New travel restrictions will have massive impact on Super Rugby, NRL etc now.
Will be interesting to see how this unfolds.
Current market cap is now equal to the low range of the FY20 EBITDA guidance given.
Unreal.
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New travel restrictions will have massive impact on Super Rugby, NRL etc now.
Will be interesting to see how this unfolds.
Current market cap is now equal to the low range of the FY20 EBITDA guidance given.
Unreal.
........my take........ subscriptions will skyrocket with self isolation and the general fear of socializing etc. Prospects of a take over at current SP just gone up several notches.
Does anyone have an idea what the clauses in the rights deals Sky has might say for situations when the sporting event is cancelled? Will Sky still have to pay the sporting org the rights fee if the event doesn't take place? Same for advertisers, will the advertisers still pay Sky the ad fees?
This "we must win rugby coverage at any price" stratagy and that's the panacea of all our troubles was always a very high risk and poorly conceived one in my opinion.
Its clear the board and the CEO are sports enthusiasts who have no idea that people tune in for many other reasons including movies, CNBC, news e.t.c.
They are the author's of their own demise and while this is a thread I seldom comment on I made the comment several times late last year that this stock is un-investable with the current board and strategy. A substantial number of people couldn't care less about sport but the board has no understanding of this basic fact.
Sky TV closed at 30.5c (-22%) and is now -57% YTD. SKT now trades with negative equity (market cap of $133m, net debt of c$200m) (Craigs)
That negative equity is a bit of a misnomer. Yes their market cap is less than their debt. However when their market cap was higher than debt, from an accounting perspective their NTA was still negative. Their assets are not affected by the SP. It may make it more difficult for them to raise equity should they require it.
If I was an entrepreneur with limitless pockets, I would buy SKY now at these prices, not invest in the business but just take the future cashflows that will well exceed the Market Cap that I had to pay for the business.
One thing investing in Sky TV has taught me - I clearly have no idea how low this stock can go.
Just incredible.
Current market Cap is $126.4M - below the low range of forecast adjusted EBITDA for FY20 ($170M - approx $30M Optus lease = $140M).
No doubt there will be some impact on earnings - but how much is far from clear. It looks like NZ Rugby are collaborating with Sky to keep a NZ derby tournament going so fans can still enjoy some live rugby.
Super Rugby will probably be cancelled for 2020, but that is not certain yet. I think I read that they could delay for up to 5 weeks and still be able to finish the season.
The constant barrage of coronavirus stories makes it seem unlikely things will have calmed down enough in 5 weeks. But we shall see.
And the Warriors are staying in Australia so they can strill participarte in the NRL.
Sport subs will be affected I am sure, but it is also reasonable to think that Sky's entertainment offerings will pick up to some degree if people are going to be staying at home more often. Might pick up more NEON subs and lower churn of existing entertainment package customers cancelling their subs. Customers who do decide to suspend their Sport package may spend some savings by picking up other content like SOHO, Rialto etc.
Not all doom and gloom imo, and depending on how it all plays out the earnings guidance provided previously may not change significantly.
Indeed, I have no idea either! It is pretty incredible that holders are looking to get out at this level......presumably many would have bought at anywhere between 1-6 x this price - or possibly even more!! :scared:
Just like Spark making Spark Sport free, I think some sort of carrot for subscribers would go along way - like a couple of free movie channels. I bet a few people at Sky are busily looking up contracts and whether they still have to pay while almost all major sports are cancelled and no live games.
Otherwise I'm due to give them a call and cancel sport or similar.
without sport im afraid ... the end is near
Update today:
Sky withdraws guidance for year ended 30 June 202018/3/2020, 8:59 amMKTUPDTESky withdraws guidance for year ended 30 June 2020
18 March 2020
Due to increasing uncertainty surrounding the Covid-19 outbreak, Sky Network Television Limited (NZX/ASX:SKT) has today announced that it is withdrawing its Revenue and EBITDA guidance for the year ended 30 June 2020.
