Sky Network Television Limited/Announcement

Sky Announces 2024 Interim Results

Half Year Results21 February 2024SKTCommunication Services

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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

T. +64 9 579 9999

sky.co.nz

22 February 2024
Sky delivers strong first half result, increases interim dividend
Sky Network Television Limited (Sky) announces another period of growth, delivering increases in all
key metrics through a strong focus on execution.
Key results
1
:
• +3.7% growth in Revenue to $392.7 million, driven by strong growth in Sky Sport Now, Advertising
and Broadband
• +11.1% growth in EBITDA
2
to $81.7 million
• +10.5% growth in NPAT to $29.0 million
• Increased Interim dividend of 7 cents per share, 100% imputed (from 6 cents per share, +16.7%)
• Full Year dividend guidance increased to at least 17.5 cents per share (from at least 15 cents per
share, +16.7%)
• New share buyback programme for up to $15 million to be launched following the expiry of the
current programme
Chief Executive Sophie Moloney said: “Sky has delivered a strong first half performance that
demonstrates Management’s ability to execute on strategy to drive revenue and margin growth. The
successful delivery of key initiatives such as the uplift in our advertising capability, the revitalised free-
to-air channel Sky Open, and the launch of the Sky Pod, are all examples of this strategic execution.
“I’m particularly proud of the way we are evolving as a team. With greater clarity of purpose and
stronger engagement, the investments we’ve made in our people are also showing through in what
we’re achieving as a business.”
Chairman Philip Bowman commented: “Sky’s consistent performance over a sustained period has been
achieved off the back of a clear strategic plan and a great deal of hard work. It is pleasing to see the
determined execution delivering benefits for our customers, employees and partners, as well as
investors with an increase in the first half dividend.”

Sophie added: “We delivered an exceptional array of content for sports fans with major events such
as the ICC Cricket World Cup, Netball World Cup, Women’s FIFA World Cup, and of course the Men’s
Rugby World Cup adding to the regular calendar of events and season-long competitions – including
the Warriors’ phenomenal run to the NRL finals.”

1
Comparative financials have been restated as outlined in note 14 of the Interim Financial Statements.
2
EBITDA is a non-GAAP measure. Sky uses this measure when discussing financial performance as the Company believes it provides useful
information on Sky’s performance.

“This contributed to record customer and revenue results for Sky Sport Now and saw more Sky Box
and Sky Pod customers adding a sports package, with increased viewership across both services. Sky’s
unrivalled sports offering was also enjoyed by many more New Zealanders at pubs, clubs, gyms, hotels
and motels, and also through our free-to-air channel, Sky Open, which shared a number of these
sporting moments throughout the country.”
Sky’s entertainment streaming service Neon faced challenges as a result of protracted industry
(writers’ and actors’) strikes in the US. This delayed the delivery of new titles to support subscriber
acquisitions and win-backs, adversely impacting customer numbers.
Sky Box and Sky Pod customers were significantly less impacted by content delays given the broader
array of entertainment content, and news services, available as part of their subscription. While
customer numbers and revenue did soften, we were pleased with the improvement in the level of
disconnections and a consistent year-on-year churn that demonstrates the resilience of our offering
during tougher economic times.
“We made the deliberate choice to slow the rollout of the new Sky Box to resolve some final teething
issues. At the same time, we improved the service experience and began delivering on a programme
of product enhancements. While the take up has been slower than we planned, we are already seeing
much higher subscriber satisfaction levels. With 58 thousand new Sky Boxes now in use, feedback from
customers is providing confidence the changes are resonating. We are now actively in market with a
new Sky Box campaign that includes changes to the customer proposition to encourage take-up.”
“The decision to invest in advertising capability has already delivered returns. Innovative new formats
to support advertisers have increased the value derived from our existing content investment. The
impact was a 12% lift in revenue through a period where revenue for the sector fell by 16%. At the
same time, the team developed new advertising capabilities in the digital space that were successfully
launched in January.”
“While the advertising market is experiencing headwinds, our long-term confidence in pursuing this
strategic growth initiative is increasing.”
Many Sky Business customers are benefitting from rising tourist numbers. Revenue grew, and the
introduction of a premium product for accommodation providers and the launch of Sky Pod are
providing new opportunities.
Sky Broadband continues to grow customers and delivered revenue growth of 45% whilst increasing
margins.
As well as benefitting from the strong performance of Sky Sport Now, Advertising and Broadband,
revenue growth of 3.7% included price increases that lifted average monthly customer revenues across
every subscription product. The value of Sky’s content continues to support appropriate increases,
with a further rise to sports pricing coming into effect early in the second half.
Operating expenses rose 1.5%, largely due to variable costs from the growth in Broadband, Advertising
and Sky Sport Now. Programming cost increases were kept to within $2m year on year, as known rights
increases were largely offset, and with the savings targeted from FY23 initiatives achieved.
Sophie added: “As a result, Sky delivered 11.1% growth in EBITDA and 10.5% in Net Profit after Tax.
Our track record of strong cash performance continued, with $71.5 million generated from operations
enabling investment in new products and a higher return for shareholders. Sky’s balance sheet remains
strong, with cash on hand at 31 December of $47.4 million and a $150m undrawn bank facility.

“Capex investment is tracking in line with guidance as we invest at scale in new Sky Boxes and Pods,
while at the same time we’re capturing efficiencies in development projects and through optimising
self-install options that will begin to reduce capex intensity during FY25.”
Capital Management
Philip commented: “Sky’s strong financial position and cash generation continues to provide scope for
additional capital management action. We retain our conviction that Sky’s shares are undervalued
relative to its financial performance and have therefore resolved to initiate a new on-market buyback
program immediately following the expiry of the current one. The Board has approved a new buyback
program of up to $15 million.”
Outlook
Sophie commented: “The execution momentum of the first six months is continuing, with the
successful launch in January of Advertising on Neon already generating new digital revenues, and the
launch of ‘live start’ Friday Night Footy and Super Rugby Saturday on Sky Open supporting our linear
ad sales plans.”
We remain on track to deliver FY24 EBITDA of $150 million to $165 million and NPAT of $45 million to
$55 million, in line with the full year guidance provided to the Market on 23 August 2023.
Sky has provided an update to FY24 Revenue guidance, which is now expected to be between $765
million to $780 million (from $765 million to $795 million), due to Neon impacts and increased
economic headwinds.
Notwithstanding the near-term revenue pressures, the Board’s confidence in Sky’s cash generation has
driven a 16.7% increase in FY24 dividend guidance to be at least 17.5 cents per share (up from at least
15 cents per share).

ENDS
Authorised by Kirstin Jones, Company Secretary
Sky will hold a webcast briefing at 10:00am (NZDT) to discuss the results. Details on how to
participate are available here: https://www.nzx.com/announcements/425050
Investor queries to: Media queries to:
James Marsh Karina Healy
Interim Chief Financial Officer Head of Corporate Communications
James.Marsh@sky.co.nz Karina.Healy@sky.co.nz

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of issuer Sky Network Television Limited
Reporting Period 6 months to 31 December 2023
Previous Reporting Period 6 months to 31 December 2022
CurrencyNZD
Amount (000s) Percentage change
Revenue from continuing
operations
$392,687 3.7% increase
Total Revenue $392,687 3.7% increase
Net profit/(loss) from
continuing operations
$28,848 10.6% increase
Total net profit/(loss) $28,966 10.5% increase
Final Dividend
Amount per Quoted Equity
Security
$0.07
Imputed amount per Quoted
Equity Security
$0.02722222
Record Date 8 March 2024
Dividend Payment Date 22 March 2024
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$ 0.9379
$0.7980
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
James Marsh
Contact person for this
announcement
James Marsh
Contact phone number +64 21 2435 546
Contact email address James. Marsh@sky.co.nz
Date of release through MAP

22/02/2024
Interim financial stat
ements 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 08/03/2024
Ex-Date (one business day before the
Record Date)
07/03/2024
Payment date (and allotment date for
DRP)
22/03/2024
Total monies associated with the
distribution
$10,038,114
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.09722222
Gross taxable amount $0.09722222
Total cash distribution $0.07000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01235294
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
$0.02722222
Resident Withholding Tax per
financial product
$0.00486111

Section 5: Authority for this announcement
Name of person authorised to make
this announcement
James Marsh
Contact person for this
announcement
James Marsh
Contact phone number +64 21 243 5546
Contact email address James.Marsh@sky.co.nz
Date of release through MAP 22/02/2024

