Sky Announces 2026 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
26 February 2026
Strong first half performance as expanded Sky builds momentum
Sky Network Television Limited (Sky) today reports a strong financial performance for the six months
ended 31 December 2025, in its first reporting period since the acquisition of Discovery NZ (now Sky
Free).
The combined Group (which includes Three and ThreeNow) strengthened its unrivalled position in
sport, significantly refreshed its entertainment strategy, and continued to execute the integration of
Sky Free at pace. Despite subdued economic conditions and softness in consumer and corporate
spend, it improved underlying earnings by 29%.
Reflecting confidence, the Board has declared an interim dividend of 15.0 cps, fully imputed, an
increase of 76.5% on HY25. This represents a ~50% payout of the dividend guidance for the full year
of at least 30 cents per share.
HY26 Financial Highlights
• Underlying Revenue: $415.4m, up 8%, driven by the acquisition of Sky Free
• Underlying EBITDA: $78.2m, up 29%, through lower programming costs and disciplined cost
management
• Underlying NPAT: $19.3m, up 77%
• Statutory NPAT: $52.4m, including gain on bargain purchase of Sky Free and Optus
compensation
• Free Cash Flow: $87.1m (vs $7.5m in HY25), contributing to closing cash balance of $100m
• Interim Dividend: 15.0 cps, fully imputed, up 76.5%
A reconciliation of underlying to statutory results is included in the 2026 Interim Report.
CEO Commentary
Sky Chief Executive Sophie Moloney said Sky’s half year performance reflects the disciplined
execution of Sky’s multi-year strategy and the financial and strategic benefits of the Sky Free
acquisition.
“The first half of FY26 marks an important step forward for Sky. The combined business is already
demonstrating the increased reach and revenue diversification we sought, while also maintaining
strong cost control.”
“Although the economic environment remains challenging, Sky is well positioned for earnings growth
from FY27.”
“The Discovery NZ acquisition was a well-structured deal for Sky. It’s not often you get to acquire an
asset for $1 and significantly strengthen the balance sheet at the same time - as is also evidenced by
the gain on bargain purchase of $34.4m we report today, reflecting the fair value of the assets
acquired.”
“Integration is advancing as planned, with strong progress on early synergy capture, delivering $3.2m
in the first half, of the previously indicated $3 to $5 million for FY26.”
“While an integration of this scale is complex, our technology team is ‘match fit’ from the significant
satellite migration last year and making good progress towards our August 2026 timeline. From a crew
perspective, bringing teams together across Sky and Sky Free is an important milestone for our
combined business, but also one that we’re approaching with care and respect for our people.”
“As showcased this week at Sky’s first unified Content Upfront for advertisers and the local content
community, we now have a single advertising sales proposition in market, providing a unique offering
for agencies and brands.”
While linear advertising revenue was softer than expected, the acquisition means:
• Revenue market share boosted to 35% of the linear TV segment.
• Total advertising revenue more than doubled and includes 20% from the fast-growing
digital segment.
• 62% increase in Sky’s digital audience, now reaching 1.2m viewers weekly with Sky’s linear
audience now reaching 2.6m viewers each month
1
.
• Significant uplift in digital audience diversity with growth in 18-24 year and female audiences
of 71% and 87% respectively. Linear audiences in these categories grew by 154% and 37%
respectively.
Deepening content engagement: controlling our content destiny
Sky continues to improve content economics and customer value through data-driven content deal-
making.
“We have a deep understanding of what audiences value and we’ve moved to secure it in a way that
makes sense for shareholders.”
Key milestones for the half year included:
• Reset of NZ Rugby agreement, improving economics and securing an expanded content
slate for the next five years.
• Renewal of Formula 1 rights.
• Extension of exclusive Olympic Games rights through to Brisbane 2032.
• Entertainment strategy refresh, including an expanded long-term partnership with
Paramount, the disciplined decision not to renew HBO Max content on a co-exclusive basis
beyond June 2026, and increased financial flexibility to enable better control of Sky’s
entertainment content destiny.
1
Source: Digital Nielsen CMI, Q4 2024 – Q3 2025. Linear Free to Air - Nielsen TAM, AP5+ Average monthly reach for July to Dec 2025.
• Continued shift towards locally curated channels and stronger local commissioning.
• Content costs returned within Sky’s 47–49% of revenue target range.
Operational Commentary
Revenue growth of 8% against the prior year included the initial five-month contribution from Sky
Free that doubled Advertising revenue, and continued growth in Streaming and Broadband.
Excluding Sky Free, revenue was down 1.3%.
While Sky Box revenue was softer against the prior year, improved customer churn and higher average
revenue per user (ARPU) slowed the decline to 6%.
Sky Sport Now’s growth continued, with revenue up 8% supported by 17% customer growth. Neon
revenue increased by 5%, however customer numbers fell by 18% to the lowest level since December
2020.
A 27% growth in Sky Broadband customer numbers supported a pleasing 37% increase in revenue,
and Sky Venues (formerly Commercial) delivered stable revenue, despite sector challenges.
Capital management
Free cash flow was significantly higher than the prior period, supported by improved operations,
lower capex, favourable working capital timing and acquisition-related cash items. This contributed
to an increased cash balance of $100m at 31 December 2025.
Reflecting confidence in full-year performance and the stronger-than-usual weighting of cash
generation to the first half of the year, the Board has declared an interim dividend of 15.0 cents per
share, fully imputed, an increase of 76.5% on HY25
2
.
Sky will review broader capital management options following the successful integration of Sky Free
and will update shareholders at the Annual Results announcement in August.
FY26 Outlook and Guidance
3
Sky expects trading conditions to remain challenging in the near term.
With the Sky Free integration well underway and year one synergy delivery on track, Sky is
transitioning to Group-level guidance, including the 11-month contribution from Sky Free and,
consistent with its usual practice at half year, narrowing full year ranges:
• Revenue: $820m – $835m
• EBITDA: $145m – $160m
• Capex: $62m – $68m
• Dividend: at least 30 cps (unchanged)
“Although the economic environment remains uncertain, earnings growth is expected to continue
from FY27, and we remain confident in our ability to deliver at least $10m of incremental EBITDA by
FY28 through delivery of synergies across the group.”
2
This represents ~50% of the reconfirmed full year guidance of at least 30 cents per share.
3
Subject to no adverse change in operating conditions, including future economic headwinds. Guidance excludes one-off items associated
with: the Sky Free acquisition, Optus satellite migration, accelerated amortisation and transformation initiatives.
Sky was pleased to see Sophie Moloney recognised as the Deloitte Top 200 Chief Executive of the Year
in December, reflecting the momentum in the business as the Sky team continues to execute on its
strategy to deliver for customers and shareholders alike.
Ends
Authorised by: Kirstin Jones, Company Secretary
Investor queries to: Media queries to:
Amanda West Karina Healy
Head of Investor Relations & Corporate Sustainability Head of Corporate Affairs
Amanda.West@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 2025
Previous Reporting Period 6 months to 31 December 2024
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$414,439 7.7% increase
Total Revenue $414,439 7.7% increase
Net profit/(loss) from
continuing operations
$52,195 2766% increase
Total net profit/(loss) $52,429 3096% increase
Interim Dividend
Amount per Quoted Equity
Security
$0.15000000
Imputed amount per Quoted
Equity Security
$0.05833333
Record Date 13 March 2026
Dividend Payment Date 27 March 2026
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.22663 $0.95283
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.
Authority for this announcement
Name of person
authorised
to make this announcement
David Mackrell
Contact person for this
announcement
David Mackrell
Contact phone number
+64 21311911
Contact email address David.Mackrell@sky.co.nz
Date of release through MAP
26/02/2026
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 13/03/2026
Ex-Date (one business day before the
Record Date)
12/03/2026
Payment date (and allotment date for
DRP)
27/03/2026
Total monies associated with the
distribution
$20,651,252
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.20833333
Gross taxable amount $0.20833333
Total cash distribution $0.15000000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.02647059
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
$0.05833333
Resident Withholding Tax per
financial product
$0.01041666
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
David Mackrell
Contact person for this
announcement
David Mackrell
Contact phone number +64 21 311 911
Contact email address David.Mackrell@sky.co.nz
Date of release through MAP
26/02/2026
---
2026
Interim Report
For the six months ended
31 December 2025
Dear Shareholders,
In its first reporting period since acquiring Discovery
NZ (now renamed Sky Free) your company delivered
a strong first half result despite the continuing
challenges besetting the New Zealand economy.
This acquisition expands our demographic reach,
diversifies our revenue base (especially in advertising
and digital), and strengthens our competitive
position in the New Zealand market.
Whilst subdued consumer and corporate
spend adversely impacted subscription
and advertising revenues, Sky now has a
strengthened pathway for growth from FY27
onwards. Alongside firm control of costs and
a strong balance sheet, the nature of the
Discovery NZ transaction (as evidenced by
the outcome of the Purchase Price Allocation
process outlined in today’s results) positions us
well to achieve our future growth ambition.
Financial Performance
On an underlying basis, Sky Group revenues
were $415.4m, up 8% for the half, reflecting
five months of contribution from Sky Free.
EBITDA was $78.2m on an underlying basis,
representing a 29% increase on the first half
of last year.
The statutory Net Profit after Tax (NPAT)
for the half was $52.4m, which included a
gain on bargain purchase of $34.4m from
the acquisition and Optus compensation for
satellite disruption of $8.2m, partly offset by
a number of one-off costs. On an underlying
basis NPAT was $19.3m which is 77% higher
than the same period last year.
A reconciliation of underlying to statutory
results is provided on page 4 of this report.
Positioned for the next phase
Aside from delivering the priority of a successful
integration of Sky Free, Management is
focussed on four key initiatives in FY26 to
underpin earnings growth in FY27. These are
improved crew engagement, supercharging
the Sky experience, deepening content
engagement, and greater focus on growing
advertising revenues.
Two of those priorities stand out in the half year:
• Sky Free integration: The initial period
of ownership of Sky Free reinforces
Management’s view of the opportunity
to scale faster, extend reach to a larger
and more diverse audience, and further
diversify revenue through advertising and
digital. $3.2m of synergies have already
been delivered with work underway to
Chairman and
CEO Letter
Sky / 2026 Interim Report / p2
deliver additional savings by transitioning
services away from Warner Bros. Discovery
and harmonising systems and teams
across the two businesses. Coming off
the back of the highly complex satellite
migration in 2025, Sky is well positioned
to navigate what is a complex technology
integration challenge. From a crew
perspective, bringing teams together
across Sky and Sky Free is an important
milestone for the combined business,
but also one that Sky is approaching
with care and respect for our people.
While linear advertising revenue has
been softer than expected, nothing has
emerged to change our conviction in
the strategic and financial rationale for
the acquisition. Management remains
confident in achieving at least $10
million in incremental EBITDA by FY28.
• Deepening content engagement by
controlling our content destiny: Sky’s
unmatched viewership data across our
platforms continues to guide sharper,
value-accretive content purchase decisions.
During the half year we secured a reset of
the NZ Rugby rights agreement, improving
economics across an enhanced content
slate for the next 5 years. We renewed
Formula 1 and extended our exclusive
broadcast rights of the Olympic Games
through to Brisbane 2032.
We also leveraged our rich data sets to
radically refresh our entertainment slate, as
evidenced by an expanded partnership with
Paramount and the disciplined decision not
to renew HBO Max content beyond June
2026. Our relationships with a long list of
leading studios provide a strong pipeline
of premium global content with broader
appeal, while greater flexibility in new
content rights agreements will allow us to
respond more quickly to changing content
trends. At the same time, we are prioritising
locally curated channels (such as Sky
Kids and Sky Comedy) over pass-through
channels, providing better content and less
repeats, alongside a stronger pipeline of
local commissioned content. Importantly,
we are achieving this refreshed content
strategy within our target of content spend
of 47-49% of revenue.
Capital management
The Group closed H1 in a strong financial
position, with cash of $100m at 31 December
2025. While this cash position has benefited
from one-off items related to the Sky Free
acquisition and Optus compensation, which
will partly unwind in H2 through integration
spending and working capital timing,
liquidity is strong. As indicated in our 2025
Full Year results presentation we will review
capital management options following the
successful integration of Sky Free and update
shareholders on any new initiatives as part of
the Annual Results announcement.
