Sky Announces Full Year 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
25 August 2021
Sky delivers strong result for F21; firm focus on continued turnaround in FY22
Sky New Zealand has reported a strong result for the 2021 financial year, delivering
revenue of $711.2m, EBITDA of $186.4m and NPAT of $47.5m, including several one-offs.
Key points of today’s announcement:
-Significant customer base of 955,168 customers, with further stabilisation of valuable Sky Box
base and 57%
1
increase in streaming
-Strategically important rights wins in FY21
-Key role as ‘preferred content aggregator’ in New Zealand
-FY22 seen as an inflection point as Sky absorbs higher rights costs and further transforms the
operating model of the business
-Continued permanent reductions in operating costs in FY22 and beyond
-Guidance for FY22 includes revenue growth for the first time since 2016
Commenting on the results, Chair Philip Bowman noted: “The results for FY21 have exceeded the
Board’s earlier expectations and, as signalled at our recent Investor Day, also modestly outperformed
guidance, despite this being raised twice after the start of the fiscal year. Part of this outperformance
arose from underlying operating improvements, and part from one-off items. The delivery of these
results suggests that Sky’s transformation strategy is beginning to bear fruit, and it also reflects the
hard work of the Sky team.”
Chief Executive Sophie Moloney said: “I am grateful for the strong work of our team and the successes
secured, which include:
oSecuring more of the rights that mattermost to our customers: particularly NRL and NZ
Rugby League, Discovery, ViacomCBS, Foxtel and ESPN;
oSignificant progress towardsstabilising our valuable Sky Box customer base, with a
reduction of 3.8% YOY, compared to 5.4% in previous year;
oContinuedgrowth in our streaming services, with 57% increase in streaming customers
on a like-for-like basis, including 39% growth in Neon since the merger with Lightbox, and
134% in Sky Sport Now;
oA successfullaunch of Sky Broadband, partnering with Disney to give Sky Broadband
customers a value-adding 12 month Disney+ subscription;
oThe kick-starting of ournew Sky Box development and deploymentwith a target of mid
2022 for first installations in customers’ homes;
oSolid progress with cultural change and making Sky a place where every employee can be
themselves and is empowered to do their best work.
1
Excluding bundled Lightbox wholesale at FY20

Sophie Moloney said: “The financial result for the year is very positive, although I maintain my view
(as expressed at the Interim result) that while it’s good, we still need to do better.”
“As we look to FY22 and beyond, we are at an inflection point for Sky. We have a clear strategy and
we have secured more of the rights that matter to our customers. While acquisition of these rights
come at a significant cost, we see the current pricing in this rights cycle as the zenith across sport and
entertainment. Our focus is to make best use of those rights across all of our multiple platforms (Sky
Box, streaming and free-to-air), to engage current customers and attract new ones.”
In FY22 and beyond Sky will continue to sharpen its focus on managing operating costs and working
smarter to achieve sustained efficiency gains. Having achieved a net $15m of annualised savings in
the last two years, Sky aims progressively to achieve a minimum of $10m-$15m per annum of further
non-programming cost savings by FY24.
Sky has released guidance for FY22 as part of the Results presentation which demonstrates that Sky
will remain profitable and continue to generate positive free cashflow, whilst retaining a strong
balance sheet underpinned by a significant undrawn bank facility. Revenue guidance for FY22 of
$715m to $745m indicates that Sky expects to grow the top line for the first time since 2016 and
generate EBITDA of $115m to $130m and NPAT of $17.5m to $27.5m. When considering these core
metrics, it is important to look through the one-off costs and revenues of FY21, noting that they
include the sale of OSB assets and RugbyPass adjustments, and one-off content savings because of
COVID-19 cancellations and delays. FY22 also includes key content rights step-ups, including SANZAAR
and costs associated with the Tokyo Olympics (originally budgeted in FY21).
Sophie Moloney says: “Our FY22 guidance speaks to the stage we are at in Sky’s turnaround. While
we have made good progress, we are not yet at our destination, but we do have a clear game plan for
success.”
“Sky’s strategy plays to our strengths: we have a clear role as a preferred content aggregator in the
New Zealand market with a high ARPU customer base. Our ability to reach New Zealanders right
across the country, the reliability of our service, and our multi-platform approach across satellite,
streaming and free-to-air makes us a strong partner for global and local players.”
“Our new Sky Box will reinforce that preferred aggregator position even more, with a hybrid box that
offers our customers great functionality, a superb range of content across Sky channels, and access to
a range of apps and SVOD services – all conveniently in one place and, importantly, with one remote.”
“Growing revenue is an important part of the strategy, and our ambition is to achieve revenue growth
of $75m to $100m annually by 2024. That will be achieved across Sky Box and streaming, the ongoing
recovery of Sky Commercial and Sky Advertising towards pre-COVID levels, and new business revenues
(including Sky Broadband and RugbyPass).
“At the same time, we must make further permanent reductions to operating costs in a focused and
sustainable way. We need be able to move, more effortlessly and more effectively, to meet customer
demand.”
Sky is committed to recycling capital to reinvest in areas of the business that create the most value for
customers and shareholders. In line with this approach, Sky has successfully completed the sale of
OSB in FY21 and is currently marketing three properties at its Mt Wellington site.

In a separate announcement today, Sky has also announced details of a share consolidation to reduce
the number of shares on issue following recent issuance of new shares. Every 10 Sky shares held at
5pm (NZT) on 16 September 2021 will be consolidated into 1 share.
Ends
Authorised by James Bishop, Company Secretary
Sky will host a webcast briefing at 11:00am (NZT) to discuss the results. Details on how to participate
are available here:https://www.nzx.com/announcements/377337
Investor queries to:Media queries to:
James BishopChris Major
Company SecretaryDirector of External Affairs
+64 21 630 635+64 29 917 6127
james.bishop@sky.co.nzchris.major@sky.co.nz

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuerSky Network Television Limited
Reporting Period12 months to 30 June 2021
Previous Reporting Period12 months to 30 June 2020
CurrencyNZD
Amount (000s)Percentage change
Revenue from continuing
operations
$711,2344.7% decrease
Total Revenue$711,2344.7% decrease
Net profit/(loss) from
continuing operations
$47,228130.1% increase
Total net profit/(loss)$47,546130.3% increase
Final Dividend
Amount per Quoted Equity
Security
Nil final dividend
Imputed amount per Quoted
Equity Security
Not Applicable
Record DateNot Applicable
Dividend Payment DateNot Applicable
Current periodPrior comparable period
Net tangible assets per
Quoted Equity Security
$0.060$0.029
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further explanation refer to the financial commentary and
audited financial statements attached.
Authority for this announcement
Name of personauthorised
to make this announcement
Andrew Hirst
Contact person for this
announcement
Andrew Hirst
Contact phone number
+64 21 621 114
Contact email addressAndrew.Hirst@sky.co.nz
Date of release through MAP25/08/2021
Audited financial statements accompany this announcement.

---

LIFE NEEDS MORE
2021 ANNUAL REPORT

A note on our wonderful talent: the people we're featuring
throughout this report are real life Kiwis and Sky customers.
This document is a celebration of everything 'Sky', and that
includes the fans whose enthusiasm motivates us to keep
delivering amazing content. Each of these real life fans is
passionate about different things, from cheering on the Blues
to keeping up with the Kardashians. Luckily, no matter what
they're into, Sky's got them covered. They're the ones that
keep us doing what we're doing, so let's celebrate them.
Life needs more fans.
LIFE
NEEDS
MORE
FANS
Chairman’s Letter 02
CEO Update 04
At a Glance 07
Our Strategy 09
Our Priorities 11
Our Customers 22
Our Content 25
Our Technology 30
Our Board of Directors 34
Financials 36
Other Information 101
Contents

LIFE
NEEDS
MORE
LAUGHS
Why did the chicken
cross the road? If anyone
knows the answer to
that age-old question,
it's Kevin. He's a big fan
of stand-up, especially
home-grown talent like
Rose Matafeo, but he's
also down to watch a
funny movie. If it's belly-
laughs you're after,
Kev's your guy!
Sky / 2021 Annual Report
1

Sky operates in a highly competitive and
rapidly evolving industry sector. In the
past year the pace of change has further
accelerated, with global consolidation of
major players and the introduction of more
direct-to-consumer services around the world.
Sky is closely focussed on the opportunities
and challenges that these changes present,
albeit from a New Zealand market perspective.
Sky is a trusted partner of key content owners
and distributes content reliably to viewers
from one end of the country to the other by
virtue of its unique position as a provider of
satellite, streaming and free-to-air services.
The results for FY21 have exceeded the
Board’s earlier expectations and as signalled
at our recent Investor Day also modestly
outperformed guidance despite this being
raised twice after the start of the fiscal year.
As highlighted in the financial statements,
part of this out-performance arose from
underlying operating improvements, and part
from one-off items. The delivery of these
results suggests that the transformation
strategy referenced in my letter a year ago
is beginning to bear fruit. It also reflects the
hard work of the strengthened Sky team.
Sky is an entertainment company, connecting
our customers with the great sport and
entertainment they love, through the
delivery mechanism that works for them.
Developing enhanced data analytics to
guide negotiation of key rights is a vital part
of our strategy. Using these insights Sky
continued to work with long-term content
partners to renegotiate ongoing content,
and insights also guided Sky not to renew
content that had historically been purchased.
Welcome to Sky’s Annual
Report for the 2021
financial year.
Chairman’s
Letter
2

The ongoing transformation of Sky has
included the appointment of Sophie Moloney
as Chief Executive in December 2020, and
a further recalibration of strategy as Sky
looks to transition to growth. The four pillars
of the strategy can be summarised as:
1. N urturing and growing Sky Box
and streaming customers
2. B eing the preferred partner
for key rightsholders, content
creators and distributors
3. G rowing existing and new revenue
streams, whilst reducing operating costs
4. Cr eating a culture and environment
where Sky crew are empowered
to deliver their best
Sophie and her team have a clear customer
focus with a major priority in Fiscal 2022
being the development and delivery of a
new Sky Box. This new interface, which
will combine the best of satellite and
streaming capabilities, will cement Sky’s
role as the preferred aggregator in the
New Zealand market. In parallel Sky plans
to release further enhancements to its
streaming services to support further
growth in subscriber numbers following
encouraging growth in Fiscal 2021.
The three-year targets we shared at the
June Investor Day provide an insight into the
financial profile of the path that management
is following to reshape the business, grow
revenues, and reduce the cost base, whilst
continuing to deliver positive free cash flow.
Sky is also committed to recycling capital
to reinvest in areas of the business that
create the most value for our customers
and shareholders. In line with this approach,
we successfully completed the sale of OSB
during Fiscal 2021 and are currently marketing
our three properties at Mt Wellington.
I noted at the Investor Day that Sky has
received unsolicited approaches around
potential transactions in the past year, all of
which were highly conditional and incomplete.
We also advised that Sky is open to reviewing
strategic investment partnerships that
will deliver sustained ongoing growth to
the company, which in turn will accelerate
the creation of shareholder values. Jarden
have been appointed as strategic advisors
and they continue to assess options.
In closing, I would like to extend my thanks
to Derek Handley who stood down from
the Sky Board during the year. Following his
resignation, an independent Board evaluation
was undertaken by Propero, and the process
of refreshing board membership will continue
in Fiscal 2022. The Board also recognises the
contribution of Martin Stewart who led the
initial phase of Sky’s transformation before
resigning as Chief Executive in December 2020.
The Board also wishes to thank Sophie Moloney
and her leadership team for their hard work
and commitment to Sky. We have a talented
and passionate management team who strive
every day to meet the needs of our customers,
partners, community and you, our investors.
We thank you for your support and investment
in Sky, and I look forward to addressing you
further at the AGM on 28th October.
Philip Bowman
Independent Chairman
Sky / 2021 Annual Report
3

CEO’s
Update
It is my pleasure
to provide you, our
investors, partners
and stakeholders,
with my first Annual
Report as CEO.
We have completed this Annual Report
at a time when fans across the country
have been enthralled by the Olympics in
Tokyo. The term ‘A Games like no other’
was regularly spoken of. With our
all-female presenting crew in Tokyo,
we brought those incredible moments –
whether a brilliant high or a devastating
low – to homes, workplaces and
hospitality outlets throughout
New Zealand and particularly poignantly
to the families and friends of those
competing: we connected kiwis to the
content that matters.
I draw on the phrase as we too report
on a year like no other. I’m proud of the
strong work of our team and a result
that delivers on our objectives for the
year while navigating the ongoing
impacts of COVID-19.
4

And what does ‘do better’ look like?
If I can liken our story to that of an athlete
returning to the Games for a victory after
prior disappointments, I see Sky’s current
trajectory in a similar vein, a year or two out
from the next big event or moment. We are
in a turnaround; at an inflection point in FY22
as we set the platform for a return to growth.
So ‘do better’ includes:
· Delivering brilliantly to our existing Sky Box
customers, so that we continue to stabilise
and grow our high-ARPU
1 base, and we
remain the trusted and preferred platform
for all their entertainment needs. The new
Sky Box is a key part of that strategy, with
the hybrid satellite and internet delivery
meaning that Sky customers can access
all of their favourite Sky content alongside
their favourite content Apps in one easily
searchable place on the Sky Box. The new
Sky Box is all about maintaining for some,
and recapturing for others, that choice
and ease for viewers across New Zealand.
· Enhancing our streaming services.
Neon continues to surprise and delight with
its kiwi-curated content offering and Sky
Sport Now had a record intake with the
‘all you can eat’ Olympics pass. You can
expect more innovation in the coming period.
· Making further permanent reductions to
our operating costs, in a future-focused way
and with ruthless prioritisation day-to-day
on what drives customer value and, in turn,
investor value. We are driving our business
to be smarter at what we do. Cloud-based
rather than physical infrastructure that talks
to a lighter capex model. Automation where
customers prefer it. Not owning properties
and assets where that is not needed.
Partnering where it makes sense. And
always, making it easier for our customers
and crew to do what they need to do.
· Innovating to engage the next generation
of sports fans, kicking off with the
proposed delivery of a new digital collectible
marketplace in collaboration with a number
of our sport partners.
I’m mindful that while the FY21 result is a
positive one, it included a number of one-off
costs and revenue that will not be repeated in
FY22 and beyond.
We have provided guidance today on FY22.
When considering these core metrics, it is
important to look through the one-off costs
and revenues of FY21 when assessing the
future financial position of the company.
Our financial result for the year is very positive, although I maintain
my view (as expressed at the Interim Result) that while it’s good,
we need to do better.
Our ‘gold medal’ moments included:
· Securing more of the rights that matter most to our customers:
including NRL and NZRL, Discovery, Foxtel, NBCUniversal,
ViacomCBS and ESPN
· Significant progress towards stabilising our valuable Sky Box
customer base
· Continuing to grow our streaming services
· Successfully launching Sky Broadband
· Kick-starting our new Sky Box deployment, which will be delivered
in our customers’ homes in mid 2022
1
Average Revenue Per User
Sky / 2021 Annual Report
5

Revenue guidance of $715m to $745m
indicates that we expect to grow the top line
for the first time in a number of years, which
will be achieved through a combination of
improvements in our core offerings, returning
towards pre-COVID-19 levels in Advertising
and Commercial, and new revenue streams.
EBITDA and NPAT guidance are $115m to
$130m and $17.5m to $27.5m respectively,
meaning that Sky remains profitable,
continues to generate free cashflows,
while also having a strong balance sheet,
maintaining an available bank facility of
$200m and a strong customer base.
A further note on our costs. Yes, they’re higher,
because we have successfully secured the
content that matters to our customers and
we see the current pricing in this rights cycle
as the zenith across sport and entertainment.
Our focus is on ensuring we make the most of
those special and valuable rights, across Sky
Box, streaming and free-to-access, engaging
our current customers and attracting new
ones. FY21 was about securing the key deals
that provide the runway that we need to reset
the way we operate our Sky Box business,
with a sharper focus on managing operating
costs while working smarter to achieve
sustained efficiency gains. We are firmly
focused on sustainable improvements, not
short-term slashing, noting that some gains
will take more time to come to fruition.
We couple this with our expectation of revenue
growth for the first time in several years,
and the way we are transitioning our
business for further growth.
In the following pages we set out our strategy
and priority areas. We report on progress in
FY21 and our expectations for the next 3 years.
Always, what matters most is our customers
(both current and future) and connecting
them with great sport and entertainment in
ways that work for them. I hope you notice the
lovely photos in our report, all of whom are our
wonderful customers – and are big fans of our
large variety of sport, entertainment, news
and kids’ content. I love seeing their passion!
Our emphasis on being a great partner is
also an important part of our strategy.
Our global partners recognise and value the
ease with which we provide access to high
ARPU customers right across the country.
And as we have demonstrated in recent
times, we are committed to partnering
with local parties where it makes sense
for our customers and our bottom line.
We also recognise the need to appeal to a
new customer set, and the valuable role of
Sky Originals in this context. This year we have
been in production on the second series of the
highly successful Polynesian comedy Sis,
a collaboration between ViacomCBS and Sky,
and production is nearly complete on Raised
By Refugees, a family comedy based on the
true story of comedian and Pakistani-Iranian
New Zealander, Pax Assadi.
Our focus on being a place where our crew
are empowered to do their best work and
to be themselves is very important to me.
Our business is evolving, and we will continue
to make changes and transform the way
we do things. That impacts on our people,
and it’s not always easy. I am fortunate to
work with talented and passionate people at
Sky, and I am grateful for their commitment
and hard work.
For some time we have demonstrated our
commitment to diversity principles, both
internally from a Sky crew perspective, and
through expanding and elevating our coverage
of women’s sports, and playing a meaningful
role in supporting the communities in which
we operate.
While we have not reported on our
environmental impact in recent years,
we have a firm commitment to delivering
our services in a sustainable way, and I have
established a team to lead our sustainability
journey, including the way we report our
progress in FY22 and beyond.
I’m hugely optimistic about the future for
Sky and remain deeply determined to deliver
for our customers, our partners, our crew
and, thereby, our investors. We are clear on
the game plan for success. We have had a
privileged place in the homes and lives of our
customers for over 30 years and played a key
role in New Zealand sport and creative sectors.
As we look to the next 30 years, our ambition
is not simply to retain that role but to enhance
it even further.
I close with a note of thanks for your support
as shareholders. Your team at Sky is passionate
about our business and our future success,
and we are relentlessly focused on delivering

on the priorities we set out in this Report.
Ngā mihi nui

Sophie
6

Financial
2021 at a glance
Customer
REVENUE $M
711.2
5%
TOTAL CUSTOMER
RELATIONSHIPS
955,168
SKY BOX
CUSTOMERS
554,690
EBITDA $M
186.4
14%
Adjusted1  3%
NPAT $M
47. 5
130%
Adjusted1  15%
OPERATING EXPENSES $M
Includes one offs
538.3
8%
Adjusted1  5%
GROWTH IN STREAMING
CUSTOMERS
2
57%
1
Refer Non-GAAP Financial Information in the Financial Overview on page 38. The % movement is calculated on FY20 and FY21
r eported and adjusted numbers.
2
On a like for like basis, excluding Lightbox wholesale at FY20.
Sky / 2021 Annual Report
7

