Good result from SKT.
NPAT up 16.8%,
Final div 10.5cps, Special div of 25cps. No reason for Special div given in the abbreviated report that we get from NZX.
SP up 15c today.
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Good result from SKT.
NPAT up 16.8%,
Final div 10.5cps, Special div of 25cps. No reason for Special div given in the abbreviated report that we get from NZX.
SP up 15c today.
Here's the company's rationale for paying the special dividend.
"Chief executive John Fellet said the Sky board had been conservative on dividends policy in the past, especially after the global financial crisis.
"There have been other times we could have given a bigger dividend but we kept a reserve. We feel a bit more comfortable about the market now," he said."
Doesn't look like anyone has posted on SkyTV in a while.
ComCom has approved Igloo but is looking at internet deals.
With todays price crash I think it is a buy? Anyone actually follow this one?
Why? Because people have to buy a box, they decide to upgrade to sky? Otherwise, Freeview is better than standard TV and most new TV's come with freeview built in so peopel may actually opt out of Sky.
Being a Tivo user, I cnat image anyone would go back to live tv once they have had mySky or Tivo.
Internet TV doesn't worry me to much as Sky has all the good content. Illegal downloaders will still be as prevalent as in the past.
Sky TV's price has crashed for the same reason that Chorus's share price crashed and Telecom before it. And Meridian, Genesis, Mighty River, Contact and Solid Energy will after it. And more that we cannot yet guess at.
Until the Government brings ComCom under control NZ is no place for investors. Its the beginning of the end of the NZX and NZ having a sharemarket. Australia under Labour and Julia Gillard/Swan is a friendlier place than NZ under ComCom regardless of what stripe of government we have!
Hmmm - so the Todd Family has sold out of Sky. In my experience (I've worked in businesses owned or supplied by them) they don't make major moves wthout a damn good reason.
I wonder what dark clouds are on the horizon for Sky? The Todd's usually have a pretty long telescope - and their vision is generally spot on.
In an environment where customers have access to online streaming services (both legal and not) it seems probable that some combination of retention, margin and/or growth would be impacted. While Sky may transition to a model that copes with this, it seems likely it will also add complexity and cost in the interim. I find enough uncertainty with future prospects to avoid.
Special dividend 32 cents Woooow
The reference to paying the special dividend to payout IC's (as opposed to surplus cash) must signify that they expect a sell down by News Corp (note: if News Corp sold, all IC would be forfeited).
There have been rumours so this indication by the board can only cement them??
Did some digging found the answer :)
Quote:
Originally Posted by IRD Website
Thats the one. There are rules so you can pretty much ignore movements between small (<10%) shareholders.
But Todd sold out 10% so only need another 23%ish to sell, News Corp owns 40%ish?? so if they sell they are gone.
Normally if the transaction was orderly, a special dividend would be paid just prior. So preempting it suggests a non orderly rushed transaction??
Hi guys Can you elaborate more about this IRD thing and the possible reasons why SKT have it....reading the IRD piece...Am I right to believe that this is a defensive weapon created by the IRD to deter hostile takeovers which seems to has a negative effect on everyone (e.g incl mum and dad investors) not just towards the hostile raider only???....
I can't quite understand the IRD rationale here..it seems destructive to me....as it forces the company into creating a special dividend whether it has surplus cash or not.
There are other defensive strategies to deter a hostile takeover...e.g shareholder rights issue trigger + heaps of others.
From my confused understanding of this IRD piece it seems SKT is more worried about the dumping scenario and not the possible takeover scenario..............or both?............Have I got the correct understanding of the IRD law????.
So why did the shareprice go up??..SKT is giving away part of its assets?...What happens in the future?...do they have to build the ICs up again and with the possibly the next dividend is not or only partially ICed??
Does that apply to STU now...has STU lost its IC with its major shareholder exiting:confused:
The imputation regime has nothing to do with takeovers but can be affected by them. The imputation regime was designed to prevent the double taxation of company earnings. A company pays tax on its profits. When the company pays tax this is recorded in an imputation credit account. When a dividend is paid these imputation credits can be attached to dividends to avoid taxing the same income twice. Rules around shareholder changes is to avoid trading in imputation credits. i.e the shareholders who owned the company when it made the profits and paid the tax should be the ones to benefit from the imputation credits. Cleaning out the imputation credit account by paying a special dividend could indicate a change of shareholders owning more than 10% could be imminent.
I am not sure about the rules for a publicly listed (widely held) company. A less than 10% holding can be traded without affecting the imputation credit account so I guess the 66% continuity would be based on transfers of more than 10% so a lot would depend on when shares are transferred and taxes paid. It would seem pretty harsh if a large shareholder could wipe out the imputation credit account without warning management.
Good summary from Aaron. The rules are designed so that the shareholders that paid the tax receive the benefit. It is an anti-avoidance type rule to stop you transferring your shareholding to another person who can better use the imputation credits. The rational is a bit flawed as if the asset was a physical asset, rather than tax, there is no issue with this.
I don't believe there is any room for IRD discretion on this.Quote:
It would seem pretty harsh if a large shareholder could wipe out the imputation credit account without warning management.
Hoop - re:STU, my guess is yes. Per the AR2012, they had 18m IC's and roughly paid tax of $5m (new IC's) and IC's on dividends of $5m so they were essentially neutral annually. Therefore, it wont have an impact on normal dividends (since IC's attached normally less than the tax paid) but may effect a future special dividend.
Note: the likes of FBU don't have enough IC's as some of their profit is earned (and taxed) overseas. As such, they attach RWT credits as well.
Thanks for that guys...much appreciated