Reflecting confidence in the full year result
and the stronger than usual weighting of
cash generation to the first half of the fiscal
year, the Board has declared an interim
dividend of 15.0 cps (fully imputed), an
increase of 76.5% on H1 2025. Guidance
for the total FY26 dividend payment
is reconfirmed as at least 30 cps.
OUR AMBITION
FY26 PRIORITIES
OUR ENDURING COMMITMENT
To be Aotearoa NZ’s most engaging
and essential media company
Grow
engagement
together
Supercharge
new Sky
experience
Accelerate
advertising
Deepen
content
engagement
A responsible and sustainably profitable,
Aotearoa-focused business
OUR PURPOSE
Share Stories.
Share Possibilities.
Share Joy.
Successful integration of Sky Free
Sky / 2026 Interim Report / p3
Outlook
We expect trading conditions to remain challenging
in the near term. With the Sky Free integration well
underway, we are transitioning to providing Group
guidance and, consistent with our usual practice at
half year, narrowing ranges for FY26:
• Revenue: of between $820m to $835m
(from prior range/stand alone indication)
• EBITDA: of between $145m to $160m
• Capex: of between $62m to $68m
• Dividend (unchanged): of at least 30 cps for FY26
In closing
Thank you to our crew for their continued energy
and execution, to our executive leadership team
(including the welcome addition of Chief Financial
Officer David Mackrell), and to our Board for their
guidance and constructive challenge.
Finally, thank you to you, our fellow shareholders,
for your continued support and confidence in Sky.
Philip Bowman Sophie Moloney
Independent Chairman Chief Executive
Additional information for shareholders
Understanding Sky’s underlying results
Sky’s Interim Results include the impact of a number of one-off items
during the current and prior period that mean it may be difficult to assess
the underlying performance of the business. For this reason, in addition to
statutory results, we have also provided underlying numbers that enable a
like for like comparison.
There are three main categories of one-off items included in the underlying
numbers for the current period:
• Sky Free: relates to the acquisition of Discovery NZ (now known as Sky
Free) and includes the impact of the Gain on bargain purchase, integration
and transaction costs.
• Optus satellite migration: relates to financial impacts and resulting Optus
compensation due to accelerated migration to the new satellite in early
April 2025. In H1 2025 it also included an adjustment to other income
resulting from a modified (shortened) satellite lease term.
• Accelerated content amortisation: is a non-cash cost resulting from
changes in amortisation methodology.
Other costs include those relating to organisational change.
The following information is provided as supplementary information to the
2026 Interim Financial Statements:
In NZD millions
H1 FY26
Underlying
H1 FY25
Underlying
% change
Underlying
Revenue
415.4385.07.9%
Other Income
0.51.4(60.8%)
Operating Expenses
337.7325.6(3.7%)
EBITDA
78.260.728.7%
Interest, FX (gains)/losses
3.52.6(37.4%)
Taxation
5.84.2(35.8%)
Depreciation & Amortisation
49.643.1(15.2%)
Net Profit after Tax
19.310.977.4%
Capex
1
27.039.1(31.0%)
In NZD millions
H1 FY26
Statutory
H1 FY25
Statutory
% change
Statutory
Revenue
414.4384.87.7%
Gain on Bargain Purchase
34.4--
Other Income
8.76.337.8%
Operating Expenses
346.8347.90.3%
EBITDA
110.843.2156.5%
Interest, FX (gains)/losses
3.52.6(37.4%)
Taxation
5.2(0.7)(868.7%)
Depreciation & Amortisation
49.643.1(15.2%)
Net Profit after Tax
52.4(1.7)3096.3%
Capex
28.143.8(35.9%)
1. Capex adjustment in H1 FY26 relates to satellite migration capex of $0.4m and $0.7m relating to
integration capex. Capex adjustments in H1 FY25 relates to satellite migration capex. Note: $0.6m of
capex adjustment in H1 2025 was reclassified to business-as-usual capex in FY25.
In NZD millions 31-Dec-202531-Dec-2024
Statutory gain/(loss) after tax
52.4(1.7)
Adjustments to earnings as follows:
Gain on bargain purchase
1
(34.4)-
Sky Free integration and transaction costs
2
4.1-
Recovery of satellite migration costs from Optus
3
(8.2)-
Gain on satellite lease modification
3
-(4.9)
Satellite migration costs
4
0.91.3
Content amortisation methodology change
5
2.718.3
Organisational changes
6
2.32.8
Tax effect on above adjustments
(0.5)(4.9)
Total adjustments
(33.1)12.6
Underlying profit after tax
19.310.9
1. Refer to note 10 in the Interim Financial Statements.
2. Sky Free integration costs of $3.1m and separate transaction costs of $1.0m relating to the
acquisition.
3. Refer to note 5 in the Interim Financial Statements.
4. Satellite migration costs include customer credits in H1 FY26 and H1 FY25. H1 FY25 also includes
incremental subscriber management costs.
5. H1 FY26 amortisation methodology change for content other than Sport, Neon, movies and local
production. H1 FY25 relates to Neon content amortisation methodology change. Refer to note 3 and 9.
6. Redundancies, transformation and strategy costs in relation to organisational changes.
Sky / 2026 Interim Report / p4
For the six months ended
31 December 2025
Our 2026
Interim
Financials
Sky / 2026 Interim Report /p5
Consolidated Interim Statement
of Comprehensive Income
For the six months ended 31 December 2025 (unaudited)
In NZD 000 Notes
31-Dec-2025
(6 months)
31-Dec-2024
(6 months)
30-Jun-2025
(1 year audited)
Revenue
4 414,439 384,761 750,723
Gain on bargain purchase – Discovery NZ Limited
10 34,433 --
Other income
5 8,704 6,319 7, 6 8 1
Expenses
Programming
9 1 9 7, 0 8 1227,650404,124
Subscriber related costs
37,04038,66171,367
Broadcasting and infrastructure
63,97350,446103,971
Advertising
1
23,2899,52618,477
Depreciation, amortisation and impairment of assets
49,61243,06689,141
Other costs
25,40621,60739,827
Total expenses
396,401390,956726,907
Finance income
1,3787901,700
Finance expense
4,8883,3454,276
Profit / (Loss) before tax
57, 6 6 5(2,431)28,921
Income tax expense / (benefit)
5,236(681)8,331
Profit / (Loss) for the period
52,429(1,750)20,590
Attributable to
Equity holders of the Company
1252,195(1,958)20,228
Non-controlling interests
234208362
52,429(1,750)20,590
Earnings per share
Basic and diluted earnings per share (cents)
123 7. 9 1(1.42)14.69
Other Comprehensive Income
Profit / (Loss) for the period
52,429(1,750)20,590
Items that may be reclassified to profit or loss
Deferred hedging (losses) / gains transferred to operating
expenses during the period
(534)10,199(490)
Changes in fair value of cash flow hedges
11,398-(2,988)
Income tax effect
(3,042)(2,856)974
Net other comprehensive income / (loss) to be reclassified
to profit or loss, net of income tax
7, 8 2 27,343(2,504)
Items that may not be reclassified to profit or loss
Deferred hedging (losses) / gains transferred to non-financial
assets during the period
(100)(247)181
Income tax effect
2869(51)
Net other comprehensive (loss) / income not being reclassified
to profit or loss, net of income tax
(72)(178)130
Total comprehensive income for the period
60,1795,41518,216
Attributable to:
Equity holders of the Company
59,9455,2071 7, 8 5 4
Non-controlling interest
234208362
60,1795,41518,216
1. Advertising costs of $23.3m have been disaggregated from Other costs (31 Dec 2024: $9.5m, 30 June 2025: $18.5m).
Consolidated Interim Balance Sheet
As at 31 December 2025 (unaudited)
In NZD 000 Notes31-Dec-202531-Dec-2024
30-Jun-2025
(audited)
Current assets
Cash and cash equivalents
11 99,910 2 7, 7 5 332,410
Trade and other receivables
11 61,833 56,51460,660
Programme rights inventory
9 80,490 66,76770,927
Income tax receivable
1,693 6,850 3,788
Derivative financial instruments
11 6,946 9 ,741640
250,8721 6 7, 6 2 5168,425
Non-current assets
Trade and other receivables
11 7, 1 0 9 4,570 7, 4 6 7
Property, plant and equipment
125,703 127,934126,958
Right-of-use assets
51,496 18,33962,147
Intangible assets
65,939 60,95663,386
Goodwill
244,264 244,264244,264
Derivative financial instruments
11 3,316 2,253220
4 9 7, 8 2 7 458,316504,442
Total assets
74 8 ,6 9 9625,941672,867
Current liabilities
Lease liabilities
11 29,057 11,569 22,720
Trade and other payables
11 130,952 103,586 95,918
Contract liabilities
55,926 54,350 56,903
Derivative financial instruments
11 125 126 2,464
216,060 169,631 178,005
Non-current liabilities
Lease liabilities
11 39,986 15,40649,880
Trade and other payables
3,624 3021,029
Deferred tax liability
8,210 1,873 2,499
Derivative financial instruments
11 57 7412,439
51,877 18,32255,847
Total liabilities
267,937 187,953233,852
Equity
Share capital
676,755 676,755676,755
Reserves
6,285 7, 7 0 0(1,619)
Retained deficit
(203,961)(248,054)( 2 3 7, 5 7 0 )
Total equity attributable to equity holders of the Company
479,079 436,4014 3 7, 5 6 6
Non-controlling interest
1,683 1,5871,449
Total equity
480,762 4 3 7, 9 8 8439,015
Total equity and liabilities
74 8 ,6 9 9625,941672,867
Philip Bowman Keith Smith
Director and Chair Director and Chair of Audit and Risk Committee
For and on behalf of the Board 25 February 2026.
Sky / 2026 Interim Report /p6
Consolidated Interim Statement
of Changes in Equity
For the six months ended 31 December 2025 (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 2025
Balance at 1 July 2025
676,755(1,619)( 2 3 7, 5 7 0 )437,5661,449439,015
Net profit for the period
--52,19552,19523452,429
Cash flow hedges, net of tax
-7, 74 8-7, 74 8-7, 74 8
Total comprehensive income for the period
-7,74 852,19559,94323460,177
Transactions with owners in their capacity as owners
Dividend paid
1
--(18,586)(18,586)-(18,586)
Supplementary dividends
--(1,028)(1,028)-(1,028)
Foreign investor tax credits
--1,0281,028-1,028
Share based compensation reserve
4
- 156 -156-156
- 156 (18,586)(18,430)-(18,430)
Balance at 31 December 2025
676,7556,285(203,961)479,0791,683480,762
For the six months ended 31 December 2024
Balance at 1 July 2024
676,755359(229,575)4 4 7, 5 3 91,379448,918
Net profit for the period
--(1,958)(1,958)208(1,750)
Cash flow hedges, net of tax
-7, 1 6 5-7, 1 6 5-7, 1 6 5
Total comprehensive income / (loss) for the period
-7, 1 6 5(1,958)5,2072085,415
Transactions with owners in their capacity as owners
Dividend paid
2
--(16,521)(16,521)-(16,521)
Supplementary dividends
--(989)(989)-(989)
Foreign investor tax credits
--989989-989
Share based compensation reserve
4
-176-176-176
- 176 (16,521)(16,345)-(16,345)
Balance at 31 December 2024
676,7557,7 0 0(248,054)436,4011,5874 3 7, 9 8 8
For the year ended 30 June 2025 (audited)
Balance at 1 July 2024
676,755359(229,575)4 4 7, 5 3 91,379448,918
Net profit for the year
--20,22820,22836220,590
Cash flow hedges, net of tax
-(2 , 3 74)-(2 , 3 74)-(2 , 3 74)
Total comprehensive income / (loss) for the year
-(2,374) 20,228 17,854 362 18,216
Transactions with owners in their capacity as owners
Dividend paid
3
--(28,223)(28,223)(292)(28,515)
Supplementary dividends
--(1,636)(1,636)-(1,636)
Foreign investor tax credits
--1,6361,636-1,636
Share based compensation reserve
4
- 396 -396-396
- 396 (28,223)(27,827)(292)(28,119)
Balance at 30 June 2025
676,755(1,619)(2 3 7, 57 0)4 3 7, 5 6 61,449439,015
1. Sky paid a dividend of 13.5 cents per ordinary share on 19 September 2025.
2. Sky paid a dividend of 12.0 cents per ordinary share on 20 September 2024.
3. Sky paid a dividend of 12.0 cents per ordinary share on 20 September 2024 and 8.5 cents per ordinary share on 21 March 2025.