As you read this report,
you'll find that the headings
we use correlate to the
'Our Strategy' page, so you
can see not only what we're
focusing on, but how we're
doing it.
We've summarised the
strategy so it fits on one
page, but we're going to
dive into the details too.
Getting
around
our Annual
Report
8

WHAT
DO WE
DO?
We connect New Zealanders with the sport
and entertainment they love, in ways that
work for them, right across the country
HOW
WE WILL
DELIVER
OUR
CUSTOMERS
Listening and
responding to
our customers to
meet their needs
OUR
CONTENT
Securing the rights
that matter, and
creating local
content that
resonates with
our customers
OUR
TECHNOLOGY
Evolving our Sky Box and
Streaming technology to
give customers the best
experience, and using
innovative technology
to attract new fans
THE ‘BEDROCK’
OF OUR
BUSINESS
Rapid and sustained
execution, and enabling
our people to succeed
Being an efficient,
adaptive, and
profitable business
WHAT
MATTERS
MOST?
Our Customers
WHAT
WE’RE
FOCUSING
ON
Nurturing
and growing
our Sky
Box and
Streaming
customers
1
Being the
preferred
partner for key
rightsholders,
content
creators and
distributors
2
Growing
revenues
and reducing
operating
costs
3
Being a
place where
our crew are
empowered
to do their
best work
4
Our Strategy
Sky / 2021 Annual Report
9

LIFE
NEEDS
MORE
SATURDAYS
Ah, Saturday mornings.
For parents, no school
means early-rising kids
need something to do,
and what better than
putting them in front of
TV? Extra sleep-in, and
the kids certainly won’t
disagree. Thanks to this
genius parenting technique,
Beau has gained a passion
for Paw Patrol. He’s right
at home in Adventure Bay,
and loves watching Ryder,
Chase, and the gang save
the day. No job is too big,
no pup is too small!
10

Our goal is to nurture and grow our customer base, across Sky Box and our streaming
services, and we’re constantly looking for ways to ensure our customers have the best
experience possible. We’re proud of what our teams have delivered in FY21 and we’re
excited for what’s to come.
Sky Nation1 feedback tells us
we have a strong base of loyal
customers who value the reliable
performance of their Sky Box
and the convenience of the
complimentary Sky Go streaming
app. We’re putting in the work to
stabilise and then grow the base,
with initiatives in FY21 including
the successful migration of 34,000
Vodafone Reseller customers to
a direct relationship with Sky, the
upgrade of Sky Go to significantly
enhance the user experience, and
the launch of Sky Broadband to add
extra value for Sky Box customers.
In the past financial year we’ve
been working hard to retain and
win back customers with our
acquisition efforts.
Some of the ways we’ve been
improving in this area include:
• Using customer insights to inform
our acquisition campaigns and
continually refining the process to
track campaign effectiveness;
• Targeting previous customers,
resulting in over 29% of
acquisitions coming from
returning friends of Sky;
Sky Box
• Testing the application of
tailored deals for our inbound call
centre with really good results;
• D oubling our digital sales channel
contribution following our website
relaunch in October last year;
• Using improved outbound
telemarketing, so that we are
now holding an attachment
of two or more premiums
(customers taking an additional
service such as Movies or Sport)
for every new sale. This has
increased the monthly ARPU
(Average Revenue Per User)
at acquisition by 12.4%.
Our Sky Go companion app is a
value-add service that allows Sky
Box customers to access Sky’s
great content when they’re away
from the home. Our investment in
this enhanced app was released
in March and already, 249k of our
customers have used the new app.
We know customers that engage
with Sky Go are less likely to leave
Sky during the first 12 months,
and expect the enhanced service
to further contribute to customer
satisfaction.
Looking forward, we plan to
maintain our strong core of loyal
Sky Box customers who have been
with Sky for more than five years
and, as a whole, deliver stronger
retention as we target annualised
churn at a range less than 10%.
1
Sky panel with over 26,000 members, all Sky customers, who give feedback and direction on business critical projects
We’re also extremely
excited to be developing
the new Sky Box experience
which we expect to have
in customers’ homes next
winter. The new Sky Box
will be both satellite and
internet enabled, and
will create a customised
experience to suit our
customers’ future viewing
needs. We have more to
say on page 30.
WHAT WE’RE
FOCUSING ON
Nurturing and Growing
our Sky Box and Streaming
customers
What matters most? Our customers, and connecting
them with the sport and entertainment they love,
in ways that work for them.
1
Sky / 2021 Annual Report
11

While we value our strong base
of loyal customers who love the
Sky Box satellite service, we are
also firmly focused on the growing
group of ‘Native Streamers’ who
prefer our streaming products.
We have grown our streaming
base consistently, trebling the
number of subscribers with double
the revenue of two years ago.
We’ve significantly improved the
way we use customer insights to
increase customer engagement
which is key to retaining streaming
customers. This is already working
well with our Neon entertainment
streaming product where we’ve
introduced an automated three-
step process.
Neon – for Entertainment
In July 2020, we successfully
merged Neon and Lightbox with
increased functionality.
• N eon’s paid subscriber base has
increased by 39% since the merge
• N eon successfully implemented
a 14% price rise in May with
subscriber numbers continuing
to increase each week to the
end of FY21
• We won campaign of the year in
oOh!media's Innovation Awards
and Neon is a finalist in two
categories for the NZ Marketing
Awards (to be held in September).
Launching Sky Broadband in
March was a major milestone,
as we continue to implement
initiatives to retain and grow
our Sky Box customer base.
The appeal is quality broadband
‘made for entertainment’ with
unlimited lightning fast fibre that
enables customers to stream all
the on-demand entertainment and
sport they want, plus online gaming,
music, video calls and more.
Sky Box customers can sign up
to our super fast 900/400
2
Sky
Broadband package for just $79
a month, including GST, widely
acknowledged as a competitive
price for fibre broadband in the
New Zealand market.
Adding to the superior fibre
experience, Sky Broadband features
the latest WiFi6 routers to extend
the high speed performance
throughout the home.
We were delighted to announce
our partnership with Disney+
giving Sky Broadband customers
a 12-month Disney+ subscription.
This deal reinforced what Sky
Broadband is all about - broadband
made for entertainment. Customers
can experience unlimited lightning
fast Sky Broadband and enjoy some
of the greatest stories and exclusive
originals from Disney+ on us for
12 months, alongside all of the great
Sky content they already enjoy.
Our Streaming Services
Sky Broadband
2
Download speeds above 900Mbps and upload speeds above 400Mbps
Sky Sport Now
FY21 was an extraordinary
year for Sky Sport Now as the
sports world bounced back from
COVID-19 restrictions and Kiwis
reaffirmed their love for live sport.
The ‘90 day active subscriber’
base grew 134% during the year.
The Sky Sport Now team have
worked tirelessly on content
experience with a focus on
connecting fans with the sport
content that matters – and the
team has maintained an 75.2%
monthly engagement rate with
content.
12

LIFE
NEEDS
MORE
DRAMA
Blessed be the fruit.
Leah's no stranger to
a good binge-watch.
She's the kind of person
that you can rely on
to get your reference
to The Undoing or
Yellowstone because
if it's drama, she's
watched it. And, she
probably did it before it
was cool.
Sky / 2021 Annual Report
13

WHAT WE’RE
FOCUSING ON
Being the preferred partner
for key rights holders, content
creators and distributors
With over 530 content provider relationships
across Sport and Entertainment, Sky is the largest
aggregator of content in the New Zealand market.
2
Through our partnerships with leading studios and sports rights holders, alongside
expert curation and award-winning content production, we provide New Zealanders
with an unparalleled range of acquired and created content.
The content landscape is an ever-
changing space with a wide range
of different providers. We know
with all the choice out there it can
be hard for consumers to navigate
through the various options to find
the content and experience they’re
looking for.
Sky plays a valued role as an
aggregator for our customers,
offering a broad range of high
quality content from different
media players through our range of
content deals. Our objective is to
ensure our customers can access
great content in ways that work
for them, and we believe for some
content co-exclusive rights are a
way to retain customer value whilst
also addressing commercial value.
In the past year we’ve signed more
co-exclusive deals than ever with
some of the biggest entertainment
providers on the planet.
We deeply value our relationships
with our sport partners, and we
work together to deliver great
sport to our customers as well as
to nurture and grow their sports.
That includes innovating to attract
the next generation of sports fans,
enhancing our sport production
and fan experiences, and providing
funding that makes Sky one of the
cornerstones of the New Zealand
sports landscape.
Key Partnerships and renewals in FY21
NRL & NZRL
A long-term partnership through to 2027, founded on mutual objectives to
attract and develop the next generation of fans and players. We will work
together on roadshows around the country with the Vodafone Warriors
and New Zealand Rugby League, partnering on NRL.com, supporting
the strengthening of the women’s game and helping develop the next
generation of League players throughout New Zealand.
Discovery
Our deal with Discovery saw us deepen our relationship by broadening
our rights and opportunities. As well as securing some of Sky’s best loved
channels such as Discovery Channel, Animal Planet, TLC, Discovery Turbo,
and Living, and most popular premium factual content - Aussie Gold
Hunters, Gold Rush, Deadliest Catch, and annual event Shark Week -
and the new arrangement included the launch of new channel
Investigation Discovery.
14

NBCUniversal
An expanded multi-year deal encompassing feature films, drama, comedy,
entertainment, reality and news across broadcast channels, on demand
and streaming. This agreement includes series produced by Sky Studios
and the Universal Studio Group, which is comprised of Universal Television,
UCP, NBCUniversal International Studios and Universal Television
Alternative Studios. Movies from NBCUniversal’s vast film portfolio are
also part of the deal, as well as linear channel brands E! and CNBC.
Foxtel
Crime + Investigation and HISTORY’s shows are loved by our customers,
so our multi-year carriage deal with Foxtel ticked the boxes by locking
in the content that matters. This content is available on our Sky Box
Entertainment package as well as through Sky Go and Sky On Demand.
Disney+ (Sky Broadband)
The partnership with Disney+ provides Sky Broadband customers with
a 12-month subscription to global Disney+ streaming platform, where
they can explore the greatest stories from Disney, Pixar, Marvel, Star
Wars™, National Geographic and Star, as well as exclusive Originals,
complementing the great range of sport and entertainment Sky
Broadband customers can access on their Sky Box.
ESPN
Our multi-year deal connects Sky Box Sports package customers and
Sky Sport Now customers to the best in international live sport and
world-class sports programming from ESPN including NFL, NBA, NHL,
MLB, UFC, NCAA basketball, NCAA football, and the US Open. 30 for
30 films are included on ESPN 1 and 2, Sky Sport Now, and selected titles
available on Neon. Sky customers can also use their Sky log-in to gain free
access to a superb range of VOD content on the ESPN app. We’re pleased
to have secured this important content which has broad appeal
as well as resonating with a younger audience.
ViacomCBS
A multi-year deal where Sky and Neon customers will continue to enjoy
great content from CBS, The CW and SHOWTIME plus Paramount
Television programming. The agreement includes exclusivity for
SHOWTIME content and varied rights for Sky channels and platforms,
including Neon, Sky Go, Sky On Demand and free-to-air channel Prime.
SHOWTIME is home to acclaimed series like Billions, Your Honor, The Affair
and The Good Lord Bird, as well as highly anticipated upcoming limited
series, Dexter: New Blood. This follows a long-term deal Sky has in place
with ViacomCBS for hit channels and mega brands MTV, Comedy Central,
Nickelodeon, Nick Jr, Nick Music and MTV Music channels.
© 2021 CBS Studios Inc.
All Rights Reserved
Sony
A major studio renewal that grants Sky and Neon customers exclusive
access to Sony feature films for years to come with a slate that caters
for all types of movie lovers. This extended agreement will see customers
enjoying titles like Greta Gerwig’s new interpretation of a literary classic
known as Little Women to blockbuster hits such as Jumanji: Next Level
and Bad Boys For Life.
© 2019 Columbia Pictures Industries, Inc., Monarchy Enterprises
S.a r.l. and Regency Entertainment (USA), Inc. All Rights Reserved.
Sky / 2021 Annual Report
15

LIFE
NEEDS
MORE
SPORT
You’re seeing Eileen fresh
from the golf course,
because that’s how much
she digs her sports.
No surprise then that
she’s a big fan of Lydia Ko.
We reckon her support for
our Kiwi athletes deserves
its own gold medal!
16

WHAT WE’RE
FOCUSING ON
Growing revenues and
reducing operating costs
Being an efficient, adaptive and profitable
business is one of the cornerstones of our strategy.
3
Growing revenues
Our ambition is to achieve revenue growth of
$75m - $100m per annum by 2024.
Sky Box
Our Sky Box customers are our most valuable relationships, with the
‘power of the bundle’ achieving strong ARPU and customer retention.
Our focus in the short term is to continue to stabilise the Sky Box customer
base, transitioning the revenue trajectory from the slow, steady decline of
recent years into being stabilised in the next two to three years. We saw
positive signs in FY21 with the rate of decline of Sky Box customers slowing,
and customer satisfaction rates increasing in the last quarter in particular.
The new Sky Box in 2022 is an important initiative to support further
stabilisation in the coming period.
Streaming
Building on the success of FY21, where streaming revenue grew by 24%,
we are focused on continuing this success, with a target of 15% - 25%
annual growth in streaming revenue over the next three years. Our
ambition is for Neon to remain the preferred local SVOD service, and for
the impressive growth in Sky Sport Now to continue. We are continually
researching with our customers, non-customers and overseas to make sure
the product and content offering suits their needs, and our digital platform
allows us to change at speed.
Sky Commercial and Sky Advertising
We expect revenue to continue to recover towards pre-COVID-19 levels in
the short term, with the opportunity for growth in the commercial space
with our new tiered pricing model, and broadening out the customer base
across all sectors.
New business revenues
Our ambition is to grow new business revenues, including Sky Broadband
and RugbyPass, to 10% - 15% of total revenue in the next three years.
To achieve this on Sky Broadband we are targeting an 8% - 13% attachment
rate on Sky Box customers, which will also have a positive impact on overall
ARPU and customer retention.
Reducing
operating costs
Sky has been on a journey to
transform the business over the last
two years, with the goal of building a
fitter, faster and flatter organisation
that is utterly customer-focused
and highly efficient. Whilst the
changes are not only about achieving
permanent cost savings, that is an
important and ongoing outcome.
In the last two years Sky has achieved
a net $15m of annualised savings.
We aim to achieve a minimum
of $10m - $15m per annum of
non-programming operating cost
savings by FY24. The significant
transformation of Sky’s technology
infrastructure from on-premise,
physical hardware to the Cloud, the
streamlining of operations, the role
automation can play in a number
of areas (including customer care
where that suits customer needs),
and changes to ways of working and
organisational structure, are all part
of the equation to permanently reduce
operating costs.
Sky is also undertaking a process
of ruthless prioritisation to ensure
the business is focused on the most
important work that will drive
customer value, and in turn will drive
investor value.
The superb sport and entertainment content that we secure and
produce is valued by our customers and drives revenue for our
business, although it comes at a significant cost.
We know what is important to our customers and we will continue to draw on our
extensive customer insights to ensure that every programming dollar we spend is used
effectively to secure and deliver the content that really matters.
Acknowledging those costs, our focus is firmly on reducing our broader operating cost
base and on growing revenues.
Sky / 2021 Annual Report
17

