Sky Network Television (SKT) H2 2025 earnings summary

Executive summary

• Delivered full year results within updated guidance despite challenging economic conditions and satellite migration, with a 15.8% increase in fully imputed FY25 dividend.

• Completed the acquisition of Discovery New Zealand (SkyFree) and secured New Zealand Rugby rights through 2030.

• Achieved disciplined cost control, strong cash flow, and positioned for accelerated growth from FY27, with FY26 priorities on engagement, content, and advertising.

• Increased advertising market share and rolled out the new Sky Experience to 37% of the Box base, reducing churn.

Financial highlights

• Adjusted revenue of $755.1 million, down 1.5% year-over-year, at the lower end of guidance.

• Adjusted EBITDA of $148.5 million, down 3% year-over-year, at the mid-point of guidance.

• Adjusted net profit after tax of $41.1 million, down due to higher depreciation from elevated CapEx.

• Free cash flow of $24.8 million, up 4.6% year-over-year; adjusted free cash flow $36.7 million.

• FY25 dividend of 22 cents per share, fully imputed, up 15.8% year-over-year.

Outlook and guidance

• FY26 revenue guidance: $745–$770 million; EBITDA: $142–$162 million; capex: $60–$70 million.

• Dividend guidance of at least 30 cents per share for FY26, a 36% uplift on FY25.

• Economic conditions expected to remain challenging; reinvestment planned in marketing, customer experience, and people.

• CapEx guidance in line with 7%-9% of revenue target, excluding satellite migration spend.