Sky Announces 2022 Interim Results

Sky New Zealand
PO Box 9059
Newmarket
Auckland 1149
New Zealand
10 Panorama Road
Mt Wellington
Auckland 1060
New Zealand
T. +64 9 579 9999
sky.co.nz
24 February 2022
Sky returns to revenue growth; investigating investment opportunities and with
dividends expected to resume from FY22
Sky Network Television Limited (Sky) has delivered a solid performancefor the six months to
31 December 2021 as revenue from core residential customers returns to growth, and
execution accelerates across all areas of strategic focus.
Key points of today’s announcement
1
Revenue growth of 4.1%, to $371.7 million (from $356.9 million) as Sky Box revenue
continues to stabilise and Streaming
2
revenue grows (the latter up 34%)
Net profit after tax of $28.3 million from $39.6 million
On target to deliver total cost savings of $40 to $45 million in FY22
3
, including $31 to $36
million in permanent savings, and with further permanent savings targeted from FY23
Customer growth of 6%, to 983,561 as more New Zealanders choose Sky
Game-changing new Sky Box on track for delivery into customer homes by mid-2022
Actively investigating investment opportunities to accelerate business growth
Return to paying dividends from FY22 following a return to sustainable free cash flows
Commenting on the half year performance, Chief Executive Sophie Moloney said: “This
result confirms our view that FY22 marks a positive inflection point for Sky, with delivery of a
solid return to revenue growth. Significant permanent cost savings have been identified and
are on target to be delivered in FY22, and with more to come in FY23. Having significantly
raised our guidance in December, it is clear that the business transformation is gaining
traction, and I am pleased to report a strong financial performance against original FY22
expectations that is underpinned by delivering across all four focus areas of Customers,
Content, People and Financial.”
“Important for me as Chief Executive is that we are living up to the strategic challenge that
we set ourselves in June last year to be a more efficient, adaptive and profitable business.
Having put in place a highly skilled and experienced Executive Leadership Team with real
ambition and passion for Sky, the momentum is tangible. Right across the business, we have
entered the second half of this financial year with even more determination.”
“As today’s results show, rather than being a business in defensive mode, we now have a
greater understanding of our existing and prospective customer base, an enhanced portfolio
1
Comparisons to past results in this announcement are to the six months to 31 December 2020 unless
otherwise stated.
2
Streaming customer groups comprise Neon, Sky Sport Now, RugbyPass subscriptions and Retransmission.
3
Compared to previous FY22 forecasts that included $5-$10m of targeted opex savings.

of rights, and a balance sheet which is able to embrace opportunity and growth, as well as to
recommence distributing dividends to our investors.”
Customers
Growth of 6% in customer numbers demonstrated further stabilisation in the Sky Box
proposition and was coupled with significant growth of 23% in Streaming, including a 28%
increase for Neon and an impressive 62% increase for Sky Sport Now.
Sophie Moloney commented: “It is pleasing to report a continuation in the growing numbers
of customers choosing to join Sky. During the Covid-19 lockdowns, Sky offered a valued and
crucial service with a strong line-up of sport and entertainment content across Sky Box and
the Neon and Sky Sport Now streaming services. We saw a continuation in the positive
trend of increased customer numbers, even with the reduced ability to complete Sky Box
installations during the lockdowns. Annualised churn in Sky Box customers has continued to
reduce to a new low of 9.1%, and there is a growing trend of customers entering into longer
term subscriptions to Neon.”
Sky Broadband continued to build on the successful launch period and is providing additional
value to a growing number of Sky Box customers who report high levels of satisfaction with
the service. We are on track to achieve the FY22 target attachment rate of between 3% and
5%. More recently the December launch of the Sky Rewards programme is providing a
tangible way to recognise and reward loyal Sky Box customers and demonstrate the value
Sky places on these valuable customer relationships.
Delivery of a new Sky Box experience to customer homes in mid-2022 remains on track, with
staff and customer trials scheduled to begin soon. Feedback from over 6,000 customers
through the validation process confirms a high level of appeal and growing excitement.
Content
Sky’s data analytics capability continues to develop and is ensuring spending is tightly
aligned with what matters to existing customers, as well as focused on recruiting new
customers to drive incremental revenue growth.
Sky confirmed a number of important content rights renewals during the period, including
expanded, multi-year contracts with leading entertainment partners: WarnerMedia (the
home of HBO, Warner Bros., CNN and Cartoon Network as well as HBO Max), Paramount
and Roadshow movies.
On the sporting front, Sky agreed an exclusive host rights deal for FIFA Women’s World Cup
2023 as well as important partnership agreements with the NBL (Basketball) and the A-
League (Football) covering both men’s and women’s competitions. Renewals included Six
Nations Rugby, FA Cup (football) and securing the rights to the All Blacks end of year
Northern Tour.
This week’s announcement of the acquisition of exclusive rights to the Premier League for
the next six seasons brings additional strength to Sky’s sport offer, both for existing Sky
Sport customers who have previously needed to purchase a second service to watch Premier

League football, as well as new customers who will be attracted to the depth and breadth of
the Sky Sport offering.
Financial
Revenue growth of 4.1% was driven by continued stabilisation of Sky Box revenues to $262.4
million including the first contribution from Sky Broadband attachments, and a significant
increase of 34% in streaming revenue to $48.5 million.
Commercial revenues grew by 13% to reach $22.5 million, despite a longer stretch of Covid-
19 restrictions than in the previous period, with Sky once again providing support for
affected customers. Advertising revenue grew by 5% year on year to $23.5 million. Other
revenue was almost double that of the prior period at $14.8 million, as a result of the on-
sale of certain rights (including the Olympics sub-licence to TVNZ) and a number of other
factors.
As anticipated, when compared to the first half of FY21, operating costs increased by 18% to
$287.2 million, largely reflecting the full impact of the step-up in rights costs primarily as a
result of increased payments for renewed content rights for our customers, as well as lower
levels of savings from Covid-19 related negotiated equitable reductions. For the same
reasons, NPAT of $28.3 million was down 29% year on year.
The business generated positive free cash of $39.7 million, an improvement of 201% against
the prior year, while also continuing to reinvest for growth.
Sophie Moloney commented: “As we indicated in our December announcement of
significant permanent and one-off savings targeted for FY22, we remain keenly focused on
achieving a meaningful reset of our cost base, right across the business. I am pleased with
the progress we have achieved to date and remain confident in our ability to deliver further
permanent savings in FY23. Importantly, we plan to achieve these without compromising on
customer experience or accessing additional revenue opportunities”
Capital Management
As indicated at the Annual Meeting in late October, the Board has undertaken a review of
Sky’s capital management strategy, taking into account the improved earnings outlook,
investment needs and strategic opportunities.
Sky’s Chair Philip Bowman commented: “In the past twelve months Sky has achieved an
improved and sustainable performance across a number of metrics, including cash
generation, in conjunction with increased medium-term certainty over the majority of our
key content rights. Against this backdrop, the Board has resolved to adopt a formal dividend
policy of distributing between 50% to 80% of Free Cash Flow
4
(excluding one off items). The
Board expects to resume paying dividends commencing with a final dividend in September
2022, consistent with this dividend policy.”
4
Free Cash Flow is defined by the Company as net cash from operating activities, less net cash used in investing
activities less payments for lease liability principal.