LIFE
NEEDS
MORE
NEWS
Want to know what’s going
on? Ask Judith. Trust us,
she’s on it. As a teacher
she likes to stay informed.
Different channels give
her different perspectives
on current events, but for
Judith it was CNN that
was on 24/7 over the
summer. We reckon she’s
definitely keeping up with
the kids at school!
18

WHAT WE’RE
FOCUSING ON
Being a place where our
crew are empowered to
do their best work
Sky’s people are a vital part of our success.
Our diverse and talented workforce strive every
day to meet the needs of our customers and
connect them with great sport and entertainment.
4
We’ve been focused on our culture at Sky and making sure our people
can be their authentic selves. We’ve implemented a range of initiatives
in the past financial year to work towards this.
We have also reflected on our 30 years of service to our customers, investors, our community
and partners, and what we need to do to succeed for the next 30 years. The transformation
of our business – including driving a flatter, fitter, faster organisation, and empowering and
enabling teams to deliver brilliantly on customer priorities and value – is a key focus area.
Our refreshed People
Strategy was launched
in December 2020 and
sets out our key priorities,
with each area of focus
representing a critical
component of the
foundations we’re building
to secure our future.
People Strategy
• New Operating Model - Bringing
to life the operating model,
structure and ways of working
that make Sky nimble, fast and
customer-obsessed
• Work Environment - Improving and
modernising the environments in
which our people work
• Culture - Defining and living
our values and building an
organisation that reflects the
customers and communities we
want to serve
• Tools for Productivity - Delivering
the tools, technology and
connectivity for people to do their
best and most productive work
• Leadership and Capability
- Identifying capability gaps
and implementing targeted
development and recruitment
strategies.
Sky / 2021 Annual Report
19

Sky Values
The process to articulate and
agree Sky’s values began with
40 of our ‘Sky Culture Champions’
who collaborated in a series
of workshops, followed by
engagement across the business.
Our values speak to who we are,
and who we aspire to be, and the
behaviours that we expect in our
workplace. They represent our
relentless focus on our customers
and they keep us accountable
when it comes to collaboration,
diversity, the courage to fail and
learn, and a growth mindset that
we can all cultivate.
Our values have created a
common understanding to influence
everything from our ways of
working and our interactions to our
goals and outcomes - and ultimately
to creating a place to do our life's
best work together.
The team at Sky have three core values that bring to
life who we are and what is important to us:
In October 2020 we introduced
quarterly "Life at Sky" surveys
to better understand employee
sentiment and engagement,
target our culture and capability
investments, and track progress
and performance. Participation
has been pleasingly high,
with more than 80% of our
people contributing their views
and experiences in the two
subsequent surveys.
Life at Sky survey
At Sky, we value diversity of gender, age, ethnic and cultural background,
sexuality, experience and beliefs. We believe that an organisation that
reflects the diversity of our current and future customers will be better able
to deliver personalised customer experiences that drive value, and will be key
for enabling us to attract and retain the best talent.
In FY21:
• Of our 900 crew, 43.6% are women, 55.7% are men and 0.75% gender diverse
• 66% of our crew are under the age of 45
• 7.3% of our crew are part of the Rainbow community (LGBTTQ+)
• 7.9% of our crew identify as having a disability or long term health condition
• We have a strong representation from a wide range of ethnicities.
They include New Zealand European (45%), Indian (15%), Samoan (8%),
Chinese (4%), Māori (4%), Tongan (2%), Niuean (1%), Cook Island Māori
(1%), and 18% of crew from other wide ranging ethnic backgrounds.
And in the last year:
• The number of Sky crew who rated “I feel I belong at Sky” favourably
improved by 10% (from 62% to 68%)
• The number of Sky crew who rated “Sky values diversity” favourably
improved by 20% (from 64% to 77%)
Our Crew – who we are
20

LIFE
NEEDS
MORE
SUSPENSE
Don’t worry, Sarah’s
on the case! Seriously,
she’s seen a lot of true
crime, so we’d definitely
trust her to figure out a
whodunnit. She’s into all
those gripping dramas
where the suspense is,
well, killer. You’ll find her
over on Soho, or following
true crime on CI.
21
Sky / 2021 Annual Report

Sky Nation
Our Sky Nation panel was created in April 2020 as a genuine way to get
feedback from our customers. This is a space where we can co-create
the future Sky with our customers, tapping into their views for testing
ideas and concepts, big and small.
The panel has over 26,000 members, our customers, from all over
New Zealand, who have given us direction and feedback on more than
15 business critical projects. We’ve received over 65,000 surveys and also
conducted regular one to one interviews and prototype testing both at
Sky and in customers’ homes.
Successes
Our customers have provided a range of feedback for various initiatives
over the last year. 800 Sky Nation trialists were the first to try the new
Sky Go experience in January and provide feedback. An additional 5,000
customers gave their opinion on Sky Go to inform our upcoming marketing
approach. Results of the upgraded Sky Go product led to a satisfaction
lift of more than 10% from November 2020 to June 2021.
Sky Nation has also provided clear direction on what customers would
like to see from the new Sky Box and where they would like us to focus.
More than 6,000 customers have provided feedback, including in-depth
interviews.
Feedback on our content line-up has also played a big part in changes
we’ve made. This includes the recent changes to our movie channels with
the introduction of Sky Movies Collection & Sky Movies Comedy channels
and merger of Vintage and Classics.
This year we’ve implemented a number of key data
& insights tools, helping us to better understand
and serve our existing customers and to unlock
opportunities for growth.
HOW WE
WILL DELIVER
OUR CUSTOMERS
Listening and responding
to our customers to meet
their needs
Listening and delivering for our customers
is at the heart of what we do.
65,000
Surveys received
10+NPS
Score increase
15+
Business projects
26,000
Sky Customers
From Cape Reinga to Bluff
22

1
LEK Market sizing study n=2000 Feb 2020.
Our life stage segmentation model
(developed from the L.E.K NZ Market
sizing study
1
) helps us understand where
we are today and where the spaces are
for growth. Each segment has unique
needs, behaviours and opportunities and
the framework is an awesome tool that
helps us to create winning strategies and
ensure we execute with excellence, meeting
if not exceeding the expectations of these
consumer groups. We use this framework
to guide all customer-facing initiatives in
designing new products, personalising our
customer experiences, through to creating
content optimisation strategies and
targeted marketing.
Life stage
segmentation model
Sky / 2021 Annual Report
23

LIFE
NEEDS
MORE
REALITY
Reality TV? That's Tammy's
type on paper. Whether
she's keeping up with the
Kardashians' final season,
or watching Live from the
Red Carpet, she's always up
on the latest celebrity news.
When you've watched so
much Love Island that your
dreams start to take on
an Essex accent, you know
you're living your best life.
Crack on, Tammy.
24

Premium drama
Sky and Neon are known to have the most buzzworthy shows and
customers were spoilt for choice again this year. Our premium drama
fans were introduced to some of the most talked about new series such
as HBO's Mare of Easttown, The Undoing, Your Honor, and Gangs of
London. We also saw the return of fan favourites - His Dark Materials
and A Discovery of Witches. And the highly anticipated return of the
fourth season of The Handmaid's Tale was available to our Neon
customers which was the service’s most watched series of the year.
Entertainment Content
HOW WE
WILL DELIVER
OUR CONTENT
Securing the rights that matter,
and creating local content that
resonates with our customers
Life needs more entertainment
Sky is a content business. We have strong relationships with the biggest and most renowned
studios in the world right through to the local creators in Aotearoa New Zealand, and we are
the largest aggregator of content in the New Zealand market. Through these partnerships
with leading studios and sports rights holders, expert curation and award-winning production,
we provide New Zealanders with the best range of acquired and created content.
Real life entertainment
We have a range of real life entertainment content with unmissable
reality on E!, Living, TLC, MTV and Neon. In this past year we farewelled
reality royalty with the final season of fan favourite, Keeping Up with the
Kardashians, on E!. Love Island fans were ecstatic to see the return of the
hit British series, with the 7th season premiering on Neon and Sky Go.
Hollywood blockbusters
Sky Movies Premiere showcased the biggest Hollywood hits with action
films Bad Boys for Life and Zack Synder’s Justice League, to drama like
Little Women and The King of Staten Island. We were also excited to
bring the changes to our movie tier in August 2021 with the introduction
of two new channels – Sky Movies Comedy and Sky Movies Collection.
We introduced customers to the exciting world of premium VOD, giving our
Movie lovers access to blockbuster movies at the same time as theatres.
© 2020 Columbia Pictures Industries, Inc. and 2.0
Entertainment Borrower, LLC. All Rights Reserved
Sky / 2021 Annual Report
25

Tamariki Time – for the kids
There’s something for everyone
on our platforms and we want
to make sure our littlest fans are
always entertained as well. Sky
Movies Family is the place to go
for movies kids love, such as Trolls
World Tour and The Secret Garden.
We also have a range great kids’
content across Nickelodeon, Nick Jr,
Cartoon Network and CBeebies.
Connect with the world
The past year has shown how
important our news channels
are in our customers’ lives.
From a global pandemic to the
US elections, it was a big year
in the news space and our eight
international news channels
provided a range of views on
current affairs happening
around the world.
Crime
We know how much our customers
love crime content and with the
launch of Investigation Discovery
in March and Universal TV in April,
Sky now has more crime content
than ever before. Some highlights
from the past year include Chicago
P.D, JonBenet Ramsey: What Really
Happened?, and FBI: Most Wanted
Season 2.
Local Content
Sky celebrates local and we
are committed to supporting
New Zealand creative industries
and talent. Sky’s original
entertainment content strategy
is to commission quality content
that reflects the diversity of
New Zealand. Sky NZ Originals is
evolving to commissioning fewer,
bigger and better projects with a
focus on lifting the ambition and
scale of local content to create
stories that resonate locally and
travel globally.
Original content partnerships with
affiliate channels have enabled
Sky to amplify key content such as
the upcoming preschool animated
series Moe and Friends on
Prime Kids and CBeebies ANZ,
and Bouncers from emerging
comedian Joe Daymond, which
will premiere on Comedy Central’s
global web channel. Hit Polynesian
comedy Sis caught the eye of
comedy legends in the USA, with
the series currently in production
now and eagerly anticipated
both locally and internationally.
All of these projects have been
supported by NZ On Air, and we
are grateful for the partnership.
Teine Sā - The Ancient Ones
26

LIFE
NEEDS
MORE
MOVIES
This is Ofa’s face when
she’s watching Outback.
Talk about tension! Armed
with a blanket, popcorn,
and her Sky remote (of
course), Ofa might look
worried, but that’s all
part of the fun. Any time
she can settle in with the
family for a cosy evening
with a great movie is a
win, she reckons.
27
Sky / 2021 Annual Report

Sport is in our DNA and we continue to be considered among the best
sport production teams in the world. We created over 925 hours of
original sports content in the past financial year, covering a breadth
of sport unrivalled in Aotearoa New Zealand.
The Home of Sport
Unmissable Sporting moments –
Life needs more sport
While every sports broadcaster around
the world has faced issues with COVID-19-
related disruption, Sky Sport has continued
to produce and deliver a world class line up
of live sport here in New Zealand, as well
as sourcing the best events from around
the world.
In total, the Sky Sport production crew
produced and delivered 925 hours of
live sport in New Zealand, including
All Blacks test rugby, Sky Super Rugby,
NPC, Farah Palmer Cup, First XV and
under 21s through to International Netball,
the ANZ Premiership, Sal’s NBL, the
NBL (featuring the Sky Sport Breakers),
Football, the National Premiership Rugby
League (men’s and women’s), motorsport
and so much more.
Sky Sport crew introduced new production
innovations such as the new Megalodon
camera. This technology captures the
magic moments of a game by way of
high resolution, shallow depth of field
cinematic shots. We were thrilled to
launch the new technology at the first
ever Super Rugby Women’s match in May.
Along with Sky’s 12 channels of superb
sport content, we offer selected sport
events free-to-air on Prime or through
targeted partnerships with free-to-air
channels. We partnered with Discovery
to offer the opening match of the
State of Origin and Wimbledon free to
New Zealanders, and with TVNZ for the
Tokyo 2020 Olympics.
Sky also delivered 1,888 hours free to
access on Sky Sport Next; our grassroots
initiative to support emerging sports such
as canoe slalom, swimming, badminton,
basketball, diving, volleyball, orienteering,
bowls and water polo. Many of these
events feature at the Olympic Games
and Commonwealth Games.
In addition, Sky Sport has created over
150 hours of studio based and documentary
content including the widely acclaimed
All Access series, the Breakdown (Aotearoa’s
essential rugby show), Sky Rugby Club, the
Road to Tokyo, League Insider, Warriors TV,
Netball Zone, Aotearoa Rugby Pod, Rugby
Nation, cricket show Smith & Hesson,
The Verdict and the Playmakers series
which delves into the insights and lives of
New Zealand’s sport leaders. Many of these
shows are available free to access on podcast
platforms enabling more Kiwis to understand
what makes their sporting heroes tick.
Sky has a strong commitment to
profiling and supporting women’s sport.
That includes the decision to increase our
coverage of the Farah Palmer Cup from
39 matches in 2020 to 100% of matches
2021. Netball, football, basketball,
rugby league and a host of gender
equitable sports through Sky Sport
Next continue to deliver improved profiles
of women in sport, and Sky is committed
to doing more in the coming years.
We are thrilled to be the home of the
IWC Women’s World Cup in 2021 and
the FIFA Women’s World Cup in 2023.
Sky’s sponsorship continues to generate
positive feedback and opportunities for
engagement. From Sky Stadium and the
Sky Sport Rooftop Tour at Eden Park
through to sponsorship of Super Rugby,
the Sky Sport Breakers, the Sky Rugby
League Premiership for women, the ANZ
Premiership and Silver Ferns, the Kiwi
Ferns, Kiwis and Junior Kiwis, the Tall Ferns,
the Wellington Phoenix and the Warriors
Men and Women. Sky supports sport at
every level – from grassroots through to
premier level.
28

LIFE
NEEDS
MORE
WINS
The years since 2003 have
been long for Auckland's
die-hard Blues Fans.
Just ask Mark, a longtime
supporter whose passion
has finally paid off in
2021. Of course, there's
room for more than rugby
in Mark's life. He's always
got Sky Sport on, so he's
watched all sorts. Now
that's a guy we'd like on
our pub quiz team!
Sky / 2021 Annual Report
29

HOW WE
WILL DELIVER
OUR TECHNOLOGY
We’re evolving our Sky Box and
Streaming technology to give
customers the best viewing
experience and using innovative
tech to attract new fans
Technology transformation and additional capability
is delivering a more nimble Sky.
Sky is continuing to build on the investments we have made
over the past 2 years on our new digital platform and cloud
technology. We’re excited to be bringing another great
product to market in 2022 that will join our current offering
to shape Sky’s digital future.
At the beginning of 2020 over 90%
of our technology infrastructure
was on-premise, physical hardware.
Fast-forward to today and over 80%
of systems have moved to the Cloud,
with more in transition. As a result,
we have enhanced our ability to keep
pace with customer expectations
by leveraging the innovation and
investment of our Cloud partners
without having to plan for and deliver
traditional upgrades to our technology.
By simplifying and streamlining
operations we are lowering operating
costs, reducing risk and enabling
a more agile Sky. One example of
this is the implementation of a
single data lake enabling greater
insight into customer experience,
behaviours and preferences. This is
providing Sky with a ‘single source of
truth’ around which we can plan the
future delivery for our customers.
This technology transformation is
enabling increased momentum in our
delivery to customers which we’ve
demonstrated through the launch of
the merged Neon platform, enhanced
Sky Go, and launch of Sky Broadband.
30

The development of our new
Sky Box started with customers.
Working closely with our Sky Nation
panel we identified what mattered
most to our customers for the new
box. Our goal is to be the primary
entertainment provider in the
homes of New Zealanders, and our
Sky Nation panel told us clearly
what we would need to deliver to
achieve this goal.
We announced at Investor Day in
June that we will launch a hybrid
box that offers the reliability of
satellite TV and the flexibility of
internet-delivered on-demand
content and streaming apps.
Our proof point for the new box
is Sky Go where we have already
developed much of the required
user experience for the new Sky Box
as reusable digital components.
New hybrid Sky Box
We’ve selected Android TV
Operator Tier for the box
and its features include:
· A unified experience across
the Sky Box and Sky Go,
with instant on-demand
‘pause and play’ between
Box and personal devices
· More recording capability than
ever before as we know our
customers love to store and
manage a collection of their
favourite content
· An experience that is more
personalised, with multiple
profiles and recommendations
based on what you’ve watched
and enjoyed
· 4K-HDR ready
· Google Play Store built in to
enable the Sky Box to be the
true hub of our customers’
in-home experience
· A voice-enabled remote which
includes Google Assistant to
easily allow content discovery
across Sky and partner content
The new Sky Box is essentially these
digital components packaged
in a new device, designed and
curated for the big screen and
a remote control.
When we showed the concepts
for the new Sky Box experience,
and tested it further with
New Zealanders, we had a positive
response. We saw wide appeal
across four segments of our Sky
base, from Native Streamers
through to Connected Nesters.
85% of existing customers loved
the new capabilities and features
the Sky Box will bring, particularly
with the increased recording space
and the step change in discovering
Sky’s content. Significantly, 77%
of non-customers who have been
identified as ‘open to subscribing to
Sky’ found the concept appealing.
Sky / 2021 Annual Report
31

