Sky Announces 2023 Interim Results

Sky New Zealand
PO Box 9059
Newmarket
Auckland 1149
New Zealand

10 Panorama Road
Mt Wellington
Auckland 1060
New Zealand

T. +64 9 579 9999

sky.co.nz



23 February 2023

Sky delivers customer and revenue growth; Buyback programme announced
Sky Network Television Limited (Sky) has delivered a solid performance for the six months to 31
December 2022 through continued growth in customer relationships and revenue, and a sustained
focus on cost control during a period of higher investment.
Key points of today’s announcement (comparisons are against H1 2022 unless stated):
 Customer relationships reached 1,053,287 (+6%)
 Revenue grew to $378.6 million (+2%) and with every core revenue line growing vs. H2 FY22
(+4%)
 Continued to secure targeted content, including key rights for World Rugby and Formula 1
 On target to deliver further permanent cost savings of $35 million in the 2023 financial year
 EBITDA
1
of $73.7 million in-line with prior period when normalised for one-offs in H1 2022
 NPAT of $26.2 million, on track to deliver results in line with full year guidance
 Interim dividend of 6.0 cents per share (fully imputed), in-line with increased guidance
 Additional capital management through a share buyback programme of up to $15 million

Commenting on the first half year performance, Chief Executive Sophie Moloney said: “We are
delivering on our strategy, and this result is further confirmation that Sky’s positive momentum has
continued from the inflection point we first reported on a year ago.”
“The positive trend in customer growth has continued, we’ve secured all of the key content we
targeted, particularly in sport, and all core revenue lines are delivering growth – notably this includes
growth in Sky Box revenue between H2 FY22 and H1 FY23. Our firm focus to deliver on our strategy
is showing up in these results despite the delays in delivering our new products, and we’re now
ready to aim even higher.”
“Exceeding 1 million customers is an exciting achievement as more New Zealanders choose to join
Sky. It’s a strong signal that we’re hitting the mark with a wider audience by delivering an
exceptional range of the sport and entertainment they love, and I’m determined we remain a
preferred choice for New Zealanders.”
Noting the recent weather events in New Zealand, Sophie said: “We are very conscious that many of
our customers and shareholders, along with some of our own team, are experiencing significant
impacts from the disastrous cyclone and flooding events in the past three weeks. Our thoughts are
with our fellow New Zealanders at this time, and we are taking a number of steps to provide support
for our customers and crew.”


1
EBITDA is a non-GAAP measure. Sky uses this measure when discussing financial performance as the Company
believes it provides useful information on the performance of the Company.

Customers
Growth in customer relationships included strong momentum in Streaming with an impressive 68%
increase for Sky Sport Now and 15% for Neon. This saw Sky’s streaming business reach a new total of
over half a million customers (506,375).
Broadband customer numbers more than doubled year on year to finish above 23,000 and achieved
a 4.3% attachment to Sky Box. Commercial customer relationships - including licenced premises,
clubs, hotels, motels and gyms - remained stable at close to 7,000.
While Sky Box customer relationships were down 5% year on year, this trend slowed in the most
recent six months and with further evidence that the acquisition strategy reset has started to deliver
the expected improvements. Despite some challenging delays (including supply chain disruption and
difficulties in accessing additional specialised technical capabilities in a very tight labour market), the
new Sky Box is now being shared with customers, focusing first on Vodafone TV (VTV) customers
before going wider. Sophie commented: “We are excited to have reached this important milestone. I
acknowledge the path to get to this point has not always been smooth, at the same time I’m proud
of the way the team has pulled together to deliver for our customers, and I’m pleased we are now
welcoming customers to this new experience.”
Content
Sky’s disciplined approach to securing content that customers value led to a number of important
rights wins, particularly in sport. These included a multi-year partnership with World Rugby
(including every men’s and women’s world cup until 2029) and the announcement in December that
Formula 1 coverage was returning to Sky from 2023. Other key renewals included a multi-year deal
with Australian Tennis and continuing relationships with Sky News, Roadshow Entertainment and
StudioCanal.
Previously reported wins including the first of six seasons of the Premier League and extensive
coverage of the men’s FIFA World Cup, demonstrated the value of Sky’s strengthened content to
attract new customers, with these competitions particularly resonating on Sky Sport Now.
Sophie commented: “The strategic choices we have made across key sports content, and the vast
array of entertainment options (from acclaimed series, familiar favourites, blockbuster movies, news
and kids programming) firmly position Sky as New Zealand’s leading aggregator. We have the biggest
variety content bundle - all in one place - and we remain focused on maximising its value across our
platforms.”
Financial
Revenue grew to $378.6 million, up 2% on the prior period, and importantly Sky Box revenue, while
down 1.9% year on year, reached a significant milestone – achieving half on half growth for the first
time since 2014. Average monthly revenue for Sky Box subscribers rose 3% year on year to $81.09
and with 85% of customers paying over $50 per month.
The positive revenue trend included impressive growth of 48% for Sky Sport Now and 19% for Neon.
While total Streaming revenue grew by 7%, this would be 22% if adjusted for the net impact of
funding the extensions to the VTV service. Broadband revenue more than doubled year-on-year and
pleasingly, both Commercial and Advertising revenues returned to pre-Covid levels with increases of
18% and 12% respectively.

Price increases advised in January for the Sky Box sports pack and Sky Sport Now will take effect
from 1 March.
Expenses increased overall with the expected rise in programming partly offset by savings across this
and other cost lines. The increase in programming reflected the step up in renewed rights,
acquisition of Premier League rights and increased production costs following the return of New
Zealand teams (the Warriors, Phoenix and Breakers) to home soil post-Covid.
Set against this, the annualised impact of FY 2022 savings and the next phase of cost savings are on
target to deliver approximately $35 million in cost reductions identified at the time of Sky’s full year
results in August 2022.
As signalled through guidance, capex rose to $40.2 million in anticipation of the launch of the new
Sky Box and Sky Pod (compared to $18.5 million in the prior period). EBITDA of $73.7 million was
down, although would have been in-line if normalised for one-offs in the prior period. Net profit
after tax was $26.2 million.
The Board has approved an interim dividend of six cents per share (fully imputed), consistent with
Sky’s policy of distributing between 60% and 90% of annual free cash flow and paying approximately
40% of the anticipated annual dividend as an interim distribution.
Capital Management
Sky returned approximately $70 million to shareholders through a Court Approved Scheme in
November 2022 having also returned to paying a dividend, with an initial dividend of $12.8 million
(7.3 cents per share, fully imputed) in September 2022.
Sky’s Chair, Philip Bowman commented: “Sky’s balance sheet remains strong, with $56.6 million in
cash on hand as of 31 December 2022 and an undrawn banking facility of $150 million. In addition
to these factors, Sky has a positive outlook for future cash generation from a significantly
strengthened business.”
“As I outlined in my address to the Annual Meeting, the Board believes Sky’s shares are considerably
under-priced, despite the significantly improved outlook for the business and the Board’s decisive
moves on capital management. At the close of business on 21 February 2023, Sky shares traded at
$2.56 equivalent to a multiple of 2.0 times EBITDA and 6.5 times earnings per share.
After careful consideration, the Board intends to commence an on-market buyback programme (the
Buyback) for up to $15 million and up to a maximum of 8,734,416 shares (approximately 6% of Sky’s
current shares on issue).”
The Company intends to initiate this Buyback next month as will be communicated to the market
ahead of the Buyback commencing. Assuming the full capacity is deployed, at the 21 February 2023
share price of $2.56 the Buyback would deliver a 3.3% uplift in Earnings Per Share.
Operational update
As announced to the market on 21 February 2023, Sky has started consultation with employees on a
proposal for organisational changes in its technology, customer care, and content operations
teams.

