
cash equivalents(385)2,263 (411)
Cash and cash equivalents at beginning of the period4,283 4,694 4,694
Cash and cash equivalents at end of the period3,898 6,957 4,283

Sky / 2020 Interim Report/ 7
Management are focussed on cash flow management and the effective use of capital as evidenced by
the suspension of the dividend in 2019.
Considering the above, the Directors have reviewed the operating and cash flow forecasts for the five-
year period to 2025. The Directors are satisfied, based on their review of these financial forecasts that
during the period to at least 12 months from approving the consolidated interim financial statements
there will be adequate cash flows generated from operating activities to meet the obligations of the
Group as they arise.
The cash flow forecast reviewed by the Directors is based on assumptions regarding future, or in
progress, initiatives that may have a material effect on actual future cash flows. They include key
assumptions relating to:
• Growth rates in streaming subscribers and churn rates in satellite subscribers.
• Expansion of international services through RugbyPass.
• Expansion of content delivery means other than satellite.
As part of this growth plan, the Directors are also currently reviewing the funding structure of the
Group given the investments required under the transformation programme and maturity of the $100
million bond in March 2021. The current bank facility expires in July 2022 with a stepdown in the bank
facility from $200 million to $150 million by July 2021 (refer Note 7).
The Board acknowledges the inherent execution risks involved in its growth strategy that may
significantly impact the Group’s financial performance, cash flow forecasts and consequently impact
on banking facility terms and may affect the Group’s assessment of impairment in future periods
(as set out in Note 12). The group’s capital structure, including adequacy of banking covenants is
dependent on and sensitive to the timing and execution of the Group’s strategy which affects the level
of operating cash flows, capital investments and disposals that are key inputs to the financial ratio
calculation (refer Note 7).
Acknowledging the inherent execution risks associated with the growth and transformation plan and
underlying key assumptions, it is the Directors’ considered view that the assumptions used in the cash
flow forecast are reasonable and that the use of the going concern basis in preparing the consolidated
interim financial statements remains appropriate.
Group structure
The Group has a majority share in the following subsidiaries.
Name of EntityPrincipal ActivityCountry of
Incorporation
ParentInterest
held
Dec 2019
Dec 2018
and June
2019
Sky DMX Music LimitedCommercial musicNew ZealandSky50.50%50.50%
Sky Ventures LimitedInvestmentNew ZealandSky100.00%100.00%
Media Finance LimitedNon-tradingNew ZealandSky100.00%100.00%
Outside Broadcasting Limited
Broadcasting
servicesNew ZealandSky100.00%100.00%
Screen Enterprises LimitedNon-tradingNew ZealandSky100.00%100.00%
Igloo LimitedNon-tradingNew ZealandSky100.00%100.00%
Believe It Or Not Limited
Entertainment
quizzesNew ZealandSky51.00%51.00%
Sky Investment Holdings Limited
(incorporated 15 August 2019)InvestmentNew ZealandSky100.00%0.00%
Rugby Pass Limited
(acquired on 19 August 2019)Streaming servicesIreland
Sky Investment
Holdings Limited100.00%0.00%
Rugby Pass Asia Pte Ltd
(acquired 19 August 2019)
Management
servicesSingapore
Rugby Pass
Limited100.00%0.00%
Notes to the interim financial statements
For the six months ended 31 December 2019 (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 for the six months ended 31 December 2019 comprise
Sky and its subsidiaries (the Group).
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.
These consolidated interim financial statements were approved by the Board of Directors on
11 February 2020.
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
2019. 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 2019. 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 judgments, 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 judgments about carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.
These interim financial statements have been prepared under the historical cost convention except for
the revaluation of certain financial instruments (including derivative instruments).
Growth strategy and future performance
During the period, the Group has continued to execute its strategy which has included the following
events and transactions:
• The acquisition of Rugby Pass Limited in August, which resulted in goodwill of $38 million (refer Note
11). Part of the acquisition cost included the Group issuing 25,085,408 shares (refer Notes 9 and 11).
• In November Sky negotiated a five-year partnership agreement with the New Zealand Rugby Union
(NZR) as a result of successfully renewing the SANZAAR contract for the five years from 2021 to
2025. The terms of the agreement included the issue of 21,801,325 Sky shares to NZR with a fair
value of $15 million (refer Notes 6 and 9).
• Review of the organisational design and structure within the Group.
• In January 2020, the Group completed the acquisition of Lightbox from Spark (refer Note 16).
There are also a number of other initiatives that have been executed during the period as part of
the Group’s ongoing transformation programme. In order to fund these investments, Directors and

