Sky Television has reported a growth in earnings, and increased customer numbers. Photo: Copyright: joearnonmung
Pay television operator Sky Network Television has reported a lower bottom line profit on restructuring costs and the sale of an asset, but underlying earnings were higher on increased revenue and customer numbers.
Key numbers for the year ended June, compared to a year ago:
- Net profit $51.0m vs $62.2m
- Normalised profit $57m versus $49m
- Revenue $754.1m vs $736.1m
- Customers 1.01m vs 990,761
- Dividend 15 cents a share vs 7.3 cost per sale
Sky chief executive Sophie Moloney said the solid result came as the company had been through a restructuring and the roll out of new products and technology.
"Our business has remained resilient against a backdrop of inflation and high interest rates impacting on household budgets, thanks to our strategy of meeting New Zealanders where they are, in ways that work for them."
Revenue was up 2.5 percent as the company increased prices, gaining higher revenue per average customer, while commercial sales also increased.
Total customers rose 2.5 percent on the previous year's 990,761 figure, driven by gains for its streaming, sports, broadband, and the addition of about 18,000 former Vodafone TV customers. Although Sky said there had been problems with the delayed roll out of the Sky Box which slowed its momentum in chasing new business.
Sky Box subscriptions fell 2.5 percent, compared with last year's 4.5 percent decline.
Moloney said the company had made savings of $33m in operational and capital expenditure, despite an increase in sports and entertainment programming costs.
Over the past year it confirmed key rugby and English premier league football broadcast rights, as well as new entertainment programming deals.
The company said it expects further growth in customer numbers and revenue, but also increased programming costs and capital spending.
"While we remain conscious of economic pressure on households, Sky is expecting continued growth in customers and revenues - including through new revenue streams - and will maintain the strong focus on costs."
It forecast earning revenue between $765m and $795m.