Sky Network Television Limited Analysis

Overview

The company was formed in 2005 to facilitate the merger of listed companies Sky Network Television Ltd and Independent Newspapers Ltd (which held 78.4% of Sky). Under the merger scheme, MergeCo was to acquire all of the shares in INL and all of the Sky minority shares. INL and Sky would then be amalgamated into MergeCo to create a single listed entity for the Sky business. MergeCo then would be renamed "Sky Network Television Ltd" and conduct Sky's existing and ongoing business. For each Sky share, holders received one ordinary share in MergeCo and $1.28 cash. For each INL share, holders received 0.8360 of an ordinary share in MergeCo and $1.78 cash.

SKT dervies the majority of its revenue through residential satellite subscriptions with other revenue coming from UHF subscriptions, other types of SKY subscription, installation and advertising.

Performance

The following information was extracted from Sky Network Television Limited's half year results, released 26 February 2026

Strong first half performance as expanded Sky builds momentum

Sky Network Television Limited (Sky) today reports a strong financial performance for the six months ended 31 December 2025, in its first reporting period since the acquisition of Discovery NZ (now Sky Free).

HY26 Financial Highlights

• Underlying Revenue: $415.4m, up 8%, driven by the acquisition of Sky Free

• Underlying EBITDA: $78.2m, up 29%, through lower programming costs and disciplined cost management

• Underlying NPAT: $19.3m, up 77%

• Statutory NPAT: $52.4m, including gain on bargain purchase of Sky Free and Optus compensation

• Free Cash Flow: $87.1m (vs $7.5m in HY25), contributing to closing cash balance of $100m

• Interim Dividend: 15.0 cps, fully imputed, up 76.5%

CEO Commentary

Sky Chief Executive Sophie Moloney said Sky’s half year performance reflects the disciplined execution of Sky’s multi-year strategy and the financial and strategic benefits of the Sky Free acquisition.

“The first half of FY26 marks an important step forward for Sky. The combined business is already demonstrating the increased reach and revenue diversification we sought, while also maintaining strong cost control.”

“Although the economic environment remains challenging, Sky is well positioned for earnings growth from FY27.”

“The Discovery NZ acquisition was a well-structured deal for Sky. It’s not often you get to acquire an asset for $1 and significantly strengthen the balance sheet at the same time - as is also evidenced by the gain on bargain purchase of $34.4m we report today, reflecting the fair value of the assets acquired.”