Neon
Since merging Lightbox and Neon in
July 2020, we’ve implemented a range
of improvements to the SVOD service
making it easier for subscribers to find
the content they want to watch. Some
of these changes include a new sign-
up journey, download improvements,
mobile player improvements including
fast forward/rewind/10 seconds and
new navigation to make the overall
experience easier for customers.
We know that some of our customers
value having closed captions, and we’re
making solid improvements to meet their
needs. In the last six months the Neon
team has prioritised the inclusion of
captions on over a thousand hours of key
content. As the availability of captions
increases across the catalogue, positive
feedback has confirmed we’re on the
right track, reducing churn and increasing
positive sentiment. The Neon site now
has captioned rails and categories to
increase discoverability, and further
search enhancements are on the way.
The Sky Go app is free for Sky customers
with a Sky Box in their home and lets
them watch on their personal devices,
anywhere in New Zealand so they can take
Sky with them. Towards the end of FY21
we launched the updated version of our
Sky Go app built on our new digital platform,
with a range of significant improvements
and the volume of monthly unique users
increasing significantly since relaunch.
Listening to our loyal customer base
identified a long list of enhancements
which we have delivered into the Sky
Go experience. These include:
• A round 13,000 hours of VOD content
• An increase of both video on demand
content and linear channels
• M ore HD content
• Collection pages that allow customers
to browse through Sky’s impressive
content library by associated channel,
content category (Movies, Kids, TV),
sport category, genre, and by hand-picked
theme and mood curated selections
• A bility to filter programmes based
on what’s downloadable, customer
subscriptions, and recently added
• Chromecast or airplay to your
big screen.
Sky Go
32

LIFE
NEEDS
MORE
ADVENTURE
Matt’s not sure he’d ever
want to join Bear Grylls
on one of his epic Amazon
journeys, but he does know
he loves to watch it. From
Outback Opal Hunters, to
Naked and Afraid, if it’s got
adventure in it, Matt’s there.
Seriously, you should see him
during Shark Week.
33
Sky / 2021 Annual Report

Philip Bowman
INDEPENDENT CHAIRMAN
Philip was appointed Chair of
Sky in September 2019. Philip is a
distinguished businessman who has
led several major global companies
and served on the board of a
significant number of public and
private companies. Philip brings
knowledge of the media sector,
including having served on the board
of Sky UK for ten years. Other roles
include Group Finance Director of
Bass, CEO of Bass Retail, CEO of
Allied Domecq, CEO of Scottish
Power, CEO of Smiths Group, senior
non-executive director of Burberry,
Chairman of Liberty, Chairman of
Coral Eurobet, Chairman of Miller
Group, and non-executive director of
Scottish & Newcastle. He currently
sits on the boards of two other listed
companies, Kathmandu and Ferrovial
SA. Philip has a degree with honours
in Natural Sciences (University of
Cambridge) and Master in Natural
Sciences (University of Cambridge).
He is also a Fellow of the Institute of
Chartered Accountants of England
and Wales.
Joan Withers
INDEPENDENT DIRECTOR
Joan was appointed to the board in
September 2019. She brings a wealth
of experience spanning a 25-year
career in the media industry, including
CEO positions at Fairfax and the
Radio Network as well as being the
former Chair of TVNZ. Joan’s depth
of governance experience includes
her current roles as Chair of The
Warehouse Group, a director of ANZ
Bank New Zealand, Origin Energy
Ltd and she has previously held Chair
positions at Auckland International
Airport and Mercury NZ Ltd. Joan
is a Trustee of the Louise Perkins
Foundation, and is Chair of a steering
committee working to increase the
percentage of South Auckland Maori
and Pacific Island students taking
up roles in the health sector. She
holds a Masters Degree in Business
Administration from the University
of Auckland. In 2015 Joan was named
Supreme Winner in the Women of
Influence Awards and was named as
Chairperson of the Year in the Deloitte
Top 200 Management Awards.
Board of Directors
34

Keith Smith
INDEPENDENT DIRECTOR
Keith was appointed to the board in
April 2020. He has a long-standing
record of leadership as a director
and advisor to companies in a diverse
range of industries, including the
energy sector, rural services, printing,
media and exporting. Keith is Chair
of listed company Goodman (NZ)
Limited (the Manager of Goodman
Property Trust), and is a director
of Mercury NZ Ltd and several
other private companies. He is a
past President of the Chartered
Accountants Australia and
New Zealand.
Mike Darcey
INDEPENDENT DIRECTOR
With an extensive track record of
strategy and delivery across television,
publishing and technology, Mike was
appointed to the board in September
2017. A New Zealander, he has lived
and worked in the UK since 1989.
Fifteen of those years were spent
at Sky UK, initially as the Director
of Strategy, then six years as Chief
Operating Officer. He played a
prominent role in most of Sky UK's
major strategic decisions and its
major commercial and regulatory
dealings during this period. From
2013 to 2015 Mike was CEO of
News UK. Since 2015, Mike has had
a series of non-executive roles and
these currently include Chairman of
British Gymnastics and director of
Arqiva Group Limited (the UK’s main
independent provider of television
broadcast infrastructure). He is also
active as a strategy advisor to a series
of major players in the media sector.
Geraldine McBride
INDEPENDENT DIRECTOR
Geraldine was appointed to the
board in September 2013. A renowned
Enterprise Business Technology and
AI thought leader with a science
background, Geraldine’s global career
spans 30 years, with senior executive
roles in IBM, Dell and SAP. Her most
recent roles were President & CEO
of SAP North America and SAP Asia
Pacific Japan. Geraldine is a Director
of Fisher and Paykel Healthcare
Corporation. She is also CEO &
Director of MyWave.AI (My Wave
Holdings Limited), a market leading
Enterprise AI company focused on
Intelligent Personalisation by putting
the customer at the centre
of business.
Sky / 2021 Annual Report
35

36

For the year ended 30 June 2021
Our 2021 Financials
Financial Overview .....................................................................................................38
Financial Performance Trends
.........................................................................43
Directors’ Responsibility Statement
..........................................................44
Consolidated Income Statement
.................................................................46
Consolidated Statement of Comprehensive Income
................47
Consolidated Balance Sheet
............................................................................48
Consolidated Statement of Changes in Equity
..............................49
Consolidated Statement of Cash Flows
...............................................50
Notes to the Consolidated Financial Statements
........................51
Independent Auditor’s Report
.........................................................................94
37
Sky / 2021 Annual Report

38
Financial Overview
Summary
The 2021 financial year has seen Sky continue to build on the positive momentum seen in the previous year. Strategic execution and
operational improvements in the year have seen growth in streaming revenue, continued reductions in Sky Box churn, important
programming renewals, and the launch of Sky Broadband.
The COVID-19 pandemic has presented challenges for the business, and Sky’s operations are being continuously adapted to
respond to changes in sport competitions and studio content, and the impact of travel restrictions. Sky continues to strive to
minimise the impact on customers, employees and shareholder value.
The reported profit after tax is $47.5m, compared to a loss of $156.8m in the prior year. On an adjusted basis, net profit after tax
of $47.1 million exceeded expectations and guidance provided to the market and compares positively to an adjusted net profit of
$41.0 million in the prior year.
FY21 saw one-off expenses of $10.3 million, offset by non-recurring income of $10.8 million. The FY21 result also benefited from
COVID-19 related reductions in sports rights and production costs, which more than offset the revenue impacts for commercial
customers and advertising revenues. One-off expense adjustments in the prior year were $28.2 million.
Sky’s seven year $100 million of retail bonds were repaid on 31 March 2021 out of cash reserves. As at 30 June 2021 Sky had not
drawn down funds from its banking facility.
Non-GAAP Financial Information
Sky has used a number of non-GAAP profit measures when discussing financial performance. The Directors and management
believe that these measures provide useful information on the underlying performance of the Group. They are used internally to
evaluate performance, analyse trends and allocate resources. Non-GAAP financial measures are not prepared in accordance with
NZ IFRS and are not uniformly defined and therefore should not be viewed in isolation nor considered as a substitute for measures
reported in accordance with NZ IFRS.
The results and adjustments are summarised below:
Group Consolidated Results for the years ended 30 June
in NZD millions
2021
(adjusted)
2021
(reported)
2020
(adjusted)
2020
(reported)
% inc/(dec)
(adjusted)
Financial performance data
Total revenue
711.2711.2746.6746.6(4.7)
Other income
2.713.51.01.0170.0
Total operating expenses
528.0538.3555.2583.4(4.9)
EBITDA
185.9186.4192.4164.2(3.4)
Less
Depreciation, amortisation and impairment (1)
108.0108.0119.3119.3(9.5)
Net operating profit before interest, income tax
and impairment of goodwill
77.978.473.144.96.6
Impairment of goodwill
---177.5-
Net finance costs
10.510.513.713.7(23.4)
Adjusted profit before tax
67.467.959.4(146.3)13.5
Income tax expense
20.320.418.410.510.3
Profit/(loss) after tax
47.147.541.0(156.8)14.9
Adjusted earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) for the year ended 30 June 2021 are
$185.9 million, a decrease of 3.4% on the previous year’s comparative of $192.4 million.
Adjusted operating profit before interest, tax, and impairment of goodwill increased by 6.6% from $73.1 million to $77.9 million.

39
Sky / 2021 Annual Report
Summary of Adjustments
FY21 included a number of one-off expenses totalling $10.3 million, comprising $7.5 million of programming impairments
(refer note 10) and costs associated with the mutually agreed exit of the former CEO of $2.8 million (refer note 29). Other
income (refer note 5) includes $10.8 million of non-recurring income relating to the gain on sale of Outside Broadcasting assets
of $5.8 million, the settlement of the RugbyPass earnout resulting in a provision release of $3.6 million, and a RugbyPass provision
release of $1.5 million. Prior year expense adjustments were $28.2 million, being redundancy costs, a Holidays Act compliance
provision, non-recurring consultancy fees, satellite reservation fees and programming impairments.
The adjustments referred to above do not include the impacts of COVID-19.
In NZD millions
30-Jun-2130-Jun-20
Statutory profit/(loss) after tax
47.5(156.8)
Adjustments to earnings as follows:
Content write-offs
7.53.2
Non-recurring costs included in other costs
1
2.825.0
Non-recurring income included in other income
(10.8)-
Impairment of goodwill
-177.5
Tax effect of adjustments
0.1(7.9)
Total adjustments
(0.4)197.8
Adjusted profit after tax
47.141.0
(1) A djustments in FY20 for non-recurring costs include redundancy costs of $15.5 million, Holidays Act compliance provision of $3.2 million,
consultancy costs of $3.3 million and a satellite reservation fee of $3.0 million.
Customers
The Sky Box customer base continues to stabilise, evidenced through further reductions in the rate of churn for Sky Box customers
in FY21. These improvements are driven by retaining similar levels of acquisitions whilst improving levels of churn through enhanced
customer insights, marketing and retention programmes. Average revenue per user (ARPU) has declined due to the impacts of
COVID-19 related discounts, offering discounts following the migration of reseller customers to direct billing relationships and a small
drop in average package holdings.
Following the strong levels of streaming customer growth in FY20 through Neon and Sky Sport Now, there was a small decline in
FY21 due to the change in focus in RugbyPass, away from a subscription product service to an audience and network business,
as well as a drop in Neon subscribers following the churn of some Lightbox customers on bundled services, albeit this was then
followed by significant growth over the remainder of the year. Sky Sport Now benefited from the improvement in COVID-19 related
sport restrictions in New Zealand and Neon had a strong content line-up.
20212020201920182017
Sky Box customers (1)
561,989585,248 619,073 661,361 705,652
Streaming customers (2)
393,179404,321159,767106,366110,861
Other customers (3)
----8,269
Total customers
955,168989,569778,840767,727824,782
Net customer growth - Sky Box
-4%-5%-6%-6%-5%
Net customer growth - streaming
-3%153%50%-4%22%
Sky Box acquisition (4)
47,27341,51049,95259,60379,685
Sky Box churn (4)
(69,287)(74,643)(91,841)(103,394)(113,226)
Sky Box ARPU ($ monthly) (5)
78.4082.0883.4684.5485.05
Streaming ARPU ($ monthly) (6)
17.4619.80---

(1) Sky Box customer groups comprise residential, commercial (including reseller in prior years), and broadband customers.
(2) S treaming customer groups comprises Neon, Lightbox, Sky Sport Now, RugbyPass and retransmission.
(3) O ther customers include customers from non-trading businesses, IGLOO and Fatso.
(4) Sky Box acquisition and churn is for Sky residential customers only, including reseller.
(5). Sky Box ARPU is average revenue per user for Sky residential customers only, including reseller customers, calculated as the average for the
twelve month period.
(6) S treaming ARPU is the blended rate across Neon, Lightbox, Sky Sport Now, RugbyPass, and retransmission.

40
Financial Commentary (Continued)
Revenue Analysis
Sky’s total revenue was $711.2 million, as follows:
In NZD millions
20212020% inc/(dec)
Sky Box subscriptions (1)
532.1582.0(8.6)
Other subscriptions (2)
117.0105.411.0
Total subscription revenue
649.1687.4(5.6)
Advertising
44.945.2(0.7)
Installation and other revenue
17.214.022.9
Total other revenue
62.159.24.9
Total revenue
711.2746.6(4.7)
(1) Sky Box subscription revenue includes Sky Box customers (including reseller) and broadband customers.
(2) O ther subscriptions include Neon, Sky Sport Now, RugbyPass, retransmission and commercial customers (and included Lightbox in 2020).
Residential (Sky Box) subscription revenue decreased by 8.6% to $532.1 million mainly due to a loss in Sky Box customer numbers
year on year. Customers were migrated from reseller arrangements in the year, resulting in one-off billing discounts to align billing
dates, and then honouring discount package pricing already in place. Overall, the average uptake on premium packages was down
slightly year on year, and COVID-19 impacted pay-per-view events resulting in lower event buys. These all contributed to lower
ARPU in the period. A continuing focus on customer retention saw an 3.2% improvement in annual churn to 12.2% from 12.6% in
the prior year as targeted initiatives gained traction.
Other subscription revenue includes commercial revenue earned from Sky subscriptions at hotels, motels, licenced premises and
commercial customers, streaming revenue from services such as Neon, Lightbox (prior to merging with Neon in July 2020), Sky
Sport Now, RugbyPass and revenue derived from transmission of programming for third parties. These revenues increased 11.0%
to $117.0 million mainly due to the growth of Neon in late FY20 and throughout FY21, and Sky Sport Now when sport returned
after COVID-19 restrictions were lifted in New Zealand.
Advertising sales revenue remained stable at approximately $45 million. The advertising market was significantly impacted by
COVID-19 in the final quarter of FY20, with recovery through FY21 meaning revenues for the year were broadly flat with the prior
financial year. Sky’s market share in FY21 was 8.6% compared to 9.3% in FY20, falling due the impact on Sky’s sport related sales
and the advertising on Discovery channels now being sold directly by Discovery. The fall in market share was offset with a growing
advertising market following a greater impact of COVID-19 in FY20.
Installation and other revenues increased from $14.0 million to $17.2 million due to an increase in installation and late payment
fees in the year.

