Ann: HALFYR: SKT: SKY TV Announces 2012 Interim R

• Release Date: 17/02/12 11:55
• Summary: HALFYR: SKT: SKY TV Announces 2012 Interim Results
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SKT
17/02/2012 09:55
HALFYR

REL: 0955 HRS Sky Network Television Limited

HALFYR: SKT: SKY TV Announces 2012 Interim Results

For the half year ended: 31 December 2011

This report has been prepared in a manner which complies with New Zealand
International Financial Reporting Standards and gives a true and fair view of
the matters to which the report relates and is based on unaudited financial
statements.

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

Current Half year NZ$'000; Up/Down %; Previous Corresponding Half year
NZ$'000

Trading revenue: 426,862; Up 7.3%; 397,982

Total Operating Revenue: 426,862; Up 7.3%; 397,982

OPERATING SURPLUS BEFORE TAXATION: 88,082; Up 2.9%; 85,565

Less taxation on operating profit: 25,380; Up 0.88%; 25,159

NET SURPLUS: 62,702; Up 3.8%; 60,406

Earnings per share: 16.08 cps; 15.49 cps

SKY has reported $62.7 million in post tax earnings, a 3.8% increase on the
previous period. Revenues are up 7.3% to $426.9 million and earnings before
interest, tax and depreciation (EBITDA) increased by 5.6% to $170.1 million.

This improved financial position is primarily due the continued success of
the MY SKY HDi decoders, a positive period for advertising sales, higher
average revenue per subscriber (ARPU) resulting from revenues from the new
SoHo channel which launched in November 2011 and strong subscriber
acquisition.

Advertising revenues were up over 11% for the six month period ending 31
December 2011 compared to the same period ending 31 December 2010. SKY's
increase in advertising sales has been significantly stronger than the
industry average of 1.6% over this period.
MY SKY subscribers now represent 40.1% of SKY's satellite subscriber base
compared to 29.3% in the comparative period. At 31 December 2011, SKY had
331,041 MY SKY subscribers compared to 231,072 in December 2010, a
significant increase of 43.3%. Subscribers continue to find great value in
the MY SKY product which is demonstrated by strong sales and increasing
penetration despite the current economic environment.

Gross churn for the period ending 31 December 2011 was 14.2% up slightly from
13.6% in the previous period. MY SKY HDi continues to deliver churn benefits.
For for the rolling 12 months to 31 December 2011 MY SKY HDi gross churn was
10.4% compared to the churn rate for subscribers on the standard digital
decoder during this period of 16.3%.  This compares to gross churn for MYSKY
of 9.5% and a churn rate for subscribers on the standard digital decoders of
15.0% in the comparative period.

Taking a closer look at SKY's financial results, you will note a 7.3%
increase in  DBS (satellite )subscription revenues compared to the
comparative period. This can be attributed to a 3.4% increase in average
revenue per user (ARPU) to $71.81 from $69.45 as well as a notable increase
of 4.6% or 36,501 DBS (satellite) subscribers.

SKY's operating costs (excluding depreciation) for the six months to 31
December 2011 increased by $19.9 million, or 8.4%. Programme operations costs
which comprise both the costs of purchasing programme rights and also
programme operating costs increased by $7.4 million (5.8%). This can be
attributed to Rugby World Cup costs.  SKY's broadcast and infrastructure
costs were $6.8 million (19.1%) higher, mostly due to $3.6 million additional
transponder costs and an additional $1.6 million in employee costs.

Depreciation costs have increased by $3.9 million (6.3%) to $66.2 million
primarily due to depreciation charges on the new MY SKY HDi decoders that
were installed during the period.  These decoders are being depreciated over
four years compared to five years for the standard digital decoders.

SKY increased its capital expenditure during the period to $69.6 million from
$59.4 million in the comparative period, an increase of $10.2 million, mainly
due to an increase in decoder costs of $8.0 million.

Dividends

The Board of Directors has considered the performance of the business over
the last six months and its prospects for the full year and announced on 17
February 2012 that it will pay an increased  fully imputed dividend of 11
cents per share (prior interim dividend 8 cents) with the record date being 2
March 2012. A supplementary dividend of 1.9412 cents per share will also be
paid to non-resident shareholders.
End CA:00219660 For:SKT    Type:HALFYR     Time:2012-02-17 09:55:49