https://www.nzx.com/announcements/342538
Key takeaway--- NZR to be given 5% stake...
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https://www.nzx.com/announcements/342538
Key takeaway--- NZR to be given 5% stake...
5% share is bugger all, especially given the trajectory of the share price and no dividend, so must've still been a huge amount of cash.
I think you guys miss the point.
By NZR becoming a large shareholder of Sky, it is a strong indication of an ongoing partnership.
Makes it harder for Spark or Amazon to get the rights in the future when NZR is already an owner of a sports broadcasters.
As much as I don’t particularly like issuing undervalued shares, this is actually quite a smart move imo.
Will they be in trading halt until after the meeting?
Great partnership for Sky....def the way forward in the sports lights battle. Regardless of what others think, the new CEO is using the right thinking for a business such as Sky which is facing headwinds. This is a great outcome.
It's a lifeline for Sky,not so sure its a good deal for NZ rugby if Sky go belly up
A desperate move by SKY, but a necessary and smart move. Though can't keep giving away 5% each time you need to renew your rights.
At the end of the day subscriber numbers will continue to drop, their cost are going up and Spark Sport is going to keep attacking from all directions.
Nice gain today for those that picked up shares last week. For the current holders you better hope this isn't the last smart move SKY has under their sleeves.
Clearly the figures don't include the latest Rugby deal. And clearly Sky TV earnings are still going to be under pressure. Hard to say by how much though, since they won't be forking out for NZ Cricket now (regrettably).
I am just making the point that the company still generates large free cash flows, and any notion that they are about to 'go belly up' is extremely premature in my view.
Net subscriber numbers increased last year. And the next round of results will include RugbyPass subscribers.
I expect satellite subscriptions to be down, but NEON, Sky Sport NOW, Vodafone TV and RugbyPass subscriptions to be up - generating an overall subscriber gain.
ARPU will be lower of course, but I don't really care about that. I would rather have 1 million subscribers paying an average of $50 than 500,000 subscribers paying an average if $100 (even though Revenue is the same).
In fact, I wish they wouldn't even quote ARPU anymore. It is becoming more meaningless as time goes on.
Take me, for example. I pay $39.99 for Sky Sport NOW and $13.95 for NEON. I am one household who pays Sky $54.94 per month. But under the ARPU model I am seen as two subscribers paying $27.47 each on average.
As the trend of people ditching satellite in favour of NEON/Sky Sport NOW combinations continue the ARPU figure will become even more meaningless in my view.
That's an interesting point though. Of their 750,000 (approx) subscriber numbers, how many are unique? Or is that taken into account in their numbers somehow?
It could skew the subscription decline rate as well. If 2 satellite subscribers leave, but one picks up Neon and Sky Sport then the subscription number is the same, although they actually lost one person and revenue significantly decreased.
That's my set up too. SkySport Now and Neon.
The final of Succession is on Today, express from the US. I love that show.