---

2024 Interim Report
For the six months ended 31 December 2023
Sky Network Television Limited

HY24 at
a glance
Customer
TOTAL CUSTOMER RELATIONSHIPS
1,020,609
 3%
Financial
REVENUE – $M
392.7
 4%
1
NPAT – $M
29.0
 10%
1
EBITDA – $M
81.7
 11%
1
INTERIM DIVIDEND (CENTS PER SHARE)
7.0
 17%
1. Comparative information has been restated as outlined in note 14 of the Interim Financial Statements on page 14.
Sky / 2024 Interim Report / p2

OUR PURPOSE
Share stories.
Share possibilities.
Share joy.
OUR AMBITION
Aotearoa New Zealand's most engaging and
essential media company
OUR ENDURING COMMITMENT
A responsible and sustainably profitable,
Aotearoa-focused business
Our Strategy
Sky / 2024 Interim Report / p3

Dear Shareholders,
We are pleased to share Sky’s results for the first half of
FY24 with you, and to provide some commentary on our
business performance, sector trends and outlook.
We have chosen the word “strong” to describe the half
year result, as Sky has delivered growth in Revenue,
EBITDA and Net Profit after Tax, whilst also continuing
to generate strong cash flows – all at a time when the
economy and media sector have faced headwinds. This
combination has enabled significant reinvestment in the
business, as well as increased returns to you, our investors.
It is pleasing to report a total shareholder return of
31% in the 12 months to 31 December 2023, the 3rd
highest of any NZX50 company during the period.
Having achieved a significant turnaround, the
Sky team is focussed to build on this success.
The Company remains well positioned with
demonstrable competitive advantage within
the media sector.
Performance overview
Our multi-product and platform strategy allow
us to truly “meet New Zealanders where they
are”. We offer a portfolio of products that deliver
a comprehensive range of premium sport, news
and entertainment content to New Zealanders
– a combination that should support sustainable
delivery of consistent results. Alongside our full
suite of subscription products, we revitalised
our free-to-air offering with the launch of
Sky Open, timed to maximise the interest and
opportunity generated by the Rugby World Cup.
In the half year we delivered an exceptional line up
of sporting content, with multiple World Cup events
adding to Sky’s unrivalled customer proposition.
This saw a record result for Sky Sport Now –
with revenue 45% above the previous six month
high – and more of our Sky Box customers
adding a sports package to their subscription.
Customer relationships remained above
1 million, supported by the strong showing
from Sky Sport Now and growth in Broadband
relationships but with a lower result for Neon.
While Sky Box numbers were down slightly, we
were pleased with the improvement in the level
of disconnections and a consistent year-on-
year churn that demonstrates the resilience of
our offering during tougher economic times.
Chairman and
CEO Letter
Sky / 2024 Interim Report / p4

Progressing FY24 Priorities
During the first half, Sky communicated an updated
purpose and ambition which has served to galvanise
our Sky crew and played a part in the significant
14-point uplift in employee engagement which is a
key priority for FY24.
As in life, not all things went to plan. We made the
deliberate choice to slow the rollout of our new Sky
Box to resolve some final teething issues. At the same
time, we improved the service experience and began
delivering on a programme of product enhancements.
While the take up has been slower than we planned,
we are already seeing much higher subscriber
satisfaction levels. With 58 thousand new boxes
now in use feedback from customers is providing
confidence that the changes are resonating. We are
now actively in market with a new Sky Box campaign
that includes changes to the customer offer to
encourage take-up. We look forward to sharing our
progress at the full year results in August.
In parallel, we were pleased to launch to the wider
market our online-only Sky Pod as another way for
customers to experience Sky. It is great to now have
this innovative product fully in market, and early
customer feedback is encouraging.
Our focus on creating new revenue streams was
advanced in the half through the expansion of our
advertising capability. Despite clear challenges in the
advertising market, we made the strategic choice to
go after the significant revenue pool that exists in
this market, and our initiatives are already delivering
returns. We invested to strengthen the team and
technical capability which has allowed us to rapidly
expand the opportunities we offer to clients and
introduce innovations in format and branded content.
Reaction from advertisers and agency buyers to
the refreshed approach has been encouraging with
a 12% increase in revenue for Sky in a period where
revenue for the sector fell by 16%.
Sector trends
The local and global trends we spoke of at the
November Annual Meeting continue to highlight the
strength of Sky’s strategy. The combination of our
unrivalled content in the New Zealand market, multi-
platform approach and 100% coverage across the
country set us apart, at a time when global streaming
companies have been forced to make significant
changes as they strive to reshape their business
models and attempt to reduce significant losses.
The impact of prolonged writers’ and actors’ strikes
has been felt throughout our industry, although
here again, our multi-product approach and depth
of content that stretches far beyond scripted
entertainment have provided some measure of
insulation. Neon (along with other streaming
services around the world) has been impacted, with
customer numbers down due to the delayed arrival
of acquisition and retention driving titles. While the
strikes have now ended, Neon will continue to face
headwinds in the near term before the gradual return
to a more predictable release schedule of exciting
titles that we expect to win back past customers
and attract new audiences.
The latest results also reinforce the resilience of Sky’s
business even during a period of economic headwinds
that have some sectors of the economy, and many
households, under pressure. Whilst we are navigating
these conditions well, we are mindful that these
pressures will continue during the coming year.
Financial results
Revenue growth of 3.7% to $392.7 million was driven
by strong results for Sky Sport Now and Advertising,
and continued growth in Broadband customer
numbers. The earnings in these areas more than
made up for a softer result in Sky Box and a
relatively flat year on year result for Neon.
Carefully considered price rises contributed to higher
average monthly customer revenues across all
product categories, with the value of Sky’s content
continuing to support appropriate increases. A further
rise to sports pricing and increase in Neon’s Standard
product came into effect in February 2024 and will
contribute to the second half result.
Meanwhile operating expenses, including programming
costs that were relatively consistent with the prior
period, totalled $311.1 million, up 1.5% compared to
the prior half-year. While we took on new rights for
World Rugby, and saw a full period impact from the
return of Formula 1 and the renewal of NRL rights,
these costs were largely offset by other savings. Most
of the increase in expenses related to variable costs
associated with growth in Broadband, Advertising
and Sky Sport Now.
Pleasingly, the successful implementation of the cost
out initiatives announced in FY23 has delivered the
permanent savings we targeted while also creating
a significantly enhanced customer service experience.
Sky delivered 11.1% growth in EBITDA and 10.5%
in Net Profit after Tax, and our track record of
strong cash performance continued, with $71.5
million generated from operations. This enabled
investment in new products and a higher interim
dividend for shareholders.
Sky / 2024 Interim Report / p5

Looking further ahead we remain confident in achieving the
3-year targets we set at the time of our FY23 results. The core
of these targets involves growing revenue ahead of costs to
deliver margin growth whilst reducing capex intensity.
Our FY24 capex investment is tracking in line with
guidance including investment at scale to achieve
the renewal of our boxes. As well as providing an
enhanced customer experience, this investment
is creating a technology platform that will deliver
substantial opportunities for Sky through greater
insights on customer preferences, enhanced
attribution, and lower costs. We are already
capturing efficiencies through optimising self-
install options that will begin to reduce capex
intensity during FY25.
The Board declared an increased half year dividend
of 7.0 cents per share, fully imputed and 16.7%
higher than the prior year. The record date for the
dividend is 8 March, with payments direct credited
to shareholder accounts on 22 March.
Sky’s balance sheet remains very strong, with
cash on hand at 31 December of $47.4 million
and a $150 million undrawn bank facility.
Capital Management
Our share buyback programme in the half year was
disrupted by receipt of a non-binding indicative
offer (NBIO) which was subsequently rejected.
As a result, we were able to transact on just 20%
of the available trading days. The share buyback
recommenced in November with the purchase
of a further 450,868 shares, bringing the total
purchased under the programme to date to
2,171,563. The current 12-month programme will
shortly recommence and is due to conclude on
31 March 2024.
The Board retains its conviction that Sky’s
shares are undervalued relative to its financial
performance. The company is in a strong financial
position and with cash generation providing
scope for additional capital management action.
Therefore, the Board has resolved to initiate a new
programme to buy back shares for a consideration
of up to $15.0 million immediately following the
expiry of the current buyback programme.
Guidance and outlook
We remain on track to deliver FY24 EBITDA and
NPAT in line with the full year guidance provided to
the Market on 23 August 2023. The impact on Neon
of the ongoing disruption to studio release schedules
combined with increased economic headwinds has
however led to a revision of FY24 Revenue guidance,
which is now expected to be between $765 million
to $780 million (from $765 million to $795 million).
Notwithstanding the near-term revenue
pressures, the Board’s confidence in Sky’s cash
generation has allowed it to raise full year
dividend guidance to at least 17.5 cents per
share (previously at least 15 cents per share).
Looking further ahead we remain confident in
achieving the 3-year targets we communicated
at the time of our FY23 results. The core of these
targets involves growing revenue ahead of costs
to deliver margin growth whilst reducing capex
intensity. Supporting these financial metrics are
clear targets for lifting employee engagement
and customer satisfaction. All are important, and
in this first period of our three-year journey we’re
tracking well – and already ahead in some areas.
Thank you
In closing, we would like to extend our combined
thanks to the Board for their collective wisdom
and counsel, our network of key content and
business partners, and to the wider Sky team
who have worked so hard to deliver the results
we report today.
To our shareholders, thank you for your ongoing
support, and we look forward to updating you
on progress at the full year.
Philip Bowman
Independent Chairman
Sophie Moloney
Chief Executive
Sky / 2024 Interim Report / p6

