What are Sky Network’s (NZX:SKT) latest deals?

Highlights

  • Sky reported a robust FY21, owing partly to core operating upgrades and partly to one-off items.
  • The Group struck many deals with prominent studios and sports rightsholders in FY21.
  • Sky plans to achieve revenue in the range of $715 million to $745 million in FY22. 

Sky Network Television Limited (NZX:SKT, ASX:SKT) is a television and communication service provider in NZ. The Company links Kiwis with the sports and entertainment content that they like. Sky aims at growing its customer base across SkyBox and its streaming services to ensure the best possible experience. SKT is a reliable associate of key content holders and disperses content consistently to the audience.

Image Source: © 2021 Kalkine Media

The Group reported a strong FY21, posting a revenue of $711.2 million and an EBITDA of $186.4 million. Sky also advanced in stabilising its Skybox customers, reporting a reduction of 3.8% YOY compared to 5.4% in the prior year.

Key partnerships and renewals in FY21

Sky offers New Zealanders an unrivaled choice of purchased and created content through its agreements with top studios and sports rights holders, as well as the professional selection and award-winning content development.

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The Group struck more co-exclusive partnerships than ever with some of the world's greatest entertainment companies last year.

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Below are some of the partnerships done by the SKT Group in FY21.

  • Established a partnership through to 2027, in which it plans to work on roadshows around NZ with the Vodafone Warriors and the New Zealand Rugby League, partnering on NRL.com, to develop the next generation of League players.
  • Struck a deal with Discovery, securing the best-loved channels and launching a new channel, Investigation Discovery.
  • Stepped into a multi-year contract consisting of series created by Sky Studios and the Universal Studio Group.
  • Established multi-year deal connecting SkyBox Sports package and Sky Sport Now customers to ESPN.
  • Struck a multi-year carriage deal with Foxtel and ViacomCBS as well as studio renewal that grants access to Sony feature films.
  • Entered into a collaboration with Disney+, which provides Sky Broadband clients with a subscription of 12 months to a global Disney+ streaming platform.

Sky extended its long-term relationship last month with WarnerMedia and announced a deal that will allow customers to access programmes across key brands like HBO, DC, Warner Bros, and premium content from HBO Max.

Road ahead

Sky has an objective to achieve a revenue in the range of $715 million to $745 million in FY22, showing that it expects to generate an EBITDA of $115 million to $130 million and an NPAT between $17.5 million to $27.5 million.

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SKT plans to focus on handling operating costs and reach sustained efficiency gains by working smartly. FY22 also comprises key content rights step-ups, with SANZAAR and costs connected to the Tokyo Olympics.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

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