Sky Network Television (SKT) Investor presentation summary

Strategic rationale and growth acceleration

• Acquisition of Discovery NZ accelerates growth strategy, delivering immediate scale in advertising and digital segments in a cost-effective manner.

• Enhances audience presence, aligning with the ambition to be New Zealand’s most engaging media company.

• Expands reach to younger, more diverse audiences and strengthens multi-platform capabilities, especially in digital via ThreeNow BVOD.

• Unlocks cross-platform marketing and content windowing opportunities, boosting exposure for partners.

• Increases return on content investment by leveraging a broader portfolio across a wider audience.

Financial impact and deal structure

• Acquisition completed for $1 on a cash-free, debt-free basis, with immediate revenue uplift of approximately $95m per annum, 25% from digital sources.

• Underlying free cash flow positive in year one, with sustainable EBITDA uplift of at least $10m expected from FY28.

• Significant cost synergies identified, primarily in content and broadcast infrastructure, with robust due diligence supporting integration.

• Transaction does not impact confidence in achieving the 30cps dividend target in FY26.

• Transaction fees estimated at $3m and net integration costs at $6.5m, with completion expected by 1 August 2025.

Operational and market advantages

• Lifts combined audience reach to 2.2 million linear and 1.2 million digital viewers weekly.

• Delivers immediate advertising scale, increasing linear revenue share from 13% to 35% and digital from 2% to 24%.

• Provides a clean balance sheet, with property leases and content commitments cleared prior to completion.

• Content supply agreements and a transitional services agreement ensure cost certainty and a smooth transition.

• Revenue has stabilized at a new level, delivering improved margins and a leaner, digitally focused business.