For the six months ended
31 December 2023
Our 2024
Interim
Financials
Sky / 2024 Interim Report /p7

Consolidated Interim Statement
of Comprehensive Income
For the six months ended 31 December 2023 (unaudited)
In NZD 000Notes
31-Dec-2023
(6 months)
31-Dec-2022
(6 months)
30-Jun-2023
(1 year audited)
Revenue
4 392,687378,646754,337
Other income
1271,5333,515
Expenses
Programming
81 9 7, 8 6 3196,150383,906
Subscriber related costs
39,76344,01993,163
Broadcasting and infrastructure
44,24138,46679,777
Depreciation, amortisation and impairment
41,20436,03774 , 0 9 8
Other costs
29,27828,06152,340
Total operating expenses
352,349342,733683,284
Finance income
2,4952,4012,639
Finance expense
2,5152,7196,152
Profit before tax
40,4453 7, 1 2 871,055
Income tax expense
11,47910,90719,928
Profit for the period
28,96626,22151,127
Attributable to
Equity holders of the Company
28,84826,08450,868
Non-controlling interests
118137259
28,96626,22151,127
Earnings per share
Basic and diluted earnings per share (cents)
1120.0715.5032.45
Other Comprehensive Income
Profit for the period
28,96626,22151,127
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
- (262)(247)
Deferred hedging (losses)/gains transferred to operating expenses
during the period
( 7, 5 8 4 )(13,385)1,651
Income tax effect
2,1243 ,74 8(462)
Net other comprehensive (loss)/income to be reclassified to profit
or loss, net of income tax
(5,460)(9,899)942
Items that may not be reclassified to profit or loss
Deferred hedging losses transferred to non-financial assets during
the period
(1,651)(1,730)(12,786)
Income tax effect
462484 3,579
Net other comprehensive loss not being reclassified to profit
or loss, net of income tax
(1,189)(1,246)(9,207)
Total comprehensive income for the period
22,31715,07642,862
Attributable to
Equity holders of the Company
22,19914,93942,603
Non-controlling interests
118137259
22,31715,07642,862
1. Comparative balances have been restated, refer to note 14.
1 1
Consolidated Interim Balance Sheet
As at 31 December 2023 (unaudited)
In NZD 000Notes31-Dec-202331-Dec-2022
30-Jun-2023
(audited)
Current assets
Cash and cash equivalents
94 7, 3 7 656,59756,051
Trade and other receivables
95 7, 6 4 853,38055,716
Programme rights inventory
8120,121132,214134,812
Derivative financial instruments
92525,6335,234
225,397247,824251,813
Non-current assets
Trade and other receivables
2,279--
Property, plant and equipment
99,50782,937 91,918
Intangible assets
61,5735 7, 9 1 0 61,282
Right of use assets
2 7, 1 8 142,703 39,399
Deferred tax asset
7, 0 9 26,645 3,549
Goodwill
244,264244,264 244,264
Derivative financial instruments
971397 1 , 474
441,967434,856 441,886
Total assets
6 6 7, 3 6 4682,680 693,699
Current liabilities
Interest bearing loans and borrowings
6,9 - 458 -
Lease liabilities
919,30131,262 25,665
Trade and other payables
109,377142,048 1 3 7, 7 1 8
Contract liabilities
55,43154,021 5 7, 5 3 2
Income tax payable
9,662363 4,857
Derivative financial instruments
9 6,4871,259 2,201
200,258229,411 227,973
Non-current liabilities
Lease liabilities
915,05021,467 23,648
Trade and other payables
4121,135 601
Derivative financial instruments
9 2,9794,281 697
18,44126,883 24,946
Total liabilities
218,699256,294 252,919
Equity
Share capital
13 692,4836 9 8 , 2 74 693,720
Reserves
(5,403)(1,692)1,188
Retained deficit
(239,652)(271,602)(255,554)
Total equity attributable to equity holders of the Company
4 47, 4 2 8424,980 439,354
Non-controlling interest
1,2371,406 1,426
Total equity
448,665426,386 440,780
Total equity and liabilities
6 6 7, 3 6 4682,680 693,699
1. Comparative balances have been restated, refer to note 14.
Philip Bowman Keith Smith
Director and Chair Director and Chair of Audit and Risk Committee
For and on behalf of the Board 21 February 2024
1
1
Sky / 2024 Interim Report /p8

