Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Sky TV lifts 1H profit 9% as subscribers spend more

Sky TV lifts 1H profit 9% as subscribers spend more, migrate to My Sky

Feb. 22 (BusinessDesk) – Sky Network Television, the pay-TV company that’s 44 percent owned by News Corp, reported a 9 percent gain in first-half profit as subscribers migrated to its My Sky premium service and spent more.

Profit rose to $68.2 million in the six months ended Dec. 31, from $62.7 million a year earlier, the Auckland-based company said in a statement. Sales rose 3.9 percent to$443 million.

Total subscribers to Sky TV’s services was little changed at 846,988 at Dec. 31 from a year earlier though the number on My Sky climbed 28 percent to 423,973. Average revenue per subscriber, or ARPU, rose to $75.78 at Dec. 31 from $71.81 a year earlier. My Sky ARPU rose to $87.39 from $84.71.

Sky TV lifted its full-year profit guidance to a range of $125 million to $130 million, from a previous $120m million to $125 million, and said capital spending would be lower at $90 million to $100 million, from $150 million to $160 million.

It will pay an interim dividend of 12 cents, with a record date of March 8, from 11 cents a year earlier. The shares climbed 2.6 percent to $5.17, having edged up 6.4 percent over the past 12 months. The stock is rated ‘outperform’ based on a Reuters poll of nine analysts, with a median price target of $5.47.

Gross churn rose to 14.6 percent in the first half from 14.2 percent, though for My Sky HDi, churn was 10.4 percent.

Programme operating costs rose 11 percent, mainly reflecting the costs of hosting the London Olympics. Sales and marketing fell by $7.1 million, reflecting an increased spend the year earlier for the Rugby World Cup.

Capital expenditure fell to$42.8 million in the first half from $69.6 million, reflecting lower decoder and installation costs. Advertising revenue fell 9.5 percent to $35.3 million.

Total operating expenses rose 3.3 percent to $333.8 million, led by programming rights and operations.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news