Sky Announces 2021 Interim Results

Sky New Zealand
PO Box 9059
Newmarket
Auckland 1149
New Zealand

10 Panorama Road
Mt Wellington
Auckland 1060
New Zealand

T. +64 9 579 9999

sky.co.nz



23 February 2021

Sky delivers strong first half result; Sky Box customer base stabilising;
firm focus on execution of key initiatives

Sky Network Television Limited delivered a strong first half performance for the six months ended 31
December 2020, as announced at the earnings upgrade on 3 February 2021 and continuing the
positive momentum of the business.
“We are encouraged with the solid results achieved in the first half. Sky has a unique role to play as
the content aggregator which can deliver to all of New Zealand, and Sophie Moloney and her team
have a clear focus to maintain performance in the coming months and years,” said Philip Bowman,
Sky Chairman.
Key results
1

• Revenue of $356.9m (from $384.8m) including strong growth in streaming revenue and gradual
recovery in commercial and advertising
• EBITDA of $116.3m, up 30% (from $89.7m)
• Net profit after tax of $39.6m, up 234% (from $11.9m)
• 18% reduction in operating expenses to $242.8m (from $295.1m), with permanent savings of
$18m representing 42% of the underlying movement
• Strong positive indicators of reaching a stable Sky Box (satellite) customer base, including
strengthened acquisitions and continued reduction in churn
• Confirmation of OSB sale to NEP post-balance date in line with the move to a lower capital base

Sky ended the reporting period with 926,530 total customer relationships. It made significant
progress towards stabilising the Sky Box subscriber base, including a net increase in direct
customers, while also continuing to grow streaming. While revenue was lower year on year, some of
the difference was due to the impact of COVID-19 which was balanced by negotiated reductions in
programming costs and lower production spending.
Permanent cost savings from a range of initiatives also contributed to a strong EBITDA result and a
pleasing increase in net profit after tax.
Customers
Total Sky Box customer numbers are continuing to stabilise, with the 1.8% reduction in the six
months to 31 December 2020 being a significant improvement from the 3.2% reduction in the same
period in 2019.

1
Comparisons to past results in this announcement are to the six months to 31 December 2019 unless otherwise
stated.

2

Following a successful long-term reseller partnership with Vodafone, Sky was pleased to welcome
reseller customers to a direct relationship in October, with the migration expected to benefit
customer experience and further improve churn levels.
Sky recorded a net increase in direct Sky Box customer numbers for the period as acquisitions
rose by 50%, while disconnections of direct satellite customers improved by 16%.

Gross churn continued to trend positively, reducing to 12.4% (from 12.8%) with direct churn
(excluding Vodafone reseller customers) reaching 9.5% (from 11%).

Sky’s Chief Executive, Sophie Moloney said: “Our strong base of loyal customers who enjoy Sky via
their Sky Box in the home, and our Sky Go app when they’re on the move, is incredibly important
to us. We will continue to focus our efforts to better understand the needs of these customers in
order to deliver added value to them.”

Sky is focused on delivering key initiatives for Sky Box customers that will further support
customer experience and loyalty, including:

• Significantly upgrading the Sky Go companion app, with better content discovery and
up to 30% more content.

• Offering Sky Broadband first to fibre-ready Sky Box customers as a way to create more
value and ease.

• Commissioning a new set top box, with an emphasis on improved search functionality
and overall viewing experience, to meet the future needs of customers.

“We have been listening carefully to our customers to understand what they want from the in-
home Sky experience. Some don’t want us to touch a thing and we will respect their wishes, but
others, including the 1/3
rd
of New Zealand households who tell us they are open to joining Sky
2
,
have given clear feedback on what they want with our new Sky Box. We are now moving towards
that with a clear focus on what we need to deliver,” said Sophie Moloney.
“We are also excited to be rolling out Sky Broadband in the coming weeks. We have put
significant focus on service and the user experience. We received valuable customer feedback
during the trial phase which has helped us to strengthen the offer, and we will commence
targeted selling shortly.”
Sky’s streaming products continued the significant growth trajectory of recent periods, recording
an increase of 80% year-on-year through both strong organic growth and acquisitions. Following
the July launch of the new Neon platform, Sky was pleased to convert over one-third of hard-
bundled Lightbox customers to paying Neon customers. The new Neon’s wider content offering
and improved functionality have resonated with Kiwis, leading to further customer growth and a
47% increase in retention rates since the launch. Sky’s sports streaming service, Sky Sport Now
also recorded significant growth and strong customer engagement with the extensive Sky Sport
content offering.

2
Source: Sky commissioned survey of NZ households carried out by international research specialist fiftyfive5, September
2020

3


RugbyPass continues to focus on growing and enhancing its audience and network business,
within a lower cost model. As one of the most significant rugby content destinations in the world
it remains an appealing service provider for the global game of rugby.

Content
Sky confirmed several multi-year rights agreements with leading content providers during the
reporting period, including Discovery and Studiocanal, along with several major sports events
across golf, tennis, football, cricket and motor racing
3
.

Since 31 December 2020 Sky has also announced a multi-year renewal with ViacomCBS (securing
SHOWTIME, CBS and Paramount Television Studios content).

Sophie Moloney said: “We have been striving to retain the rights that matter to our customers. We
remain a highly attractive partner for content providers wanting to access all of New Zealand’s Pay
TV viewers and we are developing strong co-exclusive partnerships, such as the relationship with
Discovery. We will also strive to win exclusive rights where it makes sense.”
“The reality of the world we operate in, with global content giants and direct-to-consumer plays, is
that co-exclusivity is sometimes the best option. We’re absolutely fine with that. Our sole concern is
ensuring Sky customers can access the best news, sport and entertainment on Sky. We know our
customers love the ease and reliability of our service, and the question is not whether it can also be
bought elsewhere, but whether it’s on their Sky Box (or streaming on Neon and Sky Sport Now). Our
priority is getting the content that customers want on Sky – be it through exclusive deals, co-exclusive
deals, partnerships, and of course our own Sky originals.”
Financial
Revenue for the period was $356.9m, including strong growth in streaming revenue and the
gradual recovery in commercial and advertising. It was 7% lower than H1 FY20 (a period before
Sky and other businesses had to deal with the impact of COVID-19). After removing the direct
impact of COVID-19 and a one-month discount provided to migrating satellite reseller customers,
revenue was 3% lower than H1 FY20, compared to a 5% reduction in the prior period.
Satellite revenue was down 9%, reflecting customer losses in H2 FY20 and reseller customer
churn prior to the October migration, as well as lower average revenue per user (ARPU). The
reduction in ARPU was largely due to the one-off impact of the reseller migration discount, the
full period effect of COVID-19 on sports package downgrades and pay-per-view events, and a
focus on re-aligning packages to deliver better value to customers.
Streaming revenues continued to grow, increasing by 45% year-on-year through a combination of
organic growth and acquisition.

3
Rights secured include golf (PGA Championship, Ryder Cup), tennis (Wimbledon, Roland Garros), football (NZ
Football, A League, Champions Cup), cricket (Pakistan Cricket Board, Cricket West Indies) and motor racing (Australian
Racing Group).

4

Commercial revenues were down by 27% year-on-year due to the impact of COVID-19, although
they showed improvement against H2 FY20 as licenced premise customers returned to normal
billing from August and discounts provided to accommodation providers were halved from
November. Advertising revenues were down by 14% year-on-year, also impacted by COVID-19,
however they had recovered half of the reduction into H2 FY20.
Operating expenses of $242.8m were 18% lower year-on-year.
One-off operating expenses of $12m in the prior period resulted in a like-for-like reduction of
15% or $44m, including $18m in permanent savings. These included permanent reductions as a
result of lower headcount and savings from transitioning the RugbyPass business to a lower cost
model. Equitable reductions were negotiated with a number of content rights holders to reflect
cancellations and postponements due to COVID-19, with sports production costs also lower as a
result.
Capital expenditure of $20m was 40% lower year-on-year, partly due to project phasing.
Outlook
Sky will continue to focus on revenue stabilisation through protecting and satisfying its important
Sky Box customer base. Sky expects organic growth in Neon and Sky Sport Now, and ongoing
recovery in Advertising and Commercial revenues, during the remainder of FY21.
Additional investment will be undertaken in H2 FY21 for Sky Broadband ahead of projected
revenue growth.
Sky will maintain an ongoing sharp focus on unlocking further savings as it absorbs costs associated
with programming rights increases through the renewed SANZAAR deal and a more fulsome
calendar of sports.
Sky confirms the FY21 guidance
4
provided on 3 February 2021 of revenue in the range of $695m-
$715m, earnings before interest, tax, depreciation and amortisation (EBITDA) of between $170m-
$182.5m, net profit after tax (NPAT) of between $37.5m-$45.0m, and capital expenditure in the
range of $45m-$55m.
Sky remains in a strong financial position following its capital raise last year. It has grown cash
balances on hand to $123m (as at 31 December 2020), which along with undrawn debt facilities
enables it to repay the $100m of bonds that mature in March 2021 and provides significant
headroom going forward.
Looking ahead, the Board and Executive team have great clarity on what needs to be done to ensure
Sky continues to add value to its customers, partners, people and shareholders, and most
importantly, have the confidence that it can deliver this.
ENDS


4
FY21 includes one-off impacts of $3.6m for the RugbyPass earnout settlement, and the sale of OSB assets to NEP and
subsequent commencement of the NEP services agreement

5

Sky will host a webcast and conference call briefing to discuss the results at 10.30am NZDT on
Tuesday 23 February 2021. Details on how to participate are available here.

