Sky Network Television (SKT) H1 2025 earnings summary

Executive summary

• Accelerated satellite migration became the main operational focus, disrupting original FY25 plans and delaying other initiatives, with economic headwinds further impacting results.

• Underlying business performance remains resilient, with positive trends in streaming, advertising, and broadband partially offsetting declines in traditional Sky Box revenue.

• Interim dividend increased 21.4% to 8.5 cents per share, reflecting board confidence and sustainable free cash flow.

• Reported a small net loss after tax of $1.7m, but adjusted net profit after tax was $10.9m, reflecting one-off items.

• Exclusive content deals, including with Warner Bros. Discovery (Max), BBC, and a new six-year partnership with New Zealand Cricket, have strengthened the entertainment portfolio.

Financial highlights

• H1 FY25 revenue was $385 million, down 2% year-on-year, with streaming, advertising, and broadband up 6% and partially offsetting Sky Box declines.

• Underlying EBITDA was $60.7 million, down 25.6% year-on-year; reported EBITDA was $43.2 million, down 47.1%.

• Adjusted NPAT was $10.9 million (reported -$1.7 million); free cash flow reached $7.5 million, slightly ahead of last year.

• Capex for H1 was $38.5 million, with satellite migration and technology upgrades as key focuses.

• Cash at period end was $28 million, with an undrawn $100 million bank facility.

Outlook and guidance

• FY25 revenue guidance narrowed to $755–$765 million, EBITDA to $145–$152.5 million, and NPAT to $35–$42.5 million, all at the lower end of previous ranges.

• Programming costs will drop significantly in H2, with $30 million in expected savings as major events are not repeated.

• Dividend guidance maintained at no less than 21 cents per share for FY25, with a target of 30 cents per share by FY26.

• Management expects a stronger H2 due to cost timing and anticipated economic recovery.

• Capex guidance unchanged, with satellite migration capex expected at $10–$20 million.