4. In August 2023 the Group approved a long term incentive plan and granted 408,415 shares to executives of the Group. In September 2024 a further 388,742
shares were granted and 21,738 shares were granted in February 2025. In September 2025 a further 348,968 shares were granted. Refer to Note 6.
Consolidated Interim Statement
of Cash Flows
For the six months ended 31 December 2025 (unaudited)
In NZD 000 Notes
31-Dec-2025
(6 months)
31-Dec-2024
(6 months)
30-Jun-2025
(1 year audited)
Cash flows from operating activities
Profit / (loss) before tax
57,665(2,431)28,921
Adjustments for:
Depreciation,amortisation and impairment of assets
49,61243,06689,141
Gain on Bargain Purchase – Discovery NZ Limited
10(34,433) - -
Impairment of programme rights
- - 1,400
Accelerated amortisation of content
92,730 18,365 18,365
Unrealised foreign exchange loss
2,0111,11463
Interest expense
2,8772,2124,276
Interest income
(815)(790)(1,380)
Bad debts and movement in provision for loss allowance
7516621,701
Other non-cash items
1
(21)907(4 ,747 )
Movement in working capital items:
Decrease in receivables
10,0279,643110
Increase / (decrease) in payables
5,042( 3 7, 1 5 5 )(36,914)
Decrease in programme rights
4,78440,56434,819
Cash generated from operations
100,23076,157135,755
Interest paid
(1,746)(2,098)(4,251)
Interest received
8157901,380
Bank facility fees paid
(251)(114)(25)
Income tax paid
-(12,000)(12,658)
Net cash from operating activities
99,04862,735120,201
Cash flows from investing activities
Net cash inflow on acquisition of Discovery NZ Limited
1024,876 - -
Acquisition of property, plant, and equipment
8(14,871)(26,216)(45,817)
Acquisition of intangibles
8(11,518)(14,566)(31,929)
Net cash used in investing activities
(1,513)(40,782)( 7 7,74 6)
Cash flows from financing activities
Payments for lease liability principal
(10,421)(14,489)(17,693)
Dividends paid
(19,614)(17,510)(29,859)
Dividend paid to minority shareholders
- -(292)
Net cash used in financing activities
(30,035)(31,999)(47, 8 4 4)
Net increase / (decrease) in cash and cash equivalents
6 7, 5 0 0(10,046)(5,389)
Cash and cash equivalents at beginning of the period
32,4103 7, 7 9 93 7, 7 9 9
Cash and cash equivalents at end of the period
99,9102 7,75 332,410
1. Other non-cash items for the year ended 30 June 2025 includes a gain on satellite lease modification.
Sky / 2026 Interim Report /p7
Notes to the Consolidated
Interim Financial Statements
For the six months ended 31 December 2025 (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 2025 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.
The Group’s primary activity is to operate as a provider of sport and entertainment media services, advertising and
telecommunications in New Zealand.
These consolidated interim financial statements were approved by the Board on 25 February 2026.
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 2025. They have been prepared
in accordance with New Zealand generally accepted accounting practice, the New Zealand Equivalent to International Accounting
Standard 34 Interim Financial Reporting (NZ IAS 34) and International Accounting Standard 34 Interim Financial Reporting (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 2025. For the purposes of financial reporting
Sky is a profit-oriented entity.
The preparation of interim financial statements in accordance with NZ IAS 34 and IAS 34 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) and the identifiable assets acquired and liabilities assumed on
the acquisition of Discovery NZ Limited. Refer Note 10.
Group structure
The Group has a majority share in the following subsidiaries.
Name of EntityPrincipal Activity
Country of
IncorporationParent
Interest held
Dec-2025Dec-2024Jun-2025
Sky DMX Music LimitedCommercial musicNew ZealandSky
50.50%50.50%50.50%
Sky Network Services Limited
(previously Igloo Limited)
Broadband servicesNew ZealandSky
100.00%100.00%100.00%
Sky Free Limited
(previously Discovery NZ Limited)
1
Media ServicesNew ZealandSky
100.00%--
Believe It Or Not LimitedEntertainment quizzesNew ZealandSky
51.00%51.00%51.00%
Lightbox New Zealand LimitedStreaming servicesNew ZealandSky
100.00%100.00%100.00%
Sky Ventures LimitedDid not tradeNew ZealandSky
100.00%100.00%100.00%
Media Finance LimitedDid not tradeNew ZealandSky
100.00%100.00%100.00%
Non Trading PS Limited (previously
Outside Broadcasting Limited)
Did not tradeNew ZealandSky
100.00%100.00%100.00%
Screen Enterprises Limited Did not tradeNew ZealandSky
100.00%100.00%100.00%
Sky Investment Holdings LimitedDid not tradeNew ZealandSky
100.00%100.00%100.00%
1. On 1st August 2025, Sky acquired 100% of the shares in Discovery NZ Limited, refer Note 10.
3. Material 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 2025. The Group has not early adopted any
standard, interpretation or amendment that has been issued but is not yet effective.
Gain on acquisition of Discovery NZ Limited, fair value of acquired assets and assumed liabilities
In accordance with NZ IFRS 3 and IFRS 3 Business Combinations, the Group recognises and measures identifiable assets acquired
and liabilities assumed in a business combination at their fair values on the acquisition date. The determination of fair value
requires significant judgment and estimation, particularly in relation to the selection of valuation techniques and the inputs used
in those techniques.
The fair value of identifiable assets and liabilities acquired in the business combination was determined using various valuation
approaches, including market and income approaches, as appropriate.
Key assumptions and estimates involved in these valuations include:
• Market Conditions: Consideration of current market conditions for the programming rights acquired.
• Discount Rates: Selection of appropriate discount rates reflecting the risk associated with the cash flows of the acquired assets.
• Future Cash Flows: Estimations of future cash flows expected to be generated by the acquired assets, including expected
growth rates and operational synergies.
• Useful Lives: Assessments of the useful lives of acquired intangible assets and property, plant, and equipment.
These fair value judgments are significant as they directly impact the Group’s financial position and performance, including a gain
on bargain purchase of $34.4m in the Statement of Comprehensive Income. Refer to Note 10.
Intangible assets and goodwill
Management and the Directors have considered whether there are any events or changes in circumstances since the signing of the
2025 financial statements that may be an impairment indicator as at 31 December 2025, having considered factors such as:
• The Group’s half year results;
• 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 2025.
Capital structure
As at 31 December 2025 the Group had positive working capital of $34.8 million (31 December 2024: negative $2.0 million; 30 June
2025: negative $9.6 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 positive working capital as well as an undrawn banking facility of
$100 million at 31 December 2025, refer Note 7.
Programming rights inventory
The Group has completed a comprehensive review of the programming expense recognition policy, ensuring that the adopted
methodology is aligned with prevailing global practices. The review was informed by enhanced availability of Neon viewership data,
and global benchmarking which facilitated a thorough analysis of our content amortisation across all our genres. The updated
policy reflects evolving viewership behaviour for each specific content genre, with the trigger for the review being the strategic
acquisition of Discovery NZ Limited and its associated content. It is currently anticipated that the revised policy will not require
further significant modifications in the coming years.
Based on the completed review, the amortisation methodology for all programme rights, except for Neon, Sport, Movies and
Local Production, has been updated to better reflect the Group’s understanding of current viewership behaviour. The previous
amortisation methodology was based on the type of programme right combined with the platform or channel the content was
distributed on. The revised amortisation methodology is based on the genre of the programme right. The revised methodology
for each genre is described below. This represents a change in accounting estimate that has been adjusted prospectively.
As a result of the change in amortisation methodology for the programme rights, except for Neon and Sport, an accelerated
amortisation charge of $2.7 million is recognised in the current period. (Refer Note 9 for further details of the change in
accounting estimate).
Sky / 2026 Interim Report /p8
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 2025
Revenue from customers
225,25222,76866,05626,55264,0709 ,741414,439
Total revenue
225,25222,76866,05626,55264,0709,741414,439
Timing of revenue recognition
At a point in time
872---64,0707, 8 8 772,829
Over time
224,38022,76866,05626,552-1,854341,610
225,25222,76866,05626,55264,0709,741414,439
For the six months ended 31 December 2024
Revenue from customers
239,32616,62361,7552 7, 2 9 929,9399,819384,761
Total revenue
239,32616,62361,7552 7, 2 9 929,9399,819384,761
Timing of revenue recognition
At a point in time
1,522---29,9394,33935,800
Over time
237,80416,62361,7552 7, 2 9 9-5,480348,961
239,32616,62361,7552 7, 2 9 929,9399,819384,761
For the year ended 30 June 2025
Revenue from customers
465,54136,954118,80553,9505 7, 0 9 818,375750,723
Total revenue
465,54136,954118,80553,95057, 0 9 818,375750,723
Timing of revenue recognition
At a point in time
2,458---5 7, 0 9 89,43868,994
Over time
463,08336,954118,80553,950-8,937681,729
465,54136,954118,80553,95057, 0 9 818,375750,723
Operating segments are reported in a manner consistent with the internal reporting provided to the Group’s executive team
who are the chief operating decision-makers. The Group’s executive team is responsible for allocating resources and assessing
performance of the operating segments. The Group operates in a single operating segment comprising the provision of sport and
entertainment media services, advertising and telecommunications in New Zealand.
5. Other Income
This note shows the disaggregation of the Group’s sources of Other Income.
In NZD 000 31-Dec-202531-Dec-202430-Jun-2025
Government grant R&D tax credits
421- 675
Gain on lease modification
1
- 4,923 4,924
Optus redundancy satellite credit
- 1,321 1,291
Recovery of satellite migration costs
2
8,159--
Other
124 75 791
8,704 6,319 7, 6 8 1
1. On 31 December 2024, the Group shortened the term of its previous transmission lease to enable the transition to the current satellite, which became
available for use on 15 April 2025. This lease modification resulted in a gain recognised in FY25.
2. Agreed satellite migration costs recovered from Optus in the period ending 31 December 2025 total $8.2m.
6. Related Party Transactions
There were no loans to directors by the Group or associated parties at any of the reporting dates.
Related party transactions
In NZD 000 31-Dec-202531-Dec-202430-Jun-2025
Income statement
Remuneration of key personnel (included in employee costs)
2,914 3,585 5,614
Directors’ fees
468 443 897
Total related party transactions through consolidated income statement
3,382 4,028 6,511
Balance Sheet
Dividend payments (included in dividends paid)
178 147 251
Share based compensation reserve
156 176 396
Total related party transactions through consolidated balance sheet
334 323 647
The Group’s directors and key management personnel collectively hold shareholdings of 1,315,510 shares (31 Dec 2024: 1,223,208,
30 June 2025: 1,223,737 shares) which carry the normal entitlement to dividends. Share transactions undertaken by directors can
be found as part of the statutory disclosures in the annual report.
Equity-settled share base compensation reserve
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.
In September 2024 the Group granted further 388,742 share rights to executives of the Group under the incentive plan. The grants
were all accepted by the employees by 30 October 2024. A further 21,738 shares were granted and accepted in February 2025.
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.
In September 2025 the Group granted 348,968 share rights to executives of the Group under the incentive plan. The grants were
all accepted by the employees by 30 October 2025. 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 under the 2025, 2024 and 2023 grants 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 S&P and 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 conditions. The share rights approved in
September 2025 had an estimated fair value of $529,519 (September 2024: $529,519, August 2023: $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 September 2025 GrantSeptember 2024 GrantAugust 2023 Grant
Grant date share price
$3.59$2.79$2.70
Expected volatility
23.78%2 7. 5 0 %33.70%
Maturity vesting date
05/09/202803/09/202704/09/2026
Dividend yield (over vesting period)
10.03%10.30%9.00%
Risk free rate
2.88%4.30%4.46%
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 / 2026 Interim Report /p9
7. Interest Bearing Loans and Borrowings
Bank loans
On 29 July 2024 the Group renegotiated the bank facility with a syndicate of banks comprising Bank of New Zealand,
Commonwealth Bank of Australia and Westpac New Zealand Limited securing a facility of $100 million ending on 30 September
2027. The full facility remained undrawn at 31 December 2025.
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, Sky Investment
Holdings Limited, Lightbox New Zealand Limited and Sky Free 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 2025 and no breaches are anticipated
within the next 12 months.