Sky / 2020 Interim Report/ 8
3. Significant accounting policies and changes
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 2019, except for the adoption of new standards effective as of 1 January 2019. The
Group has not early adopted any other standard, interpretation or amendment that has been issued
but is not yet effective.
The Group has applied NZ IFRS 16 Leases for the first time using a modified retrospective approach
which does not require restatement of previous financial statements. (Refer Note 8). As required by NZ
IAS 34, the nature and effect of these changes are disclosed below.
Impact on the interim financial statements
NZ IFRS 16 primarily changes lease accounting for lessees; lease agreements now give rise to the
recognition of an asset representing the right to use the leased item and a loan obligation for future
lease payables. Lease costs are recognised in the form of depreciation of the right-of-use asset and
interest is recognised on the lease liability. The new standard has substantively changed the accounting
treatment for operating leases where rental charges were previously recognised on a straight-line
basis and no lease asset or lease obligation was recognised. The standard was effective for accounting
periods beginning on or after 1 January 2019 and the Group adopted the standard from 1 July 2019.
As allowed under NZ IFRS 16 comparatives have not been restated.
Lease liabilities are measured at the present value of the remaining lease payments using the Group’s
incremental borrowing rate as at 1 July 2019 as described in Note 8. The associated right-of-use assets
were measured on a retrospective basis as if the new rules had always been applied. Right-of-use
assets are classified as motor vehicles, property, transmission and equipment.
The impact of adoption of NZ IFRS 16 on the Group’s consolidated interim balance sheet is
summarised in the table below:
IN NZD 00031-Dec-20191-Jul-2019
Right-of-use assets68,13378,345
Lease liabilities(80,733)(93,806)
Deferred tax4,3303,661
Other liabilities – 2,383
Retained earnings9,4179,417
When compared to the accounting policies applied in the prior comparative period, the adoption of
NZ IFRS 16 on the Group’s consolidated interim statement of comprehensive income for the six months
ended 31 December 2019 is as follows:
IN NZD 00031-Dec-2019
Operating expenses(21,277)
Depreciation16,514
Interest expense1,909
The table below reconciles commitments disclosed as at 30 June 2019 to the lease liability balance at
1 July 2019.
IN NZD OOO30-Jun-19
Commitments disclosed as at 30 June 2019
Operating leases92,660
Contracts for transmission service7,038
Other service commitments26,511
126,209
Less short term leases recognised on a straight-line basis as an expense(2,354)
Less contracts assessed as service commitments (22,813)
Adjustment due to price changes42
Discounting using the Group's incremental borrowing rate at the date of initial application(7,278)
Lease liability93,806
Current lease liabilities37,043
Non-current lease liabilities56,763
93,806
The adoption of NZ IFRS 16 does not have any significant effect on the Group’s banking covenants
since adjustment is already in place to treat transmission leases as a finance lease contract.
Foreign currency translation
Functional and presentation currency
The Group’s consolidated interim financial statements are presented in New Zealand dollars (NZD)
which is the Group’s functional and presentation currency.
Transactions and balances
Monetary assets and liabilities denominated in foreign currencies are translated into the functional
currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are
measured at fair value in a foreign currency are translated into the functional currency at the exchange
rate when the fair value was determined. Non-monetary items that are measured based on historical
cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign
currency differences are generally recognised in profit or loss and presented within finance costs, except
when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign operations
The income statements of foreign operations are translated into the Group’s reporting currency at
average exchange rates for the period and the assets and liabilities of foreign operations are translated
into NZD at the exchange rates prevailing at the reporting date. The income and expenses of foreign
operations are translated into NZD at the exchange rates at the dates of the transactions.
Foreign exchange differences are recognised in other comprehensive income and accumulated in the
translation reserve.
Notes to the interim financial statements (continued)
For the six months ended 31 December 2019 (unaudited)