“As a result of Sky’s recent performance, and the sale of OSB, Sky had $73.9 million of cash
on the balance sheet as of 31 December 2021. The sale of Sky’s Mt Wellington properties,
due to settle in March, is expected to provide a further net cash inflow of $55 million.
Management and the Board continue to assess opportunities to invest capital to accelerate
the growth of the business, generate new revenue streams, and deliver improved returns for
shareholders. As a result, we intend to provide a further update on capital management to
coincide with an investor day to be held in June 2022. Any decisions on capital structure,
including details of any potential capital return, will be subject to market conditions and any
other strategic opportunities that may arise.”
Outlook
Sky remains on target to deliver full year results in line with the upgraded guidance advised
on 7 December 2021 of Revenue of between $725 to $745 million, EBITDA of between $150
to $160 million and NPAT of between $40 to $48 million.
While there inevitably remains some uncertainty surrounding the potential disruption from
the omicron variant of Covid-19, Sky is well placed to navigate any challenges, with a
strengthened team, a strong balance sheet, and an evolving platform to drive future growth.
Authorised by: Sophie Moloney, Chief Executive Officer
Ends
Investor queries to:Media queries to:
Tom GordonChris Major
Chief Financial OfficerChief Corporate Affairs Officer
+64 21 190 0828+64 29 917 6127
tom.gordon@sky.co.nzchris.major@sky.co.nz
Investors can also submit queries to:investorrelations@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 Period6 months to 31 December 2021
Previous Reporting Period6 months to 31 December 2020
CurrencyNZD
Amount (000s)Percentage change
Revenue from continuing
operations
$371,6714.1% increase
Total Revenue$371,6714.1% increase
Net profit/(loss) from
continuing operations
$28,29228.2% decrease
Total net profit/(loss)$28,26528.6% decrease
Interim Dividend
Amount per Quoted Equity
Security
Nil interim 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
$0.824$0.569
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further explanation refer the interim financial statements and
the results presentation attached.
Authority for this announcement
Name of personauthorised
to make this announcement
Tom Gordon
Contact person for this
announcement
Tom Gordon
Contact phone number
+64 21 190 0828
Contact email addressTom.Gordon@sky.co.nz
Date of release through MAP24/02/2022
Unaudited financial statements accompany this announcement.

---

2022
Interim
Report
For the 6 months ended
31 December 2021
Sky Network Television Limited

Sky / 2022 Interim Report
/ 2
FinancialCustomer
REVENUE $M
371.7
OPERATING
EXPENSES $M
287.2
FREE CASH
FLOW
2
$M
39.7
TOTAL CUSTOMER
RELATIONSHIPS
983
,
561
SKY BOX
CUSTOMERS
545
,
002
EBITDA
1
$M
85.3
NPAT $M
28.3
CUSTOMER
RELATIONSHIPS
+6% YOY
STREAMING CUSTOMER
GROWTH
3
+23% YOY
1
Earnings before income tax, interest expense, depreciation, amortisation and
impairment, unrealised gains and losses on currency and interest rate swaps.
2
Net cash from operating activities less net cash used in investing activities
less payments for lease liability principal.
3
Comprising Neon, Sky Sport Now, Retransmission and RugbyPass
Half Year Performance

Sky / 2022 Interim Report
/ 3
Message from the CEO
When I addressed you this time last year, in my first
report as your Chief Executive, I said that I was focused
on getting to the heart of what matters most for Sky –
to create better value for our customers, our partners,
our people, and our stakeholders.
We needed to change, and we knew we needed to do better.
I am incredibly proud of the work of our team during the
first half of the FY22 financial year, and the strengthened
position we have created for our business. Despite
the challenges presented by the Covid-19 lockdowns,
particularly for our Auckland-based teams, we have
achieved what we set out to do, and then some.
First and foremost, we focused on what matters to
our customers by continuing to secure the rights that
matter, improving our streaming services and launching
Sky Rewards for our loyal box customers. This focus on
customer value has also given our teams real clarity and
direction, and also enabled us to seriously review our
spending, resulting in the significant cost-out initiative
announced to the market towards the end of the period.
Highlights for the six months include:
- Delivering an increase in revenue – the first in many
years – as we return the business to a sustainable
growth path, with Sky Box revenues stabilising and
streaming revenues continuing to rise.
- Continuing to grow our customer relationships,
up another 6% to 983,561 as more New Zealanders
turn to Sky to connect them with the content they love,
in ways that work for them.
- Securing great sport and entertainment content for
our customers, including exciting deals with HBO and
HBO Max, the NBL and the A-League, and agreeing
host market broadcast rights for FIFA Women’s
World Cup 2023.
- Delivering the first stage of our Sky Rewards
programme, designed to recognise and reward
our longstanding and valued Sky Box customers.
I am delighted to present our results for the Half Year to December 2021.
- Growing the number of Sky customers who are enjoying
Sky Broadband, with customers reporting high levels of
satisfaction at the ease, speed and value of the service.
- Negotiating the sale of our Mt Wellington properties,
with a lease-back on Studio One, and securing space
in Viaduct Harbour Ave to enable our new property
strategy, which is focused on creating the best
environment for our people to thrive, while ensuring
we use capital in the most efficient and effective
way for our business and our investors.
- Cutting significant, permanent costs from our
business without impacting the customer experience
or the revenue growth signalled for FY22. While the
overall cost base was higher in the first half of FY22
than in the prior period, this largely reflects the
expected step-up in rights costs without the same
Covid-19 impacts. We are delivering permanent
savings in FY22, with additional ongoing savings
already targeted in FY23.
Most importantly for me as Chief Executive is
that we are living up to the strategic bedrock we
set ourselves in June last year: to be an efficient,
adaptive and profitable business. Having brought
together a highly skilled and experienced
Executive Leadership Team with real ambition
and passion for Sky, the momentum is tangible.
Right across the business, we have entered the
second half of this financial year with a spring in
our step.
As today’s results show, rather than being a
business in defensive mode, we now have a
balance sheet and a strengthened business
poised to embrace opportunity and growth.
I look forward to continuing to deliver on our
customer promise – and continuing to build
value for you, our investors.

