Thanks for taking the time to run through the detail. I was missing the broadband COGS in my model.
I’ve been long here for a while as I’m fond of an asymmetric bet and looking out to FY23/24 the fundamentals are quite attractive. With the underlying business appearing to have turned a corner, and the debt removed, the downside seems pretty well protected. It was good to see the CEO and Chairman accumulating shares last month and hopefully it's a precursor to some corporate action that will realise the intrinsic value for shareholders.
In the interim, there are a number of potential catalysts for a significant rerate:
Completion of property sale
Announcement of capital return / dividend / buyback
Confirmation of guidance: Revenue guidance for FY22 of $715m to $745m indicates that Sky expects to grow the top line for the first time since 2016 and generate EBITDA of $115m to $130m and NPAT of $17.5m to $27.5m.
Improvement in churn rate from STB and Broadband roll out
Skybox and Streaming ARPU recovery to pre-covid levels
Broadband attachment rates exceeding 8% guidance
SKT Price at posting:
$1.82 Sentiment: Buy Disclosure: Held
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