That was a stupid move, fix a problem business with a problem business:)
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Hammer Time lol
poor result with reduced div my under 3 looking good and lower
funny to read the commentary, that they still dont get there fundamental problem is price , they can ramble on all they like about there product but if its overpriced they will always lose.
solid results much better than expected. net profit 116m better MoriningStar 98m and 4-traders 108m,cashflow is massive.
Disappointed with the reduction in divvy - especially with that cashflow.
As much as I dislike SKY and think they need new leadership and vision, even with the current management it's starting to look reasonable value. Current under $3 if you factor in divvy.
Sky TV is a sinking ship unless they start to get smarter about online streaming. It has been the same for ESPN and Disney. ESPN have been hemorrhaging subscribers for years and DIS.NYSE have felt the impact of that - disney's recent move to focus on online streaming was the only smart thing they could do (other than split ESPN off into a wholly separate company).
NEON (Sky's online service) is overpriced and under-catalogued. Game of Thrones is the only reason I login for a 'Free trial' every year...
It makes me chuckle that John Fellet thinks his biggest competition is piracy when Netflix, Lightbox and other subscription platforms like Amazon are the things they should be worried about most. It also wouldn't give me confidence that Fellet laments the Commerce Commissions decision not to let the merger happen and then not wanting to get into the details of why it would be a good thing. Pretty much, everything is not Sky's fault..
Some of the result here is being cushioned remember by a one off event that happens every 12 years (Lions tests). I have a feeling the numbers would have been much worse without it. Still impressive cash flow, and to make net profit off that revenue in the industry they are in is not terrible. Time is running out for them however.
Disc: Not a holder
Better than I expected. Still no interested even with dividend. You'll never get your capital back.
Their other competitor is simply the internet in general - people are happy to while away a few hours on Facebook, or YouTube or surfing nested hyperlinks to conspiracy theories.
I don't agree with Fellet that they should pair back on the deals for new customers & reducing their content spend on the basis that customers will be attracted & retained due to the new software release and their utilisation of big data. IMO, fresh blood at the top is required.
Did he actually he say that? LOL. Because they've done such an amazing job so far. My SKY box takes 5 seconds to do anything (ie change channel) after a button press because it's so old and the "new software" is slowing it down so much already. So exactly what more are they gonna be able to do with it that won't brick it? I already feel like throwing it out the window half the time.
The future of this company will be a major acquisition IMO, their current business is dying and they have a large bank balance. They need something to complement their cash flow and retain customers. I think Power, Insurance or BB. There are ways around the commerce commission rulings if they pull sports out of the business which would allow them to get the Telco option back one. The Telco is my least favorite option though.
Interesting listening to the Radiosport talkback last night.
Alot of disgruntled Sky Sport customers who feel they aren't getting value for money.
A few callers were saying they called Sky customer service to cancel their subscription, but the customer service reps offered them discounted $30/month deals to keep them on + free stuff like movies for 3 months.
Sky getting desperate to keep their loyal customers!
Given the track record, it's hard to believe I know! - here's the quotes:
"Fellet confirmed there would be no price rise for Sky customers this year, but said he wanted to rein back "aggressive" discounts to new customers"
"Fellet said Sky planned to cut its content costs by 5 per cent in the year to June."
Regarding the decoder, our "next gen" decoder was actually pretty quick but a relative's older unit is exceptionally slow to the point of it being almost unusable. These older units should have been automatically replaced by Sky or not have received the new update(s).