Sky / 2020 Interim Report/ 9
5. Related party transactions
There were no loans to directors by the Group or associated parties at any of the reporting dates.
The gross remuneration of directors and key management personnel during the period was $9,163,000
(31 December 2018: $7,421,000; 30 June 2019: $15,587,000). The remuneration in the current period
includes the redundancy cost paid to executive directors and key management personnel.
The first tranche of 200,000 shares of the Chief Executive’s entitlement to 800,000 shares will vest in
February 2020. Further shares will vest in future years subject to the conditions set out in the Chief
Executive’s employment contract.
The accrued share entitlements earned by the Chief Executive during the period was $193,000
(30 June 2019: $161,000), based on a grant date (1 February 2019) value of $1.93 per share.
6. Programme rights inventory
IN NZD 000Notes31-Dec-201931-Dec-2018
30-Jun-2019
(Audited)
Opening balance89,45878,37878,378
Acquired during the period161,642138,115275,789
Acquired as part of acquisition of Rugby Pass 11 1,882 – –
Written off during the year (1,396) – (5,715)
Charged to programming expenses(138,800)(132,889)(258,994)
Balance at end of period112,78683,60489,458
Acquired programme rights include $15,436,000 for prepaid rights relating to the SANZAAR contract
and Rugby Union Partnership agreement. The payment for the rights was settled by the issue of
21,801,325 shares in Sky (refer Note 9).
7. Interest bearing loans and borrowings
31-Dec-1931-Dec-1830-Jun-19 (Audited)
in NZD 000Current
Non-
currentTo t a lCurrent
Non-
currentTo t a lCurrent
Non-
currentTo t a l
Borrowings 1,103 116,194 117,297 1,082 110,086 111,168 1,093 90,643 91,736
Lease liabilities–––5922,1042,6966081,7962,404
Bonds – 99,660 99,660 – 99,387 99,387 – 99,522 99,522
1,103 215,854 216,957 1,674 211,577 213,251 1,701 191,961 193,662
Repayment terms
Less than one year 1,103 1,674 1,701
Between one and
five years 215,854 211,577 191,961
216,957 213,251 193,662
Bank loans
In October 2018 the Group renegotiated its bank facility with a syndicate of banks comprising Bank of
New Zealand, Commonwealth Bank of Australia and Westpac Bank for a value of $200 million expiring
on 22 July 2022 with the facility reducing to $150 million by July 2021.
4. Segment information
The table below shows the disaggregation of the Group’s revenue from contracts with customers on
the basis of when revenue is recognised for its principal revenue streams.
In NZD 000
Residential
satellite
subscriptions
Other
subscriptionsAdvertising
Other
revenue
Total
revenue
from
contracts
with
customers
For the six months ended 31 December 2019
Revenue from customers298,72952,43926,08415,607392,859
Inter-segment revenue – – – (8,020)(8,020)
Total revenue 298,72952,43926,0847,587384,839
Timing of revenue recognition
At a point in time5,875 – 26,0843,96235,921
Over time292,85452,439 – 3,625348,918
298,72952,43926,0847,587384,839
For the six months ended 31 December 2018
Revenue from customers322,04446,14427,37016,959412,517
Inter-segment revenue – – – (9,485)(9,485)
Total revenue 322,04446,14427,3707,474403,032
Timing of revenue recognition
At a point in time8,041 – 27,3702,95538,366
Over time314,00346,144 – 4,519364,666
322,04446,14427,3707,474403,032
For the year ended 30 June 2019
Revenue from customers629,76398,59551,80532,847813,010
Inter-segment revenue – – – (17,884)(17,884)
Total revenue 629,76398,59551,80514,963795,126
Timing of revenue recognition
At a point in time13,895 – 51,8057,50573,205
Over time615,86898,595 – 7,458721,921
629,76398,59551,80514,963795,126

Operating segments are reported in a manner consistent with the internal reporting provided to Sky’s
group of executive directors who are the chief operating decision makers. Sky’s group of executive
directors are responsible for allocating resources and assessing performance of the operating
segments. Sky operates in a single business segment, as a provider of sport and entertainment and
media services.
Operating expenses in the current period include redundancy costs of $7 million, consultancy fees of
$2.5 million and a satellite reservation fee of $2 million.
Notes to the interim financial statements (continued)
For the six months ended 31 December 2019 (unaudited)

