Revenue $384.8m vs $385m, down 2 percent compared to year earlier. Photo: Supplied / Richard Parsonson
Sky Television has made a first half loss with a drop in revenue reflecting tough economic conditions and problems with its satellite migration project.
However, chief executive Sophie Maloney said the outlook was more positive.
"This has been a difficult half year, due to both the interruptions flowing from project migrate and the ongoing economic pressures facing businesses and consumers," she said.
"While there are some one-off factors impacting our results, the fundamentals of our strategy and progress against our priorities remain a cause for optimism."
Key numbers for the six months ended December compared with year earlier:
- Net loss ($1.7m) vs $10.9m profit down 106 percent
- Adjustments to earnings $10.9m in one-time costs
- Revenue $384.8m vs $385m down 2 percent
- Underlying profit $43.2m vs $60.7m down 47 percent
- Interim dividend 8.5 cents per share with full year forecast of at least 21 cps
Maloney said revenue was hit by a drop in an undisclosed number of customers, which was partially offset by growth in streaming, broadband and advertising revenue, which grew 6 percent on the year earlier, and a contribution from its commercial division.
However, problems with the migration of its satellite service left some customers without coverage during parts of the days, while others received no service at all.
Still, Maloney said Sky's "high value customer base is compelling for content partners and advertisers."
She said full year revenue was expected to be between $755m and $765m, with underlying profit of between $145m to $152.5m, and net profit of between $35m to $42.5m.
The guidance did not include costs associated with satellite migration and other one-off costs.
Sky chair Philip Bowman said Sky was receiving support from satellite service provider Optus for the additional financial support and costs associated with the migration project.
"Whilst we will not have certainty regarding the final cost of the satellite migration project until the transition in early April, management continues to believe given the anticipated level of compensation from Optus that the programme will be largely cash neutral by the end of FY26," Bowman said.
Sky also announced it had secured a six-year deal with New Zealand Cricket for home internationals from the 2026-27 cricket season, while discussions with NZ Rugby were continuing.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