Sophie commented: “Our focus is to deliver excellent experiences for our customers, grow new
revenue streams, carefully manage our costs, and maximise the value of our exceptional range of
content. To continue to consistently achieve these things, we need better access to the right
technology, capacity and capability, and we need to do this in a cost-effective way.”

If adopted in full, the proposal would result in some of Sky’s work in content operations, customer
care and technology being outsourced to experienced international providers and could mean up to
170 roles would be impacted in these areas.

If the proposed changes are implemented in full, Sky anticipates generating multi-million dollar
permanent savings within two years. The full extent of any financial savings will not be known with
any certainty until the conclusion of the consultation period and once final selection decisions are
made.

Sky is providing support to its employees and expects to complete consultation and consider
employee feedback in the next three weeks. “Listening to our teams’ feedback and supporting them
through this process is our priority and we will provide further updates after consultation is
complete.”

Outlook
Sky remains on target to deliver full year results in line with the guidance
2
provided at the time of
the full year results announcement, providing a narrowed Guidance Range of Revenue of between
$750 to $760 million, EBITDA of between $150 to $160 million, NPAT of between $55 to $60 million,
Capex of between $65 to $75 million and Annual Dividends of between $20 to $23 million.
Sophie commented: “We have made significant progress over the past two years so that the Sky of
today is in a strong position and we will continue to aim higher as this work continues into the
second half.”
ENDS
Authorised by Kirstin Jones, Company Secretary
Sky will hold a webcast briefing at 10:30am (NZDT) to discuss the results. Details on how to
participate are available here: https://www.nzx.com/announcements/405703

Investor queries to: Media queries to:
Tom Gordon Chris Major
Chief Financial Officer Chief Corporate Affairs Officer
+64 21 190 0828 +64 29 917 6127
tom.gordon@sky.co.nz chris.major@sky.co.nz

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

2
Subject to the impact of the current consultation process, no adverse change in operating conditions, including future
economic headwinds, and the impacts of significant climatic events. Excludes RugbyPass contribution.

---

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


Results for announcement to the market
Name of issuer Sky Network Television Limited
Reporting Period 6 months to 31 December 2022
Previous Reporting Period 6 months to 31 December 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$378,590 1.9% increase
Total Revenue $378,590 1.9% increase
Net profit/(loss) from
continuing operations
$26,074 7.8% decrease
Total net profit/(loss) $26,211 7.3% decrease
Final Dividend
Amount per Quoted Equity
Security
$0.06
Imputed amount per Quoted
Equity Security
$0.02333333
Record Date 10 March 2023
Dividend Payment Date 24 March 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$ 0.7973
$0.8243
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
For further explanation refer to the Interim Report attached.
Authority for this announcement
Name of person

authorised
to make this announcement
Tom Gordon
Contact person for this
announcement
Tom Gordon
Contact phone number
+64 21 1900 828

Contact email address Tom.Gordon@sky.co.nz
Date of release through MAP

23/02/2023

Interim financial statements accompany this announcement.

---

Distribution Notice

Updated as at June 2022



Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)

Section 1: Issuer information
Name of issuer Sky Network Television Limited
Financial product name/description Ordinary Shares
NZX ticker code SKT
ISIN (If unknown, check on NZX
website)
NZSKTE0001S6
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 10/03/2023
Ex-Date (one business day before the
Record Date)
09/03/2023
Payment date (and allotment date for
DRP)
24/03/2023
Total monies associated with the
distribution
$8,734,391
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.08333333
Gross taxable amount $0.08333333
Total cash distribution $0.06000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01058824
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed

Fully imputed X
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.02333333
Resident Withholding Tax per
financial product
$0.00416667

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Tom Gordon
Contact person for this
announcement
Tom Gordon
Contact phone number +64 211 900 828
Contact email address tom.gordon@sky.co.nz
Date of release through MAP

23/02/2023

---

2023 Interim Report
For the 6 months ended 31 December 2022
Sky Network Television Limited

Rapid and sustained execution to meet or
exceed our key objectives and continue to be a
responsible, adaptive and profitable business.
THE ‘BEDROCK’ OF OUR BUSINESS
HY23 at a glance
Our Customers
WHAT MATTERS MOST?
We connect New Zealanders with the sport
and entertainment they love, in ways that
work for them, right across the country.
WHAT DO WE DO?
Nurture and
grow our
customer
relationships
CUSTOMERS
1
Create and
secure the
best sport and
entertainment
for our
customers
CONTENT
2
CREW
Be a place
where our
crew can
do their
best work
3
CAPABILITY
Develop
or partner
for the
best tech
and data
outcomes
4
WHAT WE’RE FOCUSING ON
REVENUE
$M
378.6
2%6%
TOTAL CUSTOMER
RELATIONSHIPS
1,053,287
SKY BOX
CUSTOMERS
517,003
EBITDA
$M
73.7
14%
DIVIDEND
(CENTS PER SHARE)
6.0
NPAT
$M
26.2
7%
STREAMING
CUSTOMERS
506,375
FinancialCustomer
SKY BROADBAND
CUSTOMERS
23,156
Sky / 2023 Interim Report
/ 2