41
Sky / 2021 Annual Report
Expense Analysis
A further breakdown of Sky’s operating expenses is provided below:
30-Jun-2130-Jun-20
In NZD millions
AdjustedReported% inc/(dec)
adjusted
% of revenue
adjusted
AdjustedReported% of revenue
adjusted
Programming
321.8329.3(4.1)45.2335.5342.144.9
Subscriber related costs
93.093.0(8.7)13.1101.9106.613.6
Broadcasting and
infrastructure
60.760.7(13.7)8.570.377.99.4
Other costs
52.555.310.57.447.556.86.4
Depreciation, amortisation
and impairment
108.0108.0(9.5)15.2119.3119.316.0
Total operating expenses
636.0646.3(5.7)89.4674.5702.790.3
Programming costs comprise both the costs of programme rights and also programme operating costs. Programme rights
costs include sport rights, pass-through channel rights (e.g. ESPN, Living Channel, National Geographic etc.), movies (including
pay-per-view), streaming and on demand rights, and music rights. Programme operating costs include the production of live
sport events, satellite and fibre linking costs and original studio productions.
Programming costs have decreased by 4.1% mainly due to the impacts of COVID-19 on live sports events and competitions,
and the availability of entertainment content from studio partners.
Sky’s adjusted programming costs have decreased by $13.7 million to $321.8 million and equate to 45.2% of total revenue in FY21,
up from 44.9% in FY20. The programming costs in both FY21 and FY20 have been adjusted for one-off impairments.
Subscriber related costs include the costs of servicing and monitoring equipment installed at customers’ homes, indirect
installation costs, the costs of Sky’s customer service department, sales and marketing activities and general administrative costs
associated with managing customer relationships.
Subscriber related costs reduced by 8.7% in FY21 due to a stronger emphasis on cost control and efficiencies gained in the year.
There remained a strong focus on improving customer services across various platforms in the year.
Broadcasting and infrastructure costs mainly consist of transmission and linking costs for transmitting Sky and Prime’s content
from its studios in Auckland to customers over satellite to devices in the home, streaming content over IP, and other distribution
platforms and the costs of operating Sky’s television stations and employee working environments at Mt Wellington and Albany.
These costs remained consistent year on year on an adjusted basis, driven mainly by stabilisation of Sky Box subscribers and the
associated service costs. Internet delivery costs for streaming services also stabilised and consist mainly of fixed costs which are
not affected significantly by customer numbers. The adjustments in FY20 relate to a $3.0 million satellite reservation fee and
$4.6 million restructuring costs.
Other costs include advertising costs, and overhead costs relating to corporate management of the Sky Group including consultancy
costs. The adjusted other costs increased by 10.5% to $52.5 million, due to higher insurance costs as part of the annual renewal cycle
and FY21 related short term incentive payments (which were cancelled in FY20).
Depreciation, amortisation and impairment costs include depreciation charges including subscriber equipment including satellite
dishes and decoders owned by Sky, fixed assets such as television station facilities, amortisation of the right-of-use assets created
under NZ IFRS 16 and amortisation of computer software and intangible assets. Depreciation of property, plant and equipment
has decreased as decoders and installation costs reach the end of their useful lives while amortisation of intangibles has increased
due to acquired intangibles for Lightbox and RugbyPass.
Depreciation, amortisation and impairment costs are summarised below:
In NZD millions
20212020
Depreciation of property, plant and equipment
36.4 54.7
Amortisation of intangibles
35.4 31.0
Depreciation of right-of-use assets
36.2 33.6
Total depreciation, amortisation and impairment108.0 119.3

42
Financial Commentary (Continued)
Finance costs, net
Decreased from $13.7 million to $10.5 million. Interest expense reduced from $16.0 million to $11.9 million due to the repayment
of the $100 million bond in March 2021 and a reduction in bank interest due the repayment of bank debt in the prior year and
subsequently not drawing down from the facility during the period.
Capital expenditure
Sky’s capital expenditure is summarised as follows:
In NZD millions
20212020
Subscriber equipment
3.54.4
Installation costs
14.812.6
Projects under development
2.011.7
Software
24.219.7
Other
6.68.1
Capital expenditure
51.156.5
Assets acquired by way of business acquisitions
0.216.4
Total capital expenditure
51.372.9
Capital expenditure has continued to transition towards a greater emphasis on growth focused areas, including migration of
platforms and services to the cloud, improvements in data management services and the implementation of Sky’s Broadband
service. A number of these investments have been foundational to the development of the new Sky Box. Investments in Sky’s
satellite delivery platform have been reducing and Sky continues to move towards a less capital intense operating model.

43
Sky / 2021 Annual Report
In NZD 000
20212020201920182017
For the year ended 30 June
Income statement
Total revenue and other income
724,754747,646795,126852,710893,485
Total operating expenses
538,338583,395564,958566,900601,145
EBITDA (1)
186,416164,251230,168285,810292,340
Depreciation, amortisation and impairment (2)
107,991119,318131,103102,414105,148
Impairment of goodwill
- 177,500670,000360,000 -
Net interest expense and financing charges
11,71515,85913,65017,57620,470
Losses/(gains) on currency and other
(1,179)(2,120)(1,208)(66)(850)
Net profit/(loss) before income tax
67,889(146,306)(583,377)(194,114)167,572
Balance sheet
Property, plant,and equipment, intangibles and
right-of-use assets
220,165
287,962213,702268,925301,008
Goodwill
255,245256,312395,3311,065,3311,425,331
Total assets
701,648837,936771,3531,503,0021,887,200
Interest bearing loans and liabilities
77,547212,513193,662235,344298,663
Working capital (3)
58,64290,2918,6079,03810,215
Total liabilities
278,154462,966419,785476,315559,322
Total equity
423,494374,970351,5681,026,6871,327,878
Cash flow
Net cash from operating activities
107,208157,300178,026213,613
244,536
Net cash used in investing activities
(44,187)(74,627)(69,780)(58,194)(79,640)
Lease repayments (4)
(37,503)(36,901) - - -
Free cash flow (5)
25,51845,772108,246155,419164,896
Capital expenditure
Capital expenditure
51,07156,45876,30058,20079,700
Assets acquired by way of business combination (6)
20316,354 - - -
Assets disposed of in the period (6)
(9,095) - - - -
42,17972,81276,30058,20079,700
(1) E arnings before income tax, interest expense, depreciation, amortisation and impairment, unrealised gains and losses on currency and interest
rate swaps.
(2) T he FY21 year includes depreciation on right-of-use assets of $36.2 million (FY20 $33.6 million).
(3) W orking capital excludes current borrowing, bonds, derivative financial instruments, available for sale financial assets and contract liabilities and
lease liabilities. Prior periods have been adjusted to exclude contract liabilities.
(4) L ease repayments prior to FY20, and the adoption of NZIFRS16, were included within net cash from operating activities.
(5) F ree cash flow is after lease repayments for the period that are categorised in financing cash flows, but before other financing activities.
(6) R ugbyPass and Lightbox, acquired in the 2020 financial year (refer note 28), were the only substantial acquisitions in the last five years. The OSB
business was sold in the 2021 financial year.
Financial Performance
Trends

44

Directors’ Responsibility
Statement
The directors of Sky Network Television Limited (Sky) are responsible for ensuring that the consolidated
financial statements of Sky and its subsidiaries (the Group) present fairly the financial position of the Group
as at 30 June 2021 and the results of its operations and cash flows for the year ended on that date.
The directors consider that the consolidated financial statements of the Group have been prepared using
appropriate accounting policies, consistently applied and supported by reasonable judgements and estimates
and that all relevant financial reporting and accounting standards have been followed.
The directors believe that proper accounting records have been kept which enable, with reasonable accuracy,
the determination of the financial position of the Group and facilitate compliance of the consolidated financial
statements with the Financial Markets Conduct Act 2013.
The directors consider they have taken adequate steps to safeguard the assets of the Group and to prevent
and detect fraud and other irregularities.
The directors present the consolidated financial statements of the Group for the year ended 30 June 2021.
The Board of Directors of Sky authorise these consolidated financial statements for issue on 24 August 2021.
For and on behalf of the Board of Directors.
Keith Smith
Director
Philip Bowman
Director and Chairman
Date: 24 August 2021

45
Sky / 2021 Annual Report
Contents
Financial Statements
Consolidated income statement .................................................. 46
Consolidated statement of comprehensive income
................ 47
Consolidated balance sheet
.......................................................... 48
Consolidated statement of changes in equity
.......................... 49
Consolidated statement of cash flows
....................................... 50
Basis of preparation
1. General information .................................................................... 51
2. Basis of consolidation
................................................................. 52
3. Significant accounting policies and changes
......................... 52
Performance
4. Segment and revenue information .......................................... 54
5. Other income
................................................................................ 55
6. Operating expenses
.................................................................... 56
7. Earnings per share
....................................................................... 57
8. Taxation
......................................................................................... 58
Working capital
9. Trade and other receivables ...................................................... 60
10. Programme rights inventory
................................................... 61
11. Trade and other payables and contract liabilities
.............. 62
Assets
12. Assets held for sale ................................................................... 64
13. Property, plant and equipment
.............................................. 65
14. Right of use assets
.................................................................... 67
15. Intangible assets........................................................................ 68
16. Goodwill
....................................................................................... 69
Funding
17. Borrowings ...................................................................................73
18. Lease liabilities
............................................................................75
19. Finance costs, net
.......................................................................77
20. Share capital
...............................................................................78
21. Reserves
........................................................................................79
Financial risk management
22. Derivative financial instruments .............................................80
23. Financial risk management - market risk
.............................82
24. Financial risk management - credit risk
................................83
25. Financial risk management - liquidity risk
............................84
26. Classification of financial instruments
..................................87
Other
27. Contingent consideration and provisions ............................88
28. Business acquisitions
................................................................89
29. Related parties
............................................................................91
30. Commitments
.............................................................................92
31. Contingent liabilities
..................................................................93
32. Subsequent events
.....................................................................93
33. Non-GAAP financial information
............................................93
Independent auditor’s report
.........................................................94

46
For the year ended 30 June 2021
In NZD 000Notes30-Jun-2130-Jun-20
Revenue
4711,234 746,641
Other income
513,520 1,005
Expenses
Programming
329,354342,096
Subscriber related costs
93,070106,554
Broadcasting and infrastructure
60,65577,942
Depreciation, amortisation and impairment of assets
6107,991119,318
Other costs
55,25956,803
Total expenses
646,329702,713
Operating profit before impairment
78,42544,933
Impairment of goodwill
16 - 177,500
Operating profit/(loss)
78,425(132,567)
Finance costs (net)
19 10,53613,739
Profit/(loss) before tax
67,889(146,306)
Income tax expense
8 20,34310,466
Profit/(loss) for the year
47,546(156,772)
Attributable to
Equity holders of the Company
747,228(156,979)
Non-controlling interests
318207
47,546
(156,772)
Profit/(loss) per share
Basic and diluted profit/(loss) per share (cents)
72.70
(23.91)
Consolidated
Income Statement

47
Sky / 2021 Annual Report
Consolidated Statement
of Comprehensive Income
For the year ended 30 June 2021
In NZD 00030-Jun-2130-Jun-20
Profit/(loss) for the year
47,546(156,772)
Items that may be reclassified to profit or loss
Exchange difference on translation of foreign operations
(291) 220
Deferred hedging gains transferred to operating expenses during the year
1,0561,196
Income tax effect
(296)(335)
Net other comprehensive income to be reclassified to profit or loss,
net of income tax
4691,081
Items that may not be reclassified to profit or loss
Deferred hedging losses transferred to non-financial assets during the year
(367)(51)
Income tax effect
10314
Net other comprehensive loss not being reclassified to profit or loss,
net of income tax
(264)(37)
Total comprehensive profit/(loss) for the year
47,751(155,728)
Attributable to:
Equity holders of the Company
47,433(155,935)
Non-controlling interest
318207
47,751(155,728)

48
As at 30 June 2021
In NZD 000Notes30-Jun-2130-Jun-20
Current assets
Cash and cash equivalents
34,800110,677
Trade and other receivables
965,61556,854
Programme rights inventory
10103,154115,672
Derivative financial instruments
221,3473,265
204,916286,468
Non-current assets
Property, plant and equipment
13100,192124,585
Right-of-use assets
1464,27296,821
Intangible assets
1555,70166,556
Deferred tax asset
86,162216
Goodwill
16255,245256,312
Derivative financial instruments
221,724461
483,296544,951
Assets held for sale
12 13,4368,367
Total assets
701,648839,786
Current liabilities
Interest bearing loans and borrowings
17 1,137100,765
Lease liabilities
18 39,07436,562
Trade and other payables
11137,077177,871
Contract liabilities
11 52,26751,180
Income tax payable
7,85015,041
Derivative financial instruments
22 1,495922
238,900382,341
Non-current liabilities
Interest bearing loans and borrowings
17 1,0351,883
Lease liabilities
18 36,30173,303
Trade and other payables
11 1,576 -
Contingent consideration
27 - 5,283
Derivative financial instruments
22 342405
39,25480,874
Liabilities associated with assets held for sale
12 - 1,601
Total liabilities
278,154464,816
Equity
Share capital
20 768,766767,608
Reserves
21 1,035991
Retained deficit
(347,647)(394,875)
Total equity attributable to equity holders of the Company
422,154373,724
Non-controlling interest
1,3401,246
Total equity
423,494374,970
Total equity and liabilities
701,648839,786
Consolidated
Balance Sheet
For and on behalf of the Board 24 August 2021
Keith Smith
Director
Philip Bowman
Director and Chairman

49
Sky / 2021 Annual Report
For the year ended 30 June 2021
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 year ended 30 June 2021
Balance at 1 July 2020
767,608991(394,875)373,7241,246374,970
Net profit for the year
- - 47,22847,22831847,546
Exchange difference on translation of
foreign operations
- (291) - (291) - (291)
Cash flow hedges, net of tax
21 - 496 - 496 - 496
Total comprehensive income for the year
- 20547,22847,433 318 47,751
Transactions with owners in their
capacity as owners
Dividend paid
- - - - (224)(224)
CEO share based remuneration
29 1,158 (161) - 997 - 997
1,158 (161) - 997(224)773
Balance at 30 June 2021
768,7661,035(347,647)422,1541,340423,494
For the year ended 30 June 2020
Balance at 1 July 2019
577,403(53)(227,111)350,239
1,329351,568
Impact of adoption of new accounting
standard
- - (10,785)(10,785) - (10,785)
Adjusted balance
577,403(53)(237,896)339,4541,329340,783
Net 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
21 - 824 - 824 - 824
Total comprehensive loss 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
20 157,091 - - 157,091 - 157,091
Issue of ordinary shares related to
business combination
20 24,378 - - 24,378 - 24,378
Issue of ordinary shares to
NZ Rugby Union
10,20 15,436 - - 15,436 - 15,436
Transaction costs relating to
share issues
20
(7,086) - - (7,086) - (7,086)
Dividend paid
- - - - (290)(290)
CEO share based remuneration
29 386 - - 386 - 386
190,205 - - 190,205(290)189,915
Balance at 30 June 2020
767,608 991 (394,875) 373,724 1,246 374,970
Consolidated Statement
of Changes in Equity

50
For the year ended 30 June 2021
In NZD 000Notes30-Jun-2130-Jun-20
Cash flows from operating activities
Profit/(loss) before tax
67,889(146,306)
Adjustments for:
Depreciation and amortisation
6107,991 119,318
Impairment of goodwill
- 177,500
Impairment of programme rights
107,466 3,240
Unrealised foreign exchange (gain)/loss
19(656) 1,953
Interest expense
1911,941 16,020
Bad debts and movement in provision for loss allowance
61,454 1,352
Other non-cash items
(259) 1,040
Movement in working capital items:
(Increase)/decrease in receivables
(9,283) 10,128
(Decrease)/increase in payables
(39,237) 17,631
Decrease/(increase) in programme rights
5,052(5,056)
Cash generated from operations
152,358196,820
Interest paid
(11,250)(15,995)
Bank facility fees paid
(900)(25)
Income tax paid
(33,000)(23,500)
Net cash from operating activities
107,208157,300
Cash flows from investing activities
Acquisition of property, plant, and equipment
13(25,657)(27,470)
Acquisition of intangibles
15(25,414)(28,988)
Acquisition of subsidiaries, net of cash acquired
28 -
(18,169)
Proceeds from disposal of OSB business
286,884 -
Net cash used in investing activities
(44,187)(74,627)
Cash flows from financing activities
Proceeds from rights issue and placement of shares
20 - 157,091
Transaction costs incurred for rights issue
20 - (7,086)
Repayment of borrowings - bank loan
17 - (207,000)
Repayment of borrowings - bonds
17(100,000) -
Advances received - bank loan
17 - 119,000
Repayment of other borrowings
17(1,171)(1,093)
Payments for lease liability principal
18(37,503)(36,901)
Dividend paid to minority shareholders
(224)(290)
Net cash (used in)/from financing activities
(138,898)23,721
Net (decrease)/increase in cash and cash equivalents
(75,877)106,394
Cash and cash equivalents at beginning of year
110,677 4,283
Cash and cash equivalents at end of year
34,800 110,677
Consolidated Statement
of Cash Flows

51
Sky / 2021 Annual Report
Notes to the Consolidated
Financial Statements
For the year ended 30 June 2021
1. General Information
This section sets out the Group’s accounting policies that relate to the consolidated financial statements as a whole.
They have been presented in a structure which is intended to make them more relevant to shareholders. Where an accounting
policy is specific to one note, the policy is described in the note to which it relates.
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 financial statements for the year ended 30 June
2021 comprise Sky Network Television Limited 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. The consolidated financial statements of the Group have been prepared in accordance with the requirements of the
Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.
The Group’s primary activity is to operate as a provider of sport and entertainment media services and telecommunications in
New Zealand and overseas.
These consolidated financial statements were authorised for issue by the Board on 24 August 2021.
Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand (NZ GAAP). The Group is a for-profit entity for the purpose of complying with NZ GAAP. The consolidated
financial statements comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), other
New Zealand accounting standards and authoritative notices that are applicable to entities that apply NZ IFRS. The consolidated
financial statements also comply with International Financial Reporting Standards (IFRS).
These consolidated financial statements are prepared on the basis of historical cost except where otherwise identified.
The consolidated financial statements are presented in New Zealand dollars.
Group structure
The Group has a majority share in the following subsidiaries:
Name of EntityPrincipal Activity
Country of
IncorporationParent Interest held
Jun-21Jun-20
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%
Non Trading PS Limited (previously
Outside Broadcasting Limited)
Non-tradingNew ZealandSky
100.00%100.00%
Screen Enterprises Limited Non-tradingNew ZealandSky
100.00%100.00%
Sky Network Services Limited
(Previously Igloo Limited)
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%
RugbyPass LimitedStreaming servicesIreland
Sky Investment
Holdings Limited
100.00%100.00%
RugbyPass Asia Pte LtdManagement servicesSingaporeRugbyPass Limited
100.00%100.00%
Lightbox New Zealand LimitedStreaming servicesNew ZealandSky
100.00%100.00%
Sports Analytics Pty Limited
(acquired 1 January 2021)
Data analytics for
sports
South Africa
Sky Investment
Holding s Limited
81.00%-
RugbyPass UK Limited
(incorporated 26 Jan 2021)
Streaming servicesNew Zealand
Sky Investment
Holdings Limited
100.00%-