Bank overdrafts of $nil (31 December 2024: $285,000; 30 June 2025; $35,000) have been set off against cash balances.
8. Capital Expenditure
The Group acquired the following property, plant and equipment (PPE) and intangibles during the period:
In NZD 000
31-Dec-2025
(6 months)
31-Dec-2024
(6 months)
30-Jun-2025
(1 year audited)
Capital projects in progress (includes PPE & Intangibles)
5,2801 7, 7 1 01,883
Land and buildings
2056861,212
Broadcasting and studio equipment
23678,602
Plant, equipment and other
2721001,154
Subscriber equipment
8,23511,25118,883
Installation costs
3,7776,62916,495
Intangibles
10,0927, 4 3 530,188
28,09743,81878,417
Movement in capital expenditure creditors
(1,708)(3,036)(671)
Cash outflow in the period
26,38940,7827 7,74 6
9. Programme Rights Inventory
In NZD 000 31-Dec-202531-Dec-202430-Jun-2025
Opening balance
70,927125,644125,644
Acquired during the period
184,216143,982304,499
Charged to programming expenses
1
(174,653)(202,859)(359,216)
Balance at end of period
80,49066,76770,927
1. Represents programming rights costs only, excluding production and programming operations costs of $22.4 million (31 Dec 2024: $24.8 million, 30 June
2025: $44.9 million).
Programming rights inventory
The cost of television programme inventory is recognised in the Consolidated Income Statement, with reference to the period over
which the Group utilises the programming rights, viewership behaviour, and time-based methods of amortisation depending on
the genre of programme right,These circumstances may change or evolve over time. As set out in Note 3, the Group has recently
completed a review of the methodology used to recognise programming expense.
The various genres of programme rights now have the following amortisation methodology:
• Sport (Unchanged) – the majority or all of the cost is recognised in the Consolidated Income Statement on the dates when the
events occur. Where the rights are for multiple seasons or competitions, such rights are recognised principally on a straight-line
basis across the contracted broadcast period or season. This remains consistent with the year ended 30 June 2025.
• Neon (Unchanged) – New content – The cost is amortised over 24 months, with 65% of the cost recognised in the first 6 months,
15% in the subsequent 6 months, and 20% in the second year. This remains consistent with the year ended 30 June 2025.
• Local Entertainment Production (Unchanged) – the cost is recognised as incurred.
• Movies (Unchanged) – the cost is recognised on an “as played” basis or over time (depending on the nature of the rights
agreement).
• Entertainment Current Affairs / Events / Reality / Competition – 90% of the cost is recognised in the Consolidated Income
Statement in the first year, with the remaining 10% of cost recognised in the second year.
• Entertainment – Premium – The cost is amortised over 24 months, with 65% of the cost recognised in the first 6 months,
15% in the subsequent 6 months, and 20% in the second year. Premium refers to content where the license period falls within
3 years of the original release date.
• Entertainment – Evergreen – The cost is amortised on a straight-line basis over the license period, capped at a maximum of
3 years. Evergreen refers to content where the viewership behaviour is consistent over the license period.
• Entertainment – Other – The cost is recognised on a straight-line basis over the license period, capped at a maximum of 2 years.
Other refers to content which is not otherwise classified above.
The Group regularly reviews its programming rights to ensure they are held at the lower of cost and net realisable value.
Where programme broadcast rights are surplus to the Group’s requirements, and no gain is anticipated through the disposal of
the rights, or where the programming will not be broadcast for any other reason, a write-down is made in the Consolidated Income
Statement. Any reversals of inventory write-downs are recognised as reductions in operating expense.
Sky / 2026 Interim Report /p10
10. Acquisition of Discovery NZ Limited
On 1 August 2025, Sky Network Television Limited acquired 100% of the issued share capital of Discovery NZ Limited
(Discovery NZ). The acquisition of Discovery NZ, which operates national free-to-air channels (Three, Eden, Rush, HGTV) and a
digital streaming service (ThreeNow), positions Sky to generate cost savings, accelerate growth and diversify revenue streams,
particularly in advertising and digital. Sky has acquired a business that is a strong strategic fit in a manner which it believes is value
accretive for shareholders.
The fair value amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table
below. As at 31 December 2025, the fair values of these assets and liabilities are provisional. The provisional amounts recognised
primarily relate to the provision for the removal of chattels and decommissioning costs of the property lease and the corresponding
indemnification asset as the valuation work for these items is ongoing.
In NZD 000 01-Aug-2025
Cash and cash equivalents
16,893
Trade and other receivables
11,365
Trade and other payables
(13,356)
Programme rights inventory
16,299
Property, plant and equipment
3,889
Intangible assets – Software
2,800
Intangible assets – Brand
2,800
Deferred tax asset / (liability)
(784)
Indemnification asset
228
Other assets and liabilities
(3,855)
Programme rights payable
(4,991)
Payables due to Warner Bros. Discovery Inc
(3,049)
Provision for decommissioning costs
(228)
Witholding Tax payables
(570)
Employee benefits payable
(991)
Total identifiable assets acquired and liabilities assumed
26,450
Total consideration
Satisfied by:
Cash
0
Total consideration transferred
0
Net debt and working capital adjustments received
7, 9 8 3
Gain on bargain purchase
34,433
Net cash inflow arising on acquisition
Cash consideration received
7, 9 8 3
Cash and cash equivalent balances acquired
16,893
24,876
The cash consideration received of $7.983 million comprises the following elements:
• Share purchase price of $1, which is rounded to $0 in the table above;
• A final net working capital adjustment of $3.749 million received to achieve the contractually agreed target level; and
• A $4.234 million adjustment received to achieve a debt-free basis, clear of programme rights payable.
The $3.749 million working capital adjustment was granted to extinguish the liabilities that were previously required to be settled
prior to acquisition date.
The cash and cash equivalent balance acquired of $16.893 million includes a contribution to the Group’s future integration costs,
and to adjust for the debt-free basis and minimum working capital commitments of the acquisition.
The fair value of the financial assets includes Trade and other receivables with a fair value of $11.365 million and a gross
contractual value of $11.365 million. The best estimate at acquisition date of contractual cashflows not to be collected is $nil.
Acquisition-related costs included in Other Costs for the six months ended 31 December 2025 amount to $1.044 million.
The fair value of the identifiable net assets acquired exceeded the total consideration transferred, resulting in a gain on bargain
purchase of $34.433 million. This gain has been recognised in the consolidated statement of profit or loss and other comprehensive
income for the period ended 31 December 2025. In the event of the recognition of a gain on bargain purchase in the income
statement, IFRS 3 requires that a reassessment be conducted of the measurement process, with the purpose of verifying the
completeness and correctness of the process of identification and measurement of all the assets acquired and the liabilities
assumed. This reassessment exercise confirmed the correctness and reasonableness of the conclusions reached previously.
The transaction resulted in a gain as Sky was able to acquire Discovery NZ on a debt free basis at a significant discount to
net asset value given the history of losses and growing indebtedness of the company over recent years under the ownership
of the vendor. This situation influenced the Group’s decision to acquire Discovery NZ with the objective of using the skills of its
management team to deliver cost and potential revenue synergies with the existing business to generate positive profits and
cash flow from a deleveraged asset.
The fair value of the acquired Programme rights inventory of $16.3 million was determined using management judgement and
estimation. The key judgements and assumptions applied include:
• Management’s experience and internal knowledge of content acquisition, as there are no observable external benchmarks
or independent valuation expertise in New Zealand for the procurement and valuation of broadcast content rights.
• Consideration of current market conditions
• A valuation approach undertaken from the perspective of a hypothetical market participant, assessing the value of the
programme rights available after the acquisition date. This assessment considered, among other factors:
–the number of remaining broadcast runs,
–whether the remaining licence period could be sold or sub licensed,
–the timing of first broadcast, and
–whether the genre or type of content influenced the remaining economic value.
• The extent to which the programme rights were expected to generate advertising revenues across the Group’s platforms,
including Three and ThreeNow.
On the date of acquisition 1 August 2025, the name of Discovery NZ Limited was changed to Sky Free Limited (Sky Free).
Discovery NZ has accumulated tax losses which are able to be carried forward and offset against future profits of Sky Free
provided the legislative requirements of the Business Continuity Test are met. Tax losses incurred after 1 August 2025 are able
to be offset against the profits of Sky Network Television Limited. Sky Free’s tax losses that arose prior to 1 August 2025 are not
available to be offset within the Group. Further work is being undertaken to determine the tax losses available to carry forward
as at 31 July 2025. In the financial statements for the year ended 31 December 2024, Discovery NZ disclosed an unrecognised
deferred tax asset of $78.1m relating to tax losses and temporary timing differences.
Discovery NZ contributed $35.561 million revenue and a positive contribution of $0.366 million to the Group’s net profit before tax
for the period between the date of acquisition and the reporting date (5 months of operations). If the acquisition of Discovery NZ
Limited had been completed on the first day of the financial year (1 July 2025), contribution to Group revenues for the 6 month
period would be estimated to have been $42.673 million with positive contribution to Group net profit before tax estimated to
have been $0.440 million, both calculated on a pro-rata basis to the 5 month result.
11. 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
2025. There have been no changes in any risk management policies since 30 June 2025.
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.
Sky / 2026 Interim Report /p11
Classification of financial instruments
The following table presents the Group’s financial assets and liabilities according to classifications.
In NZD 000
31-Dec-202531-Dec-202430-Jun-2025
Carrying
amountFair value
Carrying
amountFair value
Carrying
amountFair value
Financial assets at amortised cost
Cash and cash equivalents
99,91099,9102 7, 7 5 32 7, 7 5 332,41032,410
Trade and other receivables
43,53543,53538,65838,65844,06244,062
Financial assets at fair value through
profit or loss
Derivatives designated as hedging
instruments (cash flow hedges)
7, 8 0 67, 8 0 610,53610,536610610
Derivatives not designated as hedging
instruments
2,4552,4551,4581,458250250
153,706153,70678,40578,4057 7, 3 3 27 7, 3 3 2
Financial liabilities at amortised cost
Lease liabilities
69,04369,13126,9752 7, 1 2 872,60073,595
Trade and other payables
111,458111,45886,05886,05881,99981,999
Financial liabilities at fair value through OCI
Derivatives designated as hedging
instruments (cash flow hedges)
96 96 338 338 3,660 3,660
Derivatives not designated as hedging
instruments (fair value hedges)
86 86 529 529 1,243 1,243
180,683180,771113,900114,053159,502160,497
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 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.
12. Earnings Per Share
31-Dec-202531-Dec-202430-Jun-2025
Profit after tax attributable to equity holders of the parent (NZD 000)
52,195(1,958)20,228
Weighted average number of ordinary shares on issue (000’s)
137,675137,675137,675
Basic and diluted earnings per share (cents)
3 7. 9 1(1.42)14.69
Issued ordinary shares at the beginning of the period
137,675,010137,675,010137,675,010
Total number of shares on issue
137,675,010137,675,010137,675,010
Weighted average number of ordinary shares on issue
137,675,010137,675,010137,675,010
13. Contingent Liabilities
The Group is subject to litigation incidental to its business, none of which is expected to be material. No provision has been made in
the Group’s 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.
14. Subsequent Events
Interim dividend
On 25 February 2026 the Board of Directors resolved to pay a fully imputed dividend of 15 cents per share with the record date
being 13 March 2026. A supplementary dividend of 2.65 cents per share will be paid to non-resident shareholders subject to the
foreign investor tax credit regime.
Sky / 2026 Interim Report /p12
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West,
Private Bag 92162, Auckland, 1142, New Zealand
+64 9 355 8000
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 controlled entities (the Group), which comprise the consolidated interim balance sheet as at 31 December
2025, 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 months ended on that date, and
selected explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying
consolidated interim financial statements of the Group do not present fairly, in all material respects, the financial
position of the Group as at 31 December 2025, and its financial performance and cash flows for the six months 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 Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by
the New Zealand Auditing and Assurance Standards Board (PES 1), as applicable to audits and reviews of public
interest entities. We have also fulfilled our other ethical responsibilities in accordance with PES 1.
