Sky Network Television (SKT) H2 2025 earnings summary

Executive summary

• Delivered results within updated guidance despite economic headwinds, satellite migration challenges, and tough market conditions.

• Achieved disciplined cost control, strong cash flow, and a 15.8% year-on-year dividend increase.

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

• Positioned for accelerated growth from FY27, with FY26 priorities on engagement, content, and advertising.

Financial highlights

• Adjusted revenue was $755.1m, down 1.5% year-over-year, at the lower end of guidance due to economic climate and delayed initiatives.

• Adjusted EBITDA was $148.5m, a 3.0% decrease from FY24, in the middle of guidance, supported by cost management.

• Net profit after tax down year-over-year, impacted by higher depreciation from elevated CapEx.

• Free cash flow increased 4.6% to $24.8m; adjusted free cash flow $36.7m; adjusted capex was $65.2m.

• Dividend increased to $0.22 per share, a 15.8% rise, with $30m distributed to shareholders, up 21% year-over-year.

Outlook and guidance

• FY2026 guidance: revenue $745–770m, EBITDA $142–162m (excluding one-offs), capex $60–70m, dividend at least $0.30 per share, a 36% uplift on FY2025.

• CapEx guidance of $60m–$70m, in line with 7%–9% of revenue target, excluding satellite migration spend.

• Ongoing economic challenges expected through H1 FY26; cost reductions in programming offset by reinvestment.

• Focus on integrating SkyFree and investing in marketing, customer experience, and people to accelerate growth from FY2027.