Message from the Chair
I am pleased to report
another period of positive
progress for your Company.
Sky’s business has performed well in the first
half of the 2023 fiscal year, delivering against
key operational and financial milestones,
and executing on strategic priorities.
Significant opportunities to further improve
medium term performance also remain.
Customer relationships exceeded 1 million,
with many more New Zealanders recognising
the value our sport and entertainment
content offers in whichever way they
choose to enjoy it. This growth in customers,
combined with the positive impact of price
increases and a recovery in Commercial
and Advertising revenues to pre-Covid
levels, resulted in a healthy 2% rise in
revenues to $378.6 million – the highest
six-month achievement in three years.
This revenue growth was delivered despite
the delay in launching the new Sky Box and
the new Sky Pod, as well as the consequential
net impact on streaming revenue from
funding Vodafone TV (VTV) for an extended
period. The delay in delivering this key project
is disappointing, both from a customer
and financial perspective. Supply chain
disruption (including the well documented
global shortage of microchips), combined
with difficulties in accessing additional
specialised technical capabilities in a very
tight labour market, are among the issues
the team has faced. These challenges are
now largely behind us. After extensive
testing I am pleased to confirm that we
have delivered the first boxes to customers,
focusing initially on VTV customers given
the need to complete the VTV transition.
The first half results also demonstrate
that whilst programming costs have
increased in line with our expectations,
this targeted investment in content and
customer experience is resonating with our
customers. Our ongoing focus to reduce
the cost base remains a key priority. Sophie
and her management team have a clear
plan to deliver further benefits over the
medium term as initiatives are progressed.
Whilst earnings before interest, tax,
depreciation and amortisation (EBITDA
1
)
of $73.7 million were down on H1 2022, the
prior period benefited from several one-
offs including Covid-related impacts and
the release of a Holiday’s Act provision.
Normalising the prior period for these one-
offs, and adjusting for the impact of VTV
fees, EBITDA was in-line to growing despite
additional investment to support revenue
growth. Net profit after tax was $26.2 million.
The Board has declared an interim dividend of
6.0 cents per share (fully imputed), consistent
with our policy of distributing between 60%
and 90% of annual free cash flow and paying
approximately 40% of the anticipated annual
dividend as an interim distribution. This
reflects our confidence in the strength and
sustainability of future cash flows, despite a
half year where the timing of some significant
payments (most notably the purchase of new
Sky boxes) was weighted to the first half.
Looking ahead
In preparing this and previous letters, I have
reflected on the rapid pace of change in
the global media sector, especially over the
past two to three years. There is little sign
of this abating. Despite major changes
at Sky over the past several years which
have improved financial performance and
customer satisfaction, further repositioning
the business remains an ongoing necessity. To
achieve this, we need to deliver further service
and product improvements for our customers,
grow new revenue streams, further optimise
the cost base, and monetise more value
from our exceptional range of content.
Technology and customer service underpin
these key initiatives. Drawing upon the
learnings from the Sky Box and Pod
projects, the management team have
been exploring ways to access the right
technology, capacity and capabilities to
allow us to deliver key business processes,
including customer service, in a simpler,
faster and more efficient manner.
Your Board is very mindful of the potential
impact of changes on some of our people,
and alongside the management team
is determined to ensure that we listen
to the feedback that we receive and act
transparently, provide timely information
and a range of support options for
employees who may be impacted. We
will update you when consultation is
completed and decisions have been made.
Capital Management
Following a vote at the 2022 Annual
Shareholder Meeting of 99.7% in favour of the
proposed capital return, approximately $70
million was returned to shareholders in late
November 2022 through a Court sanctioned
cancellation of shares. For most investors,
the decision to distribute surplus capital using
this mechanism resulted in a return that was
tax free, with imputation credits preserved
for future distributions. This payment was
in addition to $12.8 million in dividends (7.3
cents per share, fully imputed) which was
paid to shareholders in September 2022.
Sky’s balance sheet remains strong with
$56.6m in cash on hand at 31 December
2022, and an undrawn bank facility of $150
million. In addition, the outlook for future cash
generation remains strong. As I outlined in my
address to the Annual Shareholder Meeting,
the Board believes that the Company’s
shares are significantly under-valued despite
the significantly improved outlook for the
business and the decisive moves we have
made on capital management. At the close of
business on 21 February, SKT shares traded
at $2.56, equivalent to a multiple of 2.0 times
EBITDA and 6.5 times earnings per share.
After careful consideration, the Board
intends to commence an on-market
buyback programme (the Buyback) for
up to a maximum of 8,734,416 shares
(approximately 6.0% of Sky's current shares
on issue). The company currently intends
to initiate this Buyback next month as will
be communicated to the market ahead of
the Buyback commencing. Assuming the
full capacity of the Buyback is deployed at
the share price of $2.56 as at 21 February
2023, it is expected this will deliver a
3.3% uplift in Earnings Per Share.
Board
After a lengthy external search process,
we were delighted recently to announce
the appointment of Belinda Rowe as an
independent director, with effect from
1 March 2023. Belinda has an impressive
and highly relevant range of skills and
experience, honed through a leadership and
governance career spanning global content
marketing and communications, media,
technology and sport. We look forward
to welcoming her, and to the positive
contribution her perspectives and experience
will make to Board discussions. Belinda
will seek election by Sky’s shareholders at
the next Annual Shareholder Meeting.
Conclusion
In closing, I would like to extend my
thanks to my Board colleagues for their
continued energy, commitment and
diligent stewardship of the Company.
Sophie, supported by the Sky team, has
continued to challenge the status quo and
reposition the Company for the changing
market environment. Her focus on improving
returns for shareholders is impressive, whilst
also carefully considering the Company’s
role in the broader New Zealand community.
On behalf of the Board I would like to
take this opportunity to thank Sophie
and the team for their hard work and
their determination to “aim higher”.
Finally to you, our shareholders, I thank
you for your continued support of Sky. I
look forward to providing further updates
on your Company’s progress as we
continue to deliver on our strategy.
In closing I would note with sadness that it is
increasingly clear that the true extent of loss
of life, damage to property and disruption
created by cyclone Gabrielle has yet to
be fully established. The thoughts of the
Board are with the people of New Zealand
at this difficult time, and Sky will play its
part to support those most impacted.
Philip Bowman
Chairman
1
EBITDA is a non-GAAP measure. Sky uses this measure when discussing financial performance as the Company believes it provides useful information on the performance of the Company.
Sky / 2023 Interim Report
/ 3

* Our key competitive
advantages give us a strong
platform to build from to
stay at the forefront:
1. We understand what our
customers value based
on rich viewership data
2. We are the ultimate
aggregator due to
‘power of the bundle’
3. We deliver to all of
New Zealand
4. We have a significant
and valuable Sky Box
customer base, and
5. We offer a multi-product
and multi-platform
play, including free
to access options.
Message from the CEO
As I outline below, we are delivering on our strategy.
We have grown our customer relationships. While
acknowledging the delay, we have started rolling
out our new Sky Box to customers, with the Sky
Pod soon to follow. We have secured all of the key
content rights we targeted, particularly in sport.
And we are focusing in on how we set our crew up
with access to the right capabilities and capacity
to deliver for customers in the years ahead.
We continue to understand our key competitive
advantages* but know we need to aim higher.
More broadly, as our world continues to change
at a tremendous pace, and as we go through cost
of living challenges in this country along with the
impacts of significant climatic events, we are
determined to remain a preferred choice for the
sport and entertainment that New Zealanders
love. That means continuing to offer our
customers an exceptional range of content, as
well as great choices about how they access it.
Summary of Results
The highlight for the first half of FY23 was the
clear demonstration that we are continuing
to build on and lock in gains from the positive
inflection point we spoke of twelve months ago.
This is showing up in our financial results.
Revenue of $378.6 million, was up 2%
against the previous period.
Importantly Sky Box revenue has now reached a
significant milestone, returning to growth against
H2 of FY22 – the first half on half growth since
2014. This was largely driven by the continuing
stabilisation of our customer numbers, increased
average monthly revenue per customer, including
from the May 2022 sports price increase (and
with a further increase for both Sky Sport and
Sky Sport Now to take effect from 1 March).
Streaming revenue grew by 7% with underlying
growth of 22%. The difference is the negative impact
on our revenue line from the delay in delivering our
new products to our Vodafone TV customers, noting
the statement of these streaming revenues is net
of the Vodafone TV costs. Neon contributed an
additional 19% revenue and Sky Sport Now recorded
an impressive 48% rise. The growth reflects higher
customer numbers, Neon price rises and a greater
mix of higher priced passes for Sky Sport Now.
Broadband revenue more than doubled
following significant growth in customers
while Commercial revenues increased by
18%, returning to pre-Covid levels.
Advertising revenue increased by 12% as we begin
to lean into this sizable opportunity. Our strategic
intent remains to maximise the value of our
superb content in an ad-funded environment.
Operating costs included the expected increases
in programming rights following the recent cycle
of significant competition around key rights (as
further detailed below) that will fuel future growth.
We have also experienced increased production
costs compared to the prior period as local teams
such as the Warriors, Phoenix and Sky Sport
Breakers returned to playing at home post-Covid.
Capex of $40 million in the first half of FY23
compares to $18 million in the prior period as we
prepare to deliver our new products to customers.
The expected uplift in capex spend and
accelerated payment arrangements for recent
content rights wins means that free cash flow
is strongly weighted to the second half.
It also follows that, although slightly lower
than the prior period, the first half Net Profit
of $26.2 million is in line with expectations.
Overall, we remain on track to deliver results within
the guidance ranges outlined at the time of our
2022 full year results (and the improved dividend
guidance provided at the ASM), noting that we
have now moved to tighten the ranges to slightly
lower the mid-points for Revenue and EBITDA
guidance although with higher mid-points for
NPAT and full year dividends. We are monitoring
the recent, and ongoing, climatic events that have
impacted a number of New Zealand households
and thereby some Sky customers. We are taking
steps to support impacted customers, and to
understand the implications for our guidance, if any.
It’s good to be able to share the progress we
made in our business over the last six months.
Sky / 2023 Interim Report
/ 4