Sophie Moloney
CEO

Sky / 2022 Interim Report
/ 4
Whilst we remain acutely aware of the challenging
environment in which we operate, exacerbated by
the ongoing uncertainties catalysed by Covid-19,
the hard work of the Sky team under Sophie’s
leadership is transforming the business,
repositioning the company for future growth.
A key milestone in the coming months is to deliver
the next generation of Sky Box – one that we
believe will transform the viewing experience of our
customers. This game-changing project is on track,
with customer research confirming that the new
features resonate strongly with customers, and that
there is growing excitement for the product to be in
customer homes from mid-2022.
In parallel we continue to prioritise our investment
in data analytics to truly understand our customers
and better personalise the viewing experience to
meet their individual needs. The benefits of this
investment, and the customer-focused mindset
it demands, are increasingly evident across the
business, and in the customer satisfaction measures
we track.
As outlined at the Annual Shareholder Meeting
at the end of last October, the Board has been
reviewing capital management strategy in the
context of expected earnings outlook, investment
needs and strategic opportunities. Following
improved performance across a variety of metrics
(including cash generation) over the past twelve
months and increased medium term certainty over
the majority of our key content rights, the Board
has now resolved to adopt a formal dividend policy
of distributing between 50% and 80% of Free Cash
Flow (excluding one-off items). The Board expects
to resume paying dividends commencing with a final
dividend in September 2022, consistent with this
dividend policy.
More broadly, as a result of recent performance
and the sale of OSB, Sky had $74m of cash on
the balance sheet at the end of the half year.
In addition, a further net cash inflow of $55m is
expected when the sale of Sky’s Mt Wellington
properties settles in March 2022. Management
and the Board continue to assess opportunities
to invest capital to accelerate the growth of the
business, to generate new revenue streams, and
to improve returns for shareholders. As a result,
the Board intends to provide a further update on
capital management to coincide with an investor
day to be held in June 2022. Any decisions on capital
structure, including any return of capital, will be
subject to market conditions and any other strategic
opportunities that may arise.
I echo Sophie’s sentiment that Sky enters the coming period
with refreshed energy and optimism.
Message from the Chair
Philip Bowman
Chairman

Sky / 2022 Interim Report
/ 5
Thank you
We are grateful to you, our shareholders, for your ongoing support through difficult
times in recent years. The transformation journey towards establishing a platform
for future growth is progressing well and the market is starting to recognise this with
an improved valuation of Sky’s shares. In parallel we continue to provide a vital and
valued service to our customers whilst caring for the wellbeing of our people and our
stakeholders. Sophie and I are confident in the ability and strength of the Sky team
to continue to rise to future challenges.
We thank all the team, the Board, our content partners and stakeholders, and you,
our investors, for your support and enthusiasm for Sky. Connecting New Zealanders
with great sport and entertainment, in ways that work for every individual, right
across the country, is an honour and a privilege. Thank you for the part you play.
Philip Bowman
Chairman
Sophie Moloney
CEO

Sky / 2022 Interim Report
/ 6
For the six months ended
31 December 2021
Our 2022
Interim
Financials

Sky / 2022 Interim Report
/ 7
Consolidated Interim Statement
of Comprehensive Income
For the six months ended 31 December 2021 (unaudited)
Consolidated Interim Balance Sheet
As at 31 December 2021 (unaudited)
Keith Smith
Director
For and on behalf of the Board 23 February 2022
In NZD 000Notes
31-Dec-2021
(6 months)
31-Dec-2020
(6 months)
30-Jun-2021
(1 year audited)
Revenue
4 371,671356,870 711,234
Other income
840 2,220 13,520
Expenses
Programming
8178,413141,739329,354
Subscriber related costs
50,20042,56993,070
Broadcasting and infrastructure
33,07230,65560,655
Depreciation and amortisation
43,16955,069107,991
Other costs
25,52327,84255,259
Total expenses
330,377297,874646,329
Operating profit
42,13461,21678,425
Finance costs, net
2,3174,69210,536
Profit before tax39,81756,52467,889
Income tax expense
11,55216,94320,343
Profit for the period
28,26539,58147,546
Attributable to:
Equity holders of the Company
28,29239,42747,228
Non-controlling interests
(27)154318
28,26539,58147,546
Earnings per share
Basic and diluted earnings per share (cents)
1216.2022.5827.04
OTHER COMPREHENSIVE INCOME
Profit for the period
28,26539,58147,546
Items that may be reclassified to profit and loss
Exchange differences on translation of foreign operations
31(228)(291)
Deferred hedging gains transferred to operating expenses during the period
2,9645101,056
Income tax effect
(830)(143)(296)
Net other comprehensive income to be reclassified to profit or loss in
subsequent periods, net of income tax
2,165139469
Items that may not be reclassified to profit or loss
Deferred hedging losses transferred to non-financial assets during the period
(1,535)(6,974)(367)
Income tax effect
4301,953 103
Net other comprehensive loss not being reclassified to profit or loss in
subsequent periods, net of income tax
(1,105)(5,021)(264)
Total comprehensive income for the period
29,32534,69947,751
Attributable to:
Equity holders of the Company
29,35234,54547,433
Non-controlling interests
(27)154318
29,32534,69947,751
In NZD 000Notes31-Dec-202131-Dec-2020
1
30-Jun-2021
1

(audited)
Current assets
Cash and cash equivalents
1073,946123,27934,800
Trade and other receivables
53,81654,08965,615
Programme rights inventory
895,29395,285103,154
Derivative financial instruments
103,2296261,347
226,284273,279204,916
Non-current assets
Property, plant and equipment
69,838116,455 100,192
Intangible assets
54,76957,357 55,701
Right of use assets
46,64481,978 64,272
Deferred tax asset
31,277 - 4,714
Goodwill
3255,245256,312 255,245
Derivative financial instruments
102,033164 1,724
429,806512,266 481,848
Assets held for sale
9 36,6268,225 13,436
Total assets
692,716793,770 700,200
Current liabilities
Interest bearing loans and borrowings
6,101,149100,671 1,137
Lease liabilities
3,1025,34341,219 39,074
Contingent consideration
- 2,542 -
Trade and other payables
127,063115,424 137,077
Contract liabilities
50,83651,256 52,267
Income tax payable
2,3086,358 7,850
Derivative financial instruments
10 6136,170 1,495
207,312323,640 238,900
Non-current liabilities
Interest bearing loans and borrowings
6,10458876 1,035
Lease liabilities
3,1026,66347,438 31,075
Trade and other payables
1,544 - 1,576
Contingent consideration
- 2,741 -
Derivative financial instruments
10 1421,589 342
Deferred tax liability
3 - 1,366 -
28,80754,010 34,028
Liabilities associated with assets held for sale
9 -1,676 -
Total liabilities
236,119379,326 272,928
Equity
Share capital
768,766767,608 768,766
Reserves
2,095(2,894)1,035
Retained deficit
3 (315,577)(351,670)(343,869)
Total equity attributable to equity holders of the Company
455,284413,044 425,932
Non-controlling interest
1,3131,400 1,340
Total equity
456,597414,444 427,272
Total equity and liabilities
692,716793,770 700,200
1
Certain comparative amounts have been restated, refer note 3.
Philip Bowman
Director and Chairman