Authorised for release by the Board of Sky Network Television Limited.


For investor enquiries, please contact: For media enquiries, please contact:
Amanda West Chris Major
Investor Relations Director of External Affairs
P: +64 210 439 674 P: +64 29 917 6127
E: investor.relations@sky.co.nz E: chris.major@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 2020
Previous Reporting Period 6 months to 31 December 2019
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$356,870 7.3% decrease
Total Revenue $356,870 7.3% decrease
Net profit/(loss) from
continuing operations
$39,427 236.6% increase
Total net profit/(loss) $39,581 233.5% increase
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
$0.055 $(0.205)
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
Andrew Hirst
Contact person for this
announcement
Andrew Hirst
Contact phone number
+64 21 621 114

Contact email address Andrew.Hirst@sky.co.nz
Date of release through MAP

23/02/2021

Unaudited financial statements accompany this announcement.

---

Interim Report 2021
C
Sky Network Television Limited
What Matters Most.
What
matters
most.
Our
Interim Report
2021
Sky Network Television Limited
For the six
months ended
31 December 2020

Interim Report 2021
1
Sky Network Television Limited
What Matters Most.
I know many CEOs say this, so what does it really
mean to be completely customer-focused at Sky?
It means that every decision we make should start
by asking ourselves ‘how does this make Sky better
for our customers?’. If we put that first, the value
creation will follow.
To do that well, we need deep insights into what
our customers want. Over the past couple of years,
we have invested in our customer insight capability
and have built up a great data set about Sky
customers. And now we’re putting it to use.
What we know is that one size does not fit all.
Where you live, whether you have access to decent
broadband, and your life stage all influence what
content you watch, how you watch it, and what you
are willing or able to pay for it.
• Some of our customers love their Sky box, the
remote, the recording functionality and the way
the programme guide looks. They don't want
us to touch a thing, except they'd quite like the
Black Caps playing at home back on their Sky
Box - we hear them on that.
• Others want better ways to find great content
– they want a solution for searching across
Sky’s huge array of content, as well as across
various other services from free-to-air TV to
streaming apps.
• Some just want to stream. No dish, no contract,
just sign up and go. Neon and Sky Sport Now
have them covered.
• We believe Sky Broadband will also have appeal
with one bill, fast fibre speed and great service.
We are in the final stages of receiving customer
feedback and we will soon deliver a service that
reflects it.
What all of our customers want – regardless of
how they watch it – is the best news, sport and
entertainment content.
So, you won’t hear me talking about our business
divided into streaming, satellite and broadband
units. We’re a content business.
• We strive at all times to secure the content
rights that matter to our customers.
• We partner where it makes sense to ensure
our customers have access to the content
they want. The world has changed. We won't
turn back the 'direct-to-consumer' trend in a
hurry, and neither will we try. We're happy to
co-exist with our partners in a new world of
co-exclusivity – what matters to us is that our
customers can access the content they want,
with ease, via Sky.
Our goal is to ensure Sky is the preferred content
aggregator for Kiwis who love news, sport, and
entertainment. And we must deliver that content in
the ways that work best for them.
We know this is what matters most and we are
determined to deliver.
Sophie
What matters most
is our customers
Since starting as CEO, I’ve been focused on getting to
the heart of what matters most for Sky to create better
value for our customers, our partners, our people, and
our shareholders.
Sophie Moloney
CEO

Interim Report 2021
2
Sky Network Television Limited
What Matters Most.
Half year
performance
FINANCIAL
$356.9m
REVENUE
CUSTOMERS
7%
$116.3m
EBITDA
30%
$242.8m
OPERATING EXPENSES
18% (Includes one offs)
$39.6m
NPAT
234%
566,497
SKY BOX CUSTOMERS
GROWTH IN STREAMING
CUSTOMERS
80%
CUSTOMER
RELATIONSHIPS
926,530
TOTAL CUSTOMER
RELATIONSHIPS
+17% YOY

CHAIR AND CEO
Our performance
has been good,
but we need to
do better
Interim Report 2021
3
Sky Network Television Limited
What Matters Most.
In a reporting period so heavily dominated by
COVID-19 and the subsequent global upheaval
that it has caused, it is encouraging to report that
our performance in the six months to 31 December
2020 has been good, but we know that we need
to do better.
Philip Bowman
Chairman
The first half highlights
Revenue for the period was $356.9m, down
7% against the six months to 31 December
2019 when we were living in a world
unaffected by COVID-19. We have had – and
continue to have – a strong focus on
stabilising our revenue, and we have made
significant progress in stabilising our Sky
Box customer numbers, which is key to
achieving this objective.
• Satellite customer acquisitions and
retention have both improved significantly
due to a renewed focus on our customer
management, and a strong presence in
key customer segments. While customer
numbers reduced by 1.8% during the
six-month period this was a marked
improvement on the prior period, and we
also achieved net growth in our direct
customer relationships. There is strong
evidence that we are reaching a stable
core and we expect the recently completed
migration of Vodafone Reseller customers
to continue to support this positive trend.

Interim Report 2021
4
Sky Network Television Limited
What Matters Most.
• Streaming customer numbers have
continued to rise with organic growth
and acquisitions resulting in an 80%
increase since the previous reporting
period. We are pleased with the
growth in Neon, including strong
conversion of Lightbox customers
following the merge of the two
services, whilst the return of sport
after COVID-19 disruptions saw
excellent growth in Sky Sport Now.
• Commercial customer numbers have
remained stable despite the impact of
COVID-19 on the events and hospitality
sectors. We supported our customers
through the 2020 lockdown periods,
and, absent any further prolonged
periods of lockdown, we expect further
improvements in our Commercial
revenues this calendar year.
We have continued prudently to invest in
areas that add value for our customers,
strengthen our relationships and secure
Sky’s long-term future, including:
• Progressing our Sky Broadband
product launch. Sky crew and
customer trials have been valuable,
and we are confident we have
developed a product that will make
life easier for our customers and
create more value for them. But
we also promise to keep testing and
learning as we roll Sky Broadband out
in the coming weeks, with our initial
focus on ensuring we offer a great
value product to our loyal Sky Box
customers.
• Striving to secure the content rights
that matter to our customers, while
remaining disciplined in valuing content
and rationalising where it makes sense,
including by means of co-exclusivity
Renewed deals have been concluded
with Discovery, Viacom CBS,
Studiocanal and Sony as well as
securing rights for major events in golf,
tennis, football, cricket, and motor
racing.
We have also made progress in reducing
our cost base, with operating expenses
of $242.8m (down 18%) and capital
expenditure of $20m (down 40%); our
emphasis in the coming period is to lock in
further permanent cost savings.
• We secured a range of one-off cost
reductions in programming rights and
through lower production costs due to
COVID-19.
• Permanent savings were delivered
from operating efficiencies, headcount
reductions in FY20, programming
changes and by bringing RugbyPass
costs under control.
• Our approach to capital expenditure
has been disciplined, and the recently
approved sale of Outside Broadcast
Ltd (OSB) is further evidence of our
focus on becoming a less capital
intensive business and with capital
spend in the future focused to meet
customer-facing needs.
Our earnings before interest, tax,
depreciation, and amortisation of $116.3m
were 30% higher than the previous period
and we delivered a net profit after tax of
$39.6m, an improvement of $234%.
In reporting these encouraging results to
our investors, we acknowledge the role
of Martin Stewart who served as Chief
Executive during most of the period.
Martin injected a much needed energy to
kick off the transformation of Sky when
he joined in early 2019, and we thank him
for his service during his time with Sky in
New Zealand.
We also acknowledge and are grateful for
the contribution of Susan Paterson and
Derek Handley, both of whom retired from
the Sky Board since the last reporting
cycle.
Looking ahead, we have great clarity on
what we must do to ensure Sky continues
to add value for our customers, partners,
people, and shareholders, and most
importantly, the confidence that we can
deliver this.
"We have great clarity on what we need to do to ensure
Sky continues to add value to our customers, partners,
people and shareholders, and most importantly, the
confidence that we can deliver this."