The responsible actions taken by the New Zealand Government and sports administrators to combat the spread of Covid-19 has impacted upon a number of the live sporting events for which Sky holds broadcasting rights. While several sports such as the NRL, the A-League and the ANZ Premiership Netball are currently adapting by playing without fan attendance, and New Zealand Rugby is looking at innovative ideas for a short-term local derby, Sky recognises the potential for further disruption.
While the company has options to recover some costs associated with sports content rights, Sky is aware of the crucial role it plays in the sport ecosystem in New Zealand. Decisions made now have the likelihood of impacting on the health and sustainability of New Zealand sport for some years to come.
As a business with a strong focus on delivering sport content to its customers, the sustainability of New Zealand sport is an important consideration. In the first instance, Sky is working closely with its content partners to develop the best possible package to deliver to customers. Sky is also able to draw upon its extensive library of marquee sporting events covering a range of codes and tens of thousands of hours of premium content, documentaries and original production.
Sky’s entertainment offerings, available through both the Sky satellite platform and its Neon and Lightbox streaming services, continue to deliver a high-quality line-up of content.
Chief Executive Officer, Martin Stewart commented: “In these unprecedented times, our focus remains on working with our sport partners and the wider network of rightsholders and suppliers to deliver on our promise of connecting New Zealanders with the sport and entertainment content they love in ways that work for them. The Sky team is working hard to deliver content our customers value to keep them connected, entertained and inspired during this challenging period.”
“Sky fully supports the New Zealand Government’s response to the current situation which is in the best interests of our communities.”
Sky is taking decisive actions including the reduction of operating expenses, deferring non-essential capital projects and implementing a travel and hiring freeze. Appropriate measures are in place to protect the health and wellbeing of Sky people, following best practice and the guidelines provided by the Ministry of Health.
Sky expects to host an Investor Day when the Covid-19 impacts are better understood.
ENDS
I'm in that boat too. But if I give up sport I would cancel my whole sub and that is at $98 per month. SKY need to come to the party fast to subscribers before it is too late. I am giving them another week. If I don't get movies or such like for free its bye bye to your $98 per month from me. No use putting on a whole host of past sporting events. That kinda **** does not flow with me.
Will be interesting to see what they are able to do here. Adding movies for free for a month or two would be a great gesture to existing customers I agree.
And for customers that already pay for Starter + Entertainent + Movies/SOHO + Sport... give them MySky for free for a couple of months.
They don't have to bankrupt themselves with freebies, but a nice gesture would go a long way for sure.
Martin is very customer-focussed, so let's see what he does next.
Would it though? Because surely the marginal cost of providing movies to extra customers is zero? As it would be for sport or any other channel. Or have I read the situation incorrectly? Any goodwill they can generate now will be beneficial if they survive as a going concern. Because the current share price to me indicates the market things SKY is gone burger.
I am a sailor and enjoy watching sailing on TV.
The 18's in Sydney are a good watch.
This is streamed on facebook live. And 18footers.com.au
https://www.18footers.com.au/18-foot...18-footers-tv/
This, or a variant, seems to be the future to me.
Not sure how long it will take, but yes, SKY looks like gone burger to me.
Without sport....why would I pay to subscribe to SKY ?
The majority of their subscribers currently subscribe to Sky for their entertainment offerings.
Sport is a significant minority of their subs, and without sport there would be a big hole in their offering for sure - but I also think we need to keep some perspective here too.
Why do you think that Sky Sport will be permanently damaged by current events? We don't know how severe the impact will be - and I am pretty sure life will go on and professional sport will continue once this blows over.
Unless coronavirus causes Sky to go bankrupt (not likely), then I don't see how current events affect the Business Case long term.
What a woeful level of information provided in this announcement for current or potential owners to base decisions on..
The company needs to provide disclosure on what the following are...
"the company has options to recover some costs associated with sports content rights"
And disclose the level of cancellations being received both in total and package by package, and signups. (if there are any...)
They could take a leaf out of the SKC Covid announcement, also provided today, which has provided a line by line breakdown of month to date impacts.
Sky should press NZ Rugby to bring forward the Mitre 10 cup.They don't get huge crowds so the loss of gate reciept's would not be huge.Sky could keep their large outside broadcast team gainfully employed,and hey you never know,but with the lack of sport around they could even sell some overseas rights!