52
Notes to the Consolidated Financial Statements (Continued)
2. Basis of Consolidation
The Group financial statements consolidate the financial statements of Sky and its subsidiaries. The acquisition method of
accounting is used to account for the acquisition of subsidiaries and businesses by the Group. The consideration transferred in
a business combination is measured at fair value, which is calculated as the sum of the acquisition date fair value of the assets
transferred and the liabilities incurred. Each identifiable asset and liability is generally measured at its acquisition date fair value
except if another NZ IFRS requires another measurement basis. The excess of the consideration of the acquisition and the amount
of any non-controlling interest in the acquired company, less the Group’s share of the identifiable assets acquired and the liabilities
assumed, is recognised as goodwill. Acquisition related costs are expensed as incurred.
Subsidiaries
Subsidiaries are entities that are controlled, either directly or indirectly, by the Group. The Group controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns from
its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
deconsolidated from the date on which control ceases.
Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup transactions, are eliminated
in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains unless the
transaction provides evidence of an impairment of the asset transferred.
Transactions with non-controlling interests
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is,
as transactions with the owners in their capacity as owners. The difference between the fair value of any consideration paid and
the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals
to non-controlling interests are also recorded in equity.
3. Significant Accounting Policies and
Critical Judgements and Estimation
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 Sky Box customers offset by ongoing uncertainties relating to the reduction of live sports, scheduling of
sports events and subsequent reduction of sport and entertainment content. There continues to be uncertainties due to the
COVID-19 epidemic that affect 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 assessed the recoverable amounts for each cash
generating unit for potential impairment at 30 June 2021, and also 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
indicate further impairment by considering factors such as:
• The Group’s results for the year, which have exceeded the prior year and the plan;
• The improvement in the Group’s share price between 30 June 2020 and 30 June 2021; and
• The premium of net assets to market capitalisation being broadly consistent to the position as at 30 June 2020 noting that the
market capitalisation excludes any control premium,
and have concluded that no further impairment of goodwill is required at 30 June 2021.
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. Management also considered the valuation of the programme rights arising from the share issue to the NZ
Rugby Union and assessed the carrying value as remaining appropriate as the future economic benefit is still expected to be realised.
RugbyPass contingent consideration – The fair value of the contingent consideration was assessed at $5.3 million at the acquisition
date. Considering 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 negotiated with the vendor to settle
the contingent consideration for a value of USD 1.25 million ($1.7 million). The agreement was formalised on 9 February 2021 and
the release of $3.6 million is included in other income (refer note 5).

53
Sky / 2021 Annual Report
3. Significant Accounting Policies and
Critical Judgements and Estimation (continued)
Capital Structure – As at 30 June 2021 the Group had negative working capital of $34 million compared to negative working
capital of $96 million at 30 June 2020. The Group carries a level of negative working capital mainly due to deferred income
recognised. The $100 million bond was repaid on 31 March 2021 out of the Group’s cash reserves (refer note 17).
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 financial statements after taking into consideration the current trading results and the undrawn banking facility
of $200 million as at 30 June 2021 (refer note 17).
Accounting policies
The accounting policies applied by the Group in these consolidated 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.
Foreign currency translation
Functional and presentation currency: The Group’s consolidated financial statements are presented in New Zealand dollars (NZD
or $) 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.
Comparatives
Certain comparative amounts have been reclassified to better reflect consistency with the current period. This does not have any
impact on the consolidated statement of comprehensive income or net asset position of the Group.
Goods and services tax (GST)
The consolidated statement of comprehensive income and consolidated statement of cash flows have been prepared so that all
components are stated exclusive of GST. All items in the consolidated balance sheet are stated net of GST with the exception of
receivables and payables, which include GST invoiced.
New Accounting interpretations applicable to the Group
IFRIC - Configuration and Customisation in a Cloud Computing Arrangement
The Group has capitalised costs incurred in configuring or customising a supplier’s application software in certain cloud computing
arrangements as intangible assets as the Group considered that it would benefit from those costs to implement the cloud-based
software over the expected terms of the cloud computing arrangement. Following the IFRS Interpretations Committee (IFRIC)
agenda decision on Configuration or Customisation costs in a Cloud Computing Arrangement in March 2021 (ratified by the IASB
in April 2021), the Group has commenced a review of these capitalised costs to determine whether they would need to be expensed
or reclassified as prepayments.
The IFRIC concluded that costs incurred in configuring or customising software in a cloud computing arrangement can be
recognised as intangible assets only if the activities create an intangible asset that the entity controls and the intangible asset
meets the recognition criteria. Costs that do not result in intangible assets are expensed as incurred, unless they are paid to the
supplier of the cloud-based software to significantly customise the cloud-based software for the Group, in which case the costs
paid upfront are recorded as prepayments for services and amortised over the expected terms of the arrangement. IASB has
confirmed in the past that reporting entities are entitled to sufficient time to determine the impact of IFRIC agenda decisions and
implement any resulting changes.
Transitioning systems to the cloud is a strategic priority of the Group. At the time of finalising the 30 June 2021 financial
statements the review process over SaaS
1
arrangements is still ongoing due to the complexity of arrangements, the number of
projects impacted and the vendor contracts included. Of the $50.4 million net book value of capitalised software at 30 June 2021,
Management estimate that the SaaS related value is in the vicinity of $15 million to $20 million. We are in the process of reviewing
these SaaS related capitalised costs to quantify the extent of any adjustment that may be required due to the revised accounting
policy. Further, as a result, following any change, going forward intangible assets and its associated amortisation might decrease,
operating expenses increase and prepayments may also be recognised.
We expect to have a clear understanding of the situation in the following financial year.
(1) S oftware as a Service

54
Notes to the Consolidated Financial Statements (Continued)
4. Segment and Revenue Information
In NZD 00030-Jun-2130-Jun-20
Sky Box subscriptions
532,122581,962
Other subscriptions
117,017105,381
Advertising
44,86645,155
Other revenue
17,22914,143
711,234746,641
Description of revenue streams
Within its operating business segment Sky has several revenue streams which it reports against. These include:
Sky Box subscription revenue: This includes revenue from Sky’s subscription services linked to its Sky Box customers.
Customers are invoiced on a monthly basis and contracts are normally for a period of 6 or 12 months with monthly renewals
thereafter. Early termination fees apply. Revenue is recognised over the period to which the subscription related.
Sky offers bundled services to its Sky Box customers which includes broadband and related equipment. Under NZIFRS 15 these
services are considered separate performance obligations and the revenue is allocated to each service proportionately based
on their stand-alone selling price.
Unearned subscriptions and deferred revenues are revenues that have been invoiced relating to services not yet performed and
are reported as contract liabilities (refer note 11).
Other subscription revenue: This includes commercial revenue earned from Sky subscriptions at businesses throughout
New Zealand, revenue from content sold to third parties for retransmission and revenue from streaming services such as Neon,
Sky Sport Now and RugbyPass. This revenue is recognised over time based on the timing of the services provided. Contracts
vary in length, including daily, weekly, monthly and are payable in advance.
Contracts with wholesale customers, where some of the Group’s services, (including Neon and Sky Sport Now) are combined
with the customer’s products and sold as part of a bundled service, have differing provisions such that the Group has been
determined to be either the principal or the agent depending on the wholesale contract terms. Revenue from these contracts
is invoiced monthly depending on the services provided, and is reported on a gross basis with the commission paid or discount
offered being treated as an operating expense where the Group is determined to be the principal and on a net basis where the
Group is determined to be the agent.
Advertising revenue: This relates to revenue received from customers in return for advertising placed on the Group’s services.
This revenue is reported when the advertisement is screened. Contract terms and rates vary depending on the customer and
services provided. Customers are billed monthly in arrears. Revenue is earned at a point in time
Other revenue: This includes revenue from installation services, transmission services and various other non-subscriber related
revenue. This revenue is recorded when the product or service has been delivered to the customer at a point in time or when
the performance obligation is received by the customer.
Key estimates and judgements
Gross versus net presentation
If the Group has control of goods or services when they are delivered to a customer, then the Group is the principal in the sale
to the customer, otherwise the Group is acting as an agent. Whether the Group is considered to be the principal or an agent
in the transaction depends on analysis by management of both the legal form and substance of the agreement between the
Group and its business partners; such judgements impact the amount of reported revenue and operating flows. Scenarios
requiring judgement to determine whether the Group is a principal or an agent include, for example, those where the Group
contracts through a third party to deliver its services such as Neon, Sky Sport Now and RugbyPass to customers via a bundled
service offering.

55
Sky / 2021 Annual Report
4. Segment and Revenue Information (continued)
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 comprising the provision of sport, entertainment media and
telecommunication services in New Zealand. RugbyPass has been identified as a separate operating segment and is a separate
cash generating unit for the year ended 30 June 2021. For financial reporting purposes and with reference to the aggregation
criteria in the accounting standards RugbyPass is aggregated with the Sky business operating segment for the purposes of
reporting segment disclosure.
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 as described below.
In NZD 000
Residential
subscriptions
Other
subscriptionsAdvertisingOther revenue
Total revenue
from contracts
with customers
For the year ended 30 June 2021
Revenue from customers
532,122117,01744,86628,874722,879
Inter-segment revenue
- - - (11,645)(11,645)
Total revenue
532,122117,01744,86617,229711,234
Timing of revenue recognition
At a point in time
5,294 - 44,8667,64457,804
Over time
526,828117,017 - 9,585653,430
532,122117,01744,86617,229711,234
For the year ended 30 June 2020
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
Inter-segment revenue relates to intergroup services relating to sports productions provided by OSB until 31 March 2021, when
OSB was sold to NEP Limited (refer note 28).
5. Other Income
Other income consists of:
In NZD 000Notes30-Jun-2130-Jun-20
Government grant R&D tax credit
1,752 1,005
Gain on sale of OSB
285,787 -
RugbyPass provision release
271,476 -
RugbyPass earnout release
273,553 -
Other income
952 -
13,5201,005
Other income: Income not related to revenue from contracts with customers is required to be disclosed separately in the
financial statements and includes investment income, gains or losses on disposal of assets, lessor revenue and other income
not related to customer contracts.

56
Notes to the Consolidated Financial Statements (Continued)
6. Operating Expenses
Profit before tax includes the following separate expenses/(credits):
In NZD 000Notes30-Jun-2130-Jun-20
Depreciation, amortisation and impairment
Depreciation and impairment of property, plant and equipment (1)
1336,35554,698
Amortisation of intangibles
1535,39631,050
Depreciation and impairment of right-of-use assets
1436,24033,570
Total depreciation, amortisation and impairment
107,991119,318
Credit loss
Movement in provision
374319
Net write-off
1,0801,033
Total credit loss
91,4541,352
Fees paid to external auditors
Audit fees paid to principal auditors (2)
589 649
Regulatory reporting
9 3
Non-assurance services by principal auditors
Agreed upon procedures on bank compliance certificate
- 3
Treasury related financial markets risk analysis and commentary
9 35
Scenario analysis of property requirements
- 36
Total fees to external auditors
607726
Employee costs (3)
82,416105,707
Kiwisaver employer contributions
2,1342,304
Donations
187302
Operating lease and rental expenses
922916
(1) T he majority of depreciation and amortisation relates to broadcasting assets (refer note 13).
(2) T he audit fee includes the fee for both the annual audit of the financial statements and the review of the interim financial statements.
(3) T he decrease in employee costs in 2021 is primarily due to one-off redundancy costs of $15.5 million and a Holidays Act 2003 compliance
pr ovision of $3.2 million recognised in the prior year.
Employee entitlements to salaries, wages and annual leave, to be settled within 12 months of the reporting date represent
present obligations resulting from employees services provided up to the reporting date, calculated at undiscounted amounts
based on remuneration rates that the Group expects to pay.
Incentive plans are recognised as a liability and an expense for discretionary short-term incentives (STIs) based on a formula
that takes into account the economic value added by employees during the reporting period. The Group recognises this
provision where contractually obliged or where there is a past practice that has created a constructive obligation.

57
Sky / 2021 Annual Report
7. Earnings Per Share
Basic and diluted earnings/(loss) per share
30-Jun-2130-Jun-20
Profit/(loss) after tax attributable to equity holders of the parent (NZD 000)
47,228(156,979)
Weighted average number of ordinary shares on issue (thousands)
1,746,480656,639
Basic and diluted earnings/(loss) per share(cents)
2.70(23.91)
30-Jun-2130-Jun-20
Issued ordinary shares at the beginning of the year
1,746,279,558389,139,785
Ordinary shares issued on 19 August 2019
- 25,085,408
Ordinary shares issued on 1 November 2019
- 21,801,325
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
Ordinary shares issued on 1 March 2021
600,000 -
Total number of shares on issue
1,746,879,5581,746,279,558
Weighted average number of ordinary shares on issue
1,746,480,106 656,638,762
Basic earnings or loss per share
Basic earnings or loss per share is calculated by dividing the profit attributable to equity holders of Sky by the weighted average
number of ordinary shares on issue during the year.
Diluted earnings per share
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. Sky had no dilutive potential ordinary shares during the current or prior period.

58
Notes to the Consolidated Financial Statements (Continued)
8. Taxation
Income tax expense
The total charge for the year can be reconciled to the accounting profit/(loss) as follows:
In NZD 00030-Jun-2130-Jun-20
Profit/(loss) before tax
67,889(146,306)
Prima facie tax expense at 28%
19,009(40,966)
Non-assessible income
(1,268) -
Non-deductible expenses
71049,806
Prior year adjustment
3729
Adjustment for change to building depreciation
153(2,487)
Tax loss not recognised
6111,813
Other
- 2
Effect of foreign tax rates
7562,289
Income tax expense
20,34310,466
Allocated between:
Current tax payable
26,41627,656
Deferred tax
(6,073)(17,190)
Income tax expense
20,343 10,466
As a result of a change in tax legislation enacted on 25 March 2020 with effect from 1 July 2020, the ability to tax depreciate
buildings was reinstated. The change required the restatement of the tax base (representing the future benefit of available tax
deductions) in the 2019/2020 income year. This resulted in a decrease to the deferred tax liability in the prior period of $2,486,958.
Imputation credits
In NZD 00030-Jun-2130-Jun-20
Imputation credits available for subsequent reporting periods based on a tax rate of 28%
161,341 145,963
The above amounts represent the balance of the imputation credit account as at the end of the reporting period adjusted for:
• Imputation credits that will arise from the payment of the amount of the provision for income tax;
• Imputation debits that will arise from the payment of dividends. Availability of these credits is subject to continuity of ownership
requirements.
Current income tax expense
Income tax expense represents the sum of the tax currently payable and deferred tax, except to the extent that it relates
to items recognised directly in other comprehensive income, in which case the tax expense is also recognised in other
comprehensive income. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as
reported in profit or loss because it excludes items of income or expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using the rates
that have been enacted or substantively enacted by the balance date.

59
Sky / 2021 Annual Report
8. Taxation (continued)
Deferred tax assets and (liabilities)
The following are the major deferred tax liabilities and assets and the movements thereon during the current and prior reporting periods.
In NZD 000Notes
Fixed
assets
Leased
assetsOther
Recognised
directly
in equityTo t a l
For the year ended 30 June 2021
At 1 July 2020
(1,899)(6,878)9,348(355)216
Disposal of subsidiaries
28 - 66 - -66
NZ IFRS 9 hedging adjustment recognised
through other comprehensive income
21 - - - (193)(193)
Credited/(charged) to profit and loss
2,7956,591(3,313) - 6,073
Balance at 30 June 2021
896(221)6,035(548)6,162
For the year ended 30 June 2020
At 1 July 2019
(8,178)(15,983)5,271(34)(18,924)
Acquired on acquisition of subsidiaries
28(1,923) - - - (1,923)
NZ IFRS 9 hedging adjustment recognised
through other comprehensive income
21 - - - (321)(321)
Reinstatement of building depreciation
2,487 - - - 2,487
Leased assets under NZ IFRS 16 - retained
earnings impact on transition
3 - 4,194 - - 4,194
Credited/(charged) to profit and loss
5,7154,9114,077 - 14,
703
Balance at 30 June 2020
(1,899)(6,878)9,348(355)216
Certain deferred tax assets and liabilities have been offset as allowed under NZ IAS 12 where there is a legally enforceable right
to set off current tax assets against current tax liabilities and where the deferred tax assets and liabilities are levied by the same
taxation authority.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is not
accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination,
that at the time of the transaction neither affects accounting nor taxable profit or loss. Deferred income tax is determined
using tax rates that have been enacted or substantively enacted by the balance date and are expected to apply when the
related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are
recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences
can be utilised.
Key estimates and judgements
Deferred tax assets are recognised for unused tax losses and other deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the losses and other deductible temporary differences can be utilised.
Significant management judgement is required to determine the amount of deferred tax assets that can be recognised based
upon the likely timing and level of future taxable profits. No deferred tax asset has been recognised in relation to the RugbyPass
accumulated losses of $19,412,000 (30 June 2020: $14,506,000) and Sky Network Services Limited’s (previously Igloo Limited)
accumulated losses of $12,150,000 (30 June 2020: $12,150,000). These tax losses can be carried forward for use against future
taxable profits of both entities subject to meeting the requirements of the income tax legislation in the local tax jurisdiction
including shareholder continuity.