Interim Report 2021
5
Sky Network Television Limited
What Matters Most.
All successful businesses have a unique
advantage; something their customers and
partners value over others.
Ours is clear: our investment in satellite
delivery technology means we are here
for all New Zealanders. From farms in the
foothills to central city apartments, you
can easily stay connected, entertained and
informed with Sky.
To maximise this unique advantage,
we must:
• Secure the content our customers
want via exclusive and co-exclusive
partnerships, together with Sky
original content.
• Reward the loyalty of our strong base
of customers with a Sky Box - they are
crucial to our future. Yes, streaming
is important to some customers and
we will continue to deliver excellent
streaming choices, but we are clear that
our Sky Box customers in the home are
fundamental to our success.
• Shift gears when it comes to execution.
We are working swiftly to turn our
customer insights into tangible initiatives
that will add value for customers,
improve our financial performance,
reduce our content cost base and
continue the momentum we are gaining.
What's coming next?
As a result, you can expect to see us:
• Roll out a new Sky Go companion app
that improves the search and viewing
experience for customers on the go,
delivering on feedback our customers
have shared with us.
• Deliver Sky Broadband as a value-add
service, first to our Sky Box customers.
• Commission a new set top box to meet
the future needs of our customers,
improving search functionality,
and improving the overall viewing
experience. But if you want to keep the
old box, that will be all good too: it's our
customer's choice.
• Rethink our Sky packages to ensure we
deliver value and choice to customers
whatever their life stage, so we can
achieve the crucial goal of growing our
Sky Box customers.
• Strengthen and deepen our
customer relationships through
improved customer insights, service,
communication and being responsive to
their feedback.
Thirty years ago, we changed how Kiwis
watched TV forever by introducing
more choice. Much has changed
since then, but what has remained
constant is what our customers expect
– to watch great content, wherever,
whenever and however they want it.
We haven’t always got it right. Com-
mercial realities, the rise of streaming,
new competitors and not listening well
enough to our customers meant we
took our eye off the ball at times.
And that’s why we have firmly
refocused on our customers, what they
want the most from us, and making
sure we deliver it well.
We also have a strong focus on our
people and culture, bringing in fresh
leadership to our People team and
implementing changes to ensure we
have the right foundations in place
to be a high performing, customer-
focused business in the future.
It’s a real privilege to lead a business
that is here for all New Zealanders.
I’m excited about what lies ahead and
look forward to sharing more progress
on our delivery against these goals and
our strategy, roadmap and key targets
throughout the year.
1.
Stabilising revenue by:
a. Protecting and satisfying our
core Sky Box customer base
customer base
b. Continuing to grow streaming
subscriptions
c. Continuing to grow Commercial
and other revenue opportunities
(including in the digital
advertising space).
2.
Delivering sustainable cost reduction
3.
4.
Focusing on successful delivery of
key initiatives
Growing a confident and capable
organisation by:
a. Accelerating our efforts to nurture
the very best talent
b. Continuing to build a business
that reflects the customers and
communities we serve
c. Creating an environment where
our people are enabled to do their
life’s best work.
THE IMMEDIATE
FOCUS FOR SKY IS:

6
Consolidated Interim Statement
of Comprehensive Income
For the six months ended 31 December 2020 (unaudited)
In NZD 000Notes
31-Dec-2020
(6 months)
31-Dec-2019
(6 months)
30-Jun-2020
(1 year audited)
Revenue from contracts with customers
4 356,870384,839 746,641
Other income
2,220 - 1,005
Expenses
Programming
8141,739174,685342,096
Subscriber related costs
42,56950,767106,554
Broadcasting and infrastructure
30,65538,83777,942
Depreciation and amortisation
55,06961,336119,318
Other costs
27,84230,83056,803
Total expenses
297,874356,455702,713
Operating profit before impairment
61,21628,38444,933
Impairment of goodwill
- - 177,500
Operating profit/(loss)61,21628,384(132,567)
Finance costs, net
4,6928,80013,739
Profit/(loss) before tax
56,52419,584(146,306)
Income tax expense
16,9437,71610,466
Profit/(loss) for the period
39,58111,868(156,772)
Attributable to:
Equity holders of the Company
39,42711,715(156,979)
Non-controlling interests
154153207
39,58111,868(156,772)
Earnings/(loss) per share
Basic and diluted earnings/(loss) per share (cents)
122.262.20(23.91)
OTHER COMPREHENSIVE INCOME
Profit/(loss) for the period
39,58111,868(156,772)
Items that may be reclassified to profit and loss
Exchange differences on translation of foreign operations
(228)283220
Deferred hedging gains transferred to operating expenses during
the period
5105231,196
Income tax effect
(143)(146)(335)
Net other comprehensive income to be reclassified to profit or loss in
subsequent periods, net of income tax1396601,081
Items that may not be reclassified to profit or loss
Deferred hedging losses transferred to non-financial assets during
the period
(6,974)(4,095)(51)
Income tax effect
1,9531,146 14
Net other comprehensive loss not being reclassified to profit or loss in
subsequent periods, net of income tax
(5,021)(2,949)(37)
Total comprehensive income/(loss) for the period
34,6999,579(155,728)
Attributable to:
Equity holders of the Company
34,5459,426(155,935)
Non-controlling interests
154153207
34,6999,579(155,728)

Sky / 2021 Interim Report
7
Consolidated Interim Balance Sheet
As at 31 December 2020 (unaudited)
Keith Smith
Director
Philip Bowman
Director and Chairman
For and on behalf of the Board 22 February 2021
In NZD 000Notes31-Dec-202031-Dec-2019
30-Jun-2020
(audited)
Current assets
Cash and cash equivalents
10123,2793,898110,677
Trade and other receivables
54,08959,73156,854
Programme rights inventory
895,285112,786113,822
Income tax receivable
- 294 -
Derivative financial instruments
106262,865 3,265
273,279179,574284,618
Non-current assets
Property, plant and equipment
116,455162,053 124,585
Intangible assets
57,35745,491 66,556
Right of use assets
81,97868,133 96,821
Deferred tax asset
82 - 216
Goodwill
3256,312433,812 256,312
Derivative financial instruments
10164261 461
512,348709,750 544,951
Assets held for sale
9 8,225 - 8,367
Total assets
793,852889,324 837,936
Current liabilities
Interest bearing loans and borrowings
6/10100,6711,103 100,765
Lease liabilities
10 41,21939,114 36,562
Contingent consideration
3/142,542 - -
Trade and other payables
115,424125,379 176,021
Contract liabilities
51,25651,788 51,180
Income tax payable
6,358 - 15,041
Derivative financial instruments
10 6,1704,650 922
323,640222,034 380,491
Non-current liabilities
Interest bearing loans and borrowings
6/10876215,854 1,883
Lease liabilities
10 52,66441,619 73,303
Contingent consideration
3/14 2,7415,283 5,283
Derivative financial instruments
10 1,5892,546 405
Deferred tax liability
- 10,374 -
57,870275,676 80,874
Liabilities associated with assets held for sale
9 1,676 - 1,601
Total liabilities
383,186497,710 462,966
Equity
Share capital
767,608617,094 767,608
Reserves
(2,894)(2,149)991
Retained deficit
(355,448)(224,813)(394,875)
Total equity attributable to equity holders of the Company
409,266390,132 373,724
Non-controlling interest
1,4001,482 1,246
Total equity
410,666391,614 374,970
Total equity and liabilities
793,852889,324 837,936

8
Consolidated Interim Statement
of Changes in Equity
For the six months ended 31 December 2020 (unaudited)
Attributable to owners of the parent
In NZD 000Notes
Share
capitalReserves
Retained
deficitTo t a l
Non-
controlling
interest
To t a l
equity
For the six months ended 31 December 2020
Balance at 1 July 2020
767,608991(394,875)373,7241,246374,970
Profit for the period
--39,42739,42715439,581
Exchange difference on translation of foreign operations
-(228)-(228)-(228)
Cash flow hedges, net of tax
-(4,654)-(4,654)-(4,654)
Total comprehensive income for the period
-(4,882)39,42734,54515434,699
Transactions with owners in their capacity as owners
CEO share based remuneration
5 -997-997-997
-997-997-997
Balance at 31 December 2020
767,608(2,894)(355,448)409,2661,400410,666
For the six months ended 31 December 2019
Balance at 1 July 2019
577,403(53)(227,111)350,2391,329351,568
Impact of change in accounting policy
--(9,417)(9,417)-(9,417)
Adjusted balance
577,403(53)(236,528)340,8221,329342,151
Profit for the period
--11,71511,71515311,868
Exchange difference on translation of foreign operations
-283-283-283
Cash flow hedges, net of tax
-(2,572)-(2,572)-(2,572)
Total comprehensive income for the period
-(2,289)11,7159,4261539,579
Transactions with owners in their capacity as owners
Issue of ordinary shares related to business combination
24,378--24,378-24,378
Issue of ordinary shares to NZ Rugby Union
15,436--15,436-15,436
Transaction costs relating to share issues
(123)--(123)-(123)
CEO share based remuneration
5-193-193-193
39,691193-39,884-39,884
Balance at 31 December 2019
617,094(2,149)(224,813)390,1321,482391,614
For the year ended 30 June 2020 (audited)
Balance at 1 July 2019
577,403(53)(227,111)350,2391,329351,568
Impact of adoption of new accounting standard
--(10,785)(10,785)-(10,785)
Adjusted balance
577,403(53)(237,896)339,4541,329340,783
Loss for the year
--(156,979)(156,979)207(156,772)
Exchange difference on translation of foreign operations
-220-220-220
Cash flow hedges, net of tax
-824-824-824
Total comprehensive (loss)/ income for the year
-1,044(156,979)(155,935)207(155,728)
Transactions with owners in their capacity as owners
Rights issue and placement of shares
157,091--157,091-157,091
Issue of ordinary shares related to business combination
24,378--24,378-24,378
Issue of ordinary shares to NZ Rugby Union
15,436--15,436-15,436
Transaction costs relating to share issues
(7,086)--(7,086)-(7,086)
Dividend paid
----(290)(290)
CEO share based remuneration
5386--386-386
190,205--190,205(290)189,915
Balance at 30 June 2020
767,608991(394,875)373,7241,246374,970