In our capacity as auditor and assurance practitioner, our firm also provides audit, other assurance and agreed-
upon procedures services. 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 business. The firm has no other relationship
with, or interests in, the Group.
2 PwC – Independent auditor’s review report
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 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 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 Company
and the Company’s 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 Richard Day.
For and on behalf of:
PricewaterhouseCoopers Auckland
25 February 2026
2 PwC – Independent auditor’s review report
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 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 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 Company
and the Company’s 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 Richard Day.
For and on behalf of:
PricewaterhouseCoopers Auckland
25 February 2026
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West,
Private Bag 92162, Auckland, 1142, New Zealand
+64 9 355 8000
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 controlled entities (the Group), which comprise the consolidated interim balance sheet as at 31 December
2025, 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 months ended on that date, and
selected explanatory notes.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying
consolidated interim financial statements of the Group do not present fairly, in all material respects, the financial
position of the Group as at 31 December 2025, and its financial performance and cash flows for the six months 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 Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by
the New Zealand Auditing and Assurance Standards Board (PES 1), as applicable to audits and reviews of public
interest entities. We have also fulfilled our other ethical responsibilities in accordance with PES 1.
In our capacity as auditor and assurance practitioner, our firm also provides audit, other assurance and agreed-
upon procedures services. 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 business. The firm has no other relationship
with, or interests in, the Group.
Sky / 2026 Interim Report /p13
Directors
Philip Bowman (Chair)
Keith Smith (Deputy Chair)
Dame Joan Withers
Mike Darcey
Mark Buckman
Belinda Rowe
Officers
Sophie Moloney Chief Executive
David Mackrell Chief Financial Officer
Nikki Goodman Chief Customer Officer
Kym Niblock Chief Digital and Technology Officer,
Interim Chief Content Officer
Chris Major Chief Corporate Affairs Officer
Juliet Peterson Chief Business Officer
Antony Welton Chief Operating 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/- Baker McKenzie
Tower One – International Towers Sydney
Level 46, 100 Barangaroo Avenue,
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 / 2026 Interim Report /p14
---
© SKY 2021
Sky Network
Television
26 February 2026
Interim Results
Presentation
For the six months ended31
December 2025
© SKY 2021
Agenda
‣Results highlights
‣Financial and Operational Performance
‣Business Update
‣Outlook and Guidance
‣Questions
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 3
Double digit growth in EBITDA driven by solid revenue performance in a difficult market and lower
costs.
Unmatched position in sport strengthened by disciplined renewals. Refresh of entertainment strategy
delivering a strong pipeline of quality content.
Complex Sky Free integration on track and strong progress on planned synergy delivery with $3.2m
delivered in the half across the group of the previously indicated $3 - $5m for the full year.
Gain on bargain purchase of $34.4m as a result of fair value assessment of assets acquired for $1.
Strong cash generation from operations and acquisition terms contributing to increased Free Cash
Flow. Firmly on track to be able to pay at least 30 cents per share for FY26.
Interim Result Highlights
Strong first half performance as expanded business builds momentum
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 4
An accelerating acquisition
Capital light investment delivered immediate scale and stronger market
position in advertising and digital
ADVERTISING REVENUE
MARKET SHARE (Linear)
1
1. Source: SMI Linear market spend data 1 July 2025 to 31 December 2025. 2. Nielsen CMI Q4
2024 to Q3 2025. 3. Linear is approx. 80% of Total TV category, ASA Advertising Turnover Report
2024 (Released 23 May 2025).
•Revenue market share boosted to 35% of
important linear
segment
3
.
•Total advertising revenue more than doubled
and includes 20% from fast-growing digital
segment.
•Single advertising sales proposition from Feb
2026 strengthens market position and
provides unique offering for agencies and
brands.
•62% increase in Sky’s digital audience, now
reaching 1.2m viewers weekly with added
youth and diversity.
•Strategic fit enables significant opportunities
throughout the business.
16%
35%
+62% INCREASE IN DIGITAL AUDIENCE
2
71%
47%
70%
87%
45%
18-2425-3940-54FemaleMale
H1 FY26
Sky
Standalone
H1 FY26
Sky
© SKY 2021
Page 5
Financial Highlights
Strong performance in a challenging market
1. Where indicated, HY25 and HY26 numbers are shown on an underlying basis to allow a like for
like comparison of underlying performance. Information on statutory numbers is available on
page 28 and a table of adjustments is available on page 29.
$415.4m
UNDERLYING REVENUE
1
+8%
H1 FY26
Sky Standalone: $379.8m (1%)
H1 FY25: $385.0m
$52.4m
STATUTORY NPAT
H1 FY25: ($1.7m)
H1 FY26 Underlying NPAT
1
: $19.3m +77%
H1 FY25 Underlying NPAT
1
: $10.9m
$27.0m
CAPITAL EXPENDITURE
1
(31%)
H1 FY26 Sky Standalone: $26.0m
H1 FY25: $39.1m
$78.2m
UNDERLYING EBITDA
1
+29%
H1 FY26 Sky Standalone: $76.5m +26%
H1 FY25: $60.7m
$87.1m
FREE CASH FLOW
H1 FY25: $7.5m
15.0cps
DIVIDEND
+76%
H1 FY25: 8.5cps
•Revenue
1
up 8%, driven by contribution from
Sky Free and growth in Broadband and
Streaming.
•EBITDA
1
up 29%, supported by tight cost
control, lower programming spend, and
contribution from Sky Free.
•Underlying NPAT
1
up 77%, reflecting strong
execution across the business.
•Capital Expenditure returned to a lower more
normal level.
•Free cash flow significantly higher, supported
by improved operations, lower capex,
favourable working capital, and cash acquired
on acquisition of Sky Free.
•Dividend up 76%, fuelled by strong free cash
flow and reflecting Board confidence.
Results Presentation
For the six months ended 31 December 2025
Financial and
Operational
Performance
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 7
Key Drivers of EBITDA
1
Improvement
29% increase in underlying EBITDA driven by lower costs
•Improved underlying EBITDA was driven by 6.7%
lower costs in Sky Standalone that outpaced the
revenue decline of 1.3%.
•Programming costs were significantly reduced
following disciplined negotiations for content
combined with timing of one-off events.
•Customer growth was the primary driver of
increased Broadband costs.
•Continued focus on cost management throughout
the business delivered a lower cost base.
•Lower than expected Sky Free cost base resulted in
a positive EBITDA contribution.
1.EBITDA is a non-GAAP measure. Information is presented on an underlying basis. Statutory numbers
are available on page 28 and a table of adjustments is available on page 29.
EBITDA
1
MOVEMENTS (UNDERLYING) ($m)
Waterfall updated 11/2
60.7
(5.1)
(0.8)
23.8
(4.2)
2.276.5
1.778.2
H1 FY25 Revenue Other Programming Cost of Other H1 FY26 Sky Free H1 FY26
Income Broadband Costs Sky Standalone Sky
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 8
385.0
(13.3)
4.3
6.1
(0.7)
(0.3)
(1.2)
379.8
34.4
1.1415.4
Revenue
1
Addition of Sky Free resulted in an 8% overall revenue increase
1. Revenue, is shown on an underlying basis. Information on statutory numbers is available on
page 28 and a table of adjustments is available on page 29.
•Growth in Broadband and Streaming revenue offset
78% of the Sky Box decline.
•Sky Standalone revenue was 1.3% lower than last
year, largely due to reduced Sky Box and Neon
customer numbers and non-repeat of Advertising
revenue related to the 2024 Paris Olympics.
•The Venue (formerly Commercial) business revenue
was stable despite sector challenges.
•Sky Free contributed a 9.4% revenue uplift in the first
5 months of ownership despite market revenue
softness. Sky Free other revenue relates to service
fee income.
REVENUE MOVEMENTS (UNDERLYING
1
) ($m)
Waterfall updated 11/2
H1 FY25Sky BoxStreamingBroadbandVenueAdvertisingOtherH1 FY26
Sky
Standalone
Sky Free
Advertising
Sky Free
Other
H1 FY26
Sky
© SKY 2021
Page 9
Revenue by product
Results Presentation
For the six months ended 31 December 2025
253
246
240
230
226
$83
$84
$84
$84
$85
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Sky Box improved ARPU and Churn
•Encouraging churn improvement and increased
ARPU contributed to slow customer and revenue
decline.
•New device customers increased to 40% from 30%
a year ago and Sports customers rose to 74%
supported by a strong content lineup.
•ARPU increase of 1.1% to $85.21 was largely driven
by sports customer penetration and sport package
price increase in May 2025.
•85% of customers have tenure of more than five
years and lower average churn of 8.0%.
UNDERLYING REVENUE ($m) & ARPU
1
CUSTOMERS (000)
CUSTOMERS CHURN BY TENURE
1. H1 FY26 Revenue adjusted by $0.9m, related to satellite migration.
4%
11%
85%
12%
21%
30%
37%
40%
500
479
464
448
435
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
New Sky BoxClassic Sky Box
CUSTOMER TENURE (%)
9.3%
12.8%
10.1%
11.8%
9.8%
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
0-1 Years1-4 Years5+ YearsTotal
1. Sky Box ARPU is monthly average revenue calculated as the average for the
period.
© SKY 2021
Page 10
27
25
25
26
26
$15
$16
$16
$17
$18
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
277
258
264
259
215
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
153
125
146
150
170
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Revenue by product
Results Presentation
For the six months ended 31 December 2025
Sky Sport Now revenue grew 8%
1. Sky Sport now customers and ARPU are based on Recurring Subscribers, removing the impact of
transactional passes, includes Pay Per View. 2. Customers are reported on a 90-day lookback basis.
Neon revenue impacted by lower customers
•Sky Sport Now’s growth continued with revenue
rising 8% and customer numbers up +17%.
•ARPU rose 8% to $47.55, benefitting from a 10%
price rise in March 2025 on monthly and annual
passes.
•Introduction of the Day pass in May 2025 at $29.99
is exceeding expectations. This provides a flexible
entry point with good conversion to recurring
passes.
•Lack of acquisition and retention driving content
contributed to an 18% fall in customer numbers
although a 12% lift in ARPU more than offset this to
grow topline revenue by $1.3m.
•Neon Standard pricing increased to $23.99 in April
2025 and Basic tier increased to $14.99 in October
2025. Basic accounts for 21% of the base and
contributes digital revenue in the Advertising line.
REVENUE ($m) & ARPU
1
CUSTOMERS
1,2
(000)
CUSTOMERS (000)
REVENUE ($m) & ARPU
SSN/Neon Customer Graphs updated
to remove WinBack. SSN revenue
updated
32
26
37
31
40
$40
$42
$44
$45
$48
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
© SKY 2021
Page 11
34%
45%
21%
Customers
by Sector
Licensed Premises
Retail
Accomodation
27
27
27
27
27
0
0
0
0
0
0
0
0
0
0
10
20
30
40
50
60
70
80
90
100
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Revenue by product
Results Presentation
For the six months ended 31 December 2025
13
15
17
20
23
$76
$74
$69
$71
$71
0
20
40
60
80
100
120
140
160
180
200
(4)
1
6
11
16
21
26
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Broadband revenue increased 37%
Customer info?
Venue delivered a consistent performance
30
36
44
51
56
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
•Venue (formerly Commercial) delivered a consistent
performance despite tough trading conditions in
the retail and accommodation sectors.
•Launch of the business edition of the new Sky Box
late in the half is providing opportunity.
•Revenue increased 37% as customer numbers
continue to build (up 27%), despite a competitive
market.
•10.7% of Sky Box customers have Sky bundled
broadband, rising to 15% at acquisition.
•ARPU increased 2% despite a continued shift in mix
towards lower tier plans. Starter plan customers
now make up 34% of base, from 23% last year.
REVENUE ($m) & ARPU
CUSTOMERS (000)
REVENUE ($m)
Adjusted Venues graph to flatten
trend
CUSTOMER BASE (%)
© SKY 2021
Page 12
8%
92%
AdvertisingOther
12.7%
10.5%
14.4%
14.2%
15.7%
34.9%
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
ex-Sky
Free
H1 FY26
Sky
29
24
29
23
25
51
1
1
4
5
13
29
24
30
27
30
64
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Sky
H1 FY26
Sky
LinearDigital
Revenue by product
Advertising Revenue doubled
•Relatively stable revenue is a positive outcome for
Sky Standalone business as the prior period included
the Paris Olympics.