Sky / 2022 Interim Report
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Consolidated Interim Statement
of Changes in Equity
For the six months ended 31 December 2021 (unaudited)
Consolidated Interim Statement
of Cash Flows
For the six months ended 31 December 2021 (unaudited)
In NZD 000Notes
31-Dec-2021
(6 months)
31-Dec-2020
(6 months)
30-Jun-2021
(1 year audited)
Cash flows from operating activities
Profit before tax
39,81756,52467,889
Adjustment for non-cash items:
Depreciation and amortisation
43,16955,069107,991
Impairment of programme rights
81,0803,0727,466
Unrealised foreign exchange gain
(1,182)(923)(656)
Interest expense
2,8837,00011,941
Bad debts and movement in provision for doubtful debts
4272451,454
Other non-cash items
(459)254(259)
Movement in working capital items:
Decrease/(increase) in receivables
11,3722,520(9,283)
Decrease in payables
(14,277)(57,006)(39,237)
Decrease in programme rights
7,35715,4655,052
Cash generated from operations
90,18782,220152,358
Interest paid
(1,789)(6,587)(11,250)
Bank facility fees paid
- (928)(900)
Income tax paid
(13,500)(23,500)(33,000)
Net cash from operating activities
74,89851,205107,208
Cash flows from investing activities
Acquisition of property, plant and equipment
(7,151)(11,059)(25,657)
Acquisition of intangibles
(11,334)(8,841)(25,414)
Proceeds from disposal of OSB business
- - 6,884
Net cash used in investing activities
7(18,485)(19,900)(44,187)
Cash flows from financing activities
Repayment of borrowings - bonds
- - (100,000)
Payments for lease liability principal
(16,720)(18,117)(37,503)
Repayment of other borrowings
(547)(586)(1,171)
Dividend paid to minority shareholders
- - (224)
Net cash used in financing activities
(17,267)(18,703)(138,898)
Net increase/(decrease) in cash and cash equivalents
39,146 12,602 (75,877)
Cash and cash equivalents at the beginning of the period
34,800 110,677 110,677
Cash and cash equivalents at the end of the period
10 73,946 123,279 34,800
Attributable to owners of the parent
In NZD 000Notes
Share
capitalReserves
Retained
deficitTotal
Non-
controlling
interest
Total
equity
For the six months ended 31 December 2021
Balance at 1 July 2021
768,7661,035(343,869)425,9321,340427,272
Profit for the period
--28,29228,292(27)28,265
Exchange difference on translation of foreign operations
-31-31-31
Cash flow hedges, net of tax
-1,029-1,029-1,029
Total comprehensive income for the period
-1,06028,29229,352(27)29,325
Balance at 31 December 2021
768,7662,095(315,577)455,2841,313456,597
For the six months ended 31 December 2020
Balance at 1 July 2020
767,608991(394,875)373,7241,246374,970
Restatement of adoption of new accounting standard
3--3,7783,778-3,778
Balance at 1 July 2020 (restated)
767,608991(391,097)377,5021,246378,748
Profit for the period
--39,42739,42715439,581
Exchange difference on translation of foreign operations
-(228)-(228)-(228)
Cash flow hedges, net of tax
-(4,654)-(4,654)-(4,654)
Total comprehensive income for the period
-(4,882)39,42734,54515434,699
Transactions with owners in their capacity as owners
CEO share based remuneration
5-997-997-997
-997-997-997
Balance at 31 December 2020
767,608(2,894)(351,670)413,0441,400414,444
For the year ended 30 June 2020 (audited)
Balance at 1 July 2020
767,608991(394,875)373,7241,246374,970
Restatement of adoption of new accounting standard
3--3,7783,778-3,778
Balance at 1 July 2020 (restated)
767,608991(391,097)377,5021,246378,748
Gain for the year
--47,22847,22831847,546
Exchange difference on translation of foreign operations
-(291)-(291)-(291)
Cash flow hedges, net of tax
-496-496-496
Total comprehensive (loss)/ income for the year
-20547,22847,43331847,751
Transactions with owners in their capacity as owners
Dividend paid
----(224)(224)
CEO share based remuneration
51,158(161)-997-997
1,158(161)-997(224)773
Balance at 30 June 2021
768,7661,035(343,869)425,9321,340427,272

Sky / 2022 Interim Report
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Notes to the Consolidated Interim
Financial Statements
For the six months ended 31 December 2021 (unaudited)
3. Significant Accounting Policies and
Critical Judgements and Estimations
The accounting policies applied by the Group in these consolidated interim financial statements are the same as those applied by
the Group in its consolidated financial statements as at and for the year ended 30 June 2021. The Group has not early adopted any
standard, interpretation or amendment that has been issued but is not yet effective.
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 the subsequent impact on content.
As outlined in the 2021 Annual Report, there continues to be uncertainties due to the COVID-19 pandemic 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 considered whether there are any events or changes
in circumstances since the signing of the 2021 financial statements that may be an impairment indicator as at 31 December 2021,
having considered factors such as:
• The Group’s half year results, which have exceeded the half year plan;
• The improvement in the Group’s share price between 30 June 2021 and 31 December 2021; and
• The premium of net assets to market capitalisation has reduced significantly from the position as at 30 June 2021, noting that
this market capitalisation excludes any control premium.
We have concluded that there are no material adverse events or changes in circumstances that would suggest there are any
impairment indicators as at 31 December 2021.
Programming rights – the ability to monetise prepaid and future sports programming rights. During the ordinary course of
business the Group continues to negotiate sports rights and equitable reductions from our content partners. On 18 February 2022
the Group announced it had entered into a contract with the Premier League for six years, starting with the upcoming 2022/23
season. 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. In the half year the Group received credit notes for cancelled events
during the Auckland lock down totalling $7.8 million. Management further considered the valuation of the programming rights
arising from the share issue to the NZ Rugby Union and assessed the carrying value as appropriate as the future economic benefit
is still expected to be realised.
Capital structure
As at 31 December 2021 the Group had positive working capital of $19 million (31 December 2020: ($50) million; 30 June 2021:
($34) million). In the prior year the $100 million bond was repaid on 31 March 2021 out of the Group’s cash reserves (refer note 6).
Despite the continuing impact of COVID-19, the Directors are satisfied that there will be adequate cash flows generated from
operating and financing activities to meet the obligations of the Group for the foreseeable future from approving the consolidated
interim financial statements, after taking into consideration the current trading results and that the Group has available cash of
$74 million and an undrawn banking facility of $200 million at 31 December 2021 (refer note 6).
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 of the Group.
The Company has adjusted an overstatement of the lease liability as at the date of adoption of NZ IFRS 16 Leases to reflect the
contractual payment terms. The impact of the change on the balance sheet is summarised in the table below. There is no profit or
loss impact in the current or comparative periods.
In NZD 000
31-Dec-2020
(restated)
30-Jun-2021
(restated)
Long term Lease Liability (decrease)
(5,226)(5,226)
Deferred Tax (decrease)
1,4481,448
Retained Deficit (decrease)
3,7783,778
1. General Information
Sky Network Television Limited (Sky) is a company, incorporated and domiciled in New Zealand. The address of its registered office is
10 Panorama Road, Mt Wellington, Auckland, New Zealand. The consolidated interim financial statements for the six months ended
31 December 2021 comprise Sky and its subsidiaries (the Group).
Sky is a company registered under the Companies Act 1993 and is a reporting entity under Part 7 of the Financial Markets Conduct
Act 2013.
Sky is a leading media company in New Zealand and operates as a provider of sport and entertainment media services and
telecommunications in New Zealand and overseas.
These consolidated interim financial statements were approved by the Board on 23 February 2022.
2. Basis of Preparation
These consolidated interim financial statements have been prepared in accordance with the requirements of Part 7 of the Financial
Markets Conduct Act 2013, the NZX Listing Rules and the ASX Listing Rules.
These consolidated interim financial statements of Sky are for the six months ended 31 December 2021. They have been prepared
in accordance with New Zealand generally accepted accounting practice, NZ IAS 34 Interim Financial Reporting and International
Accounting Standard 34 (IAS 34). They do not include all the information required for full annual financial statements and should
be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30 June 2021. For the
purposes of financial reporting Sky is a profit-oriented entity.
The preparation of interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting requires management to
make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities,
income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying
values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
These consolidated interim financial statements have been prepared under the historical cost convention except for the revaluation
of certain financial instruments (including derivative instruments).
Group structure
The Group has a majority share in the following subsidiaries.
Name of EntityPrincipal Activity
Country
of IncorporationParentInterest held
Jun 2021
& Dec 2021Dec 2020
Sky DMX Music LimitedCommercial musicNew ZealandSky
50.50%50.50%
Sky Ventures LimitedNon-tradingNew 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 LimitedNon-tradingNew ZealandSky
100.00%100.00%
Sky Network Services Limited
(previously Igloo Limited)
Broadband servicesNew ZealandSky
100.00%100.00%
Believe It Or Not LimitedEntertainment quizzesNew ZealandSky
51.00%51.00%
Sky Investment Holdings Limited InvestmentNew ZealandSky
100.00%100.00%
RugbyPass Limited
Content generation,
subscription & marketing
Ireland
Sky Investment
Holdings Limited
100.00%100.00%
RugbyPass Asia Pte Ltd
1
Non-tradingSingaporeRugbyPass 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 sportsSouth Africa
Sky Investment
Holdings Limited
81.00%0.00%
RugbyPass UK Limited
(incorporated 26 Jan 2021)
Non-tradingUnited Kingdom
Sky Investment
Holdings Limited
100.00%0.00%
1
At the request of the Group, RugbyPass Asia Pte Ltd was struck off the Register of Companies on 10 January 2022.

Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2021 (unaudited)
Sky / 2022 Interim Report
/ 10
3. Significant Accounting Policies and
Critical Judgements and Estimation (continued)
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.
As reported in the 30 June 2021 financial statements transitioning systems to the cloud is a strategic priority of the Group. At the
time of finalising the 31 December 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
1
related value is in the vicinity of $15
million to $20 million. We are in the process of continuing to review these SaaS
1
related capitalised costs to reliably quantify the
extent of an adjustment that may be required due to the revised accounting policy and therefore have continued to capitalise
new costs that have occurred subsequent to 30 June 2021 in line with the previously approved accounting policies. 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 be in a position to recognise the adjustment at the end of this financial year.
1
Software as a Service
4. Segment and Revenue Information
The table below shows the disaggregation of the Group’s revenue from contracts with customers based on when revenue is
recognised for its principal revenue streams.
In NZD 000
Residential
satellite
subscriptions
Other
subscriptionsAdvertisingOther revenue
Total revenue
from contracts
with customers
For the six months ended 31 December 2021
Revenue from customers
262,37270,99523,49114,813371,671
Total revenue
262,37270,99523,49114,813371,671
Timing of revenue recognition
At a point in time
3,014 - 23,4913,22129,726
Over time
259,35870,995 - 11,592341,945
262,37270,99523,49114,813371,671
For the six months ended 31 December 2020
Revenue from customers
270,65656,20122,40415,372364,633
Inter-segment revenue
- - - (7,763)(7,763)
Total revenue
270,65656,20122,4047,609356,870
Timing of revenue recognition
At a point in time
2,422 - 22,4044,23729,063
Over time
268,23456,201 - 3,372327,807
270,65656,20122,4047,609356,870
For the year ended 30 June 2021 (audited)
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
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
telecommunications services in New Zealand.
RugbyPass has been identified as a separate operating segment and forms a separate cash generating unit. For financial reporting
purposes and with reference to the aggregation criteria in the accounting standards RugbyPass is aggregated with the Sky business
operating segment for the purposes of reporting segment disclosure.
The table above shows the disaggregation of the Group’s revenue from contracts with customers based on when revenue is
recognised for its principal revenue streams.

Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2021 (unaudited)
Sky / 2022 Interim Report
/ 11
5. Related Party Transactions
There were no loans to Directors by the Group or associated parties at any of the reporting dates.
In NZD 00030-Dec-2131-Dec-20
30-Jun-21
(audited)
Income statement
Remuneration of key personnel
2,501 3,552 8,131
CEO share based remuneration
- 997 997
Directors' fees
346 409 737
My Wave Limited (included in subscriber related costs)
942 - 256
Total Related Party transactions through consolidated income statement
3,789 4,958 10,121
Balance Sheet
My Wave Limited (included in prepayments)
750 - 1,192
Total Related Party transactions through consolidated balance sheet
750 - 1,192
The gross remuneration of directors and key management personnel during the period was $2,847,000 (31 December 2020:
$4,958,000; 30 June 2021: $9,865,000). The remuneration in prior periods includes termination benefits paid to the former executive
director and redundancies paid to some key management personnel. From 1 July 2020, as a result of restructuring the business,
key management personnel was re-defined to include only directors and the direct reports to the CEO, and no longer includes
department heads.
Remuneration of key personnel for the six months ended 31 December 2020 included the accrued cost of termination benefits
associated with the former CEO of $1,331,000, and short-term employee benefits of $390,000 which were based on achieving
targets for the year to 30 June 2021.
On 21 February 2020, 200,000 ordinary shares vested to the former CEO as part of a contractual entitlement to receive a total
of 800,000 ordinary shares in installments of 200,000 on each of the first four anniversaries of commencement of employment.
As a result of the CEO’s decision to leave by mutual agreement the 600,000 ordinary shares vested in March 2021. This equity-
settled share scheme is accounted for and measured based on the fair value at grant date (1 February 2019) of $1.93 per share
($1,158,000).
During the prior year Sky entered into a commercial agreement with My Wave Limited, a software company that provides interactive
device solutions, as disclosed above. Geraldine McBride is a Director of the Group as well as a Director of My Wave Limited.
6. Interest Bearing Loans and Borrowings
31-Dec-202131-Dec-202030-Jun-2021 (audited)
In NZD 000Current
Non-
currentTotalCurrent
Non-
currentTotalCurrent
Non-
currentTotal
Borrowings
1,149 458 1,607 738 876 1,614 1,137 1,035 2,172
Bonds
- - - 99,933 - 99,933 - - -
1,149 458 1,607 100,671 876 101,547 1,137 1,035 2,172
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) as at 31 December 2021 a general security deed granted by each of Sky Network Television Limited, RugbyPass Limited,
Sky Network Services Limited and Sky Investment Holdings 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 $1,842,000 (31 December 2020: $535,000; 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.
7. Capital Expenditure
The Group acquired the following property, plant and equipment (PPE) and intangibles during the period:
In NZD 000
31-Dec-2021
(6 months)
31-Dec-2020
(6 months)
30-Jun-2021
(1 year audited)
Capital projects in progress (includes PPE & Intangibles)
4,6934,0022,076
Land and buildings
- - 1,122
Broadcasting and studio equipment
2623401,468
Plant and equipment and other
2481,9755,379
Subscriber equipment
427 - 2,030
Installation costs
5,8737,62814,846
Intangibles
6,9826,03524,150
18,48519,98051,071
Movement in capital expenditure creditors
- (80) -
Cash outflow in the period
18,48519,90051,071
8. Programme Rights Inventory
In NZD 00031-Dec-202131-Dec-2020
30-Jun-2021
(audited)
Opening balance
103,154115,672115,672
Acquired during the period
142,81896,179266,348
Impaired during the period
(1,080)(3,072)(7,466)
Charged to profit or loss
(149,599)(113,494)(271,400)
Balance at end of period
95,29395,285103,154
Prior year opening balances have been amended due to a reclassification as described in Note 3.
9. Assets and Liabilities Held for Sale
On 26 March 2021 Sky announced on the NZX and ASX its intention to sell two properties known as Studio 2 and Studio 3, located at
34 and 16 Leonard Rd, Mt Wellington. On 15 May 2021 the properties were listed for sale. On 9 August 2021 Sky further announced
on the NZX and ASX that Studio 1, located at 10 Panorama Road, along with Studio 2 and Studio 3, would be marketed for sale as a
package of properties.
On the 16 December 2021 Sky announced on the NZX and ASX it had entered into a conditional agreement with Goodman Property
Trust for the sale of the three studios for a consideration of $56 million. The sale is conditional on completing further due diligence
including engineering and environmental assessments and then final approval by the board of Goodman (NZ) Limited. The expected
date for the agreement to become unconditional is 25 February 2022. The agreement includes a ten-year leaseback structure of
Studio 1 (comprising Sky’s core production and technology facilities) and a one-year leaseback of Studio 3 (to allow migration of staff,
and Sky’s warehouse and decoder workshop from that building). The agreement includes an option for Sky to terminate the leaseback
of Studio 1 early (ending the term of the leaseback from as early as the end of the fifth year) and a five year right of renewal allowing
Sky to extend the total term of the leaseback for Studio 1 from 10 years to a maximum 15 years, at Sky’s discretion.
The sale of the properties is expected to be completed by financial year end. As at 31 December 2021 a sale had not yet been
completed and the assets have been classified as held for sale in the financial statements. The assets held for sale have been
reported at their book value.
The assets classified as held for sale at 30 June 2021 related to the properties known at Studio 2 and Studio 3 only (as referred to
above). The assets and liabilities classified as held for sale at 31 December 2020 related to Outside Broadcasting Limited, a subsidiary
of Sky, for which a sale was completed on 31 March 2021. The assets classified as held for sale as at 31 December 2021 are as follows.
In NZD 00031-Dec-202131-Dec-2020
30-Jun-2021
(audited)
Assets
Property, plant and equipment (net)
36,6267,24513,436
Right-of-use assets (net)
- 980 -
Assets held for sale
36,6268,22513,436
Liabilities
Employee entitlements
- 462 -
Short term lease liabilities
- 353 -
Long term lease liabilities
- 861 -
Liabilities associated with assets held for sale
- 1,676 -

Notes to the Consolidated Interim Financial Statements
For the six months ended 31 December 2021 (unaudited)
Sky / 2022 Interim Report
/ 12
10. Fair Value Measurement of Financial Instruments
The Group’s activities expose it to a variety of financial risks that include market risk (currency risk, fair value interest rate risk, cash
flow interest rate risk and price risk), credit risk and liquidity risk.
The consolidated interim financial statements do not include all financial risk management information and disclosures required
in the annual financial statements. They should be read in conjunction with the Group’s annual financial statements as at 30 June
2021. There have been no changes in any risk management policies since year end.
Financial assets of the Group include cash and cash equivalents, trade and other receivables and financial assets at fair value
through other comprehensive income (OCI) (unquoted investments held for disposal and derivative financial assets). Financial
liabilities of the Group include trade and other payables, interest bearing loans and borrowings, lease liabilities, contingent
consideration and derivative financial liabilities. The Group does not hold or issue financial instruments for trading purposes.
The fair value of each financial instrument is categorised in its entirety based on the lowest level of input that is significant to that
fair value measurement. The levels are defined as follows:
Level 1: Quoted prices (unadjusted) in active market for identical assets and liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs), for example
discounted cash flow.
Sky’s financial assets and liabilities carried at fair value are valued on a level 2 basis.
Classification of financial instruments
The following table presents the Group’s financial assets and liabilities according to classifications.
31-Dec-202131-Dec-2020
30-Jun-2021
(audited)
In NZD 000
Carrying
amountFair value
Carrying
amountFair value
Carrying
amountFair value
Financial assets at amortised cost
Cash and cash equivalents
73,94673,946123,279123,27934,80034,800
Trade and other receivables
40,58140,58143,13943,13952,01452,014
Financial assets at fair value through OCI
Derivatives designated as hedging instruments
(cash flow hedges)
4,2554,2555055052,5252,525
Derivatives not designated as hedging
instruments (fair value hedges)
1,0071,007285285546546
119,789119,789167,208167,20889,88589,885
Financial liabilities at amortised cost
Other loans
1,6071,4722,7332,6342,1722,046
Bonds
- - 99,933100,400 - -
Lease liabilities
52,00651,22788,65788,82870,14970,023
Trade and other payables
99,96999,96985,37885,378114,829114,829
Financial liabilities at fair value through
profit or loss
Contingent consideration
- - 5,2835,283 - -
Financial liabilities at fair value through OCI
Derivatives designated as hedging instruments
(cash flow hedges)
4244245,1355,135615615
Derivatives not designated as hedging
instruments (fair value hedges)
3313312,6242,6241,2221,222
154,337153,423289,743290,282188,987188,735
Prepaid expenses, deferred revenue, unearned subscriptions, tax payables and employee benefits do not meet the definition of a
financial instrument and have been excluded from the “Trade and other receivables” and “Trade and other payables” categories
above. Due to their short-term nature, the carrying amounts of cash and cash equivalents, trade and other receivables and trade
and other payables is assumed to approximate their fair value.
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable
inputs. The fair value of forward foreign exchange contracts is based on market forward foreign exchange rates at period end.
The fair value of quoted notes and bonds is based on price quotations at the reporting date being at level 1 basis. The fair value of
loans from banks and lease liabilities is estimated on a level 3 basis by discounting future cash flows using rates currently available
for debt on similar terms, credit risk and remaining maturities.
11. Contracts for Future Programme Commitments
In NZD 00031-Dec-202131-Dec-2020
30-Jun-2021
(audited)
Year 1
285,737 294,623 299,002
Year 2
250,847 261,401 266,550
Year 3
209,590 192,490 225,998
Year 4
173,391 167,940 193,366
Year 5
52,246 129,505 97,121
Later than 5 years
34,851 347 49,964
1,006,662 1,046,3061,132,001
12. Earnings Per Share
In NZD 00031-Dec-202131-Dec-202030-Jun-2021
Profit after tax attributable to equity holders of the parent (NZD 000)
28,29239,42747,228
Weighted average number of ordinary shares on issue (thousands)
174,688174,628174,648
Basic and diluted earnings per share (cents)
16.2022.5827.04
31-Dec-202131-Dec-202030-Jun-2021
Issued ordinary shares at the beginning of period/year
174,688,323174,628,323174,628,323
Ordinary shares issued on 1 March 2021
- - 60,000
Total number of shares on issue
174,688,323174,628,323174,688,323
Weighted average number of ordinary shares on issue
174,688,323174,628,323174,648,378
Prior year balances have been restated to reflect the share consolidation on 17 September 2021.
On 25 August 2021 Sky announced to the NZX and ASX its intention to consolidate every 10 shares held at 5:00pm on 16 September
2021 into 1 share. The consolidation was completed on the 17th September 2021.
After the share consolidation completion the total issued capital of shares is 174,688,323, the amount is slightly higher than the
174,687,956 estimated prior to commencing the consolidation due to rounding of fractional entitlements to shares.
13. Contingent Liabilities
The Group is subject to litigation incidental to its business, none of which is expected to be material. No provision has been made
in the Group’s consolidated interim financial statements in relation to any current litigation and the Directors believe that such
litigation will not have a significant effect on the Group’s consolidated interim financial position, results of operations or cash flows.
14. Subsequent Events
COVID-19
At the date of signing these financial statements, New Zealand was at COVID-19 Traffic Light Alert level red, following an
announcement by the New Zealand Government at 11am 23 January 2022 that all of New Zealand will move to alert level red
at 11:59pm on 23 January 2022. At this time no changes have been made to assumptions relating to the Group’s key estimates
and judgements referred to in these financial statements as a result of this development. Refer to note 3 for consideration of the
impacts and mitigations of COVID-19 on the business.
New office lease
Following the surrender of leases on 30 June 2021 and 8 August 2021 for office space in Newmarket and Parnell respectively, and as
a continuation of the Group’s property strategy to utilise office space efficiently and establish better working environments for our
employees, we commenced a new lease on 13 February 2022 for office space located at Level 6, 20 Viaduct Harbour, Auckland with
an expiry date of 31 August 2029.