Sky / 2020 Interim Report/ 10
8. Leases
This note provides information for leases where the Group is a lessee.
IN NZD 000PropertyTransmissionEquipment
Motor
vehiclesTo t a l
Right-of-use assets
Transition balance on 1 July 20197,60262,2828,03842478,346
Reclassification of assets relating to finance leases
previously recognised––2,361–2,361
Additions for the period998 – 2,928143,940
Depreciation(685)(12,750)(3,007)(72)(16,514)
Balance at 31 December 20197,91549,53210,32036668,133
Lease liabilities
Transition balance on 1 July 20198,95476,2158,21142693,806
Reclassification of finance leases previously recognised––2,404–2,404
Additions for the period998 – 2,928143,940
Add interest for period2441,368286111,909
Less repayments(928)(16,590)(3,679)(80)(21,277)
Foreign currency revaluation – (73)24 – (49)
Balance at 31 December 20199,26860,92010,17437180,733
Current1,46330,8026,70314639,114
Two to five years5,94830,1183,47122539,762
More than five years1,857 – – – 1,857
9,26860,92010,17437180,733
The consolidated interim statement of comprehensive income includes operating expenses of
$4,163,000 which relate to short term leases or leases of low value assets.
In the previous year, the Group only recognised lease assets and lease liabilities in relation to leases that
were classified as finance leases under NZ IAS 17 “Leases” The assets were presented in property, plant
and equipment and the liabilities as part of the Group’s borrowings (refer Note 7).
The Group leases various premises, transmission equipment, motor vehicles and sundry equipment.
Rental contracts vary between one and five years with some office leases containing renewal options.
Sky has incorporated renewal options into the lease term where it is reasonably certain that the lease will
be extended.
In applying NZ IFRS 16 for the first time the Group has used the following practical expedients
permitted by the standard:
• Use of a single discount rate to leases with reasonably similar characteristics.
• Use of hindsight in determining a lease term.
• Exclusion of initial direct costs for the measurement of the lease asset at the date of initial recognition.
• Exclusion of low value assets (less than $20,000).
• Exclusion of leases with a remaining term of less than 12 months.
7. Interest bearing loans and borrowings (continued)
The facility arrangements (together with certain hedging arrangements and the existing $100 million
bond) take the benefit of shared security granted by certain members of the Group, including (i) a
general security deed granted by each of Sky Network Television Limited and Outside Broadcasting
Limited, (ii) real property mortgages granted over certain real property interests of Sky Network
Television Limited and (iii) a spectrum mortgage granted over certain spectrum. The loan facility is
subject to certain covenant clauses whereby the Group is required to meet certain key financial ratios.
These financial ratios are calculated in accordance with the new strategy and business plan (refer
Note 2 – Growth strategy). There have been no breaches of covenant clauses and no breaches are
anticipated within the next 12 months.
Bank overdrafts of $6,301,000 (31 December 2018: $1,118,000; 30 June 2019: $6,780,000) have been
set off against cash balances.
Bonds
On 31 March 2014 the Group issued bonds for a value of $100 million which were fully subscribed.
Terms and conditions of outstanding bonds are as follows:
Bonds31-Dec-201931-Dec-2018
30-Jun-2019
(Audited)
Nominal interest rate6.25%6.25%6.25%
Market yield3.80%4.13%3.58%
Issue date31-Mar-1431-Mar-1431-Mar-14
Date of maturity31-Mar-2131-Mar-2131-Mar-21
in NZD 000
Carrying amount 99,660 99,387 99,522
Face value 100,000 100,000 100,000
Fair value 102,977 104,533 104,523
Notes to the interim financial statements (continued)
For the six months ended 31 December 2019 (unaudited)

