Ann: Sky increases guidance as positive trends continue, page-15

NPAT: $37.5m

Tax paid (assumed 28% of PBT): $10.5m

EBITDA: $170m

Capex: $55m

Free cash flow: $170m - $55m - $10.5m

= $104.5m NZD

@Klogg

These numbers are indeed great (and keep getting better), but I would use a word of caution regarding the calculation of Free Cash Flow:

1) Guidance EBITDA is quoted according to NZ IFRS 16, so it doesn’t include payments related to operating leases; in FY20, payments for lease liability principal amounted to a non-insignificant 37mNZ$.

2) My understanding is that the 100mNZ$ 6.25% corporate bond, maturing in March 2021, has not been early repurchased; therefore, it will attract ~6mNZ$ in interest expense, to be incurred in FY21 (of course, that expense will be non-recurring, once the bond has matured).

So, in your calculation above, the actual FY21 FCF is probably just over 60mNZ$ (but possibly higher, if you look at the less-conservative ends of the guidance ranges).

Cheers