My strong preference is still for a tax free capital return...

My strong preference is still for a tax free capital return payment as opposed to an On Market buyback.

Because the $55M came from an asset sale, they have the option to return the cash to shareholders without it being classed as a dividend (and therefore subject to tax). This is the most efficient way to give the capital back to shareholders.

Tower Insurance just recently did this whereby they cancelled 1 in 10 shares and paid out some cash.

This gives shareholders the most flexibility. If they wish to use the cash they get to buy more SKT shares (and therefore increase their % ownership as would happen in a traditional buyback program) then so be it. If not, and they prefer to use the money for something else...then so be it. Maximum flexibility for the shareholder which is what they should want.

They could announce this soon and send their application to the IRD to get approval (a formality really).

Then when the FY results are released on 25 August they can declare a dividend. To restore goodwill they will need to be generous here. I think $35M ought to do it.

That is a $90M payment to shareholders this year and very tax efficeient given $55M attracts zero tax and the $35M dividend is fully imputed. It would still leave Sky with a good $60M cash in the bank to invest more in increasing broadband uptake, enhancements to the new STB and entering mobile.

Time to get paid boys. We have waited long enough.