Delivering on our strategy – more detail on
the wins from the first half
We've hit several key targets and milestones that
together, underpin our strong financial results.
Customers: Nurture and grow our
customer relationships
- Customer relationship growth continues
– climbing above the 1 million mark to
be 6% higher than a year ago.
- Sky Box – despite some challenging delays,
which have been disappointing as Philip indicates
in his letter, we are now delivering this exciting
new experience with our VTV customers, and
the ‘first impressions’ anecdotal feedback -from
these paying customers has been very positive.
- Streaming – continues to hit its marks. Sky Sport
Now is the stand-out performer cementing its
unrivalled position in sports streaming with a super-
strong content slate fuelling 68% growth. Neon’s
growth continues, up 15% on a year ago, including
from the recently-introduced basic tier product which
is opening up new opportunity at a lower price point.
- Broadband – while we see a much greater
opportunity in the future with our IP-delivered
products, for this half year numbers have more
than doubled, with our high quality ‘made
for entertainment’ solution winning fans
and adding value for Sky Box customers.
- Commercial – customer numbers remain
stable, and revenue has returned to pre-
Covid levels, following an extended period
where we provided support to customers
significantly impacted by Covid restrictions.
Content: Create and secure the best sport
and entertainment for our customers
- We secured the content we targeted,
armed with rich viewership data:
• The first of six seasons of the Premier League
(EPL) was welcomed to our screens in August.
• The extremely successful FIFA World Cup
tournament captured the imagination of fans
throughout the world and here in New Zealand,
reaching more than one in four New Zealanders
via Sky Sport, Prime, and Sky Sport Now.
• In October, we agreed a wide ranging seven-
year partnership with World Rugby including
every men’s and women’s Rugby World Cup and
a joint approach to the production of exclusive
programming, particularly in women’s rugby.
• Our Formula 1 win was announced in
December with this exhilarating content
returning to our screens in 2023.
• The renewal of the Sky News channel delivers
24/7 news from the Asia-Pacific region for
a highly-interested cohort of customers.
• Key studio renewals with Roadshow
Entertainment & StudioCanal will see a
strong pipeline of compelling movie content
coming for Sky Movies, Neon and Prime.
• We also welcomed high quality studio output – big
blockbuster movies, the much-anticipated House
of the Dragon, the return of Yellowstone, The
Handmaid’s Tale and acclaimed The White Lotus.
- We are focused on the continued reinvigoration
of our free-to-air channel: Prime as an important
part of our access for all New Zealanders to
showcase our content – including Sky Originals
such as ‘Topp Class’, as well as key sporting
moments such as the World Rugby Sevens
Series hosted in Hamilton in February (with a
wonderful home win for the Black Ferns Sevens).
- We ended the six months on a high with both
local and global acknowledgements of our Sky
Originals and Sky Sport production: an international
Emmy win for Short Form Series - Rūrangi
with season 2 having just premiered, a Bronze
IOC Golden Rings Award for our Nico Porteous
profile piece for the Beijing Winter Olympics,
and four wins at the NZ TV Awards including
Sky's 1 -39: The Highlanders Story and highly
contested Best Comedy for Raised by Refugees.
Crew: Be a place where our crew can do their best work
- We delivered an important and much-
welcomed salary increase for our crew in
October, with higher percentage increases
weighted towards those on lower incomes.
- We have implemented new benefits of paid parental
leave and special family circumstance leave which
allows caregivers in a range of situations the
flexibility to meet personal and work commitments.
- We invested in developing our leaders at Sky through
the commencement of new training opportunities.
And we have embarked on a journey to better
understand and engage in the cultural context of
Aotearoa New Zealand, including the relevance
of Te Ao Māori (the Māori world), starting with
building the cultural competency of our team
and the development of a wider strategy.
- We recognise the importance for our crew of
playing our part and are making positive progress
towards improving our environmental impact
alongside our other social initiatives, including our
commitment to help inspire young women and
girls in sports and leadership via See the Possible.
Capability: Develop or partner for the
best tech and data outcomes
- We successfully transitioned our warehouse and
maintenance functions to a logistics partnership
with Pacificomm. This is transforming our Sky Box
(and soon Sky Pod) logistics by providing faster
delivery times, and a more cost-effective service to
support the roll-out of these new Sky products.
- We have engaged with a new partner to
support our much-needed automation of
certain processes in order to be a place where
our crew can focus on more rewarding work.
- In July 2020 we announced the renewal of our
partnership with Optus to deliver a new software-
defined satellite to replace the existing D-series
satellite. The initial plan was for the new satellite to
be in place by December 2023, but various factors
including significant manufacturing delays have
put back that launch date to late 2025 or early
2026. We are working closely with Optus to ensure
the ongoing supply for our satellite requirements,
including the option to repurpose another satellite
already in the same orbital location for our Sky
homes, if required, and will update the market on
developments as they arise. We remain confident
of our ability to continue to serve our satellite
customers as we transition to the new satellite.
- More broadly, we’re finding that our strategy
of ‘partnering where that makes sense’ is
making a great deal of sense for our business.
Increasingly it’s allowing us to more swiftly
access the capacity and capability we need
– particularly in a tight labour market – while
also reducing costs and adding flexibility.
Looking ahead – and Aiming Higher
I’m proud of what we have achieved. We have made
significant progress over the past two years to get to
this point, particularly in the Customer and Content
areas of our strategy, so that the Sky of today is
in a strong position and with a vibrant future.
In order to aim even higher as a business, we want to
deliver improvements for our customers, grow new
revenue streams, continue to find cost savings, and
maximise the value of our exceptional range of content.
We have been exploring how we can best achieve these
goals and identified areas where we believe we may
need to make changes, to ensure we have access to the
right resources, structured in the right way, to access
the benefits of a better operating environment for the
ultimate benefit of great access to content and services
by our customers. We also have a clear focus on Sky
being a place where our people can do their best work.
At the time of writing, we are consulting with our
employees on some proposed changes. Listening
to our team’s feedback is our first priority and we
will provide further updates after that process
is complete and decisions have been made.
Thank you
As always, I am hugely grateful for the many hours
of direct support from Philip and to the full Board for
all of their dedication and care to the Sky cause.
To my Exec team, thank you for all of your tenacity
and team-work, and for keeping focused on the
task ahead as we also aim higher in 2023.
Before doing so, at the time of writing I, along with
my team, recognise that a number of our customers
and shareholders will be feeling the very real impact
of the recent cyclone disaster. Our thoughts are
with you and all New Zealanders who are facing a
tough time in the days, weeks and months’ ahead.
It remains a huge privilege to lead Sky at this time
in its turnaround. Of course, we only get to do
what we do with the support of our customers
and our shareholders: your support is vital.
I’m proud of what the Sky team is delivering every
day for our customers, partners, communities
and each other and the results that follow
.
Sophie Moloney
CEO
Sky / 2023 Interim Report
/ 5

For the six months ended
31 December 2022
Our 2023
Interim
Financials
Sky / 2023 Interim Report
/ 6

Consolidated Interim Statement
of Comprehensive Income
For the six months ended 31 December 2022 (unaudited)