60
Notes to the Consolidated Financial Statements (Continued)
9. Trade and Other Receivables
In NZD 000Note30-Jun-2130-Jun-20
Trade receivables
37,694 40,193
Less provision for loss allowance
(1,272)(898)
Trade receivables - net
36,422 39,295
Other receivables
8,847 6,019
Owing by NEP
28 7,000 -
Prepaid expenses
13,346 11,540
Balance at end of year
65,615 56,854
Deduct receivables not classified as financial assets
1
(13,601)(11,540)
Financial instruments
2652,01445,314
(1) R eceivables not classified as financial instruments include prepaid expenses, tax receivable and facility fees.
Impairment of trade receivables
The Group applies the NZ IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss
allowance for all trade receivables.
To measure the expected credit losses trade receivables have been grouped based on the shared credit risk characteristics
and the days past due. The expected loss rates are based on the payment profiles of revenue over the prior 24 months and the
corresponding historical credit losses experienced within this period. As a result of the COVID-19 pandemic the Group increased
its expected loss rates due to the uncertain future outlook for its residential and commercial Sky Box customers in FY20.
The ability of these customers to settle receivables in the near future is not currently considered to relate to the historical credit
risk characteristics of those customers.
The impairment of trade receivables as at 30 June 2021 is as follows:
30-Jun-2130-Jun-20
In NZD 000
Gross ImpairmentGross Impairment
Residential subscribers
24,326(1,099)24,383(653)
Commercial subscribers
4,759(32)2,975(58)
Wholesale customers
1,004 - 7,900 -
Advertising
4,680(60)2,894(32)
Other
2,925(81)2,041(155)
37,694(1,272)40,193(898)

61
Sky / 2021 Annual Report
9. Trade and Other Receivables (continued)
As at 30 June, the ageing analysis of trade receivables is as follows:

30-Jun-2130-Jun-20
In NZD 000
Expected
loss rate
Gross
carrying
amount
Loss
allowanceIn NZD 000
Expected
loss rate
Gross
carrying
amount
Loss
allowance
Not past due
0.2% 31,483 75
Not past due
0.2% 34,735 71
Past due 0-30 days
2.3%3,83287
Past due 0-30 days
2.2%3,56680
Past due 31-60 days
7.3%1,07579
Past due 31-60 days
6.4%93760
Past due 61-90 days
55.8%557311
Past due 61-90 days
53.7%406218
Greater than 90 days
96.4%747720
Greater than 90 days
85.4%549469
37,6941,27240,193898
Movements in the provision for impairment of receivables were as follows:
In NZD 000Note30-Jun-2130-Jun-20
Opening balance
898 579
Charged during the year
6 1,454 1,352
Utilised during the year
(1,080)(1,033)
Closing balance
1,272 898
The provision charged and the amount utilised for impaired receivables has been included in subscriber related costs in profit or
loss. Amounts charged to the allowance account are generally written off when there is no expectation of receiving additional cash,
usually ninety days after a customer has been disconnected. The maximum exposure to credit risk at the reporting date is the fair
value of each class of receivable. The Group holds collateral of $1.2 million (30 June 2020: $1.2 million) in the form of deposits for
Sky Box customers.
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment. Collectability of trade receivables is reviewed on an on-going basis.
Debts which are known to be uncollectible are written off. An impairment loss is recognised based on expected credit losses for
each trade receivable group.

62
Notes to the Consolidated Financial Statements (Continued)
10. Programme Rights Inventory
In NZD 000Note30-Jun-2130-Jun-20
Opening balance
115,67289,458
Acquired as part of acquisition of RugbyPass and Lightbox
28 - 9,517
Settled by issue of shares to NZ Rugby Union
20 - 15,436
Acquired during the year
1
266,348 282,097
Written off during the year
(7,466)(3,240)
Charged to programming expenses
(271,400)(277,596)
Balance at end of year
103,154115,672
(1) Prior year acquired programme rights have been amended due to a reclassification as described in note 3.
Programme rights inventories for broadcast are stated at the lower of cost and net realisable value, and net of the
accumulated expense charged to the income statement to date. Such programming rights are included as inventories when
the legally enforceable licence period commences and all of the following conditions have been met: (a) the cost of each
programme is known or reasonably determinable; (b) the programme material has been accepted by the Group in accordance
with the conditions of the rights; and (c) the programme is available for its first showing.
Prior to being included in inventories, the programming rights are classified as television programme rights not yet available
for transmission and not recorded as inventories on the Group’s balance sheet and are instead disclosed as contractual
commitments (refer note 30).
The cost of television programme inventories is recognised as programming rights in the income statement, over the period
the Group utilises and consumes the programming rights, applying linear-broadcast and time-based methods of amortisation
depending on the type of programme right, taking into account the circumstances primarily as described below.
These circumstances may change or evolve over time and, as such, the Group regularly reviews and updates the method used
to recognise programming expense.
• Sports – the majority or all of the cost is recognised in the income statement on the first broadcast or, where the rights are
for multiple seasons or competitions, such rights are recognised principally on a straight-line basis across the contracted
broadcast period or season.
• Movies – the cost is recognised in the income statement on an “as played” basis over the period for which the broadcast
rights are licensed.
• Pass through channels – the cost is amortised in the month of activity.
• Entertainment streaming content is amortised on a straight-line basis over the licence period.
The Group regularly reviews its programming rights for impairment. Where programme broadcast rights are surplus to the
Group’s requirements, and no gain is anticipated through a disposal of the rights, or where the programming will not be
broadcast for any other reason, a write-down to the income statement is made. Any reversals of inventory write-downs are
recognised as reductions in operating expense.
Key estimates and judgements
The COVID-19 pandemic has resulted in uncertainty around the valuation and amortisation of sports rights specifically
in relation to the value of major sports competitions. Some competitions have been delayed or postponed. As at 30 June
2021 it is still not clear when and if certain sports events will take place, and as a consequence, management have exercised
judgement in assessing the value of programming rights at year end and the estimated amortisation of rights costs. Where
the Group has negotiated an equitable reduction due to COVID-19 prior to balance date on contracted payments for certain
sports rights where content has been prepaid but not delivered or where content has been contracted for but will not be
delivered, the amortisation expense has been adjusted accordingly.

63
Sky / 2021 Annual Report
11. Trade and Other Payables and Contract Liabilities
In NZD 000Notes30-Jun-2130-Jun-20
Trade payables
83,710 94,009
Deferred consideration
28 - 10,522
Employee entitlements
10,560 7,307
Tax payables
7,377 13,750
Accruals
31,119 41,159
Provisions
1
27 5,887 11,124
Balance at end of year
138,653 177,871
Current
137,077 177,871
Two to five years
1,576 -
138,653 177,871
Less
Payables not classified as financial instruments
2
(23,824)(32,181)
Financial instruments
25114,829145,690
(1) Prior year provisions have been amended due to a reclassification as described in note 3.
(2) T ax payables, provisions and employee benefits do not meet the definition of a financial instrument and have been excluded from the
“ Trade and other payables” category.
Trade and other payables, other than contingent consideration which is measured at fair value, are initially measured at fair value
and are subsequently measured at amortised cost using the effective interest method.
Contract liabilities
IN NZD 00030-Jun-2130-Jun-20
Deferred revenue
52,267 51,180
Contract liabilities of $51,180,000 were released during the year (30 June 2020: $54,396,000).
Contract liabilities are not classified as financial instruments.
Contract liabilities are recognised for payments received from customers in advance and are recognised in revenue over
the service period. Sky invoices customers in advance for both residential and commercial subscriptions. Contract liabilities
recognised at the end of the financial year are recognised as revenue in the following year.

64
Notes to the Consolidated Financial Statements (Continued)
12. Assets Held for Sale
On 15 May 2021 the Sky land and buildings known as Studios 2 and 3 were listed for sale. Sky announced its intention to sell on the
NZX on 26 March 2021. As at 30 June 2021 a sale had not yet been completed and the land and buildings were classified as held
for sale in the financial statements. The assets held for sale have been reported at their book value.
The Board continues to assess the strategy relating to the Mt Wellington property portfolio, including Studios 2 and 3, but also
options relating to the land and buildings known as Studio 1.
On 11 February 2020, the Board made the decision to dispose of the assets of Outside Broadcasting Limited (OSB) a subsidiary
of Sky. As at 30 June 2020 the assets were classified as held for sale in the financial statements. Assets and liabilities held for sale
have been reported at their book values. OSB was part of the Sky operating segment until the sale of the assets was completed at
31 March 2021 (refer note 28).
In NZD 000Note30-Jun-2130-Jun-20
Assets
Property, plant and equipment (net)
1313,4367,245
Right-of-use assets (net)
14 - 1,122
Assets held for sale
13,4368,367
Liabilities
Employee entitlements
-235
Short term lease liabilities
18-349
Long term lease liabilities
18-1,017
Liabilities associated with assets held for sale
-1,601
The movements in assets held for sale are:
In NZD 000
Property, plant
and equipment
Right-of-use
assets
Other
assets
Lease
liabilities
Other
liabilitiesTo t a l
Balance at 1 July 2020
7,2451,122 - (1,366)(235)6,766
Depreciation
(53)(193) - - - (246)
Lease repayments
- - - 209 - 209
Employee accruals
adjustment
- - - - 235 235
Additions
13,436 - 1,133 - - 14,569
Disposals (note 28)
(7,192)(929)(1,133)1,157 - (8,097)
Balance at 30 June 202113,436 - - - - 13,436

65
Sky / 2021 Annual Report
13. Property, Plant and Equipment
In NZD 000
Land, buildings
& leasehold
improvements
Broadcasting
& studio
equipment
Decoders &
associated
equipment
Capitalised
installation
costs
Other
plant &
equipment
Projects
under
development
1
To t a l
1

For the year ending 30 June 2021
Cost
Balance at 1 July 2020
70,763 100,645 304,083 251,921 92,542 2,386 822,340
Transfer between categories
(222)8,709- 32 (10,108)(1,532)(3,121)
Assets held for sale (note 12)
(19,701) - - - - - (19,701)
Additions
1,1221,4682,03014,8465,37981225,657
Disposals
(8,163)(104)(52,058)(21,621)(9,986) - (91,932)
Balance at 30 June 2021
43,799110,718254,055245,17877,8271,
666733,243
Accumulated depreciation
Balance at 1 July 2019
28,52299,868296,107209,89363,365 - 697,755
Transfer between categories
- 747(3)19(3,885) - (3,122)
Depreciation for the year
2,371 2,555 3,703 19,843 7,883 - 36,355
Assets held for sale (note 12)
(6,265) - - - - - (6,265)
Disposals
(7,911)(104)(52,057)(21,621)(9,979) - (91,672)
Balance at 30 June 2021
16,717103,066247,750208,13457,384 - 633,051
Net book value
at 30 June 2021
27,0827,6526,30537,04420,4431,666100,192
For the year ending 30 June 2020
Cost
Balance at 1 July 2019
70,011 144,811 321,242 261,914 89,091 9,440 896,509
Acquired as part of the
acquisition of RugbyPass
and Lightbox
- - - - 385 - 385
Transfer between categories
(2,408)(78) - - 2,486 - -
Transfer from projects
937 1,676 - - 4,663 (9,440)(2,164)
Assets held for sale (note 12)
(196)(48,942) - - (6,485)(52)(55,675)
Additions
2,4193,68168112,5975,6542,43827,470
Disposals
- (503)(17,840)(22,590)(3,252) - (44,185)
Balance at 30 June 2020
70,763100,645304,083251,92192,5422,386822,340
Accumulated depreciation
Balance at 1 July 2019
26,267136,325298,351209,01263,337733,292
Depreciation for the year
2,380 6,460 15,586 23,471 6,801 - 54,698
Assets held for sale (note 12)
(125)(42,414) - - (5,891) - (48,430)
Disposals
- (503)(17,830)(22,590)(882) - (41,805)
Balance at 30 June 2020
28,52299,868296,107209,89363,365 - 697,755
Net book value
at 30 June 2020
42,2417777,97642,02829,1772,386124,585

(1) T he prior year closing balances have been updated to exclude $33.4 million of fully depreciated projects under development for both cost and
accumulated depreciation. The net effect on the opening net book value is nil.

66
Notes to the Consolidated Financial Statements (Continued)
13. Property, Plant and Equipment (continued)
Land, buildings, and leasehold improvements at 30 June 2021 includes land with a cost of $2,625,000 (30 June 2020: $8,820,000).
The land and buildings identified as Studios 2 and 3 were listed for sale on 15 May 2021 and have been classified as held for
sale in the financial statements (refer note 12). Depreciation related to broadcasting assets (including decoders and capitalised
installation costs) of $26,101,000 (30 June 2020: $45,527,000) accounts for the majority of the total depreciation charge.
Due to immateriality of the remaining depreciation, no allocation of deprecation has been made across expense categories in
the consolidated statement of comprehensive income.
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses except land which
is shown at cost less impairment. Cost includes expenditure that is directly attributable to the acquisition of the items.
Capitalised installation costs are represented by the cost of satellite dishes, installation costs and direct labour costs.
Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it
is probable that the future economic benefits embodied within the item will flow to the Group and the cost of the item can be
measured reliably. The cost of additions to plant and other assets constructed by the Group consist of all appropriate costs of
development, construction and installation, comprising material, labour, direct overhead and transport costs. For qualifying
assets directly attributable interest costs incurred during the period required to complete and prepare the asset for its
intended use are capitalised as part of the total cost. All other costs are recognised in profit or loss as an expense is incurred.
Additions in the current year include $207,450 of capitalised labour costs (30 June 2020: $2,064,000). Additions for 30 June
2020 also included $205,000 of capitalised interest.
Projects under development comprise expenditure on partially completed assets. The projects include items of property,
plant and equipment and intangible assets. At completion of the project the costs are allocated to the appropriate asset
categories and depreciation or amortisation commences.
Costs may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency
purchases of property, plant and equipment.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and recognised in other costs.
Depreciation
Property, plant and equipment are depreciated using the straight-line method so as to allocate the costs of assets to their
residual values over their estimated useful lives as follows:
Leasehold improvements 5-50 years
Buildings 50 years
Broadcasting and studio equipment 5-10 years
Decoders and other customer premises equipment 4-5 years
Other plant and equipment 3-10 years
Capitalised installation costs 5 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
Key estimates and judgements
The estimated life of technical assets such as decoders and other broadcasting assets is based on management’s best
estimates. Changes in technology may result in the economic life of these assets being different from that estimated
previously. The Board and management regularly review economic life assumptions of these assets as part of management
reporting procedures.

67
Sky / 2021 Annual Report
14. Right-Of-Use Assets
In NZD 000TransmissionPropertyEquipmentMotor vehiclesTo t a l
Right-of-use assets
Balance at 1 July 2020
79,4329,5977,58720596,821
Additions
652-5,181-5,833
Lease modification
-(1,794)4,0351782,419
Terminations
-(2,696)(1,719)(146)(4,561)
Depreciation & impairment
(27,388)(1,655)(7,066)(131)(36,240)
Balance at 30 June 2021
52,6963,4528,01810664,272
Right-of-use assets
Transition balance on 1 July 2019
61,8987,6028,03842477,962
Reclassify assets relating to finance
leases previously recognised
- - 2,387 - 2,387
Held for sale (note 12)
- (1,029) - (93)(1,122)
Additions and lease modification
42,875 5,6283,5042152,028
Terminations
- (864) - - (864)
Depreciation
(25,341)(1,740)(6,342)(147)(33,570)
Balance at 30 June 2020
79,4329,5977,58720596,821
A review of Sky’s property portfolio has resulted in a reassessment of some of its property leases resulting in cancelling the lease or
shortening the lease term.
Due to COVID-19 some lessors have provided the Group with lease concessions by way of reduction or postponement of monthly
payments, for periods of up to three months. These concessions have not resulted in any changes in either the lease asset or the
lease liability (refer note 18). The value of lease concessions received is $29,000 (30 June 2020: $309,000) for property leases and
nil (30 June 2020: $440,000) for equipment leases. These are recorded as a deduction from operating expenses.
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.
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. The Group has incorporated renewal options
into the lease term where it is reasonably certain that the lease will be extended.