Sky / 2022 Interim Report
/ 13

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

Who we report to
This report is made solely to the Company’s shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s shareholders those matters which we are
required to state to them in our review report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the shareholders, as a body,
for our review procedures, for this report, or for the conclusion we have formed.

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

For and on behalf of:






[Signature in the name of the audit firm]
Chartered Accountants Auckland
23 February 2022


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

Report on the consolidated interim financial statements

Our conclusion
We have reviewed the consolidated interim financial statements of Sky Network Television Limited
(the Company) and its subsidiaries (the Group), which comprise the consolidated interim balance
sheet as at 31 December 2021, and the consolidated interim statement of comprehensive income,
the consolidated interim statement of changes in equity and the consolidated interim statement of
cash flows for the six month period ended on that date, and significant accounting policies and other
explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying consolidated interim financial statements of the Group do not present fairly, in all
material respects, the financial position of the Group as at 31 December 2021, an d its financial
performance and cash flows for the six month period then ended, in accordance with International
Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to
International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibility is further described in the Auditor’s responsibility for the
review of the financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our
firm carries out other services for the Group in respect of the provision of these other services and
relationships have not impaired our independence.
Directors’ responsibility for the financial statements
The Directors of the Group are responsible on behalf of the Company for the preparation and fair
presentation of these consolidated interim financial statements in accordance with IAS 34 and NZ IAS
34 and for such internal control as the Directors determine is necessary to enable the preparation and
fair presentation of consolidated interim financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s responsibility for the review of the financial statements
Our responsibility is to express a conclusion on the consolidated interim financial statements based
on our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our
attention that causes us to believe that the consolidated interim financial statements, taken as a
whole, are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34. A review
of consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily
of persons responsible for financial and accounting matters, and applying analytical and other review
procedures.

[insert PwC office address]
Independent auditor’s review report
To the shareholders of Sky Network Television Limited

Report on the consolidated interim financial statements

Our conclusion
We have reviewed the consolidated interim financial statements of Sky Network Television Limited
(the Company) and its subsidiaries (the Group), which comprise the consolidated interim balance
sheet as at 31 December 2021, and the consolidated interim statement of comprehensive income,
the consolidated interim statement of changes in equity and the consolidated interim statement of
cash flows for the six month period ended on that date, and significant accounting policies and other
explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying consolidated interim financial statements of the Group do not present fairly, in all
material respects, the financial position of the Group as at 31 December 2021, an d its financial
performance and cash flows for the six month period then ended, in accordance with International
Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to
International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibility is further described in the Auditor’s responsibility for
the review of the financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in
New Zealand relating to the audit of the annual financial statements, and we have fulfilled our other
ethical responsibilities in accordance with these ethical requirements. In addition to our role as auditor,
our firm carries out other services for the Group in respect of regulatory reporting. Certain partners and
employees of our firm may subscribe to Sky services on normal terms within the ordinary course of the
trading activities of the Group. The provision of these other services and relationships have not
impaired our independence.
Directors’ responsibility for the financial statements
The Directors of the Group are responsible on behalf of the Company for the preparation and fair
presentation of these consolidated interim financial statements in accordance with IAS 34 and NZ
IAS 34 and for such internal control as the Directors determine is necessary to enable the preparation
and fair presentation of consolidated interim financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibility for the review of the financial statements
Our responsibility is to express a conclusion on the consolidated interim financial statements based on
our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our
atte ntion that causes us to believe that the consolidated interim financial statements, taken as a whole,
are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34. A review of
consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures.

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

Who we report to
This report is made solely to the Company’s shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s shareholders those matters which we are
required to state to them in our review report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the shareholders, as a body,
for our review procedures, for this report, or for the conclusion we have formed.