In NZD 000

Notes
31-Dec-2022
(6 months)
31-Dec-2021
(6 months)
30-Jun-2022
(1 year)
(audited)
Revenue
4 378,590371,671736,111
Other income
1,533840 16,753
Expenses
Programming
8197,572178,413365,347
Subscriber related costs
42,55650,20093,233
Broadcasting and infrastructure
38,46633,07270,586
Depreciation and amortisation
36,03743,16980,171
Other costs
2 7, 8 4 225,52354,682
Total operating expenses
342,473330,377664,019
Impairment of goodwill
- - 2,000
Loss on sale of subsidiary
13 219 - -
Finance costs (net)
3182,3176,094
Profit before tax
3 7, 1 1 339,81780,751
Income tax expense
10,90211,55218,539
Profit for the period
26,21128,26562,212
Attributable to
Equity holders of the Company
2 6 , 07428,29262,145
Non-controlling interests
137(27)67
26,21128,26562,212
Earnings per share
Basic and diluted earnings per share (cents)
1215.4916.2035.57
Other Comprehensive Income
Profit for the period
26,21128,26562,212
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
(262)31318
Deferred hedging (losses)/gains transferred to operating
expenses during the period
10(13,385)2,96412,785
Income tax effect
103 ,74 8(830)(3,580)
Net other comprehensive (loss)/income to be reclassified to profit
or loss, net of income tax
(9,899)2,1659,523
Items that may not be reclassified to profit or loss
Deferred hedging losses transferred to non-financial assets
during the period
(1,730)(1,535)(1,535)
Income tax effect
484430 430
Net other comprehensive loss not being reclassified to profit
or loss, net of income tax
(1,246)(1,105)(1,105)
Total comprehensive income for the period
15,06629,32570,630
Attributable to
Equity holders of the Company
14,92929,35270,563
Non-controlling interests
137(27)67
15,06629,32570,630
Consolidated Interim Balance Sheet
As at 31 December 2022 (unaudited)
In NZD 000Notes31-Dec-202231-Dec-2021
30-Jun-2022
(audited)
Current assets
Cash and cash equivalents
1056,59773,946138,916
Trade and other receivables
1049,96853,81655,359
Programme rights inventory
8132,21495,293121,407
Derivative financial instruments
105,6333,22914,345
244,412226,284330,027
Non-current assets
Property, plant and equipment
82,93769,838 71,393
Intangible assets
5 7, 9 1 054,769 51,700
Right of use assets
42,70346,644 5 7, 3 0 1
Deferred tax asset
6,6731,277 4,919
Goodwill
244,264255,245 244,264
Derivative financial instruments
103972,033 4,464
434,884429,806 434,041
Assets held for sale
9 -36,626 12,782
Total assets
679,296692,716 776,850
Current liabilities
Interest bearing loans and borrowings
6,104581,149 1,035
Lease liabilities
3,1031,26225,343 31,244
Trade and other payables
138,735127,063 151,711
Contract liabilities
54,02150,836 52,505
Income tax payable
3632,308 3,306
Derivative financial instruments
10 1,259613 -
226,0982 0 7, 3 1 2 239,801
Non-current liabilities
Interest bearing loans and borrowings
6,10 - 458 -
Lease liabilities
3,1021,46726,663 39,435
Trade and other payables
1,1351,544 1,146
Derivative financial instruments
10 4,281142 -
26,88328,807 40,581
Liabilities associated with assets held for sale
9 - - 1,975
Total liabilities
252,981236,119 282,357
Equity
Share capital
146 9 8 , 2 74768,766 768,766
Reserves
(1,692)2,095 9,453
Retained deficit
(271,673)(315,577)(284,995)
Total equity attributable to equity holders of the Company
424,909455,284 493,224
Non-controlling interest
1,4061,313 1,269
Total equity
426,315456,597 494,493
Total equity and liabilities
679,296692,716 776,850
Philip Bowman Keith Smith
Director and Chair Director and Chair of Audit and Risk Committee
For and on behalf of the Board 22 February 2023
Sky / 2023 Interim Report
/ 7

Consolidated Interim Statement
of Cash Flows
For the six months ended 31 December 2022 (unaudited)
Consolidated Interim Statement
of Changes In Equity
As at 31 December 2022 (unaudited)
In NZD 000Notes
31-Dec-2022
(6 months)
31-Dec-2021
(6 months)
30-Jun-2022
(1 year)
(audited)
Cash flows from operating activities
Profit before tax
3 7, 1 1 339,81780,751
Adjustment for:
Depreciation and amortisation
36,03743,16980,171
Impairment of goodwill
- - 2,000
Impairment of programme rights
8 - 1,0801,152
Unrealised foreign exchange loss/(gain)
942(1,182)618
Interest expense
3,1982,8835,772
Bad debts and movement in provision for doubtful debts
1,2214271,291
Loss on sale of subsidiary
13219 - -
Other non-cash items
(840)(459)(798)
Movement in working capital items:
Decrease in receivables
4,17011,372229
Decrease in payables
(587)(14,277)(3,759)
(Increase)/decrease in programme rights
(11,960)7, 3 5 7(19,517)
Cash generated from operations
69,51390,1871 47, 9 1 0
Interest paid
(3,072)(2,668)(5,547)
Bank facility fees paid
(126) - (225)
Income tax paid
(10,200)(13,500)(22,500)
Net cash from operating activities
56,11574 ,019119,638
Cash flows from investing activities
Acquisition of property, plant and equipment
(28,116)( 7, 1 5 1 )(19,812)
Acquisition of intangibles
(12,040)(11,334)(24,871)
Proceeds from disposal of Mt Wellington properties
- - 55,580
Proceeds from disposal of OSB business
- - 7,000
Net cash (used in)/from investing activities
7(40,156)(18,485)17, 8 9 7
Cash flows from financing activities
Capital returned to shareholders
14(70,492) - -
Payments for lease liability principal
(13,416)(15,841)(32,144)
Repayment of other borrowings
(577)(547)(1,137)
Dividend paid to shareholders
(13,793) - -
Dividend paid to minority shareholders
- - (138)
Net cash used in financing activities
(98,278)(16,388)(33,419)
Net (decrease)/increase in cash and cash equivalents
(82,319)39,146 104,116
Cash and cash equivalents at the beginning of the period
138,916 34,800 34,800
Cash and cash equivalents at the end of the period
10 56,597 73,946 138,916
Attributable to owners of the parent
In NZD 000
Share
capitalReserves
Retained
deficitTotal
Non-
controlling
interest
Total
equity
For the six months ended 31 December 2022
Balance at 1 July 2022
768,7669,453(284,995)493,2241,269494,493
Profit for the period
--2 6,0742 6,0741372 6,211
Exchange difference on translation of
foreign operations
-(262)-(262)-(262)
Cash flow hedges, net of tax
-(10,883)-(10,883)-(10,883)
Total comprehensive income/(loss) for the period
-(11,145)2 6,07414,9291371 5,066
Transactions with owners in their capacity
as owners
Share capital returned
1
(69,876)--(69,876)-(69,876)
Transaction costs
(616)--(616)-(616)
Dividend paid
2
--(12,752)(12,752)-(12,752)
Supplementary dividends
--(1,041)(1,041)-(1,041)
Foreign investor tax credits
--1,0411,041-1,041
(70,492)-(12,752)(83,244)-(83,244)
Balance at 31 December 2022
6 9 8 , 274(1,692)(271,673)42 4,9091,4064 2 6,315
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/(loss) for the period
-1,06028,29229,352(27)29,325
Transactions with owners in their capacity
as owners
Balance at 31 December 2021
768,7662,095(315,577)455,2841,313456,597
For the year ended 30 June 2022 (audited)
Balance at 1 July 2021
768,7661,035(347,140)422,6611,340424,001
Profit for the period
--62,14562,1456762,212
Exchange difference on translation of
foreign operations
-318-318-318
Cash flow hedges, net of tax
-8,100-8,100-8,100
Total comprehensive income for the year
-8,41862,14570,5636770,630
Transactions with owners in their capacity
as owners
Dividend paid
----(138)(138)
----(138)(138)
Balance at 30 June 2022
768,7669,453(284,995)493,2241,269494,493
1 On 21 November Sky returned 1 in every 6 shares for consideration of $2.40 to shareholders, paid on 29 November 2022
2 Sky paid a dividend of 7.3 cents per ordinary share on 23 September 2022
Sky / 2023 Interim Report
/ 8