•Digital revenue percentage (Sky Standalone) rose to
16% within 2 years of adding this stream. Sky Go
digital advertising launched in October 2025.
•5-month contribution from Sky Free more than
doubled Sky’s advertising revenue. 24% of Sky Free’s
revenue is from digital sources.
•Advertising rises to 15% of revenue in H1 with the
initial 5 month contribution from Sky Free
•Revenue market share was boosted to 35% in the
linear segment.
REVENUE ($m)
REVENUE MARKET SHARE
1
(Linear)
1. Source: SMI Linear market spend data for each period.
Standalone
INCREASED REVENUE DIVERSITY (%)
15%
85%
SKY
STANDALONE
SKY
Results Presentation
For the six months ended 31 December 2025
H1 FY26
Sky
Standalone
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 13
325.6
(23.8)
(3.9)
6.3
0.5
(0.8)
303.8
33.9337.7
H1 FY25
Programming
Costs
Subscriber
Related
Broadcasting
&
Infrastructure
Advertising
Other
H1 FY26
Sky
Standalone
Sky Free
H1 FY26
Sky
Operating Expenses
Disciplined cost management supporting bottom line
•Programming Costs: Sky Standalone programming
costs to revenue ratio reduced to 48.8% with
significant cost reductions due to:
-timing of one-off events (last year’s Paris
Olympics), and
-disciplined negotiation and content choices across
sport and entertainment, including non-renewals
that more than offset new commitments.
•Subscriber Related: reductions due to lower marketing
and people costs.
•Broadcasting & Infrastructure: Increase reflects
growth in Broadband and an increase in technology
spend.
•Advertising
2
stable cost profile was broadly in-line
with the revenue result for Advertising.
•Sky Free: Early cost base reductions across key
categories delivered margin upside. Key costs
including Advertising, Programming and
Infrastructure.
1. Operating Expenses are shown on an underlying basis. Information on statutory numbers is
available on page 28 and a summary of adjustments is available on page 29. 2. Advertising costs
have been disaggregated from Other costs. They include agency commissions, people and
operational costs linked to advertising revenue.
OPERATING EXPENSES (UNDERLYING
1
) ($m)
H1 FY25ProgrammingSubscriber
Related
Broadcasting
& Infrastructure
AdvertisingOtherH1 FY26
Sky
Standalone
Sky FreeH1 FY26
Sky
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 14
37
42
39
26
2626
5
5
8
37
46
44
35
27
28
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Sky
Standalone
H1 FY26
Sky
CAPEXSatellite MigrationIntegrationSky Free
Capital Expenditure
Capital intensity returns to longer term run-rate level
•Underlying Sky Standalone Capex for the half was
$13m lower than the first half of last year due to:
-the prior period early replacement of transmission
equipment to support satellite migration.
-lower spend on customer devices following a
period of accelerated investment to build inventory
•Underlying Sky Standalone capex of $26m was
slightly below the target band of 7% – 9% of revenue
at 6.9%. Sky Free’s lower capex profile lowers the
consolidated ratio to 6.5%.
STATUTORY CAPITAL EXPENDITURE ($m)
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 15
32
92
(26)
(10)
87
(20)
68
8
25100
Cash on Hand Jun 2025Cash from operationsCapexLeasingCash available for distributions -pre one offDividendsCash Normalied Post DistnOptus claimNet cash inflow on
acquisition
Cash available for distributions
Cash Flow
Strong cash flow resulting in closing cash balance of $100m
•Core business generated $55m of cash in the first
half (compared to $7m for H1 25)
•Cash was boosted by cash acquired with Sky Free
of $25m and $8m of compensation from Optus.
•Operating cash flow was strong as a result of
improved earnings in the half and favourable
working capital movements. It is expected that a
portion of the working capital movements will
reverse in the second half of the year including
settlement of Sky Free liabilities.
•Cash from the acquisition of Sky Free
included cash
contribution for integration, cash to settle
outstanding payables and an agreed working
capital level.
Cash on
hand
Jun 2025
Cash from
operations
CapexLeasingCash
available for
distribution
DividendsCash
post FY25
distribution
Optus
claim
Net cash
acquired
Cash on
hand
Dec 2025
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 16
6.0
7.0
8.5
15.0
9.0
12.0
13.5
15.0
15.0
19.0
22.0
FY23FY24FY25FY26
InterimFinal
Capital management
76% Dividend growth reflects strong first half cash generation
1. Sky’s stated intention and usual practice has been to pay approximately 40% of the annual
dividend by way of an interim distribution.
Dividends:
•As a result of strong cash generation in the first
half the Board has decided to pay a higher
percentage
1
of the expected full year dividend as an
interim distribution.
•The Board has declared a 15.0 cps (fully imputed)
interim dividend which represents c.50% of FY26
dividend guidance.
Capital Management:
•Sky intends to review capital management options
following the successful integration of Sky Free
with a further update to be provided as part of the
FY26 earnings announcement.
DELIVERING DIVIDEND GROWTH (cps)
At least
30 cps
Guidance
© SKY 2021
Business
Update
Image update
© SKY 2021
Page 18
Sport Strategy – continuing to control our content destiny
We have and unrivalled position in sports that can’t easily be unbundled
Results Presentation
For the six months ended 31 December 2025
•No one else comes close to offering
the quality and depth of sport
available on Sky
•Secured through long term
agreements and hedged by content
breadth and staggered renewals
•Underpinned by deep viewership
insights that guide disciplined
decisions
•Best choice for content partners and
brands to engage with NZ’s sports
fans
•Exceptional value for sport
customers in a single subscription
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Genuinely world-class sport alongside the best of local
© SKY 2021
Entertainment Strategy – controlling our content destiny
Powerful refresh based on audience insights
Results Presentation
For the six months ended 31 December 2025
•New and expanded agreements with
chosen partners
•Increased access to premium
mainstream content (from premium
niche)
•Fiscal flexibility to increase choice,
moving away from output deals to
create room to respond to trends
•Replaced pass-through channels with
locally curated alternatives (e.g. Sky
Comedy, Sky Kids)
•Strengthened pipeline of original, local
content
Page 20
© SKY 2021
A new glow for Neon
Neon’s strategy refresh to deliver more consistent performance
Results Presentation
For the six months ended 31 December 2025
•Customers will see a refreshed
identity, clearer content strategy
and more consistent content
cadence.
•Delivering a steady drumbeat of
premium titles across the year.
•Content focus shifts to ‘premium
mainstream’ with broader appeal.
•Enabling more consistent and
predictable performance.
Page 21
© SKY 2021
Must See Entertainment delivered consistently
Results Presentation
For the six months ended 31 December 2025
Page 22
© SKY 2021
2.2M
monthly viewers
1.2M
weekly viewers
2.6M
monthly viewers
Licensed
Premises Businesses
Hotel & Motel RoomsGyms, retailers, corporates offices,
aged care, & waiting rooms
38,000
2,0002,300
Source: Sky Box and Linear Free to Air - Nielsen TAM, AP5+ Average monthly reach for July to Dec 2025.
Streaming – Nielsen CMI, Q4 2024 – Q3 2025. Social: Sprout Social Report December 2025
The power of our expanded portfolio
Providing choice for customers and maximising the value of
Sky’s unrivalled content
Sky Venue
Results Presentation
For the six months ended 31 December 2025
Page 23
Sky Social Media
3.0M
Followers
Sky Box
Broadcast
© SKY 2021
Outlook and
Guidance
Results Presentation
For the six months ended 31 December 2025
Page 25
1. Subject to no adverse change in operating conditions, including future economic headwinds.
Guidance excludes one-off items, including: the Sky Free acquisition, Optus satellite migration,
accelerated amortisation and transformation initiatives. 2. Free cash flow for the purposes of
dividend guidance is defined as net cash from operations, less payments for lease liability principal,
less capex, and excluding one off items.
Outlook and FY 2026 Guidance Update
$m
FY 2026
guidance
1
Sky Standalone
(22 Aug 2025)
FY 2026
guidance
1
Sky Standalone
(26 Feb 2026)
FY 2026
guidance
1
Combined Group
(26 Feb 2026)
Revenue745 – 770745 - 755820 - 835
EBITDA142 – 162 147 - 157145 - 160
Capex60 – 7060 - 6562 - 68
Dividend
2
at least 30
cps
at least 30
cps
at least 30
cps
Outlook
•Economic conditions remain challenging, impacting
Revenue in the near term.
•Programming costs expected to moderate slightly in H2
and remain within the 47% to 49% of revenue target range.
FY26 Guidance
•Updated guidance is on a combined group basis, including
11-month contribution from Sky Free.
•Sky Standalone Revenue guidance is narrowed towards the
lower end of previous guidance range reflecting the
challenging economic environment.
•EBITDA range is narrowed with an unchanged mid-point.
Longer term
•Earnings growth continues in FY27.
•We remain confident in our ability to deliver at least $10m
of incremental EBITDA by FY28 through delivery of
synergies across the group.
© SKY 2021
Questions
© SKY 2021
Appendix
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 28
din
Financial Performance
Underlying earnings improved while statutory earnings boosted by one-off gains
•Underlying EBITDA 29% higher, and underlying NPAT
77% higher than the first half of FY25.
•Statutory Other Income includes $34.4m Gain on
bargain purchase of Sky Free and $8.2m
compensation from Optus relating to accelerated
satellite migration.
•Depreciation and amortisation uplift reflects new
devices satellite migration spend in prior year and
new satellite lease.
•EPS increased by 79% to 13.86 cents per share
driven by underlying EBITDA growth, with statutory
EPS largely elevated by one-off Other Income items.
1. A table of adjustments is available on page 4 of Sky’s 2026 Interim Report
$m
H1 FY26
Underlying
1
H1 FY25
Underlying
1
% change
Underlying
1
H1 FY26
Statutory
H1 FY25
Statutory
Revenue
415.4
385.07.9%414.4384.8
Sky (Sky Standalone)
379.8
385.0(1.3%)378.9384.8
Sky Free (5mths)
35.6
--35.6-
Other Income
0.5
1.4(60.8%)43.16.3
Operating Expenses
337.7
325.6(3.7%)346.8347.9
Sky (Sky Standalone)
303.8
325.66.7%312.4347.9
Sky Free (5mths)
33.9
--34.4-
EBITDA
78.2
60.728.7%110.843.2
Interest, FX (gains)/losses
3.5
2.6(37.4%)3.52.6
Taxation
5.8
4.2(35.8%)5.2(0.7)
Depreciation &
Amortisation
49.6
43.1(15.2%)49.643.1
Net Profit after Tax
19.3
10.977.4%52.4(1.7)
Earnings per share (cents)13.867.7678.6%37.91(1.42)
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 29
din
Summary of Adjustments
Non-recurring items (largely Sky Free acquisition
1
and Optus satellite migration) have been
adjusted to allow a like for like comparison of underlying performance
$m
H1 FY26DescriptionH1 FY25
Revenue $0.9m
Optus: Customer credits
$0.2m
Optus: Customer credits
Other Income
($42.6m)
Sky Free: ($34.4) Gain on Bargain Purchase
1
Optus: ($8.2m) compensation for accelerated
migration to the new satellite
($4.9m)
Optus: modified lease term for previous
satellite
Expenses$9.1m
Sky Free: $1.0m Transaction costs; $3.1m
Integration costs
Other: $2.7m Accelerated amortisation
2
following methodology change; $2.3m
Organisational change costs
$22.3m
Optus: $1.1m Opex impact of migration
Other: $18.3m Accelerated amortisation;
$2.8m Transformation costs
Capex$1.1m
Sky Free $0.7m integration costs
Optus: Final year of satellite migration spend
$0.4m
$4.7m
Optus: $4.7m technology and capitalised costs
1. Refer to note 10 in the 2026 Interim Report. 2. Refer to note 3 and 9 in the 2026 Interim
Report.
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 30
Appendix
Table of expenses by category:
Sky introduced an Advertising expense category at H1 FY26 to disaggregate these costs from Other costs.
H1 FY26 includes Sky Free costs for the five months from 1 August 2025.