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

For and on behalf of:






[Signature in the name of the audit firm]
Chartered Accountants Auckland
23 February 2022

Registrars
Shareholders should address questions relating to share
certificates, notify changes of address or address any
administrative questions to Sky’s share registrar as follows:
New Zealand Ordinary Share Registrar
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
Mailing address:
Private Bag 92119
Auckland Mail Centre
Auckland 1142
New Zealand
Tel: +64 9 488 8700 Fax: +64 9 488 8787
Email: enquiry@computershare.co.nz
Australian Branch Register
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street
Abbotsford, VIC 3067
GPO Box 2975
Melbourne VIC 3000
Australia
Freephone: 1800 501 366 (within Australia)
Tel +61 3 9415 5000 (outside Australia)
Fax +61 3 9473 2500
Email: enquiry@computershare.co.nz
Directors
Philip Bowman (Chair)
Geraldine McBride
Joan Withers
Keith Smith
Michael Darcey
Officers
Sophie Moloney Chief Executive
Tom Gordon Chief Financial Officer
Jonny Errington Chief Content and Commercial Officer
Chris Major Chief Corporate Affairs Officer
Daniel Kelly Chief Customer Officer
Jason Foden Acting Chief Digital and Innovation Officer
Antony Welton Chief Operations and People Officer
James Bishop Company Secretary
New Zealand Registered Office
10 Panorama Road
Mt Wellington
Auckland 1060
New Zealand
Tel: +64 9 579 9999 Fax: +64 9 579 8324
Website: sky.co.nz
Australian Registered Office
c/- Allens Operations Pty Limited
Level 28, Deutsche Bank Place
126 Philip Street
Sydney, NSW 2000
Australia
Tel: +61 2 9230 4000 Fax: +61 2 9230 5333
Auditors to Sky
PricewaterhouseCoopers
Level 27, PwC Tower
15 Customs Street West
Auckland 1010
New Zealand
Tel: +64 9 355 8000 Fax: +64 9 355 8001
Solicitors to Sky
Buddle Findlay
HSBC Tower
188 Quay Street
Auckland 1010
New Zealand
Tel: +64 9 358 2555 Fax: +64 9 358 2055

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

---

For the six months ended
2

WHAT
MATTERS
MOST:
WHAT DO
WE DO:
WHAT
WE’RE
FOCUSING
ON:
THE “BEDROCK”
OF OUR BUSINESS:
3

For the six months ended
4

For the six months ended
5
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
5
✓✓
✓
✓✓
✓
✓✓
✓
✓
✓
✓
✓
✓
✓✓
✓
✓
✓
✓

For the six months ended
7
•
•
•
•
•
7

For the six months ended
8
•
•
•
•
8

For the six months ended
9
•
•
•
•
•
9

For the six months ended
10
•
•
✓
✓
✓
•
—
—
—
10

For the six months ended
11
•
•
•
•
11

For the six months ended
12
•
•
•
•
12

For the six months ended
13
•
•
•
•
13

For the six months ended
14
•
•
•
•
•
14

For the six months ended
15
•
•
•
Chief Corporate Affairs Officer
Chief Digital & Information Officer
Antony Welton
Chief Operations & People Officer
Tom Gordon
Chief Financial Officer
Chief Content & Commercial Officer
Chief Customer Officer
15

For the six months ended
17
•
•
•
•
17

For the six months ended
18
•
•
•
18

For the six months ended
19
•
•
•
19

For the six months ended
20
•
•
•
20

For the six months ended
21
•
•
•
•
•
21

For the six months ended
22
•
•
22

For the six months ended
23
•
•
•
•
23

For the six months ended
24
•
•
•
•
•
Net impact of
Covid-19 YoY
$3.3m
24

For the six months ended
25
•
•
25

For the six months ended
26
•
•
•
•
•
35
74
90
75
2
14
18
17
26

For the six months ended
2828
•
•
•

30
For the six months ended
•
•
•
•
30

For the six months ended
32
32
This presentation has been prepared by Sky Network Television Limited and its group of companies (“the Company”) for informational purposes. This disclaimer applies to this document and
the verbal or written comments of any person presenting it.
Information in this presentation has been prepared by the Company with due care and attention. However, neither the Company nor any of its directors, employees, shareholders nor any
other person give any warranties or representation (express or implied) as the to accuracy or completeness of this information. To the maximum extent permitted by law, none of the
Company, its directors, employees, shareholders or any other person shall have any liability whatsoever to any person for anyloss (including, without limitation, arising from any fault or
negligence) arising from this presentation or any information supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations,
estimates and assumptions and are subject to a number of risks, and uncertainties, including material adverse events, significant one-off expenses and other unforeseeable circumstances.
There is no assurance that results contemplated in any of these projections and forward-looking statements will be realised, nor is there any assurance that the expectations, estimates and
assumptions underpinning those projections or forward-looking statements are reasonable. Actual results may differ materially from those projected in this presentation. No person is under
any obligation to update this presentation at any time after its release or to provide you with further information about theCompany.
The Company has used the non-GAAP financial measures of Free Cash Flow and EBITDA and has presented adjusted results when discussing financial performance, as the directors and
management believe that these measures provide useful information on the underlying performance of the Company. Free Cash Flow is defined by the Company as net cash from operating
activities, less net cash used in investing activities less payments for lease liability principal. EBITDA is defined by the Company as earnings before income tax, interest expense,
depreciation, amortisationand impairment, unrealisedgains and losses on currency and interest rate swaps. Adjustments made to Sky’s GAAP financial measures normalisedfor non-
recurring costs and non-cash impairments and are described in more detail herein. You should not consider this in isolation from, or as a substitute for, the information provided in the
unaudited consolidated financial statements for the six months ended 31 December 2021, which form part of the Company’s 2022 Interim Report at https://www.sky.co.nz/investor-
centre/results-and-reports.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. The presentation does not constitute an
offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security. Nothing in this presentation constitutes legal,
financial, tax or other advice.

---

Appendix 4D Release to ASX under rule 4.2A
Other Information
Sky Network Television Limited
Half Year ended on 31 December 2021(In NZD)
Control gained over entities
There was no control gained over entities during the half year.
Loss of control of entities
There was no loss of control of entities during the half year.
Dividends or distributions
Interim dividend or distributions payable: Nil
Prior comparable period: Nil
Details of aggregate share of profits (losses) of associates and joint venture
entities
Not applicable
Accounting standards
New Zealand international financial reporting standards used in compiling report.
The consolidated interim financial statements include an Independent Auditor’s Review
Report.
Directors’ Details
The directors of Sky Network Television Limited at any time during the half year are as
follows:
Philip BowmanChairman
Keith SmithDirector
Joan WithersDirector
Mike DarceyDirector
Geraldine McBride Director

---

SKY Network Television Limited
10 Panorama Road, Mt Wellington
PO Box 9059, Newmarket
Auckland, New Zealand
Tel: +64 579 9999
Fax: +64 525 8324
www.skytv.co.nz
Directors’ Declaration
The directors declare that the consolidated financial statements:
(i)comply with New Zealand International Financial Reporting Standards
(ii)give a true and fair view of the financial position of Sky Network Television Limited and its
subsidiaries as at 31 December 2021 and of their performance, as represented by the
results of their operations and their cash flows for the half year ended on that date.
In the directors’ opinion at the date of this declaration there are reasonable grounds to believe that
Sky Network Television Limited will be able to pay its debts as and when they become due and
payable.
This declaration is made in accordance with a resolution of Directors and is signed for and on
behalf of the Board of Directors.
Dated at Auckland this 23rd day of February 2022.
Philip Bowman Keith Smith
Chairman Director