Notes to the Consolidated Interim
Financial Statements
For the six months ended 31 December 2022 (unaudited)
Group structure
The Group has a majority share in the following subsidiaries.
Name of EntityPrincipal Activity
Country of
IncorporationParent
Interest held
Dec 2022 Jun 2022 Dec 2021
Sky DMX Music LimitedCommercial musicNew ZealandSky
50.50%50.50%50.50%
Sky Ventures LimitedNon-tradingNew ZealandSky
1 0 0.0 0 %1 0 0.0 0 %1 0 0.0 0 %
Media Finance LimitedNon-tradingNew ZealandSky
1 0 0.0 0 %1 0 0.0 0 %1 0 0.0 0 %
Non Trading PS Limited
(previously Outside
Broadcasting Limited)
Non-tradingNew ZealandSky
1 0 0.0 0 %1 0 0.0 0 %1 0 0.0 0 %
Screen Enterprises LimitedNon-tradingNew ZealandSky
1 0 0.0 0 %1 0 0.0 0 %1 0 0.0 0 %
Sky Network Services Limited
(previously Igloo Limited)
Broadband servicesNew ZealandSky
1 0 0.0 0 %1 0 0.0 0 %1 0 0.0 0 %
Believe It Or Not LimitedEntertainment quizzesNew ZealandSky
51.0 0 %51.0 0 %51.0 0 %
Sky Investment Holdings
Limited
InvestmentNew ZealandSky
1 0 0.0 0 %1 0 0.0 0 %1 0 0.0 0 %
RugbyPass Limited
1
Content generation,
subscriptions and marketing
IrelandSky Investment
Holdings Limited
-1 0 0.0 0 %1 0 0.0 0 %
RugbyPass Asia Pte Ltd
2
Non-tradingSingaporeRugbyPass
Limited
--1 0 0.0 0 %
Lightbox New Zealand LimitedStreaming servicesNew ZealandSky
1 0 0.0 0 %1 0 0.0 0 %1 0 0.0 0 %
Sports Analytics Pty Limited
(acquired 1 January 2021)
Data analytics for sportsSouth AfricaSky Investment
Holdings Limited
8 1.0 0 %8 1.0 0 %8 1.0 0 %
RugbyPass UK Limited
(incorporated 26 Jan 2021)
1
Management servicesUnited
Kingdom
Sky Investment
Holdings Limited
-
100.00%100.00%
1. On 10 October 2022 Sky completed an agreement with World Rugby to sell the shares of RugbyPass Limited and RugbyPass UK Limited (The RugbyPass
Entities) for $11.0 million (refer note 13).
2. At the request of the Group, RugbyPass Asia Pte Ltd was struck off the Register of Companies on 10 January 2022.
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 2022 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 and
telecommunication services in New Zealand.
These consolidated interim financial statements were approved by the Board on 22 February 2023.
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 2022. 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 2022. 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).
Sky / 2023 Interim Report
/ 9

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
Sky Box
subscriptions
Broadband
subscriptions
Streaming
subscriptions
Commercial
revenueAdvertising
Other
revenue
Total revenue
from contracts
with customers
For the six months ended 31 December 2022
Revenue from customers
255,0018,92251,85526,52726,3239,962378,590
Total revenue
255,0018,92251,85526,52726,3239,962378,590
Timing of revenue recognition
At a point in time
2 ,74 2160 - - 26,3233,69632,921
Over time
252,2598,76251,85526,527 - 6,266345,669
255,0018,92251,85526,52726,3239,962378,590
For the six months ended 31 December 2021
Revenue from customers
259,9342,45248,46822,51323,49114,813371,671
Total revenue
259,9342,45248,46822,51323,49114,813371,671
Timing of revenue recognition
At a point in time
3,014 - - - 23,4913,22129,726
Over time
256,9202,45248,46822,513 - 11,592341,945
259,9342,45248,46822,51323,49114,813371,671
For the year ended 30 June 2022 (audited)
Revenue from customers
514,0298,78293,2664 7, 3 7 947,59225,063736,111
Total revenue
514,0298,78293,26647, 3 7 947,59225,063736,111
Timing of revenue recognition
At a point in time
5,195366 - - 47,5927, 4 6 760,620
Over time
508,8348,41693,2664 7, 3 7 9 - 1 7, 5 9 6675,491
514,0298,78293,26647, 3 7 947,59225,063736,111
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.
Prior to disposal of the RugbyPass Entities on 10 October 2022, RugbyPass was identified as a separate operating segment
and formed a separate cash generating unit. For financial reporting purposes and with reference to the aggregation criteria in
the accounting standards RugbyPass was aggregated with the Sky business operating segment for the purposes of reporting
segment disclosure.
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 2022. The Group has not early adopted any
standard, interpretation or amendment that has been issued but is not yet effective.
Intangible assets and goodwill
Management and the Directors have considered whether there are any events or changes in circumstances since the signing of the
2022 financial statements that may be an impairment indicator as at 31 December 2022, having considered factors such as:
• The Group’s half year results;
• The increase in market interest rates;
• The premium of net assets to market capitalisation, 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 2022.
Capital structure
As at 31 December 2022 the Group had positive working capital of $18.3 million (31 December 2021: $19.0 million; 30 June 2022:
$90.2 million).
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 $56 million and an undrawn banking facility of
$150 million at 31 December 2022 (refer note 6).
Environmental, Social and Governance (ESG) Reporting
The Group as part of its enterprise risk management framework continues to monitor its exposure to risk, including climate related
risk and related regulatory reporting requirements. Sky intends to specifically review and report on exposure to climate related
risk, and potential opportunities in line with legislative requirements currently under development and likely to reflect the Financial
Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) requirements. Emissions measurement systems are
in place, and these will continue to be further refined with a view to initiating reporting in the 2023 financial year.
We do not at this stage consider there to be any significant financial impact for the Group from climate change but will continue
to monitor as our strategic framework, systems and processes evolve and as regulatory frameworks are finalised and introduced.
Sky / 2023 Interim Report
/ 10