Sky / 2021 Interim Report
9
Consolidated Interim Statement
of Cash Flows
For the six months ended 31 December 2020 (unaudited)
In NZD 000Notes
31-Dec-2020
(6 months)
31-Dec-2019
(6 months)
30-Jun-2020
(1 year audited)
Cash flows from operating activities
Profit/(loss) before tax
56,52419,584(146,306)
Adjustment for non-cash items:
Depreciation and amortisation
55,06961,336119,318
Impairment of goodwill
- - 177,500
Impairment of programme rights
83,0721,3963,240
Unrealised foreign exchange loss/(gain)
(923)6441,953
Interest expense
7,0008,58816,020
Bad debts and movement in provision for doubtful debts
2455001,352
Other non-cash items
2544471,040
Movement in working capital items:
Decrease in receivables
2,5202,49010,128
(Decrease)/increase in payables
(57,006)(11,595)17,631
Decrease/(increase) in programme rights
15,465(7,407)(5,056)
Cash generated from operations
82,22075,983196,820
Interest paid
(6,587)(10,492)(15,995)
Bank facility fees paid
(928)(25)(25)
Income tax paid
(23,500)(23,500)(23,500)
Net cash from operating activities
51,20541,966157,300
Cash flows from investing activities
Acquisition of property, plant, equipment and intangibles
(11,059)(10,417)(27,470)
Acquisition of intangibles
(8,841)(22,832)(28,988)
Acquisition of subsidiary, net of cash acquired
- (15,193)(18,169)
Net cash used in investing activities
7(19,900)(48,442)(74,627)
Cash flows from financing activities
Proceeds from rights issue and placement of shares
- - 157,091
Transaction costs incurred for rights issue
- - (7,086)
Advances received - bank loan
- 49,000 119,000
Repayment of borrowings - bank loan
- (23,000)(207,000)
Payments for lease liability principal
(18,117)(19,366)(36,901)
Repayment of other borrowings
(586)(543)(1,093)
Dividend paid to minority shareholders
- - (290)
Net cash used in financing activities
(18,703)6,091 23,721
Net increase/(decrease) in cash and cash equivalents
12,602 (385)106,394
Cash and cash equivalents at beginning of the period
110,677 4,283 4,283
Cash and cash equivalents at end of the period
10 123,279 3,898 110,677

10
Notes to the Consolidated Interim
Financial Statements
For the six months ended 31 December 2020 (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 2020 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.
Sky is a leading media company in New Zealand and operates as a provider of sport and entertainment media services in
New Zealand and overseas.
These consolidated interim financial statements were approved by the Board on 22 February 2021.
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 Listing Rules and the ASX Listing Rules.
These consolidated interim financial statements of Sky are for the six months ended 31 December 2020. 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 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 2020.
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 consolidated interim financial statements have been prepared under the historical cost convention except for the revaluation
of certain financial instruments (including derivative instruments).
Group structure
The Group has a majority share in the following subsidiaries.
Name of Entity
Principal
Activity
Country
of IncorporationParentInterest held
Jun 2020
and Dec 2020Dec 2019
Sky DMX Music LimitedCommercial musicNew ZealandSky
50.50%50.50%
Sky Ventures LimitedInvestmentNew ZealandSky
100.00%100.00%
Media Finance LimitedNon-tradingNew ZealandSky
100.00%100.00%
Outside Broadcasting Limited Broadcasting servicesNew ZealandSky
100.00%100.00%
Screen Enterprises LimitedNon-tradingNew ZealandSky
100.00%100.00%
Igloo Limited
1
Non-tradingNew ZealandSky
100.00%100.00%
Believe It Or Not LimitedEntertainment quizzesNew ZealandSky
51.00%51.00%
Sky Investment Holdings LimitedInvestmentNew ZealandSky
100.00%100.00%
Rugby Pass Limited
Streaming servicesIreland
Sky Investment
Holdings Limited
100.00%100.00%
Rugby Pass Asia Pte LtdManagement servicesSingapore
Rugby Pass
Limited
100.00%100.00%
Lightbox New Zealand LimitedStreaming servicesNew ZealandSky
100.00%0.00%
1
Igloo Limited was renamed to Sky Network Services Limited on 19 January 2021

Sky / 2021 Interim Report
11
3. Significant Accounting Policies and
Critical Judgements and Estimations
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 2020. The Group has not early adopted any
standard, interpretation or amendment that has been issued but is not yet effective.
Group performance review
Earnings before interest, tax, depreciation and amortisation (EBITDA
1
) were $116 million for the six months to 31 December 2020,
ahead of plan and $26 million higher than the $90 million for the six months ended 31 December 2019.
• Revenues were $357 million in the current period, a decrease of $28 million from the prior half year but ahead of plan. Subscription
revenues were down on the prior half year mainly due to declining satellite customer numbers and ARPU’s, however the
decrease was lower than plan following a period of growth in direct satellite customers (excluding reseller subscribers) driven by
improvements in annualised churn. Commercial and advertising revenues were impacted by lockdowns, border closures and event
cancellations as a result of COVID-19, however, are recovering ahead of plan. The Group experienced growth in the current period in
streaming subscribers and revenues, both organically and through the acquisition of Lightbox in the previous financial year.
• Operating expenses excluding depreciation, amortisation and impairment decreased to $243 million in the current period from
$295 million in the prior period, primarily due to the impact of decreases in programming rights and sports production costs as a
result of COVID-19 restrictions on events, reduced employee costs as a result of restructuring undertaken in prior periods, and a
general reduction in expenses as a result of cost saving strategies.
Impact of COVID-19
COVID-19 continues to have an impact on the Group, with a favourable increase in demand for entertainment content and
reduced churn for our satellite customers offset by ongoing uncertainties relating to the reduction of live sports, scheduling of
sports events and the subsequent lack of content.
As outlined in the 2020 Annual Report, there continues to be uncertainties due to the COVID-19 pandemic that affects the Group’s
key estimates and judgements, including:
Intangible assets and goodwill – the ability to achieve future forecasts and the consequential impact on the carrying value of
goodwill and other finite life intangibles. Management and the directors have considered whether there are any events or changes
in circumstances since the recognition of impairment as at 30 June 2020 and the signing of the 2020 financial statements that
may be an impairment indicator as at 31 December 2020, having considered factors such as:
• The Group’s first half results, which have exceeded the prior year and the first half plan;
• The improvement in the Group’s share price between 30 June 2020 and 31 December 2020; and
• The premium of net assets to market capitalisation being broadly consistent to the position as at 30 June 2020, noting that this
market capitalisation excludes any control premium,
have concluded that there are no material adverse events or changes in circumstances that would require impairment testing to be
performed as at 31 December 2020.
Programming rights – the ability to monetise prepaid and future sports programming rights. Management continues to exercise
judgement in assessing both the value and estimated future amortisation profile of programming rights costs in response to
uncertainty that COVID-19 has created around the value of certain major sports competitions, some of which may be delayed or
postponed. Management has also considered any negotiations for equitable reductions due to COVID-19 that have been concluded
prior to balance date.
RugbyPass contingent consideration – Sky continues to measure the fair value of the contingent consideration at NZD 5.3 million,
having considered the current performance of RugbyPass, its new strategic direction, the uncertainty surrounding the economic
environment given the existence of COVID-19, and the probability of payment. Management commenced negotiations with the
vendor to settle the contingent consideration, and while no binding agreement was reached prior to 31 December 2020, a subsequent
agreement has been reached to settle the contingent consideration for USD 1.25 million (NZD 1.7 million) (refer note 14).
Capital structure
At 31 December 2020 the Group had negative working capital of $50 million (31 December 2019: $42 million; 30 June 2020: $96
million). This is mainly as a result of the classification as current of the $100 million of bonds which are due for repayment in March
2021 (refer note 6).
Despite the continuing impact of COVID-19, the directors are satisfied that there will be adequate cash flows generated from
operating and financing activities to meet the obligations of the Group for a period of at least 12 months from approving the
consolidated interim financial statements, after taking into consideration the current trading results and that the Group has
available cash of $123 million and an undrawn banking facility of $200 million at 31 December 2020 (refer note 6).
1
EBITDA is operating profit before impairment of $61 million plus depreciation and amortisation of $55 million as per the
consolidated interim statement of comprehensive income.

