- Release Date: 23/02/15 14:48
- Summary: HALFYR: SKT: SKY TV Announces 2015 Interim Results
- Price Sensitive: No
- Download Document 3.75KB
SKT 23/02/2015 14:48 HALFYR PRICE SENSITIVE REL: 1448 HRS Sky Network Television Limited HALFYR: SKT: SKY TV Announces 2015 Interim Results For the half year ended: 31 December 2014 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 Full year NZ$'000; Up/Down %; Previous Corresponding Full year NZ$'000 Trading revenue: 464,506; Up 1.8%; 456,371 OPERATING PROFIT BEFORE TAXATION: 128,269; Up 12.4%; 114,123 Less taxation on operating profit: 35,774; Up 11.6%; 32,047 NET PROFIT: 92,495; Up 12.7%; 82,076 Earnings per share: 23.76 cps; 21.46 cps SKY has reported $92.5 million in after tax earnings, a 12.7% increase on the previous period. Revenues are up 1.8% to $464.5 million and earnings before interest, tax and depreciation (EBITDA) increased by 1.0% to $192.4 million. The improved financial position is primarily due to a 12.5% decrease in depreciation and amortisation expenses. There was also a 30.7% decrease in finance costs due to a reduction in borrowings in the prior year. MY SKY subscribers now represent 64.2% of SKY's satellite subscriber base compared to 58.6% in the comparative period. At 31 December 2014, SKY had 529,001 MY SKY subscribers compared to 486,252 in December 2013, an increase of 8.8%. Subscribers continue to find great value in the MY SKY product which is demonstrated by continued migration from the standard digital decoder to the MY SKY decoder. Gross churn for the period ending 31 December 2014 increased to13.7% from 13.3% in the previous period. For the rolling 12 months to 31 December 2014, MY SKY gross churn was 11.9% compared to the churn rate for subscribers on the standard digital decoder during this period of 16.8%. This compares to gross churn for MY SKY of 10.3% and a churn rate for subscribers on the standard digital decoders of 17.4% in the comparative period. Taking a closer look at SKY's financial results, total revenue increased by 1.8% reflecting an increase in subscription revenues of 3.0% mainly due to an increase in MY SKY subscribers and an increase in ARPU (average monthly revenue per residential subscriber). SKY's operating costs (excluding depreciation) for the six months to 31 December 2014 showed a 2.3% increase from the prior six month period. However programming costs which comprise both the costs of purchasing programme rights and also programme operating costs increased by $10.0 million (7.2%). This can be mainly attributed to the increased cost of the cricket rights and the Commonwealth Games which were not included in the prior period results. Marketing costs decreased by 7.1% mainly attributed to the reduced marketing spend by IGLOO as well a reduction in rebranding costs for SKY which were high in the prior period. Advertising costs also decreased by 6.8% driven by a decrease in advertising revenue of 3.9%. SKY increased its capital expenditure during the period to $51.1 million from $47.4 million in the comparative period, mainly due to an increase in new projects work such as the development of a new broadcast head end and enabling MY SKY boxes to connect to the internet. 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 23 February 2015 that it will pay an increased fully imputed dividend of 15 cents per share (prior interim dividend 14 cents) with the record date being 10 March 2015. A supplementary dividend of 2.6471 cents per share will also be paid to non-resident shareholders. End CA:00260998 For:SKT Type:HALFYR Time:2015-02-23 14:48:37
Ann: HALFYR: SKT: SKY TV Announces 2015 Interim Results
Add to My Watchlist
What is My Watchlist?