7. Capital Expenditure
The Group acquired the following property, plant and equipment (PPE) and intangibles during the period:
In NZD 000
31-Dec-2022
(6 months)
31-Dec-2021
(6 months)
30-Jun-2022
(1 year)
(audited)
Capital projects in progress (includes PPE & Intangibles)
6,9274,69314,080
Land and buildings
509 - 948
Broadcasting and studio equipment
792621,027
Plant and equipment and other
7382482,677
Subscriber equipment
15,204427977
Installation costs
6,3485,87311,605
Intangibles
10,3516,98213,369
Cash outflow in the period
40,15618,48544,683
8. Programme Rights Inventory
In NZD 00031-Dec-202231-Dec-2021
30-Jun-2022
(audited)
Opening balance
121,407103,154103,154
Acquired during the period
178,443142,818329,888
Written off during the period
-(1,080)(1,152)
Charged to profit or loss
( 1 6 7, 6 3 6 )(149,599)(310,483)
Balance at end of period
132,21495,293121,407
9. Assets and Liabilities Held for Sale
In May 2022, the group commenced negotiations to sell the RugbyPass Entities to Rugby World Cup Ltd and World Rugby
Tournaments Limited (World Rugby) as part of a wide ranging multi-year partnership.
On 10 October 2022 Sky entered into an agreement with World Rugby to sell the shares of RugbyPass Limited and RugbyPass UK
Limited (The RugbyPass Entities) for $11.0 million. The consideration was part of the media rights agreement for exclusive rights
to premium competitions, including Rugby World Cups, for seven years with World Rugby (the licence period being from 1 January
2023 to 31 December 2029).
The assets and liabilities classified as held for sale on 30 June 2022 relate to the sale of the RugbyPass Entities.
The assets classified as held for sale at 31 December 2021 were the Mt Wellington properties known as Studio 1, 2 and 3.
The assets classified as held for sale have been reported at their book value.
In NZD 00031-Dec-202231-Dec-2021
30-Jun-2022
(audited)
Assets
Property, plant and equipment (net)
- 36,626 -
Trade and other receivables
- - 1,737
Other intangible assets
- - 2,064
Goodwill
- - 8,981
Assets held for sale
- 36,62612,782
Liabilities
Trade and other liabilities
- - 1,612
Deferred tax liability
- - 363
Liabilities associated with assets held for sale
- - 1,975
5. Related Party Transactions
There were no loans to directors by the Group or associated parties at any of the reporting dates.
In NZD 00031-Dec-2231-Dec-21
30-Jun-2022
(audited)
Income statement
Remuneration of key personnel
2,722 2,501 5,762
Directors’ fees
404 346 716
My Wave Limited (included in subscriber related costs)
- 942 1,692
Total Related Party transactions included in the income statement
3,126 3,789 8,170
Balance Sheet
My Wave Limited (included in prepayments)
- 750 -
Dividends paid to directors and key management personnel
36 - -
Total Related Party transactions through consolidated balance sheet
36 750 -
The gross remuneration of directors and key management personnel during the period was $3,126,000 (31 December 2021:
$2,847,000; 30 June 2022: $6,478,000).
During the 2021 financial year Sky entered into a commercial agreement with My Wave Limited, a software company that
provides interactive device solutions, as disclosed above. Geraldine McBride was a Director of the Group (until 2 November 2022)
as well as a Director of My Wave Limited.
6. Interest Bearing Loans and Borrowings
31-Dec-202231-Dec-202130-Jun-2022 (audited)
In NZD 000Current
Non-
currentTotalCurrent
Non-
currentTotalCurrent
Non-
currentTotal
Borrowings
458 - 458 1,149 458 1,607 1,035 - 1,035
458 - 458 1,149 458 1,607 1,035 - 1,035
Bank loans
The Group has a revolving credit bank facility of $150 million expiring 31 July 2025 from a syndicate of banks comprising Bank
of New Zealand, Commonwealth Bank of Australia, and Westpac NZ Limited.
The facility arrangements (together with certain hedging arrangements) take the benefit of shared security granted by certain
members of the Group, including:
• a general security deed granted by each of Sky Network Television Limited, Sky Network Services Limited and Sky Investment
Holdings Limited;
• real property mortgages granted over certain real property interests of Sky Network Television Limited; and
• 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 in the 6 month period to 31 December 2022 and no breaches are anticipated
within the next 12 months.
Bank overdrafts of $961,000 (31 December 2021: $1,842,000; 30 June 2022; $825,000) have been set off against cash balances.
Sky / 2023 Interim Report
/ 11

11. Contracts for Future Programme Commitments
In NZD 00031-Dec-202231-Dec-2021
30-Jun-2022
(audited)
Year 1
326,273 285,737 312,175
Year 2
263,502 250,847 273,287
Year 3
201,760 209,590 205,065
Year 4
58,570 173,391 113,832
Year 5
35,886 52,246 42,123
Later than 5 years
8,049 34,851 23,590
894,040 1 , 0 0 6,6 6 2970,072
12. Earnings Per Share
Basic and diluted profit per share
31-Dec-2231-Dec-2130-Jun-22
Profit after tax attributable to equity holders of the parent (NZD 000)
2 6 , 07428,29262,145
Weighted average number of ordinary shares on issue (thousands)
168,324174 , 6 8 8174 , 6 8 8
Basic and diluted earnings per share (cents)
15.4916.2035.57
31-Dec-2231-Dec-2130-Jun-22
Issued ordinary shares at the beginning of period/year
174 , 6 8 8,3 2 3174 , 6 8 8,3 2 3174 , 6 8 8,3 2 3
Ordinary shares returned on 21 November 2022
(29,115,132) - -
Total number of shares on issue
145,573,191174 , 6 8 8,3 2 3174 , 6 8 8,3 2 3
Weighted average number of ordinary shares on issue
1 6 8 , 32 4,3 6 0174,688,323174,688,323
The Group completed a capital return to shareholders on 21 November 2022, cancelling 1 share in every 6 held. The share
cancellation reduced the share capital by 29,115,132 ordinary shares and shareholders received a cash sum of $2.40 for each share
cancelled on 29 November 2022.
After the capital return the total number of ordinary shares on issue is 145,573,191.
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
2022. There have been no changes in any risk management policies since 30 June 2022.
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). Financial liabilities of the Group include trade and other payables, interest bearing
loans and borrowings, lease liabilities 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-202231-Dec-202130-Jun-2022 (audited)
In NZD 000
Carrying
amountFair value
Carrying
amountFair value
Carrying
amountFair value
Financial assets at amortised cost
Cash and cash equivalents
56,59756,59773,94673,946138,916138,916
Trade and other receivables
49,96849,96840,58140,58143,41443,414
Financial assets at fair value through
profit or loss
Derivatives designated as hedging
instruments (cash flow hedges)
5,6335,6334,2554,25513,54613,546
Derivatives not designated as hedging
instruments
3973971,0071,0075,2635,263
112,595112,595119,789119,789201,139201,139
Financial liabilities at amortised cost
Other loans
4584551,6071,4721,035902
Lease liabilities
52,72953,97052,00651,22770,67970,752
Trade and other payables
1 3 9,8701 3 9,87099,96999,969135,428135,428
Financial liabilities at fair value through OCI
Derivatives designated as hedging
instruments (cash flow hedges)
1,2591,259424424 - -
Derivatives not designated as hedging
instruments (fair value hedges)
4,2814,281331331 - -
19 8,5971 9 9,835154,337153,4232 0 7, 1 4 22 0 7, 0 8 2
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 forward foreign exchange contracts is based on market forward foreign exchange rates at period end. Deferred
hedging losses/gains in OCI result from the foreign currency exchange movement in the Groups’ hedging of USD and AUD
programme rights, capital expenditure and lease exposures.
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.
Sky / 2023 Interim Report
/ 12