$m
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Programming Costs
197.9193.8209.3175.1
194.4
Broadcasting & Infrastructure
44.243.049.351.8
62.3
Subscriber Related
39.840.838.732.7
37.0
Advertising
9.46.99.59.0
23.3
Other
20.118.618.815.3
20.7
Operating Expenses
311.4303.0325.6283.8
337.7
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 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 contains projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current
expectations, estimates and assumptions and are subject to a number of risks, and uncertainties, including material adverse events, significant one-off expenses and other
unforeseeable circumstances. There is no assurance that results contemplated in any of these projections and forward-looking statements will be realised, nor is there any
assurance that the expectations, estimates and assumptions underpinning those projections or forward-looking statements are reasonable. Actual results may differ materially
from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release or to provide you with further information
about 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, amortisation and impairment, unrealised gains
and losses on currency. You should not consider this in isolation from, or as a substitute for, the information provided in the unaudited consolidated financial statements for the
six months ended 31 December 2025, which form part of the Company’s 2026 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 31
Results Presentation
For the six months ended 31 December 2025
---
© SKY 2021
Sky Network
Television
26 February 2026
Interim Results
Presentation
For the six months ended31
December 2025
© SKY 2021
Agenda
‣Results highlights
‣Financial and Operational Performance
‣Business Update
‣Outlook and Guidance
‣Questions
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 3
Double digit growth in EBITDA driven by solid revenue performance in a difficult market and lower
costs.
Unmatched position in sport strengthened by disciplined renewals. Refresh of entertainment strategy
delivering a strong pipeline of quality content.
Complex Sky Free integration on track and strong progress on planned synergy delivery with $3.2m
delivered in the half across the group of the previously indicated $3 - $5m for the full year.
Gain on bargain purchase of $34.4m as a result of fair value assessment of assets acquired for $1.
Strong cash generation from operations and acquisition terms contributing to increased Free Cash
Flow. Firmly on track to be able to pay at least 30 cents per share for FY26.
Interim Result Highlights
Strong first half performance as expanded business builds momentum
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 4
An accelerating acquisition
Capital light investment delivered immediate scale and stronger market
position in advertising and digital
ADVERTISING REVENUE
MARKET SHARE (Linear)
1
1. Source: SMI Linear market spend data 1 July 2025 to 31 December 2025. 2. Nielsen CMI Q4
2024 to Q3 2025. 3. Linear is approx. 80% of Total TV category, ASA Advertising Turnover Report
2024 (Released 23 May 2025).
•Revenue market share boosted to 35% of
important linear
segment
3
.
•Total advertising revenue more than doubled
and includes 20% from fast-growing digital
segment.
•Single advertising sales proposition from Feb
2026 strengthens market position and
provides unique offering for agencies and
brands.
•62% increase in Sky’s digital audience, now
reaching 1.2m viewers weekly with added
youth and diversity.
•Strategic fit enables significant opportunities
throughout the business.
16%
35%
+62% INCREASE IN DIGITAL AUDIENCE
2
71%
47%
70%
87%
45%
18-2425-3940-54FemaleMale
H1 FY26
Sky
Standalone
H1 FY26
Sky
© SKY 2021
Page 5
Financial Highlights
Strong performance in a challenging market
1. Where indicated, HY25 and HY26 numbers are shown on an underlying basis to allow a like for
like comparison of underlying performance. Information on statutory numbers is available on
page 28 and a table of adjustments is available on page 29.
$415.4m
UNDERLYING REVENUE
1
+8%
H1 FY26
Sky Standalone: $379.8m (1%)
H1 FY25: $385.0m
$52.4m
STATUTORY NPAT
H1 FY25: ($1.7m)
H1 FY26 Underlying NPAT
1
: $19.3m +77%
H1 FY25 Underlying NPAT
1
: $10.9m
$27.0m
CAPITAL EXPENDITURE
1
(31%)
H1 FY26 Sky Standalone: $26.0m
H1 FY25: $39.1m
$78.2m
UNDERLYING EBITDA
1
+29%
H1 FY26 Sky Standalone: $76.5m +26%
H1 FY25: $60.7m
$87.1m
FREE CASH FLOW
H1 FY25: $7.5m
15.0cps
DIVIDEND
+76%
H1 FY25: 8.5cps
•Revenue
1
up 8%, driven by contribution from
Sky Free and growth in Broadband and
Streaming.
•EBITDA
1
up 29%, supported by tight cost
control, lower programming spend, and
contribution from Sky Free.
•Underlying NPAT
1
up 77%, reflecting strong
execution across the business.
•Capital Expenditure returned to a lower more
normal level.
•Free cash flow significantly higher, supported
by improved operations, lower capex,
favourable working capital, and cash acquired
on acquisition of Sky Free.
•Dividend up 76%, fuelled by strong free cash
flow and reflecting Board confidence.
Results Presentation
For the six months ended 31 December 2025
Financial and
Operational
Performance
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 7
Key Drivers of EBITDA
1
Improvement
29% increase in underlying EBITDA driven by lower costs
•Improved underlying EBITDA was driven by 6.7%
lower costs in Sky Standalone that outpaced the
revenue decline of 1.3%.
•Programming costs were significantly reduced
following disciplined negotiations for content
combined with timing of one-off events.
•Customer growth was the primary driver of
increased Broadband costs.
•Continued focus on cost management throughout
the business delivered a lower cost base.
•Lower than expected Sky Free cost base resulted in
a positive EBITDA contribution.
1.EBITDA is a non-GAAP measure. Information is presented on an underlying basis. Statutory numbers
are available on page 28 and a table of adjustments is available on page 29.
EBITDA
1
MOVEMENTS (UNDERLYING) ($m)
Waterfall updated 11/2
60.7
(5.1)
(0.8)
23.8
(4.2)
2.276.5
1.778.2
H1 FY25 Revenue Other Programming Cost of Other H1 FY26 Sky Free H1 FY26
Income Broadband Costs Sky Standalone Sky
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 8
385.0
(13.3)
4.3
6.1
(0.7)
(0.3)
(1.2)
379.8
34.4
1.1415.4
Revenue
1
Addition of Sky Free resulted in an 8% overall revenue increase
1. Revenue, is shown on an underlying basis. Information on statutory numbers is available on
page 28 and a table of adjustments is available on page 29.
•Growth in Broadband and Streaming revenue offset
78% of the Sky Box decline.
•Sky Standalone revenue was 1.3% lower than last
year, largely due to reduced Sky Box and Neon
customer numbers and non-repeat of Advertising
revenue related to the 2024 Paris Olympics.
•The Venue (formerly Commercial) business revenue
was stable despite sector challenges.
•Sky Free contributed a 9.4% revenue uplift in the first
5 months of ownership despite market revenue
softness. Sky Free other revenue relates to service
fee income.
REVENUE MOVEMENTS (UNDERLYING
1
) ($m)
Waterfall updated 11/2
H1 FY25Sky BoxStreamingBroadbandVenueAdvertisingOtherH1 FY26
Sky
Standalone
Sky Free
Advertising
Sky Free
Other
H1 FY26
Sky
© SKY 2021
Page 9
Revenue by product
Results Presentation
For the six months ended 31 December 2025
253
246
240
230
226
$83
$84
$84
$84
$85
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Sky Box improved ARPU and Churn
•Encouraging churn improvement and increased
ARPU contributed to slow customer and revenue
decline.
•New device customers increased to 40% from 30%
a year ago and Sports customers rose to 74%
supported by a strong content lineup.
•ARPU increase of 1.1% to $85.21 was largely driven
by sports customer penetration and sport package
price increase in May 2025.
•85% of customers have tenure of more than five
years and lower average churn of 8.0%.
UNDERLYING REVENUE ($m) & ARPU
1
CUSTOMERS (000)
CUSTOMERS CHURN BY TENURE
1. H1 FY26 Revenue adjusted by $0.9m, related to satellite migration.
4%
11%
85%
12%
21%
30%
37%
40%
500
479
464
448
435
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
New Sky BoxClassic Sky Box
CUSTOMER TENURE (%)
9.3%
12.8%
10.1%
11.8%
9.8%
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
0-1 Years1-4 Years5+ YearsTotal
1. Sky Box ARPU is monthly average revenue calculated as the average for the
period.
© SKY 2021
Page 10
27
25
25
26
26
$15
$16
$16
$17
$18
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
277
258
264
259
215
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
153
125
146
150
170
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Revenue by product
Results Presentation
For the six months ended 31 December 2025
Sky Sport Now revenue grew 8%
1. Sky Sport now customers and ARPU are based on Recurring Subscribers, removing the impact of
transactional passes, includes Pay Per View. 2. Customers are reported on a 90-day lookback basis.
Neon revenue impacted by lower customers
•Sky Sport Now’s growth continued with revenue
rising 8% and customer numbers up +17%.
•ARPU rose 8% to $47.55, benefitting from a 10%
price rise in March 2025 on monthly and annual
passes.
•Introduction of the Day pass in May 2025 at $29.99
is exceeding expectations. This provides a flexible
entry point with good conversion to recurring
passes.
•Lack of acquisition and retention driving content
contributed to an 18% fall in customer numbers
although a 12% lift in ARPU more than offset this to
grow topline revenue by $1.3m.
•Neon Standard pricing increased to $23.99 in April
2025 and Basic tier increased to $14.99 in October
2025. Basic accounts for 21% of the base and
contributes digital revenue in the Advertising line.
REVENUE ($m) & ARPU
1
CUSTOMERS
1,2
(000)
CUSTOMERS (000)
REVENUE ($m) & ARPU
SSN/Neon Customer Graphs updated
to remove WinBack. SSN revenue
updated
32
26
37
31
40
$40
$42
$44
$45
$48
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
© SKY 2021
Page 11
34%
45%
21%
Customers
by Sector
Licensed Premises
Retail
Accomodation
27
27
27
27
27
0
0
0
0
0
0
0
0
0
0
10
20
30
40
50
60
70
80
90
100
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Revenue by product
Results Presentation
For the six months ended 31 December 2025
13
15
17
20
23
$76
$74
$69
$71
$71
0
20
40
60
80
100
120
140
160
180
200
(4)
1
6
11
16
21
26
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Broadband revenue increased 37%
Customer info?
Venue delivered a consistent performance
30
36
44
51
56
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
•Venue (formerly Commercial) delivered a consistent
performance despite tough trading conditions in
the retail and accommodation sectors.
•Launch of the business edition of the new Sky Box
late in the half is providing opportunity.
•Revenue increased 37% as customer numbers
continue to build (up 27%), despite a competitive
market.
•10.7% of Sky Box customers have Sky bundled
broadband, rising to 15% at acquisition.
•ARPU increased 2% despite a continued shift in mix
towards lower tier plans. Starter plan customers
now make up 34% of base, from 23% last year.
REVENUE ($m) & ARPU
CUSTOMERS (000)
REVENUE ($m)
Adjusted Venues graph to flatten
trend
CUSTOMER BASE (%)
© SKY 2021
Page 12
8%
92%
AdvertisingOther
12.7%
10.5%
14.4%
14.2%
15.7%
34.9%
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
ex-Sky
Free
H1 FY26
Sky
29
24
29
23
25
51
1
1
4
5
13
29
24
30
27
30
64
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Sky
H1 FY26
Sky
LinearDigital
Revenue by product
Advertising Revenue doubled
•Relatively stable revenue is a positive outcome for
Sky Standalone business as the prior period included
the Paris Olympics.
•Digital revenue percentage (Sky Standalone) rose to
16% within 2 years of adding this stream. Sky Go
digital advertising launched in October 2025.
•5-month contribution from Sky Free more than
doubled Sky’s advertising revenue. 24% of Sky Free’s
revenue is from digital sources.
•Advertising rises to 15% of revenue in H1 with the
initial 5 month contribution from Sky Free
•Revenue market share was boosted to 35% in the
linear segment.
REVENUE ($m)
REVENUE MARKET SHARE
1
(Linear)
1. Source: SMI Linear market spend data for each period.
Standalone
INCREASED REVENUE DIVERSITY (%)
15%
85%
SKY
STANDALONE
SKY
Results Presentation
For the six months ended 31 December 2025
H1 FY26
Sky
Standalone
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 13
325.6
(23.8)
(3.9)
6.3
0.5
(0.8)
303.8
33.9337.7
H1 FY25
Programming
Costs
Subscriber
Related
Broadcasting
&
Infrastructure
Advertising
Other
H1 FY26
Sky
Standalone
Sky Free
H1 FY26
Sky
Operating Expenses
Disciplined cost management supporting bottom line
•Programming Costs: Sky Standalone programming
costs to revenue ratio reduced to 48.8% with
significant cost reductions due to:
-timing of one-off events (last year’s Paris
Olympics), and
-disciplined negotiation and content choices across
sport and entertainment, including non-renewals
that more than offset new commitments.