Sky / 2020 Interim Report/ 11
8. Leases (continued)
At the transition date (1 July 2019) Sky has valued its existing lease contracts using the modified
retrospective method whereby the value of the lease asset and liability is calculated using the Group’s
incremental borrowing rate at the date of transition. Assets are accounted for as if they had existed
at the contract start date. The difference between the transition lease asset and lease liability and the
related deferred tax is accounted for as an adjustment to retained earnings.
Lease payments are discounted using the interest rate implicit in the lease. If the rate cannot be readily
determined which is the case for most of the Group’s leases the Group’s incremental borrowing rate
is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an
asset of similar value to the right-of-use asset in a similar economic environment with similar terms,
security and conditions.
To determine the incremental borrowing rate (IBR), the Group calculates its internal borrowing rate
on a quarterly basis. The average IBR at 31 December 2019 was 3.95% (1 July 2019: 4.0%). The Group
uses this rate for contracts with a value of less than $100,000.
For higher value contracts the Group makes adjustments to the IBR after considering the effect of the
lease term, the currency and value of the lease, any security given, and the economic environment in
which the Group operates.
For leases where there are renewal options the lease payments may change. When lease payments are
adjusted, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments
are allocated between principal and finance cost. The finance cost is charged to profit or loss over the
lease period.
Right-of-use assets are measured at cost which includes the initial measurement of the lease liability,
plus any lease payment made before the commencement date, initial direct costs and restoration costs
less any lease incentives received. Right-of-use assets are generally depreciated over the shorter of the
asset’s useful life and the lease term on a straight-line basis.
Critical judgments in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an
economic incentive to exercise a renewal option. Renewal options are only included in the lease
term if the option is reasonably certain to be exercised.
Most of the Group’s property leases contain renewal options, and generally where it is likely that
these options will be exercised they have been included in the calculation of the lease liability.
Management reassesses the likelihood of exercising termination options at each reporting date
or when there is any significant change in circumstances. Any changes in the lease term or value
affect the valuation of the liability and the right-of-use asset and are adjusted accordingly.
9. Share capital and reserves
Notes
Number of
shares (000)
Ordinary shares
(NZD 000)
Shares on issue at 30 June 2019389,140577,403
Shares issued for purchase of Rugby Pass 1125,08524,378
Shares issued to NZ Rugby Union 621,80115,436
Less transaction costs – (123)
436,026617,094
On 19 August 2019 Sky issued 25,085,408 shares at a value of $1.24 per share to RugbyPass
Investors,LLC as part of the consideration for the purchase of Rugby Pass (refer Note 11).
Sky issued a further 21,801,325 shares on 1 November 2019 at a value of $0.92 per share to the

NZ Rugby Union as part of the consideration in relation to the Rugby Union Partnership agreement.
The value of the consideration has been recorded as a prepayment for programme rights.
Due to restriction clauses in both contracts for disposal of the shares a discount has been allocated to
determine the fair value of the consideration for the shares as follows:
IN NZD 000RugbyPassNZ Rugby Union
Shares issued at market value29,60020,057
Less discount(5,222)(4,621)
Fair value of consideration24,37815,436
Basic and diluted earnings/(loss per share)31-Dec-201931-Dec-201830-Jun-2019
Profit/(loss) after tax attributable to equity holders
of the parent (NZD 000)11,71553,434(608,158)
Weighted average number of ordinary shares on issue
(thousands)416,860389,140389,140
Basic and diluted earnings/(loss) per share (cents)2.8113.73(156.28)
Basic earnings or loss per share is calculated by dividing the profit attributable to equity holders of the
Company by the weighted average number of ordinary shares on issue during the year.
Diluted earnings or loss per share is calculated by adjusting the weighted average of ordinary shares
outstanding to assume conversion of all dilutive potential ordinary shares.
Notes to the interim financial statements (continued)
For the six months ended 31 December 2019 (unaudited)