12
4. Segment and Revenue 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
subscriptionsAdvertisingOther revenue
Total revenue
from contracts
with customers
For the six months ended 31 December 2020
Revenue from customers
270,65656,20122,40415,372364,633
Inter-segment revenue
- - - (7,763)(7,763)
Total revenue
270,65656,20122,4047,609356,870
Timing of revenue recognition
At a point in time
2,422 - 22,4044,23729,063
Over time
268,23456,201 - 3,372327,807
270,65656,20122,4047,609356,870
For the six months ended 31 December 2019
Revenue from customers
298,72952,43926,08415,607392,859
Inter-segment revenue
- - - (8,020)(8,020)
Total revenue
298,72952,43926,0847,587384,839
Timing of revenue recognition
At a point in time
5,875 - 26,0843,96235,921
Over time
292,85452,439 - 3,625348,918
298,72952,43926,0847,587384,839
For the year ended 30 June 2020 (audited)
Revenue from customers
581,962105,38145,15528,000760,498
Inter-segment revenue
- - - (13,857)(13,857)
Total revenue
581,962105,38145,15514,143746,641
Timing of revenue recognition
At a point in time
10,822 - 45,1557,56363,540
Over time
571,140105,381 - 6,580683,101
581,962105,38145,15514,143746,641
Operating segments are reported in a manner consistent with the internal reporting provided to Sky's executive team who are
the chief operating decision-makers. Sky's executive team is responsible for allocating resources and assessing performance of
the operating segments. Sky operates in a single operating segment; the provision of sport and entertainment media services in
New Zealand. RugbyPass has been identified as a separate operating segment and forms a separate cash generating unit.
For financial reporting purposes and with reference to the aggregation criteria in the accounting standards RugbyPass will be
aggregated with the Sky business operating segment for the purposes of reporting segment disclosure. The table above shows
the disaggregation of the Group’s revenue from contracts with customers based on when revenue is recognised for its principal
revenue streams.
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 $4,958,000 (31 December 2019:
$9,163,000; 30 June 2020: $9,517,000). The remuneration in the prior periods includes redundancy costs paid to executive directors
and key management personnel (including department heads, who were considered as part of key management personnel at
that time). From 1 July 2020, as a result of restructuring the business, key management personnel was re-defined to include only
directors and the executive leadership team, and no longer includes department heads. The 31 December 2019 gross remuneration
of directors and key management personnel under the new re-defined structure would have been $6,206,000.
On 1 December 2020 Martin Stewart left by mutual agreement and Sophie Moloney was appointed the new CEO on this date.
The six months ended 31 December 2020 includes the accrued cost of termination benefits associated with the former CEO of
$1,331,000, and short-term employee benefits of $390,000 which are based on achieving targets for the year to 30 June 2021.
Therefore, the actual short-term employee benefits paid may ultimately differ from what has been estimated.
On 21 February 2020, 200,000 ordinary shares vested to the former CEO as part of a contractual entitlement to receive a total of
800,000 ordinary shares in instalments of 200,000 on each of the first four anniversaries of commencement of employment. As a
result of the CEO’s decision to leave by mutual agreement the 600,000 ordinary shares yet to vest have been recognised at balance
date. While the share price at 31 December 2020 was $0.16, this equity-settled share scheme is accounted for and measured
based on the fair value at grant date (1 February 2019) of $1.93 per share ($1,158,000).
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2020 (unaudited)

Sky / 2021 Interim Report
13
6. Interest Bearing Loans and Borrowings
31-Dec-202031-Dec-201930-Jun-2020 (audited)
In NZD 000Current
Non-
currentTo t a lCurrent
Non-
currentTo t a lCurrent
Non-
currentTo t a l
Borrowings
738 876 1,614 1,103 116,194 117,297 970 1,883 2,853
Bonds
99,933 - 99,933 - 99,660 99,660 99,795 - 99,795
100,671 876 101,547 1,103 215,854 216,957 100,765 1,883 102,648

Bank loans
On 2 July 2020 the Group signed a renegotiated bank facility with a syndicate of banks comprising Bank of New Zealand,
Commonwealth Bank of Australia and Westpac Bank securing a facility of $200 million ending on 31 July 2023. The renegotiated
facility does not include a stepdown in facility limit during the term of the facility. Previously the Group’s bank facility was for a
value of $200 million expiring in July 2022 with the facility reducing to $150 million from July 2021.
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. In addition, the renegotiated bank facility
also provides for RugbyPass Limited to accede to the shared security arrangements by providing a guarantee and general security
deed. The loan facility is subject to certain covenant clauses whereby the Group is required to meet certain key financial ratios.
There have been no breaches of covenant clauses and no breaches are anticipated within the next 12 months.
Bank overdrafts of $535,000 (31 December 2019: $6,301,000; 30 June 2020: $1,902,000) have been set off against cash balances.
Bonds
Terms and conditions of outstanding bonds are as follows:
31-Dec-202031-Dec-201930-Jun-2020 (audited)
Nominal interest rate
6.25%6.25%6.25%
Market yield
4.65%3.80%4.37%
Issue date
31-Mar-1431-Mar-1431-Mar-14
Date of maturity
31-Mar-2131-Mar-2131-Mar-21
In NZD 000
Carrying amount
99,933 99,660 99,795
Face value
100,000 100,000 100,000
Fair value
100,400 102,977 101,380
The directors’ intend to fully repay the bonds upon their maturity on 31 March 2021.
7. Capital Expenditure
The Group acquired the following property, plant and equipment (PPE) and intangibles during the period:
In NZD 000
31-Dec-2020
(6 months)
31-Dec-2019
(6 months)
30-Jun-2020
(1 year audited)
Capital projects in progress (includes PPE & Intangibles)
4,00222,04611,729
Land and buildings
-9262,419
Broadcasting and studio equipment
3405203,681
Plant and equipment and other
1,9757895,654
Decoders
-1,435681
Installation costs
7,6286,64812,597
Intangibles
6,03578619,697
19,98033,15056,458
Movement in capital expenditure creditors
(80)99 -
Cash outflow in the period
19,90033,24956,458

14
8. Programme Rights Inventory
In NZD 00031-Dec-202031-Dec-201930-Jun-2020 (audited)
Opening balance
113,82289,45889,458
Acquired during the period
98,029146,206280,247
Settled by issue of shares to NZ Rugby Union
-15,43615,436
Acquired as part of acquisiton of Rugby Pass & Lightbox
- 1,882 9,517
Written off during the year
(3,072)(1,396)(3,240)
Charged to profit or loss
(113,494)(138,800)(277,596)
Balance at end of period
95,285112,786113,822
9. Assets and Liabilities Held for Sale
Outside Broadcasting Limited (OSB)
On 11 August 2020 Sky entered into agreements with NEP New Zealand Limited for:
• The sale of OSB’s assets to NEP; and
• The supply of outside broadcasting services by NEP to Sky for a ten-year period.
The OSB assets to be sold include six HD OB units and all ancillary equipment including leases for two OSB warehouse facilities.
The majority of OSB team members and some Sky broadcast specialists will transition to NEP New Zealand.
At reporting date the transaction had not been approved by the Commerce Commission and therefore is still classified as held for
sale. Subsequently the Commerce Commission approved the transaction on 4 February 2021 (refer note 14). The table shows the
book value of the OSB assets and liabilities.
In NZD 00031-Dec-202030-Jun-2020 (audited)
Assets
Property, plant and equipment (net)
7,2457,245
Right-of-use assets (net)
9801,122
Assets held for sale
8,2258,367
Liabilities
Employee entitlements
462235
Short term lease liabilities
353349
Long term lease liabilities
8611,017
Liabilities associated with assets held for sale
1,6761,601
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2020 (unaudited)

Sky / 2021 Interim Report
15
10. Fair Value Measurement of Financial Instruments
The Group’s activities expose it to a variety of financial risks that include market risk (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
2020. 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 and 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, interest bearing loans and borrowings, lease liabilities, contingent
consideration 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 (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (i.e. 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-202031-Dec-201930-Jun-2020 (audited)
Carrying
amountFair value
Carrying
amountFair value
Carrying
amountFair value
Financial assets at amortised cost
Cash and cash equivalents
123,279123,2793,8983,898110,677110,677
Trade and other receivables
43,13943,13949,60149,60145,31445,314
Financial assets at fair value through OCI
Derivatives designated as hedging
instruments (cash flow hedges)
5055052,1522,1522,9262,926
Derivatives not designated as hedging
instruments (fair value hedges)
285285974974800800
167,208167,20856,62556,625159,717159,717
Financial liabilities at amortised cost
Bank loans
(1,119)(1,119)113,460110,809(434)(434)
Other loans
2,7332,6343,8363,7153,2873,218
Bonds
99,933100,40099,660102,99799,795101,380
Lease liabilities
93,88388,82880,73376,696109,865102,463
Trade and other payables
85,37885,37896,89696,896145,690145,690
Financial liabilities at fair value through
profit or loss
Contingent consideration
5,2835,2835,2835,2835,2835,283
Financial liabilities at fair value through OCI
Derivatives designated as hedging
instruments (cash flow hedges)
5,1355,1354,6134,613683683
Derivatives not designated as hedging
instruments (fair value hedges)
2,6242,6242,5832,583644644
293,850289,163407,064 403,592364,813358,927
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.
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.
The fair value of quoted notes and bonds is based on price quotations at the reporting date being at level 1 basis. The fair value
of loans from banks and lease liabilities is estimated on a level 3 basis by discounting future cash flows using rates currently
available for debt on similar terms, credit risk and remaining maturities.