13. Business Disposals
RugbyPass
On 10 October 2022 Sky entered into an agreement with World Rugby to sell the shares of RugbyPass Limited and RugbyPass UK
Limited (The RugbyPass Entities) for $11.0 million. The consideration was part of the media rights agreement for exclusive rights
to premium competitions, including Rugby World Cups for seven years with World Rugby (the licence period being 1 January 2023
to 31 December 2029).
The cost of the programming rights acquired (which are held at the lower of cost and net realisable value as per note 8) comprises
both cash paid in the deal and the fair value of the shares in the RugbyPass Entities transferred to World Rugby as non-cash
consideration.
The RugbyPass Entities accumulated losses remain with RugbyPass after disposal. No deferred tax asset had been recognised for
those losses so no disposal adjustment to deferred tax is required
The RugbyPass Entities comprised a disposal group classified as held-for-sale at 30 June 2022, measured at fair value
of $11.0 million. Control of these entities was transferred to World Rugby Limited on 10 October 2022.
The book values of the assets and liabilities derecognised as a result of the disposal are as follows:
Disposal considerationIn NZD 000
Contracted price
11,000
Less costs to sell
(547)
Net selling price
10,453
Assets and liabilities disposed ofIn NZD 000
Cash
235
Trade receivables
777
Goodwill
8,981
Other intangible assets
1,765
Trade payables
(777)
Deferred tax
(309)
Net assets disposed of
10,672
Disposal price
10,453
Loss on sale
219
14. Share Capital
31-Dec-2231-Dec-2130-Jun-22
Notes
Number of
shares
(000)
Ordinary
shares
(NZD 000)
Number of
shares
(000)
Ordinary
shares
(NZD 000)
Number of
shares
(000)
Ordinary
shares
(NZD 000)
Shares on issue at beginning of year
174 , 6 8 8 768,766 174 , 6 8 8 768,766 174 , 6 8 8 768,766
Return of Capital on 21 November 2022
(29,115)(70,492) - - - -
145,573 6 9 8 , 274 174,688 768,766 174,688 768,766
On 21 November 2022 the Group completed a capital return resulting in 29,115,132 ordinary shares being cancelled for a cash sum
of $70.5 million (including transaction costs).
15. Contingent Liabilities
The Group is subject to litigation incidental to its business, none of which is expected to be material. No provision has been made
in the Group’s interim financial statements in relation to its ongoing litigation and claims. The directors believe that such litigation
and claims will not have a significant effect on the Group’s financial position, results of operations or cash flows.
16. Subsequent Events
Interim dividend
On 22 February 2023 the Board of Directors announced that it will pay a fully imputed dividend of 6.0 cents per share with the
record date being 10 March 2023. A supplementary dividend of 1.0588 cents per share will be paid to non-resident shareholders
subject to the foreign investor tax credit regime.
Share buyback
The Group intends to commence an on-market share buyback programme in March 2023 for up to $15 million and up to a
maximum of 8,734,416 shares (approximately 6% of the Group’s shares on issue).
Proposed restructuring
The Group has commenced a consultation process as part of an ongoing strategic review of organisational changes in the
technology, customer care and content operations teams. The full extent of the financial impact will not be known until the
conclusion of this process.
Impact of significant weather events
Subsequent to the reporting period, several regions across the North Island of New Zealand have been impacted by significant
weather events and the Group provides services and has receivables from customers across these regions. As at the date these
consolidated interim financial statements were signed, it was not possible to make a reliable estimate of the losses, if any, resulting
from these events.
Sky / 2023 Interim Report
/ 13

PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.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 2022, 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 these
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 2022, and its financial
performance and cash flows for the six month period then ended, in accordance with International
Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to
International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s responsibilities for
the review of the consolidated interim 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. Our firm carries out other services in
respect of Director fee benchmarking and agreed upon procedures and assurance services in the
areas of regulatory reporting. In addition, certain partners and employees of our firm may deal with the
Group on normal terms within the ordinary course of trading activities of the Group. The provision of
these other services has not impaired our independence.
Responsibilities of the Directors for the consolidated interim financial statements
The Directors of the Company 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 the consolidated interim financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the consolidated interim 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 the 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. The procedures performed in a review are substantially less than those
performed in an audit conducted in accordance with International Standards on Auditing (New
Zealand) and International Standards on Auditing and consequently does not enable us to obtain
PwC
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 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 S hareholders, as a body, for our review procedures, for this
report, or for the conclusion we h ave formed.
The engagement partner on the review resulting in th is i ndependent auditor’s re view report is Keren
Blakey.

For and on behalf of:
Chartered Accountants Auckland
22 February 2023
Sky / 2023 Interim Report
/ 14

Directors
Philip Bowman (Chair)
Keith Smith (Deputy Chair)
Joan Withers
Michael Darcey
Mark Buckman
Officers
Sophie Moloney Chief Executive
Tom Gordon Chief Financial Officer
Jonny Errington Chief Content and Commercial Officer
Daniel Kelly Chief Customer Officer
Chris Major Chief Corporate Affairs Officer
Antony Weldon Chief Operations and People Officer
Kirstin Jones 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 4, Deutsche Bank Place,
126 Philip Street,
Sydney, NSW 2000, Australia
Tel: +61 2 9230 4000 Fax: +61 2 9230 5333
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
Private Bag 92119
Auckland 1142
Freephone within New Zealand: 0800 222 065
Telephone New Zealand: +64 9 488 8777
Australian Branch Register
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street
Abbotsford VIC 3067
GPO Box 2975
Melbourne Vic 3000
Freephone within Australia: 1800 501 366
Telephone Australia: +61 3 9415 4083
Email: enquiry@computershare.co.nz
Website: www.computershare.com/nz
Auditors to Sky
PricewaterhouseCoopers
Level 27, PwC Tower
15 Customs Street West
Auckland 1010
Tel: +64 9 355 8000 Fax: +64 9 355 8001
Solicitors to Sky
Buddle Findlay
L18 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
Tel: +64 9 357 9000 Fax: +64 9 357 9099
Baker McKenzie
Tower One - International Towers Sydney
Level 46, 100 Barangaroo Avenue,
Sydney NSW 2000, Australia
Tel: +61 2 9225 0200 Fax +61 2 9225 1595
Directory

---

For the six months ended

3
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4
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4
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•
•
•
•
•
7
For the six months ended

•
—
—
—
—
•
•
8
Verified
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•
•
•
•
9
For the six months ended

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

•
•
•
•
•
•
11
For the six months ended
Targeted Selling -Sky Box started Feb
2023 / Sky Pod to follow soon (may also be Feb
Launch to customers

•
•
•
12
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•
•
•
13
For the six months ended

•
•
•
•
14
For the six months ended

•
•
•
•
15
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•
—
—
16
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•
•
•
17
For the six months ended

•
•
•
•
19

•
—
—
20
For the six months ended

•
•
•
•
•
21
For the six months ended
305
298

For the six months ended
22

•
•
•
•
•
•
23
For the six months ended
H1 FY22H1 FY22 One-offsNormalised H1
FY22
Box & BroadbandStreamingAdvertising &
Commercial
Cost
Management
Cost of GrowthProgramming
Costs
VTV FeesCOVID UnwindH1 FY23

•
•
•
24
For the six months ended

25
•
•
•
•
For the six months ended

•
•
•
•
•
•
•
27
For the six months ended
Balance Sheet
Cash Reserves
Capital Return
Buyback
Free Cash Flow
FY 2022
HY 2023
Debt Facility
$150m
(undrawn)

•
•
•
•
28
For the six months ended

29

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 accuracy or completeness of this information. To the maximum extent permitted by law, none of the Company,
its directors, employees, shareholders or any other person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence)
arising from this presentation or any information supplied in connection with it.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations,
estimates and assumptions and are subject to a number ofrisks, 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 measure EBITDA and has presented adjusted results when discussing financial performance, as the directors and management believe that
these measures provide useful information on the underlying performance of the Company. EBITDA is defined by the Company as earnings before 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 31 December 2022, which form part of the Company’s 2023 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.
For the six months ended
32

---

Appendix 4D Release to ASX under rule 4.2A

Other Information

Sky Network Television Limited
Half Year ended on 31 December 2022
(In NZD)



• Control gained over entities

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


• Loss of control of entities

RugbyPass

On 10 October 2022 Sky entered into an agreement with World Rugby to sell the shares
of RugbyPass Ireland Limited and RugbyPass UK Limited (the RugbyPass Entities) for
$11.0 million. The consideration was part of the media rights agreement for exclusive
rights to premium competitions, including Rugby World Cups for seven years with World
Rugby (the licence period being 1 January 2023 to 31 December 2029).

The cost of the programming rights acquired comprises both cash paid in the deal and
the fair value of the shares in the RugbyPass Entities transferred to World Rugby as non-
cash consideration.

The RugbyPass Entities comprised a disposal group classified as held-for-sale at 30
June 2022, measured at fair value of $11.0 million. Control of these entities was
transferred to World Rugby Limited on 10 October 2022.


• Dividends or distributions

Interim dividend payable: $8,734,391

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 Bowman Chair
Keith Smith Deputy Chair
Joan Wither s Director
Mike Darcey Director
Mark Buckman Director
Geraldine McBride Director (retired 2 November 2022)

---

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 2022 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 22nd day of February 2023.





Philip Bowman Keith Smith
Director and Chairman Director