Consolidated Interim Statement
of Changes in Equity
As at 31 December 2023 (unaudited)
In NZD 000
Attributable to owners of the parent
Non-
controlling
interest
Total
equity
Share
capitalReserves
Retained
deficitTotal
For the six months ended 31 December 2023
Balance at 1 July 2023
693,7201,188(255,554)439,3541,426440,780
Profit for the period
--28,84828,84811828,966
Cash flow hedges, net of tax
-(6,649)-(6,649)-(6,649)
Total comprehensive income/(loss) for the period
-(6,649)28,84822,19911822,317
Transactions with owners in their capacity as owners
Share Buyback
1
(1,235)--(1,235)-(1,235)
Transaction costs
(2)--(2)-(2)
Dividend paid
2
--(12,946)(12,946)(307)(13,253)
Supplementary dividends
--(1,009)(1,009)-(1,009)
Foreign investor tax credits
--1,0091,009-1,009
Share based compensation reserve
-58-58-58
(1,237)58(12,946)(14,125)(307)(14,432)
Balance at 31 December 2023
692,483(5,403)(239,652)4 47, 4 2 81,237448,665
For the six months ended 31 December 2022
Balance at 1 July 2022
768,7669,453(284,995)493,2241,269494,493
Prior period restatement
3
--6060-60
Restated balance at 1 July 2022
768,7669,453(284,935)493,2841,269494,553
Profit for the period
--26,08426,08413726,221
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)26,08414,93913715,076
Transactions with owners in their capacity as owners
Share capital returned
4
(69,876)--(69,876)-(69,876)
Transaction costs
(616)--(616)-(616)
Dividend paid
5
--(12,751)(12,751)-(12,751)
Supplementary dividends
--(1,041)(1,041)-(1,041)
Foreign investor tax credits
--1,0411,041-1,041
(70,492)-(12,751)(83,243)-(83,243)
Balance at 31 December 2022
6 9 8 , 274(1,692)(271,602)424,9801,406426,386
For the year ended 30 June 2023 (audited)
Balance at 1 July 2022
768,7669,453(284,995)493,2241,269494,493
Prior period restatement
3
--6060-60
Restated balance at 1 July 2022
768,7669,453(284,935)493,2841,269494,553
Profit for the period
--50,86850,86825951,127
Exchange difference on translation of foreign operations
-(247)-(247)-(247)
Cash flow hedges, net of tax
-(8,018)-(8,018)-(8,018)
Total comprehensive income for the year
-(8,265)50,86842,60325942,862
Transactions with owners in their capacity as owners
Share capital returned
4
(69,876)--(69,876)-(69,876)
Share Buyback
6
(4,490)--(4,490)-(4,490)
Transaction costs
(680)--(680)-(680)
Dividend paid
5,7
--(21,487)(21,487)(102)(21,589)
Supplementary dividends
--(1,727)(1,727)-(1,727)
Foreign investor tax credits
--1,7271,727-1,727
(75,046)-(21,487)(96,533)(102)(96,635)
Balance at 30 June 2023
693,7201,188(255,554)439,3541,426440,780
1. Sky recommenced the on-market share buyback on 13 November 2023, refer to note 13.
2. Sky paid a dividend of 9.0 cents per ordinary share on 22 September 2023.
3. Comparative balances have been restated, refer to note 14.
4. On 21 November Sky returned 1 in every 6 shares for consideration of $2.40 to shareholders, paid on 29 November 2022.
5. Sky paid a dividend of 7.3 cents per ordinary share on 23 September 2022.
6. On 31 March 2023 Sky commenced an on-market share buyback, refer to note 13.
7. Sky paid a dividend of 6.0 cents per ordinary share on 24 March 2023.
Consolidated Interim Statement
of Cash Flows
For the six months ended 31 December 2023 (unaudited)
In NZD 000Notes
31-Dec-2023
(6 months)
31-Dec-2022
(6 months)
30-Jun-2023
(1 year audited)
Cash flows from operating activities
Profit before tax
40,4453 7, 1 2 871,055
Adjustment for:
Depreciation, amortisation and impairment
41,20436,03774 , 0 9 8
Unrealised foreign exchange loss/(gain)
(1,175)9423,055
Interest expense
2
2,5153,1985,110
Interest income
(948)(1,667)(2,639)
Bad debts and movement in provision for doubtful debts
8411,2211,351
Other non-cash items
80(564)(1,092)
Movement in working capital items:
(Increase)/decrease in receivables
(5,052)785(1,640)
(Decrease)/increase in payables
(22,034)4,478(15,032)
Decrease/(increase) in programme rights
15,581(11,960)(4 , 5 74)
Cash generated from operations
71,45769,598129,692
Interest paid
(2 , 3 74)(3,072)(5,085)
Interest received
9481,6672,639
Bank facility fees paid
(141)(126)(25)
Income tax paid
(7,000)(10,200)(10,200)
Net cash from operating activities
62,89057, 8 6 71 17, 0 2 1
Cash flows from investing activities
Acquisition of property, plant and equipment
(28,341)(28,116)(42,010)
Acquisition of intangibles
(13,070)(12,040)(29,370)
Net cash (used in)/from investing activities
7(41,411)(40,156)(71,380)
Cash flows from financing activities
Capital returned to shareholders
13 - (69,876)(69,876)
Acquisition of ordinary shares through on-market share buyback
(1,235) - (4,490)
Transaction costs incurred
(2)(616)(680)
Payments for lease liability principal
(14,655)(15,168)(29,109)
Repayment of other borrowings
- (577)(1,035)
Dividend paid to shareholders
13(13,956)(13,793)(23,214)
Dividend paid to minority shareholders
(306) - (102)
Net cash used in financing activities
(30,154)(100,030)(128,506)
Net (decrease)/increase in cash and cash equivalents
(8,675)(82,319)(82,865)
Cash and cash equivalents at the beginning of the period
56,051 138,916 138,916
Cash and cash equivalents at the end of the period
9 47, 3 7 6 56,597 56,051
1. Comparative balances have been restated, refer to note 3 and 14.
2. Interest expense has been grossed up for the 6 months to 31 December 2022 and interest income reported separately.
1 1
Sky / 2024 Interim Report /p9

Notes to the Consolidated Interim
Financial Statements
For the six months ended 31 December 2023 (unaudited)
1. General Information
Sky Network Television Limited (Sky) is a company incorporated and domiciled in New Zealand. The address of its registered office
is 10 Panorama Road, Mt Wellington, Auckland, New Zealand. The consolidated interim financial statements for the six months
ended 31 December 2023 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 21 February 2024.
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 2023. 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 2023. 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
IncorporationParent
Interest held
Dec 2023 Jun 2023 Dec 2022
Sky DMX Music LimitedCommercial musicNew ZealandSky
50.50%50.50%50.50%
Sky Ventures LimitedNon-tradingNew ZealandSky
100.00%100.00%100.00%
Media Finance LimitedNon-tradingNew ZealandSky
100.00%100.00%100.00%
Non Trading PS Limited
(previously Outside
Broadcasting Limited)
Non-tradingNew ZealandSky
100.00%100.00%100.00%
Screen Enterprises LimitedNon-tradingNew ZealandSky
100.00%100.00%100.00%
Sky Network Services Limited
(previously Igloo Limited)
Broadband servicesNew ZealandSky
100.00%100.00%100.00%
Believe It Or Not LimitedEntertainment quizzesNew ZealandSky
51.00%51.00%51.00%
Sky Investment Holdings Limited InvestmentNew ZealandSky
100.00%100.00%100.00%
Lightbox New Zealand LimitedStreaming servicesNew ZealandSky
100.00%100.00%100.00%
Sports Analytics Pty Limited
1
Data analytics for sportsSouth AfricaSky Investment
Holdings Limited
81.00%81.00%81.00%
1. In April 2023, Sports Analytics (Pty) Limited commenced a Business Rescue Process, a statutory procedure under South African Law, which facilitates the
winding up of company structures. This process remained ongoing at 31 December 2023.
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 2023. 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
2023 financial statements that may be an impairment indicator as at 31 December 2023, having considered factors such as:
• The Group’s half year results;
• Changes 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 2023.
Capital structure
As at 31 December 2023 the Group had positive working capital of $25.1 million (31 December 2022: $18.4 million; 30 June 2023:
$23.8 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 $47.4 million and an undrawn banking facility of
$150 million at 31 December 2023, refer to 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 those relating
to ESG matters, on at least an annual basis. Sky’s assessment of exposure to climate related risk has been captured within the
company’s detailed enterprise risk assessment framework. The Group is undertaking a thorough review to document the key
physical and transitional risks and opportunities associated with climate change and is moving to complete scenario analysis to
understand the range of short, medium and longer term implications for Sky’s business under various scenario settings. At this
point in its assessment, the directors and management consider that the potential financial impact from near term physical and
transitional risks arising from climate change is unlikely to be significant to Sky’s business. The Group is working towards publishing
its first climate disclosure under the Aotearoa New Zealand Climate Standards (NZCS) framework. That work is ongoing and has
not resulted in significant changes to the judgements made to date.
Equity-settled share based payments
Certain executives of the Company receive part remuneration in the form of share-based payments, whereby employees
render services as consideration for equity instruments (equity-settled transactions). The fair value of the options are assessed
at grant date, using an appropriate valuation model, and recognised as an expense, over the vesting period of the options,
with a corresponding entry to the ‘equity-settled share-based payment reserve’.
The amount recognised as an expense is adjusted at each reporting date to reflect the extent to which the vesting period has
completed, and management’s best estimate of the number of share options that will ultimately vest (for non-market based
vesting conditions).
Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards,
but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments
that will ultimately vest.
Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award,
but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are
reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or
performance conditions.
Comparatives
Certain comparative amounts have been adjusted to better reflect consistency with the current period, refer to note 14.
The Group had identified that costs relating to the creation of promotional material have been incorrectly disclosed within
Programming expenses in the prior periods while they should have been disclosed as Subscriber related costs. To correct this,
Sky has adjusted Programming expenses (30 June 2023: $2,708,000; 31 December 2022 $1,422,000) and Subscriber related
costs (30 June 2023: $2,708,000; 31 December 2022 $1,422,000).
The Group has adjusted the Statement of Cash Flows for the six months ended 31 December 2022 to reflect an increase in
payments for lease principal of $1,752,000 and an increase in payables of $1,752,000.
The Group has restated contracts for future Programme Commitments at 30 June 2023, refer to note 10.
Sky / 2024 Interim Report /p10

