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, Sky Free acquisition, and sports content strength.

• Sky Free acquisition delivered a $34.4m gain on bargain purchase, expanding digital reach and advertising scale.

• Underlying revenue rose 8% to $415.4m, with underlying EBITDA up 29% and underlying NPAT up 77% year-over-year.

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

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

Financial highlights

• Underlying revenue rose 8% to $415.4m; Sky Free contributed $35.6m in five months.

• Underlying EBITDA up 29% to $78.2m; underlying NPAT up 77% to $19.3m; statutory NPAT at $52.4m due to one-off gains.

• Free cash flow surged to $87.1m, and interim dividend up 76% to 15.0 cps, representing about 50% of FY26 guidance.

• Standalone Sky cost base reduced by 6.7%, mainly from lower programming costs.

• Capex for H1 FY26 was $27.0m, down 31% YoY, and closing cash balance at $100m.

Outlook and guidance

• FY26 guidance: revenue $820–835m, EBITDA $145–160m, capex $62–68m, and dividend at least 30 cps.

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

• Economic conditions remain challenging, impacting near-term revenue and programming costs expected to moderate.

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