Sky / 2020 Interim Report/ 12
9. Share capital and reserves (continued)
Reserves
IN NZD 000NotesHedge reserve
Share based
compensation
reserve
Currency
translation
reserveTotal reserves
As at 31 December 2019
Balance as at 1 July 2019(214)161 – (53)
Acquisition of Rugby Pass 11 – – 3333
Translation of subsidiary – – 250250
Employee share scheme – 193 – 193
Cash flow hedges (net of tax)0
Revaluation(4,095) – – (4,095)
Reclassification to profit and loss523 – – 523
Deferred tax1,000 – – 1,000
Balance at 31 December 2019(2,786)354283(2,149)
As at 30 June 2019
Balance as at 1 July 20189,032 – – 9,032
Employee share scheme – 161 – 161
Cash flow hedges (net of tax)0
Revaluation(911) – – (911)
Reclassification to profit and loss(11,932) – – (11,932)
Deferred tax3,597 – – 3,597
Balance at 30 June 2019(214)161 – (53)
10. Capital expenditure
The Group acquired the following property, plant and equipment and intangibles during the period:
in NZD 000
31-Dec-2019
(6 months)
31-Dec-2018
(6 months)
30-Jun-2019
(1 year)
(Audited)
Capital projects in progress22,04616,98934,538
Land and buildings9261322,951
Broadcasting and studio equipment520–4,153
Plant and equipment and other7891,2205,476
Decoders1,4357323,229
Installation costs6,6487,70915,566
Intangibles7861,08010,035
33,15027,86275,948
Movement in capital expenditure creditors9910,901394
Cash outflow in the period33,24938,76376,342
11. Business combination
On 19 August 2019 the Group through its subsidiary Sky Investment Holdings Limited acquired 100% of
the share capital of Rugby Pass Limited (Ireland) and Rugby Pass Asia Pte Limited (together RugbyPass).
The acquisition has significantly expanded the Group’s reach into the global rugby market, the largest
online rugby network in the world.
RugbyPass is a premier online destination for global rugby fans, offering a live streaming rugby service
across Asia, Australia and Europe, along with a wide array of original video content, news, analysis,
statistics and a rugby player and team rankings system, the RugbyPass Index.
Details of the purchase consideration, the net assets acquired, and goodwill are as follows:
Purchase considerationIN NZD 000
Cash paid15,633
Ordinary shares issued24,378
Contingent consideration5,283
45,294
The fair value of the 25,085,408 shares issued was based on the published share price on 19 August
2019 of $1.24 per share less an attributable discount (refer Note 9).
Based on the best information available at the reporting date, the provisionally determined fair value
of the assets and liabilities recognised as a result of the acquisition are as follows:
Assets and liabilities acquiredIN NZD 000
Cash441
Trade and other receivables700
Programming rights1,882
Intangible assets7,885
Trade payables(2,081)
Deferred revenue(76)
Deferred tax liability(711)
Other liabilities(1,227)
Net identifiable assets acquired6,813
Add goodwill38,481
Fair value of purchase consideration45,294
The goodwill is attributable to the global reach and the streaming technology of the acquired companies.
Rugby Pass Limited has accumulated losses relating to prior years of EUR 14,991,000 as at 31 December
2018, that it is able to utilise against taxable income in the future. No deferred tax asset has been
recognised for these losses as the timing and extent of their recoverability is uncertain.
For financial reporting purposes the assets and liabilities of Rugby Pass have been valued and
consolidated as if the acquisition had occurred on 1 July 2019 which is the date the Group effectively
obtained control of RugbyPass. The acquired Group contributed revenue of $2,804,000 and losses of
$7,057,000 to the Group for the period 1 July 2019 to 31 December 2019. A deferred tax asset has not
been recorded as recovery is not expected in the short term.
Significant estimate: Contingent consideration
The acquisition agreement allows for a maximum earnout amount of USD10 million based on
the achievement of certain specified targets during the earnout period from 1 January 2020
to 31 December 2022. The agreement also provides for an interim earnout amount of up to a
maximum of USD3.5 million payable for the 18 month period from 1 January 2020 to 30 June
2021. The contingent consideration has been valued at NZD 5.3 million.
Notes to the interim financial statements (continued)
For the six months ended 31 December 2019 (unaudited)