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
revenueAdvertisingOther revenue
Total
revenue from
contracts with
customers
For the six months ended 31 December 2023
Revenue from customers
253,03412,92259,6752 7, 1 9 529,36010,501392,687
Total revenue
253,03412,92259,6752 7, 1 9 529,36010,501392,687
Timing of revenue recognition
At a point in time
1,772 - - - 29,3604,31335,445
Over time
251,26212,92259,6752 7, 1 9 5 - 6,1883 5 7, 2 4 2
253,03412,92259,6752 7, 1 9 529,36010,501392,687
For the six months ended 31 December 2022
1
Revenue from customers
255,0018,92251,85526,52726,32310,018378,646
Total revenue
255,0018,92251,85526,52726,32310,018378,646
Timing of revenue recognition
At a point in time
2 ,74 2160 - - 26,3233,75232,977
Over time
252,2598,76251,85526,527 - 6,266345,669
255,0018,92251,85526,52726,32310,018378,646
For the year ended 30 June 2023 (audited)
1
Revenue from customers
509,77119,6231 0 3 , 17453,46548,08720,217754,337
Total revenue
509,77119,62310 3 , 17453,46548,08720,217754,337
Timing of revenue recognition
At a point in time
4,507162 - - 48,0879,89262,648
Over time
505,26419,4611 0 3 , 17453,465 - 10,325691,689
509,77119,62310 3 , 17453,46548,08720,217754,337
1. Comparative balances have been restated, refer to note 14.
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.
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-2331-Dec-22
30-Jun-2023
(audited)
Income statement
Remuneration of key personnel
1
3,082 2,722 4,959
Directors’ fees
441 404 803
Total Related Party transactions through consolidated income statement
3,523 3,126 5,762
Balance Sheet
Dividends paid to directors and key management personnel
76 36 83
Share based compensation reserve
58 - -
Total Related Party transactions through consolidated balance sheet
134 36 83
1. The 6 months ending 31 December 2023 includes the cost of termination benefits paid to key personnel of $208,334.
In August 2023 the Group approved a long-term incentive plan and granted 408,415 share rights to executives of the Group under
the incentive plan. Each share right converts into one ordinary share of the Company on exercise. No amounts are paid or payable
by the recipient on receipt of the share right. The share rights carry neither rights to dividends nor voting rights.
The share rights are separated into two tranches, one tranche which vests over a three-year measurement period based on
achieving certain total shareholder returns. The second tranche vests over a three-year measurement period based on achieving
total shareholder returns relative to other market participants on the NZX50. The executives must remain employed by the
Group over the vesting period.
The share rights represent an equity-settled share-based payment with market-based vesting conditions. The share rights
approved in August 2023 had an estimated fair value of $547,276. The fair value was determined using a Monte-Carlo simulation
model and encompasses the market-based vesting criteria. The key valuation assumptions are set out below:
Share based compensation valuation assumptions
Grant date share price
$ 2.7 0
Exercise price
-
Expected volatility
3 3.7 0 %
Maturity vesting date
4th September 2026
Dividend yield (over vesting period)
9.0 0 %
Risk free rate
4.4 6%
The actual number of shares which ultimately vest will depend on performance over the measurement period. In the event
performance conditions are not met (or only partially met) then there is the potential for no share rights (or less than the total
allocated share rights) to ultimately vest. In such circumstance the total day one fair value would still be recognised over the
vesting period.
Sky / 2024 Interim Report /p11

6. Interest Bearing Loans and Borrowings
In NZD 000
31-Dec-202331-Dec-202230-Jun-2023 (audited)
Current
Non-
currentTotalCurrent
Non-
currentTotalCurrent
Non-
currentTotal
Borrowings
1
- - - 458 - 458 - - -
- - - 458 - 458 - - -
1. Borrowings include third party loans only.
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 New Zealand 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.
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 2023 and no breaches are anticipated
within the next 12 months.
Bank overdrafts of $576,000 (31 December 2022: $961,000; 30 June 2023: $771,000) have been set off against cash balances.
7. Capital Expenditure
The Group acquired the following property, plant and equipment (PPE) and intangibles during the period:
In NZD 000
31-Dec-2023
(6 months)
31-Dec-2022
(6 months)
30-Jun-2023
(1 year audited)
Capital projects in progress (includes PPE & intangibles)
8,3666,9272,039
Land and buildings
195091,587
Broadcasting and studio equipment
- 791,031
Plant, equipment and other
757381,904
Subscriber equipment
1 7, 0 6 115,20428,659
Installation costs
6,0546,34812,034
Intangibles
5,33510,35130,140
36,91040,1567 7, 3 9 4
Movement in capital expenditure creditors
4,501 - (6,014)
Cash outflow in the period
41,41140,15671,380
8. Programme Rights Inventory
In NZD 000
31-Dec-2023
(6 months)
31-Dec-2022
(6 months)
30-Jun-2023
(1 year audited)
Opening balance
134,812121,407121,407
Acquired during the period
159,315178,443343,365
Charged to profit or loss
(174,006)( 1 6 7, 6 3 6 )(329,960)
Balance at end of period
120,121132,214134,812
9. 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
2023. There have been no changes in any risk management policies since 30 June 2023.
Financial assets of the Group include cash and cash equivalents, trade and other receivables and financial assets at fair value
through other comprehensive income (OCI) (unquoted investments held for disposal and derivative financial assets). Financial
liabilities of the Group include trade and other payables, interest bearing loans and borrowings, lease liabilities, contingent
consideration and derivative financial liabilities. The Group does not hold or issue financial instruments for trading purposes.
The fair value of each financial instrument is categorised in its entirety based on the lowest level of input that is significant to that
fair value measurement. The levels are defined as follows:
Level 1: Quoted prices (unadjusted) in active market for identical assets and liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs), for example
discounted cash flow.
Sky’s financial assets and liabilities carried at fair value are valued on a level 2 basis.
Classification of financial instruments
The following table presents the Group’s financial assets and liabilities according to classifications.
In NZD 000
31-Dec-202331-Dec-2022
1
30-Jun-2023
1
(audited)
Carrying
amountFair value
Carrying
amountFair value
Carrying
amountFair value
Financial assets at amortised cost
Cash and cash equivalents
4 7, 3 7 64 7, 3 7 656,59756,59756,05156,051
Trade and other receivables
42,73642,73641,04941,04942,92042,920
Financial assets at fair value through
profit or loss
Derivatives designated as hedging
instruments (cash flow hedges)
3163165,6335,6335,3695,369
Derivatives not designated as hedging
instruments
773973971,3391,339
90,43590,435103,676103,676105,679105,679
Financial liabilities at amortised cost
Other loans
- - 458455 - -
Lease liabilities
34,35134,34652,72953,97049,31348,989
Trade and other payables
95,18995,1891 2 7, 4 9 11 2 7, 4 9 1124,257124,257
Financial liabilities at fair value through OCI
Derivatives designated as hedging
instruments (cash flow hedges)
7, 9 0 17, 9 0 11,2591,259 2,770 2,770
Derivatives not designated as hedging
instruments (fair value hedges)
1,5651,5654,2814,281 128 128
139,006139,001186,2181 8 7, 4 5 6176,468176,144
1. Comparative balances have been restated, refer to note 14.
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 resulting from the foreign currency exchange movement in the Group’s 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 / 2024 Interim Report /p12

10. Contracts for Future Programme Commitments
In NZD 00031-Dec-202331-Dec-2022
30-Jun-2023
(audited)
Year 1
312,462 326,2733 3 7, 3 1 8
Year 2
239,467 263,502278,785
Year 3
79,201 201,760153,636
Year 4
6 7, 6 3 1 58,57085,953
Year 5
19,383 35,88649,138
Later than 5 years
13,507 8,04933,428
731,651 894,040938,258
The reduction in commitments from 30 June 2023 is primarily due to the expiry of sports content rights. The 30 June 2023
comparative figures have been increased by $48 million to better reflect the full contract periods.
11. Earnings Per Share
Basic and diluted profit per share
31-Dec-2331-Dec-202230-Jun-2023
Profit after tax attributable to equity holders of the parent (NZD 000)
28,84826,08450,868
Weighted average number of ordinary shares on issue (thousands)
14 3 ,74 6168,324156,778
Basic and diluted earnings per share (cents)
20.0715.5032.45
31-Dec-2331-Dec-202230-Jun-2023
Issued ordinary shares at the beginning of period/year
143,852,496174 , 6 8 8 , 3 2 3174 , 6 8 8 , 3 2 3
Ordinary shares returned on 21 November 2022
2
- (29,115,132)(29,115,132)
Ordinary share buyback
3
(450,868) - (1,720,695)
Total number of shares on issue
143,401,628145,573,191143,852,496
Weighted average number of ordinary shares on issue
1 4 3 ,74 5 ,617168,324,360156,778,235
1. Comparative balances have been restated, refer to note 14.
2. On 21 November 2022 Sky cancelled 29,115,000 ordinary shares as part of a capital return, refer to note 13.
3. On 6 April 2023 Sky commenced an on-market share buyback. At 30 June 2023 1,720,695 shares had been acquired at an average price of $2.61 and a
total consideration of $4,490,000. For the six months to 31 December 2023 a further 450,868 shares where acquired at an average price of $2.74 and total
consideration of $1,236,840.
1 1
12. 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 Business) 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 (with a licence period from 29 June 2023
to 30 June 2030).
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 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 in the comparative period 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
13. Share Capital
31-Dec-2331-Dec-2230-Jun-23
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
143,852 693,720 174 , 6 8 8 768,766 174 , 6 8 8 768,766
Return of Capital on 21 November 2022
1
- - (29,115)(70,492)(29,115) (70,547)
Share Buyback
2
(451) (1,237) - - (1,721) (4,499)
143,401 692,483 145,573 6 9 8 , 274 143,852 693,720
1. Capital return included $671,000 of transaction costs.
2. The share buyback includes $9,000 of transaction costs for 30 June 2023 and $2,000 for 6 months to 31 December 2023.
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).
On 13 October 2023 the Group announced to the market it had received a non-binding indicative offer (NBIO) from a third party to
acquire all of the shares in Sky and would therefore continue to pause the on-market share buyback following the release of the full
year results on 24 August 2023.
On 8 November 2023 the Group announced that it had received an updated NBIO from the third party, which the Board did not
accept, and terminated discussions in respect of the NBIO. On the same day the Board resolved to recommence the on-market
share buyback programme.
At 31 December 2023 450,868 shares had been acquired at an average price of $2.74 and a total consideration of $1,234,371.
Shares bought back have been cancelled upon acquisition so the number of shares on issue has reduced accordingly.
Sky / 2024 Interim Report /p13

