Bowman told shareholders that the rugby rights negotiations concluded in August.
The All Blacks will be on Sky for the next five years. Photo / Action Press
“Subject to your approval today, Sky has secured a further five-year agreement on improved commercial terms. This outcome ensures that our customers will enjoy an expanded suite of content, including every big rugby moment for the next five years.
“At the same time, the agreement allows New Zealand Rugby, with our support, to pursue supplemental free-to-air arrangements for provincial rugby.”
TVNZ has secured free-to-air rights for some NPC and FPC matches.
As Media Insider reported today, New Zealand Rugby is searching for a new sponsor of its major domestic competitions, after Bunnings and NZR parted ways.
Shareholders with just over 63% of shares had voted before the meeting – with 98.7% support.
Shareholders also voted overwhelmingly in favour of re-electing Bowman and directors Dame Joan Withers and Mark Buckman.
Shareholder returns
Bowman told shareholders that Sky’s share price had appreciated 27% over the financial year.
It was sitting at a five-year high of $3.60 when the NZX closed on Thursday.
“Having confirmed dividend guidance for FY26 of at least 30 cents per share, management is on course to deliver against the target first communicated back in August 2023,” Bowman told shareholders.
“At the current share price of $3.60, a 30 cent payout this year represents an impressive 8.3% cash yield and will deliver a further increase of 36% in our dividend – importantly one paid out of free cash flow and not debt – which provides a clear illustration of the strength of Sky’s cash generation and your board’s confidence in its sustainability.”
Three acquisition
Sky chief executive Sophie Moloney told shareholders today that the $1 acquisition of Three (TV3) from Warner Bros Discovery was a “strong strategic fit that propels our growth strategy in a way that would have been difficult to achieve organically”.
Sky TV chief executive Sophie Moloney.
“This includes access to the fast-growing ThreeNow digital platform, which expands our reach to a younger, more diverse audience that is highly attractive to content partners and advertisers alike.
“As shared at the time, you do not get to acquire a business for $1 if it is profitable and the combined teams are working hard to deliver on the complex technology integration programme, while also remaining clear-eyed on delivering cost synergies and moving to capture the revenue growth opportunities ahead of us, particularly from FY27 onwards.”
In the shorter term, she said, Sky’s freshly renamed sales team – Sky Business – was in the market with a “unified sales proposition”.
She said the Three acquisition had also been a key factor in Sky’s successful bid for the Summer and Winter Olympic Games through to Brisbane in 2032.
Outlook
Moloney said economic conditions remained challenging in Sky’s new financial year.
“So far, this is largely playing out as we anticipated, with continued pressure on revenues and added pressure on Neon subscriptions.
“Notwithstanding this pressure, there is no change to Sky’s FY26 guidance provided in August on a stand-alone basis.
“While trading conditions for Sky Free have been softer at the revenue level than expected in the initial ‘stand-alone’ period, lower-than-expected costs have somewhat offset the impact.
“Importantly, audiences have remained stable, and we are expecting positive signs in the 2026 calendar year as advertising brands and agencies see the benefits and new opportunities created by our unique combined proposition.”
She said Sky still expected to deliver $3-$5 million of “synergy benefits” in this financial year and that Sky Free would contribute positive free cashflow in its first year.
“Looking further ahead, we are confident the acquisition will achieve at least $10 million of incremental EBITDA for the consolidated group by the end of FY28.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.