Sky / 2020 Interim Report/ 13
12. Goodwill
in NZD 000
31-Dec-2019
(6 months)
31-Dec-2018
(6 months)
30-Jun-2019
(1 year)
(Audited)
Opening balance395,3311,065,3311,065,331
Acquisition (Note 11) 38,481 – –
Impairment – – (670,000)
Closing balance433,8121,065,331395,331
As at 31 December 2019, an impairment test of goodwill was undertaken because of the fall in Sky’s
share price from $1.17 at 30 June 2019 to $0.73 at 31 December 2019. The Group has 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 2019.
Management has reviewed its assumptions and has considered whether the fall in the share price
could be due to factors not reflected in the key assumptions used in its assessment. Based on the
calculations and assumptions used in determining the recoverable amount and, noting that the market
capitalisation value excludes any control premium and may not reflect the value of 100% of the Group’s
net assets, the Group has not identified any impairment as at 31 December 2019.
The impact of new product offerings that are planned and proposed price changes and market
changes from competitors makes it difficult to estimate subscriber numbers with a high degree of
accuracy and therefore there is significant uncertainty in the level of future subscriber numbers and
actual results may be materially different from the plan. Adverse changes in the key assumptions, in
particular changes in the quality, pricing or retention of key content contracts, subscriber numbers and
ARPU could give rise to a further impairment of goodwill.
The Board's assessment is that the recoverable amount continues to support the existing carrying
value of goodwill. Given the execution risk associated with the growth strategy (refer Note 2), the
Board will closely monitor the financial performance of the business and will reassess the carrying value
of goodwill, as required, to consider whether there is any future impairment.
The table below illustrates the sensitivity of the impairment assessment to changes in key assumptions
over the five year forecast period used in the model:
in NZD (million)HeadroomImpairment
Increase/(Decrease) of 10% in satellite subscriber numbers253(253)
Increase/(Decrease) of 10% in satellite ARPU339(340)
Decrease/(Increase) of 10% in programming costs250(258)
Additions to goodwill relate to the acquisition of Rugby Pass (refer Note 11).
13. 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 2019. 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, financial
assets at fair value through other comprehensive income (OCI) (unquoted investments held for disposal
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.
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.
Classification of financial instruments
The following table presents the Group’s financial assets and liabilities according to classifications.
in NZD 00031-Dec-201931-Dec-201830-Jun-2019 (Audited)
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Carrying
amount
Fair
value
Financial assets at amortised cost
Cash and cash equivalents3,8983,8986,9576,9574,2834,283
Trade and other receivables49,60149,60157,91857,91853,13453,134
Financial assets a fair value through OCI
Derivatives designated as hedging instruments
(cash flow hedges)2,1522,1529,2119,2114,5574,557
Derivatives not designated as hedging
instruments (fair value hedges)9749741,8601,8602,0262,026
56,62556,62575,94675,94664,00064,000
Financial liabilities at amortised cost
Bank loans113,460110,809106,250105,73887,35685,678
Other loans3,8363,7157,6147,2636,7846,700
Bonds 99,660102,99799,387104,53399,522104,523
Trade and other payables96,89696,89691,07091,070113,618113,618
Financial liabilities at fair value through OCI
Derivatives designated as hedging instruments
(cash flow hedges)4,6134,6136,1936,1935,1375,137
Derivatives not designated as hedging
instruments (fair value hedges)2,5832,583461461536536
321,048321,613310,975315,258312,953316,192
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. 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.
Notes to the interim financial statements (continued)
For the six months ended 31 December 2019 (unaudited)

Sky / 2020 Interim Report/ 14
13. Fair value measurements of financial instruments (continued)
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:
31-Dec-201931-Dec-2018
30-Jun-2019
(Audited)
Bond3.80%4.13%3.41%
Bank Borrowings4.05%4.34%4.12%
Other loans1.81%3.02%2.00%
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.
14. Contracts for future programme commitments
in NZD 00031-Dec-2019
30-Jun-2019
(Audited)
Year 1226,600184,958
Year 2211,700106,148
Year 3178,80033,785
Year 4144,50013,593
Year 5130,9002,076
Later than 5 years112,5001,955
1,005,000342,515
Programme rights renewals are cyclical in nature and the range of year end commitments over the
last five years peaked at $740 million in June 2016. The future programming commitments should be
considered in relation to the programming rights expense which was $326 million for the 12 months
ended 30 June 2019.
15. 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 consolidated interim 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 consolidated interim financial position, results of operations or cash flows.
Notes to the interim financial statements (continued)
For the six months ended 31 December 2019 (unaudited)
16. Subsequent events
Sky acquired Lightbox New Zealand Limited (Lightbox) from Spark on 31 January 2020 for $6 million
cash plus the fair value of prepaid content rights, yet to be determined. Lightbox is an entertainment
streaming service providing services in NZ. The assets acquired of Lightbox include subscribers,
technology platforms to manage customers and provide entertainment content to a wide range of
devices, prepaid content rights, and the Lightbox brand. In return, Spark will continue to make Lightbox
available to its customers for an agreed period. The accounting for the acquisition is not yet complete
and a fair value assessment is yet to be carried out.
In December 2018, Sky entered into a satellite service agreement with Optus for ten years from 2021.
Sky’s future payments under the agreement are likely to exceed $200m. The agreement is conditional
on Optus procuring the successful launch of a new satellite to replace the existing D1 satellite. In
January 2020, Optus indicated there may be a delay to the launch of a replacement satellite from the
expected deployment in 2022 to 2023. Sky is working with Optus and other satellite organisations to
ensure that there is continuity of service.