14. Prior Period Restatements
Non-returned Equipment Charges
During the half year period, the Group has discovered that customer payments for non-returned equipment charges remained in
the Trade Receivables balance and were not recognised as revenue. This has led to unrecognised revenue and an understatement
of Trade Receivables in the previous periods. To correct this error, Sky has adjusted the customer payments previously offsetting
trade receivables (30 June 2023: $3,593,000; 31 December 2022: $3,412,000) to Other Revenue for the comparative periods
(30 June 2023: $237,000; 31 December 2022: $56,000) and Retained Earnings for the periods prior (30 June 2023: $2,587,000;
31 December 2022: $2,456,000). This adjustment also results in a decrease to Deferred Tax Assets (30 June 2023: $1,006,000;
31 December 2022: $956,000).
Customer Credits
As part of its review of customer account management, the Group has identified inactive customer credits that have previously
been written off to the statement of comprehensive income. Accordingly, the Group has become aware that these credits should
have been remitted under the Unclaimed Money Act 1971 once these have not been interacted with for 5 years.
As a result, the Group has recognised a provision in Trade Payables for unclaimed money payable by Sky (30 June 2023: $3,351,000;
31 December 2022: $3,313,000) that had previously been recorded against subscriber related costs for the comparative periods (30
June 2023: $79,000; 31 December 2022: $41,000) and against Retained Earnings for the prior periods (30 June 2023: $2,413,000;
31 December 2022: $2,385,000). This adjustment also results in an increase to Deferred Tax Assets (30 June 2023: $938,000; 31
December 2022: $928,000).
These two restatements have a combined impact on basic and diluted earnings per share (in cents) by increasing it from 32.37
to 32.45 at 30 June 2023 and increasing from 15.49 to 15.50 at 31 December 2022.
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 21 February 2024 the Board of Directors resolved to pay a fully imputed dividend of 7.0 cents per share with the record date
being 8 March 2024. A supplementary dividend of 1.2353 cents per share will be paid to non-resident shareholders subject to the
foreign investor tax credit regime.
Share buyback
On 21 February 2024, the Board resolved to initiate a new on-market share buyback programme for up to $15 million of
consideration. The new buyback will commence following the completion of the current programme on 31 March 2024.
Sky / 2024 Interim Report /p14

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 2023, 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 notes, comprising material accounting policy
information 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 2023, and its financial
performance and cash flows for the 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. In addition to our role as auditor, our
firm carries out other services for the Company in the areas of a non-audit assurance engagement in
relation to the Telecommunications Development Levy and agreed upon procedures in relation to the
Broadcasting Standards Authority Levy. 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.

PwC 2
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. 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
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 shareholders, as a body, for our review procedures, for this
report, or for the conclusion we have formed.

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

For and on behalf of:

Chartered Accountants Auckland
21 February 2024
Sky / 2024 Interim Report /p15

Directors
Philip Bowman (Chair)
Keith Smith (Deputy Chair)
Joan Withers
Michael Darcey
Mark Buckman
Belinda Rowe
Officers
Sophie Moloney Chief Executive
James Marsh Interim Chief Financial Officer
Jonny Errington Chief Content and Commercial Officer
Daniel Kelly Chief Customer Officer
Chris Major Chief Corporate Affairs Officer
Lauren Quaintance Chief Media and Data Officer
Antony Welton Chief Operations and People Officer and
Interim Chief Technology 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
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
Level 18, 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
Sky / 2024 Interim Report /p16

---

© SKY 2021
Agenda
‣HY24 Overview
‣Operational Performance
‣Financial Performance
‣Capital Management
‣Outlook and Guidance
‣Questions

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 3
REVENUE
$
392.7m
HY23: $378.6m
1
+4%
NET PROFIT AFTER TAX
$
29.0m
HY23: $26.2m
1
+10%
EBITDA
$
81.7m
HY23: $73.5m +11%
INTERIM DIVIDEND
7.0cps
HY23 6.0cps +17%
CUSTOMER RELATIONSHIPS
1,020,609
HY23: 1,053,287 -3%
CAPEX
$
36.9m
HY23: $40.2m -8%
Results Summary
Delivering on our growth plans
1. Comparative balances have been restated as set out in note 14 of the Interim Financial Statements.

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 4
Key Achievements
... as execution momentum builds
Significantly lifted
employee engagement
Delivered exceptional
sporting content
Delivered targeted savings
from FY23 initiatives
Optimised capex, shortening
period of higher investment
Expanded Advertising
capability
+
14pts
Market launch of Sky Pod
and Rebrand of Sky Open

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 5
Revenue Bridge
Key growth engines driving revenue increase
•Revenue growth of 3.7% driven by:
−Significant increase from Sky Sport Now (+45%)
−Strong growth in Advertising in a challenging market (+12%)
−Continued growth in Broadband (+45%) at an increased margin
•Sky Box and Sky Pod revenue softened, with some benefit from the
migration of VTV customers. Neon revenue on par with prior period
despite challenges from content delays
379
393
10
4
3
1
4
0
H1 FY23Sky BoxNeonSky Sport
Now
BroadbandAdvertisingCommercialH1 FY24
+3.7%

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 6
73
82
14
6
5
3
3
2
H1 FY23
EBITDA
RevenueCost of
Growth
Inflation &
Investment in
People
Programming
Costs
OtherSavings from
initiatives
H1 FY24
EBITDA
EBITDA Bridge
Cost increases largely linked to revenue growth; savings delivered
•Cost of growth reflects largely variable costs related to revenue
growth in Broadband, Advertising and Sky Sport Now
•Some inflation impact on salary and other costs. Positive decision to
invest in people
•Known step-ups in content costs partly offset by savings from rights
and production decisions, under-delivery of acquisition-driving
content, and impact of one-off events in the prior period
•Key initiatives delivered significant ongoing savings:
—$3m in net savings from FY23 organisational change, and on target
for $6m annually
—Additional permanent savings from outsourced logistics
partnership, lower property costs and procurement efficiencies
5
5
1
Programming savings
Non-programming savings
+11.1%

© SKY 2021
Page 7
•Deep investment in leadership and
cultural capability
•Greater focus through
development of Sky’s Purpose
•Robust planning and prioritisation
•Launched Sky Pod to wider market
•Deliberately slowed rollout of new
Sky Box to focus on enhancements
•Significantly improved features,
performance and customer care
Double digit lift in
engagement
Confident in new rollout
settings
Unlocking new revenue
opportunities
1
Lift employee
engagement
2
Roll out new Sky
experience
3
New revenue
streams
Executing on FY24 Priorities
•Strengthened Advertising
•Created new integration formats
and added new customers
•Developed digital revenue
capability
Results Presentation
For the six months ended 31 December 2023

