Sky Network Television (SKT) H1 2026 earnings summary

Executive summary

• Achieved strong first half performance with double-digit EBITDA growth and solid revenue in a challenging market, driven by disciplined cost management and the Sky Free acquisition, which expanded digital reach and advertising scale.

• Integration of Sky Free delivered $3.2m in synergies in the half, with further savings targeted through system harmonisation and service transitions.

• Recorded a $34.4m gain on bargain purchase from Sky Free acquisition, boosting statutory NPAT to $52.4m.

• Free cash flow and interim dividend significantly increased, reflecting operational improvements and acquisition benefits.

• Strengthened sports content position and refreshed entertainment strategy, including new deals and non-renewal of HBO rights.

Financial highlights

• Underlying revenue rose 8% to $415.4m, with Sky Free contributing $35.6m in five months.

• Underlying EBITDA up 29% to $78.2m, driven by cost control and Sky Free contribution.

• Underlying NPAT increased 77% to $19.3m; statutory NPAT at $52.4m due to one-off gains.

• Free cash flow surged to $87.1m from $7.5m a year ago, with a closing cash balance of $100m.

• Interim dividend of 15.0 cps, up 76.5%, representing about 50% of full-year guidance.

Outlook and guidance

• FY26 revenue guidance narrowed to $820m–$835m; EBITDA $145m–$160m; capex $62m–$68m.

• Dividend guidance maintained at a minimum of 30 cps for FY26.

• Earnings growth expected to continue in FY27, with at least $10m incremental EBITDA from synergies by FY28.

• Programming/content costs expected to moderate and stay within 47–49% of revenue.

• Economic conditions remain challenging, impacting near-term revenue and guidance subject to no adverse change.