\u201cWe know how much the Premier League means to football fans, so we are delighted to renew our agreement for another six seasons,\u201d said Sky TV chief executive Sophie Moloney.<\/p>\n
\u201cSecuring this extension speaks to the strength of the partnership Sky has built with the Premier League, and our focus on securing the content that matters most to our customers.\u201d<\/p>\n
Sky TV chief executive Sophie Moloney has a portfolio of sport wrapped up for another four to eight years. Photo montage \/ Phil Welch<\/p>\n
Sky\u2019s announcement came with the release of its financial results.<\/p>\n
Its underlying revenue for the 12 months to June 30 was $826.1 million, up 9%, and underlying ebitda was $157m, up 6% and at the higher end of guidance. <\/p>\n
Its underlying net profit after tax was $41.8m, up 2%.<\/p>\n
\u201cThe board has declared a full imputed final dividend of 17cps, bringing the total FY26 dividend to 32cps, up 45% year-on-year and 113% over three years, comfortably exceeding Sky\u2019s target to double the FY23 dividend,\u201d Sky said in a statement.<\/p>\n
Moloney said: \u201cThree years ago, we set ambitious targets reflecting our confidence in Sky and the opportunity ahead. <\/p>\n
\u201cSince then, we have navigated a challenging economic environment while completing two significant projects \u2013 the accelerated satellite migration in FY25 and the acquisition and integration of Sky Free in FY26.<\/p>\n
\u201cWe finish this period a stronger Sky \u2013 larger, more diversified and increasingly digital, with greater audience scale and more opportunities for growth.<\/p>\n
\u201cThe benefits of the expanded business are already evident. We now reach more New Zealanders across paid and free-to-air, broadcast and digital, giving audiences more choice in how they engage with Sky, while advertisers can connect with larger and more diverse audiences through a single integrated offering.\u201d <\/p>\n
Sky has had a rollercoaster 12 months, acquiring Three from Warner Brothers for $1, and merging teams in a difficult advertising economy.<\/p>\n
Its streaming platform Neon lost HBO Max content on June 16 \u2013 so the full impact of that loss won\u2019t be known until this financial year.<\/p>\n
Nevertheless, Sky said in its annual report today: \u201cAfter a challenging first half Neon customers rebounded strongly, with five consecutive months of growth to close the year at over 252,000, only fractionally behind FY25. This saw Neon revenue up 2% on the prior year to $52.0m\u201d.<\/p>\n
The big question is where that number will be in 12 months.<\/p>\n
Meanwhile, Sky said trading conditions were expected to remain challenging in the first half of FY27, \u201cwith the timing and strength of economic recovery uncertain\u201d. <\/p>\n
\u201cSky\u2019s FY27 guidance is for revenue of between $825m and $840m, ebitda of between $155m and $165m, and capital expenditure of between $60m and $65m. In line with Sky\u2019s target to deliver 10% annual dividend growth, dividend guidance is for at least 35 cents per share.\u201d<\/p>\n
Solid result had been expected<\/p>\n
Earlier, Forsyth Barr analyst Ben Crozier was expecting a \u201csolid result\u201d, with three key areas of focus for him: the number of sport subscribers and revenue; Sky Free\u2019s commercial and costs performance (Sky acquired TV3\/Three last August); and the performance of its streaming service Neon, especially since the loss of HBO Max content and hit shows such as The Pitt.<\/p>\n
In a research note, Crozier said he expected Sky Box subscribers to have fallen by about 14,000 in the second half of financial year 2026. That was in line with recent run rates and was partially offset by \u201csolid\u201d average revenue per user growth.<\/p>\n
On Neon, he said: \u201cWith the removal of HBO content in mid-June, all focus will be on subscriber trends over the last two months. We expect revenue to meaningfully fall in FY27 to $36m from a ~$50m prior run-rate\u201d.<\/p>\n
He also expected about 12% revenue growth for the Sky Sport Now streaming platform.<\/p>\n
While Sky was unlikely to specify its Three revenues, he said \u201cslowing declines in total linear advertising would be taken well\u201d.<\/p>\n
\u201cWe also expect a meaningful focus on the outlook. SKT\u2019s [Sky TV\u2019s] last three-year targets were released in FY23 (for FY26); with the acquisition of Sky Free and renewal of key sports rights, we expect SKT to be in a position to provide new medium-term targets.\u201d<\/p>\n
He believed a dividend target of more than 35c per share by FY29 \u201cwould be taken well by the market\u201d.<\/p>\n
The company was also in a \u201cvery attractive net cash position\u201d of $60m-$70m, and clarity on how it intended to return this to shareholders or invest it at attractive rates of return \u201cwould be welcome\u201d.<\/p>\n