- Sky’s FY21 results outdid expectations and also moderately outpaced guidance.
- Sky has a clear strategy for the future and plans to make the best use of partnerships secured across multiple platforms.
- Sky expects revenue to be between $715 million to $745 million in FY22.
The Group operates in a rapidly changing industry, which has further picked up pace in the past year as more D2C services have been launched and alliances of major players are being forged globally.
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Sky continued with its positive momentum in FY21 with growth in streaming revenue, important programming renewals, continued reductions in Sky Box churn and the launch of Sky Broadband. The Group reported a profit after tax of $47.5 million compared to a loss of $156.8 million in previous year. Further, Sky’s adjusted NPAT of $47.1 million surpassed expectations and market guidance.
Guidance and Strategy
Sky expects to grow the top line and anticipates its revenue in the range of $715 million to $745 million in FY22. This can be achieved through a mix of improvements in core offerings, returning towards pre-COVID-19 levels in Advertising and Commercial, and new revenue streams.
The Group also has given an EBITDA and NPAT guidance of $115 million to $130 million and $17.5 million to $27.5 million, respectively.
The Group’s strategy includes 4 major focus areas, which are
- Nurturing and growing Sky Box and Streaming customers.
- Being the preferred partner for key rightsholders, content creators and distributors and enhancing streaming services.
- Growing revenues and reducing operating costs.
- Being a place where Sky’s team feels empowered to do its best work.
How Sky plans to deliver ahead?
The Group has implemented many key data and insight tools like Sky Nation and life-stage segmentation model to better understand customers and unlock growth prospects. Sky also has strong relationships with the biggest and the most renowned studios in the world and it plans to continue engaging in these partnerships to deliver Kiwis with the best content.
Sky is also evolving its Sky Box and streaming technology to provide customers with the best experience and using innovative technology to get attention from new fans. It is planning to launch a hybrid box that offers the reliability of satellite TV and the flexibility of internet-delivered on-demand content and streaming apps.
The Group also launched the updated version of the Sky Go app, built on new digital platform with many improvements at the end of FY21.
On 15 September, at the time of writing, SKT was trading flat at $2.05.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)