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

 


Sky TV annual profit rises 21%, beating analyst estimates

Sky TV annual profit rises 21%, beating analyst estimates

By Tina Morrison

Aug. 22 (BusinessDesk) - Sky Network Television, New Zealand's dominant pay-TV company, posted a better than expected 21 percent gain in annual profit as it boosted revenue from more subscribers.

The Auckland-based company said profit rose to $165.8 million in the 12 months ended June 30, ahead of the $160.5 million forecast by analysts in a Reuters poll and higher than the $137.2 million profit a year earlier. Revenue increased 2.7 percent to $909 million as sales from subscription fees rose 2.7 percent to $809 million.

Sky, which is present in almost half of New Zealand's households, increased its annual profit for a fifth consecutive year as it garners more fees from an increasing number of subscribers, more of whom are moving on to its higher value My Sky service.

The company added a net 9,157 subscribers in the year through June, taking its total to 865,055. The number of residential subscribers, who account for about 82 percent of the total, rose 3.5 percent while wholesale subscribers fell 15 percent as customers who previously received the service through Telecom, now called Spark, transferred to Sky after the companies ended a wholesale agreement.

Average monthly revenue per subscriber rose 2.2 percent to $77.52 from the year earlier. Average revenue from My Sky users rose 0.4 percent to $87.22 a month.

The company eked out price increases across its most popular packages during the year with its 'basic + sport' offering, used by about 42 percent of customers, going up by 1.9 percent to $74.75 a month, while its 'basic + sport + movies' package, favoured by about 29 percent of customers, increasing 1.7 percent to $95.68 a month.

Sky increased the number of subscribers using its higher value My Sky decoder by 11 percent to 504,713 and 42 percent of the company's My Sky installations were to new Sky subscribers, compared with 27 percent the year earlier. My Sky customers now make up 61.1 percent of the company's residential customers, up from 55.5 percent a year ago, it said.

The number of customers who disconnected from the pay-TV service during the year fell to 13.2 percent from a 14.4 percent pace the year earlier, Sky said.

Sky's expenses fell 1.5 percent to $656.1 million from the year earlier. Programming costs fell to 30.8 percent of revenue from 32.7 percent the year earlier, which including higher rights and production costs because of the London Olympics.

The company will pay a final dividend of 15 cents a share on Sept. 12, up from 12 cents the year earlier. That takes the total annual dividend to 29 cents a share, from 24 cents in 2013.

Shares in Sky rose 0.9 cent to $6.57 in early trading on the NZX today, and have gained 11 percent so far this year. The stock is rated an average 'hold' according to analyst recommendations compiled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news