Sky Television has upped its earnings and profit guidance for 2021 after a better than expected start to the year.
Sky Television chief executive Martin Stewart says it's great to have a positive update for investors. Photo: RNZ / Dan Cook
The company attributed the growth to a broadening satellite customer base and tight cost control, and now expected net profit to be in the range of $20 million to $30m up from its forecast in May of a $5m to $15m range.
Sky TV also reported strong revenue from its streaming operations, particularly the new Neon platform.
Chief executive Martin Stewart said while uncertainty remained, it was good to have an optimistic update for investors.
"Our internal performance in managing and serving our satellite customers well has resulted in much lower churn and improved acquisitions, leading to six consecutive months of growth in direct Sky satellite customers.
"The last few months have reinforced the 'power of our bundle' and our ability to offer a one-stop shop for all of our customers' entertainment and sport needs. We are looking forward to making life even better for our satellite customers when we add Sky Broadband to the mix in early 2021."
He said the company would also benefit from one-off cost savings as a result of the renegotiating of certain content rights, which continued to be impacted by Covid-19 restrictions.
"Sky is also continuing to exercise careful cost control measures across its operations."
Conditional on no further pandemic impact, the company expected revenue to be in the range of $680m to $710m.
Sky TV reported a full-year loss in 2020 of $157m after it wrote down the value of its business.