16
11. Contracts for Future Programme Commitments
In NZD 00031-Dec-202031-Dec-201930-Jun-2020 (audited)
Year 1
294,623 226,600 255,100
Year 2
261,401 211,700 237,100
Year 3
192,490 178,800 184,800
Year 4
167,940 144,500 143,100
Year 5
129,505 130,900 139,600
Later than 5 years
347 112,500 55,500
1,046,306 1,005,0001,015,200
12. Earnings Per Share
Basic and diluted earnings/(loss) per share
In NZD 00031-Dec-2020
31-Dec-2019
(restated)
30-Jun-2020
(audited)
Profit/(loss) after tax attributable to equity holders of the parent
(NZD 000)
39,42711,715(156,979)
Weighted average number of ordinary shares on issue (thousands)
1,746,280532,615656,639
Basic and diluted earnings/(loss) per share (cents)
2.262.20(23.91)
31-Dec-202031-Dec-201930-Jun-2020
Issued ordinary shares at the beginning of period/year
1,746,279,558389,139,785389,139,785
Ordinary shares issued on 19 August 2019
- 25,085,40825,085,408
Ordinary shares issued on 1 November 2019
- 21,801,32521,801,325
Ordinary shares issued on 21 February 2020
- - 200,000
Ordinary shares issued on 2 June 2020
- - 998,629,091
Ordinary shares issued on 16 June 2020
- - 311,423,949
Total number of shares on issue
1,746,279,558 436,026,518 1,746,279,558
Weighted average number of ordinary shares on issue
1,746,279,558 532,615,110 656,638,762
The prior period earnings per share have been restated to adjust for the impact of the rights issue completed in June 2020.
13. 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.
14. Subsequent Events
On 9 February 2021, Sky settled the contingent consideration which arose from the acquisition of RugbyPass, with the previous
owners for USD 1.25 million (NZD 1.7 million). The difference of NZD 3.6 million between the agreed settlement amount and
amount recorded at balance date will be released to the profit and loss in the 30 June 2021 financial statements.
On 4 February 2021 the Commerce Commission granted clearance for the sale of the OSB business to NEP New Zealand Limited
(refer note 9) for a sale price of $14 million. The sale is now unconditional. The resulting accounting judgements for the sale are yet
to be finalised, and therefore any gain or loss attributable to the sale will be determined following completion, which is expected to
occur prior to 30 June 2021.
Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2020 (unaudited)

Sky / 2021 Interim Report
17

PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz
Independent auditor’s review report
To the shareholders of Sky Network Television Limited


Report on the consolidated interim financial statements

Our conclusion
We have reviewed the consolidated interim financial statements of Sky Network Television Limited
(the Company) and its subsidiaries (the Group), which comprise the consolidated interim balance
sheet as at 31 December 2020, 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 six month period ended on that date, and significant accounting policies and other
explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying 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 2020, and its financial
performance and cash flows for the six month period then ended, 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).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410
(Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity (NZ
SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for the
review of the financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our
firm carries out other services for the Group in the areas of agreed upon procedures on the bank
compliance certificate and regulatory reporting. 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.
Directors’ responsibility for the financial statements
The Directors of the Group are responsible on behalf of the Company for the preparation and fair
presentation of these consolidated interim financial statements in accordance with IAS 34 and NZ IAS
34 and for such internal control as the Directors determine is necessary to enable the preparation and
fair presentation of consolidated interim financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibility for the review of the financial statements
Our responsibility is to express a conclusion on the consolidated interim financial statements based on
our review. NZ SRE 2410 (Revised) 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. A review of
consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures.

18

PwC 2
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing and International Standards on
Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might
identify in an audit. Accordingly, we do not express an audit opinion on these consolidated interim
financial statements.
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.

The engagement partner on the review resulting in this independent auditor’s review report is Keren
Blakey.


For and on behalf of:






Chartered Accountants Auckland
22 February 2021

Sky / 2021 Interim Report
19
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, Auckland 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, V C 3067
GPO Box 2975
Melbourne V C 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
Directors
Philip Bowman (Chair)
Geraldine McBride
Joan Withers
Keith Smith
Mike Darcey
Derek Handley (retired 15 January 2021)
Martin Stewart (resigned 7 December 2020)
Susan Paterson, ONZM (retired 13 October 2020)
Officers
Sophie Moloney Chief Executive
Chris Major Director of External Affairs
Tex Teixeira Chief Content Officer
Michael Frampton Chief People Officer
Steve Bayliss Chief Creative Officer
Chaz Savage Chief Customer Officer
Prabhu Singh Chief Technology Officer
Jonny Errington Chief Commercial Officer
Andrew Hirst Interim Chief Financial Officer
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
PwC Tower, Level 27
15 Customs Street West, Auckland 1010
Tel: +64 9 355 8000 Fax: +64 9 355 8001
Solicitors to Sky
Buddle Findlay
188 Quay Street, Auckland 1010
Tel: +64 9 358 2555 Fax: +64 9 358 2055

Chapman Tripp
Level 34, PwC Tower
15 Customs Street West, Auckland 1010
Tel: +64 9 357 9000 Fax: +64 9 357 9099
Directory

---

Our Partnerships
Securing the rights that matter to our customers and embracing
co -exclusive content deals
For the six months ended
31 December 2020
Results
Presentation
6
•New and renewed multi-year deals signed for content that our
customers enjoy
•Attractive partner, enabling content providers to access a
significant customer base of 926,530
•Constructive and long-standing partnerships of up to 30 years
•Content discussions continue to focus on appropriately valuing
content and rationalisingwhere that makes sense, based on our
rich data and insights (including from 24,000 Sky Nation
customer panel and 35% connected boxes)
•Comfortable with co-exclusive content. Recent negotiations
involving co-exclusivity confirm the value of partnering with Sky
in the NZ market while also providing opportunities for Sky to
reduce costs
•Continuing to work with partners, including Vodafone via
Vodafone TV and Spark via our Neon and Sky Sport Now
distribution deals, with the objective to deliver our content as
widely as possible

Our Customers
17% growth in customer numbers since December 2019
For the six months ended
31 December 2020
Results
Presentation
7
•Sky Box customer numbers continue to stabilise, reducing by 4.0% in
the 12 months to December 2020compared to 6.1% in the prior
period
•Migration of reseller customers almost complete, successfully
converting almost 90%
•80% YoY increase in streaming customers through the acquisition of
Lightbox and organic growth
•16% growth in Neon customers since the merger of the Neon and
Lightbox platforms
•At Lightbox acquisition
1
there were approximately 130k Spark
customers using Lightbox and recognisedby the wholesale
arrangement with Spark. By June 2020 this number had grown to
154k. After merging Lightbox and Neon, we converted over 1/3rd of
hard bundled Lightbox customers to paying Neon customers
1
Lightbox acquisition completed 31 Jan 2020.
2
At 31 August 2020, paying streaming customer numbers had reduced to 315k, reflecting the move in the Spark commercial terms fro m wholesale to direct carrier billing.
3
Streaming customer groups comprise Neon, Lightbox, Sky Sport Now, RugbyPass and Vodafone retransmission customers, but do notinclude free trials.