68
Notes to the Consolidated Financial Statements (Continued)
15. Intangible Assets
In NZD 000NotesSoftware
Other
intangibles
Projects under
developmentTo t a l
For the year ending 30 June 2021
Cost
Balance at 1 July 2020
181,7429,0579,291 200,090
Transfer between categories
-(369) - (369)
Transfer from projects under development
8,907 - (8,907) -
Acquired as part of the acquisition of
Sports Analytics
12192 - 204
Additions
24,150 - 1,264 25,414
Disposals
(9,788)(1,597) - (11,385)
Balance at 30 June 2021
205,0237,2831,648213,954
Accumulated amortisation
Balance at 1 July 2020
130,7512,783 - 133,534
Transfer between categories
-(369) - (369)
Amortisation for the year
33,3252,071 - 35,396
Disposals
(9,488)(820) - (10,308)
Balance at 30 June 2021
154,5883,665 - 158,253
Net book value at 30 June 2021
50,4353
,6181,64855,701
For the year ending 30 June 2020
Cost
Balance at 1 July 2019
151,8891,083 - 152,972
Acquired as part of the acquisitions
287,9957,974 - 15,969
Transfer from projects under development
132,164 - - 2,164
Additions
19,697 - 9,291 28,988
Disposals
(3) - - (3)
Balance at 30 June 2020181,7429,0579,291200,090
Accumulated amortisation
Balance at 1 July 2019
101,4241,063 - 102,487
Amortisation for the year
29,3301,720 - 31,050
Disposals
(3) - - (3)
Balance at 30 June 2020
130,7512,783 - 133,534
Net book value at 30 June 2020
50,9916,2749,29166,556
Software development costs recognised as assets are amortised on a straight-line basis over their estimated useful lives
(generally three to five years).
Direct costs associated with the development of broadcasting and business software for internal use are capitalised where it
is probable that the asset will generate future economic benefits. Capitalised costs include external direct costs of materials
and services consumed and direct payroll-related costs for employees (including contractors) directly associated with the
project and interest costs incurred during the development stage of a project. Additions in the current year to software include
$9,498,000 of accumulated capitalised labour costs (30 June 2020: $9,432,000), $6,975,000 of which were incurred in the
current year (30 June 2020: $7,956,000) and $242,000 of capitalised interest (30 June 2020; $513,000).
Projects under development comprise expenditure on partially completed assets. The projects include items of property, plant
and equipment and intangible assets. At completion of the project the costs are allocated to the appropriate asset categories
and depreciation or amortisation commences.
Key estimates and judgements
Assets that are subject to amortisation and depreciation are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair
value less costs to sell and value-in-use.

69
Sky / 2021 Annual Report
16. Goodwill
In NZD 000Notes30-Jun-2130-Jun-20
Opening balance
256,312395,331
Acquisition of subsidiary
28 - 38,481
Disposal of OSB
28(1,067) -
Impairment
- (177,500)
Closing balance
255,245 256,312
Assets that have an indefinite useful life are not subject to amortisation and are tested at each reporting date for impairment
and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment
tests are performed by assessing the recoverable amount of each individual asset or cash generating unit (CGU). The
recoverable amount is determined as the higher amount calculated under a value-in-use or a fair value less costs of disposal
calculation. Both methods utilise pre-tax future cash flows which are included in the Group’s five-year business plan.
Goodwill represents the excess of the cost of acquisition over the fair value of the Group’s share of the net identifiable assets,
liabilities and contingent liabilities of the acquired subsidiary at the date of acquisition and the fair value of the non-controlling
interest in the acquired subsidiary. Prior to 30 June 2020 the goodwill balance had been allocated to the Group’s single
reportable segment. The majority of goodwill arose as a result of the acquisition of Sky by Independent Newspapers Limited
(INL) in 2005. Subsequent acquisitions have resulted in increases to goodwill, including in August 2019 with the acquisition of
RugbyPass and associated goodwill of $38.5 million (refer note 28).
From the year ended 30 June 2020, RugbyPass has been reported as a separate CGU, albeit it continues to be included as part
of the Group’s single reportable segment (refer note 4). Subsequent to the December 2019 reporting date, the Board had
reassessed their view of the Group’s CGUs and determined that the separation of Sky and RugbyPass into individual CGUs
represented the lowest level for which there are separately identifiable cash inflows largely independent of the cash inflows
from other assets. This reassessment was largely driven by COVID-19 and the uncertainty it caused in the global sporting
rights market. This uncertainty had led the Board to pivot the RugbyPass strategy away from content rights monetisation
through streaming to the monetisation of its audience reach and self-generated content through advertising, sponsorship
and lower priced subscriptions. This meant the forecast revenue model for RugbyPass largely differed from that of Sky’s which
continued to primarily be subscriber-based content rights monetisation. In 2021 the Group sold the streaming business of
RugbyPass to Premier Sports Ltd (refer note 28).
In separating out the RugbyPass CGU from Sky’s, all of the RugbyPass acquisition goodwill of $38.5 million was allocated
to the RugbyPass CGU as it was management’s view that, in conjunction with the factors described above, the existing Sky
business had not received any material synergy benefits from the acquisition of RugbyPass. This goodwill was subsequently
impaired by $27.5 million at 30 June 2020.
On 31 March 2021 the Group disposed of Outside Broadcasting Limited (OSB) (refer note 28). NZ IAS 36 requires that any
goodwill associated with an operation that has been disposed must also be disposed of.
In performing impairment testing, if the carrying values exceed the recoverable amounts of the CGU, then the goodwill
allocated to each of these units is considered to be impaired and an impairment expense is recognised in the income statement.
The recoverable amounts of both CGUs for the year ended 30 June 2021 have been determined based on fair value less cost of
disposal calculations using the discounted cash flow (DCF) model. Calculations for the year ended 30 June 2020 were completed
by an independent third-party valuer, and for the year ending 30 June 2021 management has utilised the same valuation
approach and model used by the independent valuer with updated assumptions including some changes to revenue and cost
assumptions. This valuation methodology uses level three inputs in terms of the fair value hierarchy in NZ IFRS 13.
The fair value less cost of disposal calculations include benefits of future changes to the cost structure as the Group leverages
new technologies and continues to refine its operating models. For RugbyPass, it also includes the impacts of the change in
strategy. Some of these changes would not be included if value-in-use calculations were used to determine the recoverable
amounts of the CGUs and therefore fair value less cost of disposal calculations leads to the highest recoverable amounts for
both CGUs.
Key estimates and judgements
The determination of CGUs and the allocation of goodwill to these CGUs requires a degree of judgement by management and
this has been outlined above.
The forecasts used in impairment testing also requires assumptions and judgements about the future, such as discount
rates, terminal growth rates, forecast revenues, and assumptions around programming rights, and other costs and capital
expenditure to which the impairment models are very sensitive, and which are inherently uncertain. Actual results may differ
materially from those forecast or implied. The forecasts are not, and should not be read as, a forecast of, or guidance as to,
the future financial performance and earnings of the Group.

70
Notes to the Consolidated Financial Statements (Continued)
16. Goodwill (continued)
Cash flows over the forecast period (FY22 to FY26)
Forecast cash flows are prepared based on management’s current expectations, with consideration given to internal information
and relevant external industry data and analysis. The cash flow assumptions reflect the Group’s growth ambitions which are
included in the latest Board approved five-year plan.
In determining the cash flows for the five-year business plan, the Group acknowledges that there continues to be ongoing
uncertainties surrounding factors such as:
• the ongoing uncertainty caused by the COVID-19 pandemic;
• the quantum and timing of subscription revenues including expected acquisition and retention rates for streaming and Sky Box
customers;
• timing of live sports across the various sporting codes and delivery of rights according to contract, or delivery of equivalent
content, and assumptions around the cost of renewing key rights agreements in the future;
• formalising agreements for equitable cost reductions for sports rights which have been impacted by Covid-19 and/or other
commercial factors; and
• expansion of content delivery by means other than satellite, specifically the launch of broadband services.
While the core strategy and direction of the business remains broadly the same as the previous five-year plan, which was the basis
of the impairment testing at 30 June 2020 and was prepared during the early stages of the COVID-19 pandemic, the latest Board
approved plan reflects changes in the business since that time, as well as areas where there has been a shift in focus, such as:
• the better than expected trading performance for the year ended 30 June 2021;
• a more positive outlook for Sky Box, reflecting the focus on stabilising and then growing subscriber numbers, as evidenced by the
favourable trends and outlook for customer acquisitions and churn as compared to assumptions made twelve months ago in the
heightened uncertainty of the early stages of COVID-19;
• a less aggressive, but still ambitious, growth outlook in streaming;
• changes to sport and entertainment costs to reflect new and/or revised rights deals (e.g. securing the long-term partnerships
with NRL and New Zealand Rugby League) and revised assumptions around content renewals in the future;
• a refined broadband plan reflecting the proposition that was recently launched in market;
• the disposal of the RugbyPass streaming business in January 2021 (refer note 28), with a resulting revision of the RugbyPass
forecasts; and
• other structural changes e.g. the sale of the Outside Broadcasting business.
Valuation approach
Management has performed a roll-forward of the 2020 independent valuation, based on the latest Board approved five-year plan,
and used the same discount rates and terminal growth rates as the 2020 valuation, other than for broadband (which is part of
the Sky CGU) whereby the discount rate has been reduced to reflect the recent launch of the broadband proposition into market
during the last quarter of the 2021 financial year.

71
Sky / 2021 Annual Report
16. Goodwill (continued)
Key cash flow assumptions include the following:
Sky CGU
Residential Sky Box and streaming revenues have been forecast based on management’s current expectations of subscriber
numbers and average revenues per user (ARPU). In forming these expectations, management has referenced past churn and
acquisition performance, and factored in management interventions and planned growth strategies, specifically plans for a new
set top box, initiatives focused on customer retention and loyalty, and for streaming, continued growth following the merger of the
Lightbox platform with Neon, and the repositioning of Sky Sport Now to increase its appeal to customers.
Broadband revenues represent a new revenue stream for Sky following its launch in the 2021 financial year and are estimated
based on management’s expectations of Sky’s market penetration with reference to relevant industry data and Sky’s expected
ARPU.
Programming expenses include both programming rights and programming costs. Programming rights expenses have been
forecast with reference to contractual arrangements for content currently in place and management’s expectations of future
renewal of content arrangements. Management assumes the continuity of rugby content supply as envisioned in the short form
agreements (“NZR Agreements”) entered into by Sky, SANZAAR and NZ Rugby in October 2019. The parties continue to negotiate
relevant updates to the NZR Agreements reflecting changes to rugby content and competitions as a result of restrictions arising
from COVID-19 or as mutually agreed by the contractual parties. Management has assumed that sufficient volume and quality of
rugby content will be delivered for the length of the contracted period and that the applicable contracted payments will be made.
Programming costs largely comprise of sports production costs and are forecast with reference to the latest sporting calendar and
management’s expectations of future events and renewal assumptions.
Broadcasting and infrastructure expenses are forecast with reference to historical trends with assumed cost savings as Sky
continues to refine its operational activities through a period of transformational change and right-sizes its cost base.
RugbyPass CGU
Future RugbyPass revenues and costs are estimated with reference to comparable content generation, subscription, and
marketing businesses leveraging RugbyPass’ existing industry and user relationships, audience reach and content engagement.
Capital expenditure
Within both CGUs is forecast with reference to revenue consistent with historical trends and the changing nature of the Group’s
asset base.
Discount rates and terminal growth rates
The terminal growth rates and discount rates used in the 30 June 2021 impairment assessment calculations (and the equivalent
assumptions for 30 June 2020) are detailed below. Costs of disposal are assumed to be 1% (30 June 2020: 1%) of enterprise value.
30-Jun-21
30-Jun-20
Sky CGURugbyPass CGU
Sky CGURugbyPass CGU
Terminal growth rate
1.4%2.0%1.4%2.0%
Discount rate (post-tax)
14.3%35.0%15.3%35.0%
Discount rate (pre-tax)
19.9%48.6%21.3%48.6%
The 1.4% terminal growth rate for the Sky CGU takes into account the surety of content supply from entering into long term
content supply agreements in the current financial year, the changing balance of future revenues with streaming and other
subscription revenue that are likely to more than offset the decline of residential Sky Box revenues. Any risks of not achieving long
term growth rate have been adequately factored into the discount rate.
The discount rates represent the current assessment of the risks specific to each CGU, considering the time value of money and
risks of achieving the cash flow estimates. The discount rate calculation is based on the specific circumstances of the CGUs and is
derived from its weighted average costs of capital (WACC).

72
Notes to the Consolidated Financial Statements (Continued)
16. Goodwill (continued)
Conclusion
As outlined in note 3, Management and the Directors have assessed the recoverable amounts for each CGU, and also considered
whether there are any events or changes in circumstances that may indicate impairment, and concluded that no impairment of
goodwill is required at 30 June 2021 for both CGU’s.
30-Jun-21
30-Jun-20
In NZD 000Notes
Sky CGURugbyPass CGU
Sky CGURugbyPass CGU
Opening balance
245,33110,981395,331-
Acquisition of RugbyPass
28---38,481
Impairment
--(150,000)(27,500)
Disposal of OSB
28(1,067)---
Closing balance
244,26410,981245,33110,981
Sensitivities
The impact of planned new product offerings, proposed price changes and market changes arising from competition make 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. Actual results may be materially different from the plan due to changes in the key assumptions,
in particular changes in the quality, pricing or retention of key content contracts, the continued uncertainty regards Covid-19,
subscriber numbers and ARPU could give rise to impairment of goodwill.
The key forecast cash flow assumptions by CGU are outlined in the following table. For each key assumption management has
identified what a reasonable possible change may be, based on expected ranges which would significantly impact the recoverable
amount. The expected impacts on the CGU recoverable amount which result from a sensitivity to subscribers also captures the
change in the directly attributable variable costs caused by the increase/decrease to subscribers. The expected impact on the CGU
recoverable amount from the cost sensitivities do not capture any changes in revenue which may result if costs were to increase/
decrease.
Expected impact on CGU recoverable amount
Sensitivity
Upside $millionDownside $million
Sky CGU
Residential Sky Box revenues+/-10% change to subscribers
1
230.2 (230.2)
+/-10% change to ARPU
1
379.3 (379.3)
Streaming revenues+/-10% change to subscribers
43.8 (44.3)
+/-10% change to ARPU
60.0 (60.6)
Sky CGU costs+/-20% change to programming cost renewals
1
368.9 (368.9)
+/-1% change to capex as % of revenue
77.1 (77.1)
DCF assumptions+/-2% change to discount rate
143.2 (95.3)
+/-1% change to terminal growth rate
46.4 (38.0)
RugbyPass CGU
Revenues+/-10% change to revenue
1.4 (1.4)
DCF assumptions+/-10% change to discount rate
11.3 (5.5)
+/-1% change to terminal growth rate
0.4 (0.3)
(1) F or the most material forecast cashflow assumptions, namely Sky Box subscriber numbers, Sky Box ARPU and programming cost renewals,
the sensitivity levels at which goodwill headroom reduces to nil are: Sky Box subscribers numbers (6.6)%, Sky Box ARPU (4.0)%, and programming
c ost renewals 8.2%. For other sensitivities shown the reasonably possible changes would not result in an impairment.
Market capitalisation comparison
The Group compares the carrying amount of net assets with its market capitalisation value at each reporting balance date.
The share price as at 30 June 2021 was $0.174 equating to a market capitalisation of $303.9 million, and the share price on the
day the financial statements were signed was 16.2 cents equating to market capitalisation of $283.0 million. This market value
excludes any control premium and may not reflect the value of the Group’s net assets. The carrying amount of the Group’s net
assets as at 30 June 2021 was $423.5 million ($0.24 per share). Management and the Directors have considered the market
capitalisation and net assets and concluded that there is no impairment.

73
Sky / 2021 Annual Report
17. Borrowings
30-Jun-2130-Jun-20
In NZD 000CurrentNon-currentTo t a lCurrentNon-currentTo t a l
Borrowings
1
1,137 1,035 2,172 9701,8832,853
Bonds
- - - 99,795 - 99,795
1,137 1,035 2,172 100,765 1,883 102,648
(1) Borrowings include third-party loans.
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 New Zealand Limited securing a facility of $200 million ending on 31 July 2023.
The facility arrangements (together with certain hedging arrangements) 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, RugbyPass Limited, Sky Network
Services Limited, 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.
As is customary for facilities of this nature, the loan facility is subject to certain covenant clauses whereby the Group is required to
meet certain key financial ratios and other performance indicators.
There have been no breaches of covenant clauses and no breaches are anticipated within the next 12 months.
Bank overdrafts of $1,511,000 (30 June 2020; $1,902,000) have been set off against cash balances.
Bonds
On 31 March 2014 the Group issued bonds for a value of $100 million. The bonds were fully repaid on 31 March 2021.
Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial
recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value
being recognised in profit or loss over the period of the borrowings, using the effective interest method. Borrowings are classified
as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after
the balance date.
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less. Bank overdrafts
that are repayable on demand and which form an integral part of the Group’s cash management are included as a component
of cash and cash equivalents for the purpose of the statement of cash flows.
Bonds are recognised initially at fair value less costs of issue. Costs of issue are amortised over the period of the bonds.
Subsequent to initial recognition, bonds are stated at amortised cost with any difference between cost and redemption value
being recognised in profit or loss over the period of the bonds, using the effective interest method.