Sky TV plans to resume paying dividends to shareholders later this year after reporting revenue growth for the first time in six years.
Sky TV's improved top line was driven by a 6 percent increase in customers for its set-top box and a 23 percent lift in streaming customers. Photo: RNZ / Dan Cook
Chief executive Sophie Moloney said the result marks a "positive inflection point" for the company.
The improved top line was driven by a 6 percent lift in customers for its set-top box and a 23 percent lift in streaming customers.
The company also reduced customer churn to a new low of 9.1 percent.
Revenue grew by 4.1 percent for the period, as Sky Box sales stabilised, streaming revenue jumped 34 percent, higher earnings from its commercial and advertising businesses, and the first contributions from Sky Broadband.
"During the Covid-19 lockdowns, Sky offered a valued and crucial service with a strong line-up of sport and entertainment content across Sky Box and the Neon and Sky Sport Now streaming services," Moloney said.
Key numbers (for the six months ended 31 December 2021 vs year earlier)
- Net profit: $28.3m vs $39.6m
- Underlying profit: $42.1m vs $61.2m
- Revenue: $371.7m vs $356.9m
- Dividend no dividend vs no dividend
Operating costs increased by 18 percent on a year ago to $287.2 million, as the company increased spending to snap up streaming rights. For this reason, the company's net profit was down on a year ago.
A notable addition was winning the broadcast rights for the English Premier League from Spark for another six years, starting with the 2022/2023 season.
Delivery of Sky's new set-top box is expected from the middle of the year, with staff and customer trials to begin soon.
Sky chair Philip Bowman said the company had achieved an improved and sustainable performance across a number of metrics, including cash generation, in conjunction with increased medium-term over the majority of its content rights.
"Against this backdrop, the board has resolved to adopt a formal dividend policy of distributing between 50 percent to 80 percent of free cash flow."
The board expected to pay a final dividend in September 2022.
Sky reaffirmed its revenue guidance of between $725m to $745m for the year and net profit between $40m and $48m.