Sky / 2020 Interim Report/ 15
Independent review report
To the shareholders of Sky Network Television Limited
Report on the consolidated interim financial statements
We have reviewed the accompanying consolidated interim financial statements of Sky Network
Television Limited (the Company) and its subsidiaries (the Group) on pages 5 to 14, which comprise
the consolidated interim balance sheet as at 31 December 2019, 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 a summary of
significant accounting policies and selected explanatory notes.
Directors’ responsibility for the consolidated interim financial statements
The Directors are responsible on behalf of the Company for the preparation and fair presentation of
these consolidated 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 control as the Directors
determine is necessary to enable the preparation of consolidated 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 consolidated 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 consolidated 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 consolidated interim financial statements in accordance with NZ SRE 2410 is a limited
assurance engagement. The auditor performs 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 consolidated interim
financial statements.
We are independent of the Group. Our firm carries out other services for the Group in the areas of
providing treasury related financial markets risk analysis and commentary, agreed upon procedures on
the bank compliance certificate, regulatory reporting and scenario analysis of property requirements.
In addition, certain partners and employees of our firm may subscribe to Sky services on normal terms
within the ordinary course of the trading activities of the Group. These relationships and other services
have not impaired our independence.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these
consolidated interim financial statements of the Group do not present fairly, in all material
respects, the financial position of the Group as at 31 December 2019, and its financial performance
and cash flows for the period then ended, in accordance with IAS 34 and NZ IAS 34.
Emphasis of matter
We draw attention to notes 2, 7 and 12 to the consolidated interim financial statements which
describe the significant uncertainties relating to the execution of the Group’s growth strategy and
the potential impact on future banking facility terms and impairment assessments. Our conclusion
is not modified in respect of this matter.
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
11 February 2020 Auckland

Sky / 2020 Interim Report/ 16
Directors
Philip Bowman (appointed 1 September 2019), Chair
Michael Darcey
Derek Handley
Geraldine McBride
Susan Paterson ONZM
Martin Stewart, Chief Executive Officer
Joan Withers (appointed 17 September 2019)
Officers
Martin Stewart Director and Chief Executive Officer
Sophie Moloney Chief Legal, People and Partnerships Officer and Company Secretary
Blair Woodbury Chief Financial Officer
Steve Bayliss Chief Marketing Officer
Chris Major Director of External Affairs
Tex Teixeira Chief Content Officer
Chaz Savage Chief Revenue Officer
Prabhu Singh Director of Technology
Justin Tomlinson Advisor for Digital Products and Technology
New Zealand registered office
10 Panorama Road, Mt Wellington,
Auckland 1060, New Zealand
Tel: +64 9 579 9999 Fax: +64 9 579 8324
Website: sky.co.nz
Australian registered office
c/- Allens Arthur Robinson Corporate Pty Limited
Level 4, Deutsche Bank Place,
126 Philip Street, 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
To the shareholders of Sky Network Television Limited
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 8700 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 2975
Melbourne VIC 3000, Australia
Freephone: 1800 501 366 (within Australia)

Tel: +61 3 9415 5000 (outside Australia)
Fax +61 3 9473 2500
Email: enquiry@computershare.co.nz
Bondholder trustee
The New Zealand Guardian Trust Company Limited
Level 6, 191 Queen Street
Auckland 1010, New Zealand
Mailing address:

PO Box 274, Shortland Street
Auckland 1140, New Zealand
Tel: 0800 683 909 Fax: +64 9 377 7470
Email: ct-auckland@nzgt.co.nz

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