SKT Sky Network Television Limited.

[Almost-confused]

Article on NBR today about 2Degrees and Orcon/Vocus in exclusive merger discussions.... Did we know that??

[mistaTea]

https://www.nzherald.co.nz/business/...PNRRFZBIW7CY4/

"2degrees' adjusted ebitda for the three months to September 30 edged up by US$1 million to US$30.6m - a 3 per cent gain on the year-ago quarter as gains in broadband and business mobile offset lower consumer growth amid lockdowns"

So EBITDA is ~NZ$43M.

Their stay in business CAPEX would be around that are more. Think of all those cellular towers...

So this business really makes no money yet will get around NZ$1.5B if media reports are correct.

Sky earns a lot more money but would be lucky to get NZ$0.5B in a sale.

It just boggles the mind. This is what makes it hard to get a merger done on reasonable terms to SKT shareholders while the SP is in the toilet.

They need to get a move on with selling the property and reimplementing the dividend to shift this around.

[mistaTea]

Sky needs to be a dividend paying stock to get interest back in. It really is that simple.

And it is baffling that they still seem to brag about the clean balance sheet courtest of the dillutory CR.

Well, the market does not seem to think very much about Sky being 'debt free' - if they were hoping the SP would rocket once we removed all debt because the market would have confidence in Sky's ability to operate as a Going Concern then they were sorely mistaken.

So we have had to pay for Broadband and the STB entirely from Operating cashflows. The total cost of both projects is probably in the $30M-$40M range.

Why in God's name would we not just borrow that money in this low interest environment and keep some form of divvy going?

Or borrow half and pay the other half from cashflow if you still want to be conservative/cautious?

An eventual entry into mobile will probably be another $15M there.

So all in for Broadband, STB and Mobile probably costs around $50M.

I would have been very comfortable borrowing $50M. But even if they were nervous Nellies about that they could borrow a modest $30M and top up the remaining $20M from cashfow over time...still would have left plenty of cash to distribute to shareholders.

The conservtive approach is not working Sky! You need to be more aggressive, get these intiatives delivered faster and for Christ's sake borrow some money!

[Balance]

https://www.nzherald.co.nz/business/...PNRRFZBIW7CY4/

"2degrees' adjusted ebitda for the three months to September 30 edged up by US$1 million to US$30.6m - a 3 per cent gain on the year-ago quarter as gains in broadband and business mobile offset lower consumer growth amid lockdowns"

So EBITDA is ~NZ$43M.

Their stay in business CAPEX would be around that are more. Think of all those cellular towers...

So this business really makes no money yet will get around NZ$1.5B if media reports are correct.

Sky earns a lot more money but would be lucky to get NZ$0.5B in a sale.

It just boggles the mind. This is what makes it hard to get a merger done on reasonable terms to SKT shareholders while the SP is in the toilet.

They need to get a move on with selling the property and reimplementing the dividend to shift this around.

Ironically, the delay in sale of the property could have worked very well in SKT's favor.

Development land prices in Auckland have gone berserk since the joint announcement by Labour & National about further intensification & housing density rules for the main centres.

Like I wrote before, it's a matter of time - not if but when the property deal is done.

Then, everything being worked on in the background will happen in a rush.

Sp is where it is because the sp momentum has faltered and the traders are bailing out - not because the deals being worked on have dissipated.

[mistaTea]

Dividends?


Why go for the milk when you can get the cow?

LOL I still don't actually know what that means.

[Balance]

LOL I still don't actually know what that means.

Ask yourself : Is the milk worth the squeeze?

[mistaTea]

Dividends?

Why go for the milk when you can get the cow?

I mean this is either some incredibly high IQ sh1t going on here that just goes way over my head...

Or....

[mistaTea]

---

Just lol at Discovery thinking they can roll out another paid streaming service in NZ and also two new channels!!! The market is tapped dry!!

Yeah I did laugh at that. Absurd to think that what Kiwis want is yet ANOTHER OTT service.

Aggregation is the only way forward now.

[mistaTea]

Ask yourself : Is the milk worth the squeeze?

Ok now you are just turning me on.

So you are saying why get dividends that would almost certainly lift the SP (the milk?) when Sky should just not pay me that and I get a...what? takeover instead? (the cow??)

I don't really get the cow though do I because after a one-off pay day for my shares I don't own the cow anymore...

[Quantitative Easing]

I was talking to some Sky employees little while back. They had mixed reviews about Martin. A lot of them had the view that Martin was only really at Sky to have a good holiday in NZ.

Also how the hell is Sophie running Sky from Nelson? Isn't that where Aucklanders go to retire? I wonder if she harps on about carbon emissions, corporate responsibility and other nice sounding things. That would be the biggest joke when you are flying into work i would assume couple of times a week.

We need people like Russel Creedy at Sky. He made selling fast food profitable. He made a turd into a diamond. Enough with this BS nice sounding things. Leave that to Jacinda. We need tangible results. Do a buyback, reinstate dividends, line up some buyers, do road shows in Singapore, Hong Kong, London and New York... We don't care if you learnt a new Te Reo word.