Sky Box Customers
We are reaching a stable customer base
For the six months ended
31 December 2020
Results
Presentation
8
•Sky’s significant Sky Box customer base is the strong core of our
business, accounting for 76% of revenue and representing 1/3rd
of NZ households
•Customer numbers are stabilising, with net growth in direct
customers in H1 FY21 (excluding the migrated reseller
customers)
•This reflects our strong presence in key loyal customer segments
as well as the new capability we have built and continue to build
in customer value management

Sky Box Customers
Improvement in direct activations and lower churn
For the six months ended
31 December 2020
Results
Presentation
9
•Significant improvement in direct customer activations (+50%)
and disconnections (-16%) to stabilisethe base
•Acquisition growth supported by broadening sales channels
•Seeing more interest from consumer groups not previously as
highly represented, including budget conscious, middle/regional
NZ
•Market research data
1
indicating 1/3rd of New Zealand
households are open to being a Sky customer, and are not
currently subscribed
1
Source:Sky commissioned survey of New Zealand householdscarried out by International research specialist fiftyfive5, September 2020

Sky Box Customers
Positive retention trends continue
For the six months ended
31 December 2020
Results
Presentation
10
•Direct annualisedchurn improved to 9.5% from 11.0%, with total
churn (including reseller customers) improved to 12.4% from
12.8%
•Following long term successful reseller partnership with
Vodafone, agreement to migrate customers to a direct Sky
relationship. This is expected to benefit customer experience
and further improve overall churn levels
•Sky Broadband positioned to add further value for fibre -ready
Sky Box customers, with feedback from Sky Nation
1
panelist and
local/offshore examples suggesting a meaningful long-term
impact on retention
1
Sky Nation panel consists of approximately 24,000 Sky customers

Sky Box Customers
Significant proportion of customers with long tenure and low churn rates
For the six months ended
31 December 2020
Results
Presentation
11
•Strong core of loyal Sky Box customers. 70% have been with Sky
for over 5 years and with low churn rates of 6%
•Significant improvement (27%) YoY in churn rates for new
customers (0-1 year tenure)
•Customers under contract increased YoY to 11% from 4%, with
average contract terms increasing to 14.6 months from 12.1
months

Sky Box Customers
Sky Go adding value for Sky Box customers
For the six months ended
31 December 2020
Results
Presentation
12
•New Sky Go companion app rolling out this month following
customer-led development and feedback, including 1,000 Sky Nation
customers involved in the beta trail. The new Sky Go delivers:
— enhanced content discovery features
— 30% increase in available content
•Provides additional value for Sky Box customers. Strong evidence Sky
Go is valued, with 8% lower churn in the first year of joining
compared to non-users
•The move to Sky’s digital platform enabled a rapid development
process and allows greater ongoing flexibility

Sky Box Customers
Sky Broadband on track and positioned to add value
For the six months ended
31 December 2020
Results
Presentation
13
•Customer trial phase delivering valuable feedback to
strengthen the offer and providing strong validation for launch
•On track to begin targeted selling in the coming weeks with
initial focus on fibre -ready Sky Box customers to deliver
additional value
•Substantial focus on service and user experience supported by
Sky’s NZ-based Broadband team
•Latest Wi-Fi tech with fully integrated Wi-Fi 6 router and mesh
devices.Allows customers to take full advantage of high speed
fibreinternet throughout their home
“It was quicker installing
it than it was getting it
out of the box!”

What's coming up?
New Sky Box to evolve the Sky experience
For the six months ended
31 December 2020
Results
Presentation
14
•We have commissioned in-depth consumer research to help us
design the new Sky Box
•Rich insights will drive design and user experience decisions
•Opens opportunities to significantly enhance the experience for
those customers who want it, and increase appeal to wider market
•Strengthens positioning as the preferred pay TV content aggregatorin
the New Zealand market

Streaming Customers
For the six months ended
31 December 2020
Results
Presentation
15
•Continued growth (80% YoY) in streaming, including 16% since
the merger of the Neon and Lightbox platforms
•Churn rates have significantly improved since we merged the
Neon and Lightbox platforms, providing a combined content
offering and a better customer experience
•New Sky Sport Now pricing & packaging and introduction of 7-
day free trial has supported impressive customer growth in the
period
•This growth is not compromising our Sky Box customer base:
— 96% of new Sky Sport Now customers in the period didn’t have a Sky
Box subscription in the previous 90 days
— Over 4,000 customers who lapsed from Sky Box more than 1 year
earlier rejoined as Sky Sport Now customers
— 97% of new Neon customers in the period didn’thave a Sky Box
subscription inthe previous 90 days
Continued growth of new customers to Sky

Commercial Customers
Extends Sky’s reach tovenues throughout NZ
For the six months ended
31 December 2020
Results
Presentation
16
Licensedpremisesincluding
pubs, clubs, restaurants
•High penetration amongst
pubs and chartered clubs
with room for growth in
restaurants, cafés and sports
clubs
•Implemented a value-based
pricing model with a fairer
and more appropriate tiered
structure recognising the
value of Sky’s content to a
commercial customer’s
business
Accommodationincluding
hotels and motels
•Sky available in 55,000
rooms nationwide,
representing 88% share of
the market
•Currently impacted by
COVID-19 but with future
growth potential from
2,000+ new rooms under
construction and properties
undertaking incentivised
service upgrades
Corporateincluding retail, gyms,
aged care facilities
•Predominantly sport, news
and music focused content
delivery to individual
premises through to
country-wide chains
From the Karikari
Peninsula in the north to
Stewart Island in the
south, and in the
Chatham Islands

Financial Performance
For the six months ended 31
December 2020
Results
Presentation
17

Financial Performance
H1 FY21 vs H1 FY20
For the six months ended
31 December 2020
Results
Presentation
18
•Further slow-down of revenue decline (3% in H1 FY21 vs 5%
in H1 FY20) after removing the direct impact of COVID-19
and a ‘one month free’ reseller migration offer
1
•Other income of $2.2m relates to one-off non-cash
accounting adjustments, primarily related to RugbyPass
•Underlying reduction in operating expenses of $44m (after
excluding one-offs) includes the impact of equitable
reductions in content rights and lower production costs due
to COVID-19, and permanent savings in the underlying cost
base
1
One off impacts in H1 FY21 include direct impact of COVID-19 on commercial, advertising & subscription revenues, and a one-monthfree offer on migration of reseller customers to mitigate change in billing cycles
Revenue356.9384.8(28.0) (7.3%)
Other Income2.22.2
Operating Expenses242.8295.152.317.7%
EBITDA116.389.726.629.6%
Depreciation & Amortisation55.161.36.310.2%
EBIT61.228.432.8115.7%
Interest4.78.84.146.7%
Profit/(Loss) before tax56.519.636.9188.6%
Tax16.97.7(9.2) (119.6%)
Net Profit/(Loss) after tax39.611.927.7233.5%
$m % vsH1 FY21H1 FY20

Revenue
Further stabilisationof Sky Box and continued growth in streaming
For the six months ended
31 December 2020
Results
Presentation
19
•Revenue decline of 7%, but after removing the direct impact of
COVID-19 and reseller migration offer, a 3% decline vs 5% in
prior period
•Majority of direct COVID-19 impact was on Advertising and
Commercial revenues of $10m, impacted by border closures,
Auckland restrictions in August and reduction in live sport
•45% increase in Streaming revenue through organic growth and
acquisitions
•Compared with H2 FY20 (when the COVID-19 outbreak occurred)
revenue is down by only 1.4%, which reflects a 4% decline in Sky
Box offset by growth in Streaming and a partial recovery in
Commercial and Advertising
1
Revenue does not include Other Income which was $1.0m in H2 FY20 and $2.2m in H1 FY21
2
Sky Box revenue includes direct and Vodafone reseller subscriptions
3
Streaming revenue includes Neon, Lightbox, Sky Sport Now, RugbyPass and retransmission revenues

Sky Box Revenue
While the customer base continues to stabilise, revenue and ARPU was impacted by
structural and one-off items
For the six months ended
31 December 2020
Results
Presentation
20
•Sky Box revenue decline of 9% compared to 7% in prior period,
reflecting customer loss in H2 FY20 (which has since stabilisedin
H1 FY21), reseller customer churn prior to November migration,
and lower ARPUs
•Lower ARPUs in H1 FY21 driven by ~$2.50 impact of structural and
one-off items, including:
— Migrated reseller revenue previously being recorded gross,
with wholesale commissions recognisedin operating expenses
— Full period effect of package downgrades following COVID-19
impacts on content availability
— ‘First month free’ offered for reseller migration customers
— Fewer Pay-Per -View sport events
•There has been no price increase since April 2019
1
FY18 Sky Box revenue is adjusted for the adoption of NZ IFRS 15.
2
Sky Box subscription ARPU is the monthly average revenue for residential customers including Vodafone, reseller customers, calcu lated as the average for the six month period.

Streaming Revenue
Further increase in streaming revenue through organic and acquisition growth
For the six months ended
31 December 2020
Results
Presentation
21
•Streaming revenue increased 45%, compared to 35% in the prior
period. Revenue doubled over the past two years with
compound average growth of 33% since H1 FY18
•Significant growth in Neon customers following Lightbox
acquisition on 31 January2020 and further growth followingthe
merger of Lightbox and Neon, lowered average ARPU
•16% improvement in average ARPU between H2 FY20 and H1
FY21 reflects a greater proportion of Neon direct customers vs
wholesale, and growth in higher ARPU Sky Sport Now customers
following the return of key live sports
1
Streaming subscription ARPU is the blended rate across Neon, Lightbox, Sky Sport Now, RugbyPass and retransmission, calculated as the average for the six month period.

