Sky Network Television (SKT) H2 2026 earnings summary

Executive summary

• FY 2026 delivered strong earnings growth, with underlying EBITDA up 6% to $157.0m and strategic wins including the acquisition and integration of Sky Free, which delivered $8m in synergies and a $31m bargain gain.

• Group revenue increased 9% year-over-year to $826.1m, driven by Sky Free, broadband, and streaming growth.

• Statutory NPAT surged 190% to $59.8m, including one-off gains and Optus compensation.

• Dividend doubled to 32 cps (NZD 0.32 per share), exceeding the FY 2026 target and supported by robust cash generation.

• Strengthened sports portfolio with long-term rights secured and a refreshed entertainment strategy, enabling flexible, audience-focused content decisions.

Financial highlights

• Underlying revenue rose 9% to $826.1m, with Sky Free contributing $77.2m.

• Underlying EBITDA increased 6% to $157.0m; normalized free cash flow up 60% to $58.9m.

• Underlying CapEx reduced by 9% to $59.1m; CapEx to revenue ratio at 7.5% for Sky Standalone.

• Cash on hand at year-end was $79.1m, up $46.7m.

• Dividend increased 45% to 32 cps, exceeding guidance.

Outlook and guidance

• FY27 revenue guidance: $825–840m; EBITDA: $155–165m; CapEx: $60–65m.

• Dividend guidance for FY27 is at least 35 cps, with a 10% annual growth target through FY29 and quarterly payments from FY27.

• Ambition to significantly grow revenue by FY31, with 20–30% from non-subscription sources.

• Focus remains on further synergy delivery and cost optimization amid ongoing economic uncertainty.

• Trading conditions expected to remain challenging in 1H FY27 due to economic uncertainty.