Sky increases guidance as positive trends continue

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Sky increases guidance as positive trends continue
3 February 2021

Sky Network Television Ltd (Sky) today announces a further increase in its earnings guidance
for the 2021 financial year (FY21), building on the positive momentum outlined in its
November guidance update.

The increased revenue and profit expectations for FY21 are due to further one-off cost
savings, a second half management reforecast, ongoing cost control and continued
improvement in satellite and streaming revenues.

“It is particularly encouraging to see improvements in our satellite customer loyalty
alongside further growth in our streaming revenues. Reducing Sky’s ongoing operating costs
remains in sharp focus while we continue to deliver the content that our customers value in
ways that work for them,” said Sky chief executive, Sophie Moloney.

Sky now expects FY21 revenue to be in the range of $695m-$715m (previously $680m-
$710m), earnings before interest, tax, depreciation and amortisation (EBITDA) to be
between $170m-$182.5m (previously $140m-$155m), and net profit after tax (NPAT) to be
between $37.5m-$45.0m (previously $20m-$30m). Capital expenditure expectations remain
unchanged at $45m-$55m.

$m Previous Guidance
11 November 2020
Revised Guidance
1

3 February 2021
Revenue 680 – 710 695 – 715
EBITDA 140 – 155 170 – 182.5
NPAT 20 – 30 37.5 – 45
Capital Expenditure 45 – 55 45 – 55

Sky’s revised guidance includes the impact of the proposed sale of OSB assets to NEP New
Zealand Limited, announced on 12 August 2020 and currently awaiting Commerce
Commission approval. While timing remains uncertain, Sky is confident it will complete the
sale process.

An increase in programming rights costs from 1 January 2021 and start-up costs associated
with the launch of Sky Broadband (to support the anticipated future revenue uplift) will see
EBITDA and NPAT weighted towards the first half of FY21.

Sky will provide further detail on its performance and strategic priorities at the release of its
financial results for the six months ended 31 December 2020, on Tuesday 23 February 2021.

Authorised by: Sophie Moloney, Chief Executive


1
Subject to no adverse change in current operating and economic conditions as a result of COVID-
19

Queries may be directed to:
Chris Major
Director of External Affairs
(029) 917 6127
chris.major@sky.co.nz

Investors can also submit queries to: investorrelations@sky.co.nz