© SKY 2021
Page 8
Sky Sport NowBroadband
501k households
Valuable, high ARPU
2
,
long tenure base
New products
providing opportunity
206k customers
Unrivalled #1 in
sports streaming
High ARPU with
strong growth
Commercial
1. Nielsen TAM data 1 July 2023 – 31 December 2023 AP5+ reach (79.4%). 2. ARPU is
average revenue per user (monthly). 3. SVOD is Subscription Video On Demand. 4. Nielsen
TAM data via Sky Open AP5+ cume reach (68.8%).
Sky Open
6.5k businesses
#1 provider to
commercial premises
High ARPU and
significant market
share
30k households
Growing fibre
broadband business
Positive contribution
from FY23
Multi–platformstrategyakeycompetitiveadvantage
OUR AMBITION: Aotearoa NZ’s most engaging and essential media company
Sky Box & Sky PodNeon
277k customers
Only locally-curated
SVOD
3
Digital advertising
opportunities
3.3m reach
4
Free to access
Showcasing Sky
content and
maximising its value
Results Presentation
For the six months ended 31 December 2023
1 million+
Paid customer relationships
Reaching 4 in 5
New Zealanders each month
1
Largest
Media company

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 9
MoviesFactualShows
Delivering unrivalled content to a significant audience
OUR PURPOSE: Share stories. Share possibilities. Share joy.
Sky Originals
Sport
News
#
1 in Sport
across Box/Pod, Streaming
& Free-to-Air
Leading
content aggregator for
customers and partners
Most
global and local partners in
sport and entertainment
Kids

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 11
260
254
255
255
253
$79
$79
$81
$81
$83
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
SKY BOX REVENUE
1
($m) AND ARPU
2
Sky Box and Sky Pod
High value base generating significant revenue
•Revenue softened 0.8% year on year with stronger ARPU and
positive impact from migrating VTV customers largely
compensating for lower customer numbers
•Average revenue per customer rose 1.8% (to $82.56) driven by:
—Impact of 9% sports pack increase (Mar 23) and 10% increase in
entertainment pack (Oct 23)
—Higher average sport penetration
—Positive impact of reduced discounting
—Despite some spin down from non-sport packages
•H2 will benefit from 11% increase in sports pack pricing (Feb 24)
1. Sky Box and Sky Pod access fee is included in Sky Box revenue but excluded from ARPU.
Sky Box revenue and ARPU data previously presented at H1 FY22 included contribution from
Sky Broadband, now reported separately. 2. Sky Box ARPU is the monthly average revenue
calculated as the average for the period.
545
530
517
515
501
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
SKYBOX/POD CUSTOMER RELATIONSHIPS (000)

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 12
Sky Box and Sky Pod
Marketing recommenced; strong focus on margin continues
•Continued focus on margin, with acquisition and retention
discounts 45% lower than H1 FY23 and 67% lower than H1 FY22
•58k Sky Boxes in use by existing and new customers at31 Dec 2023
•Deliberate decision to slow the rollout of the new Sky Box
•Disconnections in line with the priorH1 run rate showing continued
resilience
•Annualised churn of 9.8%, consistent with prior period, with a4ppt
improvement in year one retention
5 Years+
80% of base
7.8% churn

SKY BOX TENURE
1-4 Years
16% of base
18.8% churn

0-1 Year
4% of base
26.5% churn
15
14
13
9
11
17
(25)
(29)
(26)
(28)
(25)
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
SKY BOX CUSTOMER ACQUISITIONS /
DISCONNECTIONS (000)
Total ActivationsMigrated from VTVTotal Disconnections

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 13
84
99
124
140
148
100
109
168
150
206
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
SKY SPORT NOW CUSTOMERS
SSN Win-back poolSky Sport Now
15
14
22
21
32
$36
$37
$40
$33
$35
$37
$39
$41
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
SKY SPORT NOW REVENUE ($m) AND ARPU
1
Streaming –Sky Sport Now
Substantial, 45% increase in revenue as fan base builds
•Significant customer and revenue growth driven by strong content
line-up throughout H1, including high value events such as Rugby
World Cup
•Strong engagement
3
rising to 81% (from 75% in H1 FY23) including
a record weekly high of 96%
•25% of year end customers were new to Sky Sport Now, with
strong retention and win-backs
•Revenue and ARPU growth included full period impact of 12.5%
increase for monthly and annual passes and part-period impact of
25%rise in weekly passes (Aug 23).
•H2 will benefit from 11% increase in monthly passto $49.99(Feb 24)
1. ARPU is based on recurring subscribers (removing the impact of transactional passes), includes
PPV 2. The win-back pool includes customers that have subscribed to Sky Sport Now in the past
18 months but were not included in the active base at the end of the period. 3. Engagement is
defined as customers that viewed content during a month, using a 6-month weighted average
+45%
+20%
+23%
2

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 14
145
183
179
214
263
276
296
318
318
277
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
NEON CUSTOMERS (000)
NEON Win-back poolNEON
23
25
27
29
27
$14
$14
$15
$15
$15
13.5
14.0
14.5
15.0
15.5
16.0
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
NEON REVENUE ($m) AND ARPU
Streaming -Neon
Strong retention focus ahead of content returning
•Customer numbers impacted by reduced delivery of acquisition and
retention driving content, due to industry strikes
•Gradual return of key titleswillprovidesignificant win-back
opportunity
•Two tier product strategy enabled repositioning/launch of Neon as
NZ’s first SVOD to offer Advertising(from Jan 2024): Neon Basic
(now Basic with Ads) moved to HD delivery and light, non-
interrupting ad load; Neon Standard moved to static ads on pause
1. The win-back pool includes customers that have subscribed to Neon as a direct
customer in the past 18 months but were not included in the active base at the end of
the period.
+47%
-13%
-1%
1

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 15
2
6
9
11
13
$71
$73
$76
65
67
69
71
73
75
77
79
0
2
4
6
8
10
12
14
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
BROADBAND REVENUE
1
($m) AND ARPU
1
11
18
23
26
30
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
BROADBAND CUSTOMERS (000)
Sky Broadband
Margin expansion continues; attachment on sales reaches 14%
•Revenue uplift of 45% delivered alongside margin improvement
•Attachment to Sky Box increasedto 6%,and to 14% for new
customer acquisitions.Achieving positive NPS impact for Sky Box
customers
•1 Gbps plan remains popular at over 50% of base with Fibre50
option now at 9%
1. Includes add-ons such as land line, calling plans, Wi-Fi boosters and static IP fees.
+45%
+32%

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 16
23
25
27
27
27
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
0
5
10
15
20
25
30
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
COMMERCIAL REVENUE ($m)
Commercial
Innovation and positive sector trends providing opportunity
•Accommodation segment benefitted from rising tourist numbers
•Opportunities includelaunch of Sky’spremium accommodation
solution throughexclusivepartnership with Hibox, digital upgrades
and strengthening build rate
•Licensed premise segment delivered higher ARPU, including impact of
value-based price rise (Mar 23)
•Small price increase for Retail customers (Mar 23). New market
opportunity available through a commercial Sky Pod offer
+3%

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 17
276
242
273
212
231
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
TOTAL MARKET REVENUE AND HY CHANGE
2
(%)
-0.9%
22
22
26
22
29
7.8%
9.1%
9.5%
9.8%
13.0%
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
ADVERTISING REVENUE
1
($m) and REVENUE SHARE
2
(%)
Advertising
Growing market share as H1 revenue expands
•Revenue market share grew 37% (+3.5ppts) compared to a 15.5% fall
in total TV (linear) advertising spend
•Revitalisedoffering generated additional value from content by
creating new integration opportunities and formats e.g.UBER Rugby
World Cup campaign
•Neon digital opportunity developed at pace in H1 and launched in Jan
2024. Attracting over 50 top-tier brands to the first SVOD
opportunity in New Zealand
1.. Excludes RugbyPass revenue in prior periods. 2. Source: PwC Quarterly Performance
Comparison Report
+12%
-15.5%
-12.2%