•Subscriber Related: reductions due to lower marketing
and people costs.
•Broadcasting & Infrastructure: Increase reflects
growth in Broadband and an increase in technology
spend.
•Advertising
2
stable cost profile was broadly in-line
with the revenue result for Advertising.
•Sky Free: Early cost base reductions across key
categories delivered margin upside. Key costs
including Advertising, Programming and
Infrastructure.
1. Operating Expenses are shown on an underlying basis. Information on statutory numbers is
available on page 28 and a summary of adjustments is available on page 29. 2. Advertising costs
have been disaggregated from Other costs. They include agency commissions, people and
operational costs linked to advertising revenue.
OPERATING EXPENSES (UNDERLYING
1
) ($m)
H1 FY25ProgrammingSubscriber
Related
Broadcasting
& Infrastructure
AdvertisingOtherH1 FY26
Sky
Standalone
Sky FreeH1 FY26
Sky
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 14
37
42
39
26
2626
5
5
8
37
46
44
35
27
28
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Sky
Standalone
H1 FY26
Sky
CAPEXSatellite MigrationIntegrationSky Free
Capital Expenditure
Capital intensity returns to longer term run-rate level
•Underlying Sky Standalone Capex for the half was
$13m lower than the first half of last year due to:
-the prior period early replacement of transmission
equipment to support satellite migration.
-lower spend on customer devices following a
period of accelerated investment to build inventory
•Underlying Sky Standalone capex of $26m was
slightly below the target band of 7% – 9% of revenue
at 6.9%. Sky Free’s lower capex profile lowers the
consolidated ratio to 6.5%.
STATUTORY CAPITAL EXPENDITURE ($m)
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 15
32
92
(26)
(10)
87
(20)
68
8
25100
Cash on Hand Jun 2025Cash from operationsCapexLeasingCash available for distributions -pre one offDividendsCash Normalied Post DistnOptus claimNet cash inflow on
acquisition
Cash available for distributions
Cash Flow
Strong cash flow resulting in closing cash balance of $100m
•Core business generated $55m of cash in the first
half (compared to $7m for H1 25)
•Cash was boosted by cash acquired with Sky Free
of $25m and $8m of compensation from Optus.
•Operating cash flow was strong as a result of
improved earnings in the half and favourable
working capital movements. It is expected that a
portion of the working capital movements will
reverse in the second half of the year including
settlement of Sky Free liabilities.
•Cash from the acquisition of Sky Free
included cash
contribution for integration, cash to settle
outstanding payables and an agreed working
capital level.
Cash on
hand
Jun 2025
Cash from
operations
CapexLeasingCash
available for
distribution
DividendsCash
post FY25
distribution
Optus
claim
Net cash
acquired
Cash on
hand
Dec 2025
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 16
6.0
7.0
8.5
15.0
9.0
12.0
13.5
15.0
15.0
19.0
22.0
FY23FY24FY25FY26
InterimFinal
Capital management
76% Dividend growth reflects strong first half cash generation
1. Sky’s stated intention and usual practice has been to pay approximately 40% of the annual
dividend by way of an interim distribution.
Dividends:
•As a result of strong cash generation in the first
half the Board has decided to pay a higher
percentage
1
of the expected full year dividend as an
interim distribution.
•The Board has declared a 15.0 cps (fully imputed)
interim dividend which represents c.50% of FY26
dividend guidance.
Capital Management:
•Sky intends to review capital management options
following the successful integration of Sky Free
with a further update to be provided as part of the
FY26 earnings announcement.
DELIVERING DIVIDEND GROWTH (cps)
At least
30 cps
Guidance
© SKY 2021
Business
Update
Image update
© SKY 2021
Page 18
Sport Strategy – continuing to control our content destiny
We have and unrivalled position in sports that can’t easily be unbundled
Results Presentation
For the six months ended 31 December 2025
•No one else comes close to offering
the quality and depth of sport
available on Sky
•Secured through long term
agreements and hedged by content
breadth and staggered renewals
•Underpinned by deep viewership
insights that guide disciplined
decisions
•Best choice for content partners and
brands to engage with NZ’s sports
fans
•Exceptional value for sport
customers in a single subscription
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Genuinely world-class sport alongside the best of local
© SKY 2021
Entertainment Strategy – controlling our content destiny
Powerful refresh based on audience insights
Results Presentation
For the six months ended 31 December 2025
•New and expanded agreements with
chosen partners
•Increased access to premium
mainstream content (from premium
niche)
•Fiscal flexibility to increase choice,
moving away from output deals to
create room to respond to trends
•Replaced pass-through channels with
locally curated alternatives (e.g. Sky
Comedy, Sky Kids)
•Strengthened pipeline of original, local
content
Page 20
© SKY 2021
A new glow for Neon
Neon’s strategy refresh to deliver more consistent performance
Results Presentation
For the six months ended 31 December 2025
•Customers will see a refreshed
identity, clearer content strategy
and more consistent content
cadence.
•Delivering a steady drumbeat of
premium titles across the year.
•Content focus shifts to ‘premium
mainstream’ with broader appeal.
•Enabling more consistent and
predictable performance.
Page 21
© SKY 2021
Must See Entertainment delivered consistently
Results Presentation
For the six months ended 31 December 2025
Page 22
© SKY 2021
2.2M
monthly viewers
1.2M
weekly viewers
2.6M
monthly viewers
Licensed
Premises Businesses
Hotel & Motel RoomsGyms, retailers, corporates offices,
aged care, & waiting rooms
38,000
2,0002,300
Source: Sky Box and Linear Free to Air - Nielsen TAM, AP5+ Average monthly reach for July to Dec 2025.
Streaming – Nielsen CMI, Q4 2024 – Q3 2025. Social: Sprout Social Report December 2025
The power of our expanded portfolio
Providing choice for customers and maximising the value of
Sky’s unrivalled content
Sky Venue
Results Presentation
For the six months ended 31 December 2025
Page 23
Sky Social Media
3.0M
Followers
Sky Box
Broadcast
© SKY 2021
Outlook and
Guidance
Results Presentation
For the six months ended 31 December 2025
Page 25
1. Subject to no adverse change in operating conditions, including future economic headwinds.
Guidance excludes one-off items, including: the Sky Free acquisition, Optus satellite migration,
accelerated amortisation and transformation initiatives. 2. Free cash flow for the purposes of
dividend guidance is defined as net cash from operations, less payments for lease liability principal,
less capex, and excluding one off items.
Outlook and FY 2026 Guidance Update
$m
FY 2026
guidance
1
Sky Standalone
(22 Aug 2025)
FY 2026
guidance
1
Sky Standalone
(26 Feb 2026)
FY 2026
guidance
1
Combined Group
(26 Feb 2026)
Revenue745 – 770745 - 755820 - 835
EBITDA142 – 162 147 - 157145 - 160
Capex60 – 7060 - 6562 - 68
Dividend
2
at least 30
cps
at least 30
cps
at least 30
cps
Outlook
•Economic conditions remain challenging, impacting
Revenue in the near term.
•Programming costs expected to moderate slightly in H2
and remain within the 47% to 49% of revenue target range.
FY26 Guidance
•Updated guidance is on a combined group basis, including
11-month contribution from Sky Free.
•Sky Standalone Revenue guidance is narrowed towards the
lower end of previous guidance range reflecting the
challenging economic environment.
•EBITDA range is narrowed with an unchanged mid-point.
Longer term
•Earnings growth continues in FY27.
•We remain confident in our ability to deliver at least $10m
of incremental EBITDA by FY28 through delivery of
synergies across the group.
© SKY 2021
Questions
© SKY 2021
Appendix
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 28
din
Financial Performance
Underlying earnings improved while statutory earnings boosted by one-off gains
•Underlying EBITDA 29% higher, and underlying NPAT
77% higher than the first half of FY25.
•Statutory Other Income includes $34.4m Gain on
bargain purchase of Sky Free and $8.2m
compensation from Optus relating to accelerated
satellite migration.
•Depreciation and amortisation uplift reflects new
devices satellite migration spend in prior year and
new satellite lease.
•EPS increased by 79% to 13.86 cents per share
driven by underlying EBITDA growth, with statutory
EPS largely elevated by one-off Other Income items.
1. A table of adjustments is available on page 4 of Sky’s 2026 Interim Report
$m
H1 FY26
Underlying
1
H1 FY25
Underlying
1
% change
Underlying
1
H1 FY26
Statutory
H1 FY25
Statutory
Revenue
415.4
385.07.9%414.4384.8
Sky (Sky Standalone)
379.8
385.0(1.3%)378.9384.8
Sky Free (5mths)
35.6
--35.6-
Other Income
0.5
1.4(60.8%)43.16.3
Operating Expenses
337.7
325.6(3.7%)346.8347.9
Sky (Sky Standalone)
303.8
325.66.7%312.4347.9
Sky Free (5mths)
33.9
--34.4-
EBITDA
78.2
60.728.7%110.843.2
Interest, FX (gains)/losses
3.5
2.6(37.4%)3.52.6
Taxation
5.8
4.2(35.8%)5.2(0.7)
Depreciation &
Amortisation
49.6
43.1(15.2%)49.643.1
Net Profit after Tax
19.3
10.977.4%52.4(1.7)
Earnings per share (cents)13.867.7678.6%37.91(1.42)
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 29
din
Summary of Adjustments
Non-recurring items (largely Sky Free acquisition
1
and Optus satellite migration) have been
adjusted to allow a like for like comparison of underlying performance
$m
H1 FY26DescriptionH1 FY25
Revenue $0.9m
Optus: Customer credits
$0.2m
Optus: Customer credits
Other Income
($42.6m)
Sky Free: ($34.4) Gain on Bargain Purchase
1
Optus: ($8.2m) compensation for accelerated
migration to the new satellite
($4.9m)
Optus: modified lease term for previous
satellite
Expenses$9.1m
Sky Free: $1.0m Transaction costs; $3.1m
Integration costs
Other: $2.7m Accelerated amortisation
2
following methodology change; $2.3m
Organisational change costs
$22.3m
Optus: $1.1m Opex impact of migration
Other: $18.3m Accelerated amortisation;
$2.8m Transformation costs
Capex$1.1m
Sky Free $0.7m integration costs
Optus: Final year of satellite migration spend
$0.4m
$4.7m
Optus: $4.7m technology and capitalised costs
1. Refer to note 10 in the 2026 Interim Report. 2. Refer to note 3 and 9 in the 2026 Interim
Report.
© SKY 2021
Results Presentation
For the six months ended 31 December 2025
Page 30
Appendix
Table of expenses by category:
Sky introduced an Advertising expense category at H1 FY26 to disaggregate these costs from Other costs.
H1 FY26 includes Sky Free costs for the five months from 1 August 2025.
$m
H1 FY24H2 FY24H1 FY25H2 FY25H1 FY26
Programming Costs
197.9193.8209.3175.1
194.4
Broadcasting & Infrastructure
44.243.049.351.8
62.3
Subscriber Related
39.840.838.732.7
37.0
Advertising
9.46.99.59.0
23.3
Other
20.118.618.815.3
20.7
Operating Expenses
311.4303.0325.6283.8
337.7
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 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 contains projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current
expectations, estimates and assumptions and are subject to a number of risks, and uncertainties, including material adverse events, significant one-off expenses and other
unforeseeable circumstances. There is no assurance that results contemplated in any of these projections and forward-looking statements will be realised, nor is there any
assurance that the expectations, estimates and assumptions underpinning those projections or forward-looking statements are reasonable. Actual results may differ materially
from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release or to provide you with further information
about 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, amortisation and impairment, unrealised gains
and losses on currency. You should not consider this in isolation from, or as a substitute for, the information provided in the unaudited consolidated financial statements for the
six months ended 31 December 2025, which form part of the Company’s 2026 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 31
Results Presentation
For the six months ended 31 December 2025
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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