Commercial and Advertising revenues
Impacted by COVID-19 but showing recovery
For the six months ended
31 December 2020
Results
Presentation
22
1
Source: Quarterly Performance Comparison Report from PWC
•Commercial revenue impacted by border and gathering restrictions,
with H1 FY21 revenue down $7.5m (27%) compared to prior year
•Proactive support provided on a case-by -case basis through
discounts and payments holidays
•Return to normal billing for licensed premise customers from 1
August
•Accommodation sector discounts (excluding MIQ facilities) remain
whilst border closures are in effect, but were halved in November
•Advertising revenue down $3.7m (14%) compared to prior year due
to business uncertainty surrounding COVID-19 and the reduction in
live sport
•Television spend for the NZ market
1
was down ~12.7%
YoY. Although Sky’s sport content was significantly impacted,
overall market share only reduced to 9.1% from 9.6%

Total Expenses
Down $50m (excluding one-offs) due to COVID-19 impacted content schedule and
permanent cost savings
For the six months ended
31 December 2020
Results
Presentation
23
•Operating expenses (excluding Depreciation & Amortisation)
decreased by $52m (18%) on prior period; decrease was $44m
(15%) after excluding one-offs in each period
•Significant reduction of $31m in Programming costs includes:
— Equitable reductions in content rights and lower production
costs due to COVID-19 cancelled and postponed events
— Savings from not renewing domesticcricket rights
— Permanent reduction in RugbyPass costs
•Subscriber related, Broadcast & Infrastructure and Other
reductions of $12m primarily relate to headcount savings from
FY20 restructuring activities and other cost efficiency
programmes
•One -off costs in the period relate to the mutually agreed exit of
the former CEO. H1 FY20 one-offs included $7m of redundancies,
$2m Satellite reservation fee and $2.5m consultancy costs
•Ongoing reductions in depreciation consistent with our
transition to a capital-light model
1
Total expenses is made up of Operating expenses plus Depreciation & Amortisation

EBITDA Bridge
Strong cost control during COVID-19 period together with permanent savings
For the six months ended
31 December 2020
Results
Presentation
24
•The COVID-19 impact on revenue of $14m was outweighed by
reductions in sports rights costs ($19m) and production &
promotional costs for events cancelled or postponed ($5m)
•COVID-19 impact on commercial and advertising sector
continued from FY20, whilst impact on Sky Box revenue was
tempered by the early return of key sports content
•FY21 one-offs also include the reseller migration credit
and $2.2m ofother income from non-cash accounting
adjustments primarily related to RugbyPass
•Underlying subscription revenue decline of $11m (3%) vs a 5%
decline in H1 FY20
•Permanent cost savings of $18m include benefit of restructuring
in FY20, non-renewal of domestic cricket and permanent savings
from RugbyPass, discontinued Sky Sport News & Sky Watch
magazine, reduced reseller commissions with the move to direct
relationship with Sky

Capital Expenditure
Transition to a lighter capital model continues
For the six months ended
31 December 2020
Results
Presentation
25
•H1 FY21 capex of $20m was 5.6% of revenue, down from 8.6% in
H1 FY20. We continue to target capex spend within our long-
term range of 7%- 9% of revenue
•Satellite installation capex increased due to higher acquisition
volumes
•H1 FY20 included $5m investment to enhance broadcasting
capabilities (such as HD expansion) and $5m for additional
enhancements to our streaming platforms which included the
launch of Sky Sport Now in August 2019
•Reduction in capex spend resulting from pending sale of OSB to
NEP.The sale reduces future capex requirements related to
technology upgrades estimated at $50m over the next 5 years
•Expect higher H2 FY21 spend in line with guidance

Free Cash Flow
$121m of cash generated from operations
For the six months ended
31 December 2020
Results
Presentation
26
•Strong cashgenerated from operationsin the period of $121m
•This is after adjusting for working capital, which increasedby
$39m in the period as we had inflated cash andpayables
balances at June 2020 (due toongoing sport equitable
reduction negotiations at that time) returned to normal levels
during the period
•Sufficient funds on hand (including undrawn $200m borrowing
facility) at H1 FY21 to repay bond in March 2021

Looking Ahead
For the six months ended
31 December 2020
Results
Presentation
27

H2 FY21 Outlook
For the six months ended
31 December 2020
Results
Presentation
28
•Sky remains focused on further stabilisingSky Box customer numbers, whilst at the same
timecontinuing ourgrowth in Neon and Sky Sport Now customers
•We also expect to see a continued recovery in Commercial revenues
•Ongoing sharp focus on unlocking further permanent savings as we absorb costs associated with
programming rights increases and a more fulsome calendar of sports
•In H2 we will:
— Release the new Sky Go companion app
— Delver Sky Broadband as a value-add service
— Commission a new set top box to meet needs of customers
— Strengthen and deepen our customer relationships through improved customer insights and
responding to customer feedback

FY21 Outlook
For the six months ended
31 December 2020
Results
Presentation
29
•Sky reaffirms the revisedguidance issued to the market on 3
February 2021
•FY21 full year includes one-off impacts of $3.6m for the
RugbyPass earnout settlement, and the sale of OSB assets to
NEP and commencement of the NEP services agreement
•H2 FY21 expenses will include one-off costs associated with the
launch ofbroadband,and accelerateddepreciation on legacy
assets as wemigrate toSky’s new digital platform
•Sky remains in a strong financial position, including cash on hand
of $123m and undrawn debt facilities available to repay the
$100m bonds in March 2021
•The Board currently intends to reinvest available free cash flow
during the remainder of FY21, and will re-evaluate the
commencement of dividends after that
•InvestorDay planned forQ4
1
Subject to no adverse change in operating conditions, including future economic impacts flowing from COVID-19.
$mFY21 Outlook
1
Revenue695 – 715
EBITDA170 – 182.5
NPAT37.5 – 45
Capex45 - 55

Questions
For the six months ended
31 December 2020
Results
Presentation
30

Disclaimer
For the six months ended
31 December 2020
Results
Presentation
31
This presentation has been prepared by Sky Network Television Limited and its group of companies (“the Company”) for information al purposes. This disclaimer applies to this document and the verbal or
written comments of any person presenting it.
Information in this presentation has been prepared by the Company with due care and attention. However, neither the Company nor any of its directors, employees, shareholders nor any other person give
any warranties or representation (express or implied) as the accuracy or completeness of this information. To the maximum extent permitted by law, none of the Company, its directors, employees,
shareholders or any other person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any
information supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates and
assumptions and are subject to a number of risks, and uncertainties, including material adverse events, significant one-off expenses and other unforeseeable circumstances. There is no assurance that
results contemplated in any of these projections and forward-looking statements will be realised, nor is there any assurance that the expectations, estimates and assumptions underpinning those projections
or forward-looking statements are reasonable. Actual results may differ materially from those projected in this presentation. Noperson is under any obligation to update this presentation at any time after
its release or to provide you with further information about the Company.
The Company has used the non-GAAP financial measure EBITDA and has presented adjusted results when discussing financial performance, as the directors and management believe that these measures
provide useful information on the underlying performance of the Company. EBITDA is defined by the Company as earnings before inc ome tax, interest expense, depreciation, amortisationand impairment,
unrealisedgains and losses on currency and interest rate swaps. Adjustments made to Sky’s GAAP financial measuresnormalisedfor non-recurring costs and non-cash impairments, and are described in
more detail herein. You should not consider this in isolation from, or as a substitute for, the information provided in the unau dited consolidated financial statements for the six months ended 31 December
2020, which are available at https://www.sky.co.nz/investor-relations/results-and -reports.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. The presentation does not constitute an offer to sell,
or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any sec urity. Nothing in this presentation constitutes legal, financial, tax or other advice.

---

Appendix 4D Release to ASX under rule 4.2A

Other Information

Sky Network Television Limited
Half Year ended on 31 December 2020
(In NZD)



• Control gained over entities

There was no control gained over entities during the half year.


• Loss of control of entities

There was no loss of control of entities during the half year.


• Dividends

Interim dividend payable: Nil

Prior comparable period: Nil



• Details of aggregate share of profits (losses) of associates and joint venture
entities

Not applicable



• Accounting standards

New Zealand international financial reporting standards used in compiling report.




• Directors’ Details

The directors of Sky Network Television Limited at any time during the half year are as
follows:

Philip Bowman Chairman
Keith Smith Director
Martin Stewart Director (resigned 7 December 2020)
Joan Wither s Director
Mike Darcey Director
Derek Handley Director
Geraldine McBride Director
Susan Paterson Director (retired 13 October 2020)

Subsequent to balance date Derek Handley retired as a Director on 15 January 2021.