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 19
Financial Performance
Positive performance across all key metrics
•Positive financial performance, with Revenue, EBITDA, NPAT and
CAPEX tracking in-line within guidance
•Continued revenue growth included price rise impact on ARPU and
strong performance in Sky Sport Now, Advertising and Broadband in
the current half year and VTV fee impact in the prior period
•EBITDA growth of 11.1% largely driven by revenue growth and
delivery of targeted savings
•NPAT growth at a slightly lower rate than EBITDA due to increased
depreciation
•Two small adjustments made to prior half numbers, with minimal
net impact to P&L (<$0.1m)
1. Comparative balances have been restated as set out in notes 3 and 14 of the Interim Financial Statements.
$mH1 2024H1 2023
1
% change
Revenue392.7378.63.7%
Operating Expenses311.1306.71.5%
EBITDA81.773.511.1%
Depreciation &
Amortisation
41.236.014.3%
Net Profit after Tax29.026.210.5%
Capex36.940.2(8.1%)
Free cash flow
before distributions
6.82.0247.1%

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 20
260
254
255
255
253
48
45
52
51
60
2
6
9
11
13
23
25
27
27
27
22
22
26
22
29
17
13
11
10
10
372
364
379
376
393
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
REVENUE
1
($m)
Sky BoxStreamingBroadband
CommercialAdvertisingOther Revenue
Revenue
Strategy execution delivers continued growth trajectory
1. Revenue excludes Other Income. Comparative financials have been restated as outlined in
note 14 of the Interim Financial Statements. Historic Advertising revenuefrom RugbyPassis
included in Other Revenuedue to the sale of this business in October 2022.
•Strategic focus on growing revenue is delivering sustained positive
trajectory -3-year CAGR of 3.5%
•Strong growth in newer revenue categories (Streaming, Broadband
and now Advertising) broadening revenue base
•Consistent performance in Sky Box underpinning revenue strength
+3.7%
1. Comparative balances have been restated as set out in note 14 of the Interim Financial Statements.

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 21
Expenses
Targeted savings delivered as planned
•Programming costs increase of $1.7m year on year included full
period impact of known rights wins and renewals (NRL, World
Rugby, Formula 1) and one-off events (e.g. ICC World Cup) largely
offset by:
—data driven content choices
—optimisation of programming operations
—lower entertainment costs due to content delays, and
—non-repeated events in the prior period (e.g. Commonwealth
Games, FIFA Men’s World Cup)
•Subscriber related costs significantly reduced through partial
outsourcing of customer care and fully outsourced logistics
•Broadcasting and infrastructure includes cost of growth in
Broadband, Streaming and new Sky Box
•Other includes increase related to growth in Advertising and
investment in people
1. Comparative balances have been reclassified as outlined in note 3 of the Interim
Financial Statements.
Delete D&A from chart / check totals
178
187
196
189
198
50
43
44
48
40
33
38
38
41
44
26
29
28
24
29
287
297
307
302
311
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
OPERATING EXPENSES
1
($m)
ProgrammingSubscriber Related
Broadcasting & InfrastructureOther
+1.5%

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 22
8
15
14
16
11
10
12
26
21
26
18
26
40
37
37
H1 FY22H2 FY22H1 FY23H2 FY23H1 FY24
CAPITAL EXPENDITURE
1
($m)
Enhance and MaintainGrow
Capital Expenditure
Growth focused investment accelerates
•Investing at scale to enable rollout of new products to customers
through increased spend in growth focused capex
•Capturing efficiencies through optimising new Sky Box logistics.
95% self-installrate achieved in H1 benefits FY24 spend and will
lead to reduced capex intensity during FY25
•Other growth category spend includes development for new
product features and advertising technology
71%
H1 FY22H2 FY22H1 FY23
H2 FY23H1 FY24
CAPEX /
Revenue %
5%7%11%10%9%
Growth
Spending %
55%45%65%57%71%

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 23
Free Cash Flow
$71.5m of cash from operations enabling investment and returns
•2.7% growth in cash generated from operating activities
•Working capital movement largely reflects prior period content
payments. Expected to stabiliseinto FY25
•Higher capex cashflow in H1 2024 relates to timing of payments
•Total distribution to shareholders and other capital management of
$15.5m included $14.3mfinal FY23 dividend payment and $1.2m
used to purchase Sky shares
•Cash balance remains strong at $47.4m with an undrawn facility of
$150 million
1. Comparative balances have been restated as set out in Note 3 and Note 14 of the Interim
Financial Statements. 2. Net capital return and share buyback includes associated
transaction costs. 3. Dividends include supplementary dividends.
$m
H1 2024H1 2023
1
Impact on
FCF %
EBITDA81.7 73.5 11.1%
Adjustment for non-cash items0.8 1.2 (31.1%)
Other0.5 1.6 (71.6%)
Movement in working capital(11.5)(6.7)71.8%
Cash generated from operations71.5 69.6 2.7%
Net financing(1.6)(2.1)(25.7%)
Tax(7.0)(10.2)(31.4%)
Capex(41.4)(40.2)3.1%
Leasing(14.7)(15.2)(3.4%)
Free cash flow before distributions6.8 2.0 247.1%
Net capital return and share buyback
2
(1.2)(70.5)(98.2%)
Dividends
3
(14.3)(13.8)3.4%
Free cash flow after distributions(8.7)(82.3)(89.5%)
Opening cash and cash equivalents56.1 138.9 (59.7%)
Closing cash and cash equivalents47.4 56.6 (16.3%)

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 25
Capital Management Update
Dividend uplift and confidence in cash generation driving
additional capital management action
Interim dividend increased to 7.0 cps (+17%)
FY24 guidance increased to at least 17.5 cps (+17%)
New on-market buyback for up to $15 million
(immediately following the completion of the current programme)
•Current buyback programme to recommence shortly with scheduled close date of 31March 2024
•Sky’s strong financial position and cash generation provide scope for additional capital management
Share
Buyback
Dividend
Policy
1. Adjusted free cash flow used for the purposes of dividend guidance in the context of Sky’s
60-90% of free cashflow dividend policy excludes satellite mitigation capex and accelerated
growth capex related to the rollout of the new Sky Box and Pod.

Results Presentation
For the six months ended 31 December 2023
Page 26
•Updated FY24 Revenue guidance reflects a gradual return of
acquisition driving content for Neon and increased economic
headwinds
•FY24 EBITDA and NPAT expectation remain in line with earlier
guidance
•As signaled, FY24 capex guidance excludes one-off satellite
mitigation costs (now expected to be $8m), with further spend in
FY25. Equivalent Optus rebates will flow through leasing line in
FY25 and FY26
•While capex will remain elevated, the impact of optimisation
initiatives will begin to reduce capex intensity during FY25
•FY24 dividend guidance increased by 17% to at least 17.5 cents
per share
1. Subject to no adverse change in operating conditions, including future economic headwinds.
2. FY24 capex guidance excludes one-off capital expenditure related to satellite mitigation.
Outlook and FY 2024 Guidance
$m
FY 2024 guidance
1
(24 Aug 2023)
FY 2024 guidance
1
(updated 22 Feb 2024)
Revenue765 -795765 –780
EBITDA150 –165unchanged
NPAT45 –55unchanged
Capex
2
75 -90unchanged
Dividendat least 15 cpsat least 17.5 cps

© SKY 2021
Results Presentation
For the six months ended 31 December 2023
Page 27
3-year Targets (to FY26)
Revenue growth
+3% -4% p.a.
EBITDA Margin
21% -23%
Programming
47% -49%
of revenue
Capex returned to
7% -9%of revenue
Employee engagement
+14pts
Customer NPS
+19pts
Double theFY23 dividend

Disclaimer
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 themaximum 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 containsprojections 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 the Company.
The Company has used the non-GAAP financial measure EBITDA 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. You should
not consider this in isolation from, or as a substitute for, the information provided in the unaudited consolidated financialstatements for the six months ended 31 December 2023, which form part
of the Company’s 2024 Interim Report, available at https://www.sky.co.nz/investor-centre/results-and-report.
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.
Page 29
Results Presentation
For the six months ended 31 December 2023

---

Appendix 4D Release to ASX under rule 4.2A
Other Information
Sky Network Television Limited
Half Year ended on 31 December 2023
(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 over entities during the half year.
•Dividends or distributions
Interim dividend payable: $10,038,114
Prior comparable period: $8,734,391
•Details of aggregate share of profits (losses) of associates and joint venture
entities
Not applicable
•Accounting standards
New Zealand international financial reporting standards us
ed 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:
P
hilip Bowman Chair
Keith Smith Deputy Chair
Joan Wither s Director
Mike Darcey Director
Mark Buckman Director
Belinda Rowe 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 2023 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 21st day of February 2024.

Philip Bowman Keith Smith
Director and Chair Director and Chair of Audit and Risk Committee

Interim results – announcement date On-market share buyback

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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