SKT Sky Network Television Limited.

[Alpha]

Sorry team I am now SKY gone. It has been a wild ride this one and managed to save my self by DCA and the recent SP rise. I am sure something is a cooking but I can no longer it. The final straw for me was the Pooman. He has to go!

[jimdog31]

Sorry team I am now SKY gone. It has been a wild ride this one and managed to save my self by DCA and the recent SP rise. I am sure something is a cooking but I can no longer it. The final straw for me was the Pooman. He has to go!

Good on ya mate. unfortunately if OGG, Mista and I leave the share price will collapse!

[mistaTea]

Good on ya mate. unfortunately if OGG, Mista and I leave the share price will collapse!

Selling schmelling! I am still BUYING!

Don't let Pooman scare you off.

He will resign soon enough.

The Big instos are the ones who will utimately determine what happens with Sky.

And they will want the capital return and dividend. They will also be wondering why we have zero debt and are trying to fund all projects from operating cashflow.

And they also know that once the divvys return, Sky will double if not triple in value. Especially if they start financing some of the projects through debt which will allow for more generous shareholder payouts.

If they execute the mistaTea Plan all will be forgiven with Bowman. When I am next in the UK I would make a point of looking him up and buying him a beer.

[mistaTea]

Sorry team I am now SKY gone. It has been a wild ride this one and managed to save my self by DCA and the recent SP rise. I am sure something is a cooking but I can no longer it. The final straw for me was the Pooman. He has to go!

https://c.tenor.com/TxxK-usCnQAAAAAC...chosen-one.gif

[LoungeLizzard]

Sorry team I am now SKY gone. It has been a wild ride this one and managed to save my self by DCA and the recent SP rise. I am sure something is a cooking but I can no longer it. The final straw for me was the Pooman. He has to go!

Can't say I blame you. I'm sitting on a modest 20k gain so I can afford to roll with it a bit longer. But if they don't offer something tangible to shareholders by February, I'll be off as well. The property sale must surely be a done deal by then, and what they do with the funds will be the litmus test of whether the Board are confident enough in the business to start paying a return to shareholders (ie the owners of the business), or whether they are just going to keep harping on about investing for the future. As far as I'm concerned, the future is NOW!

[Alpha]

A bit part of this was the opportunity cost of holding. I’ve watched other stocks fly sky high and mean while sky doesn’t. I’ve come out with a profit so that’s what matters to me. I’ve moved it into another asx stock that’s gone up 10%. More risk with that spec stock but a bit like crypto will have big swings. I guess I’m more of a trader now. You all will prob have the last laugh and feb is not far away so I may be back

[nztx]

This hawk has been flying in the thermals higher in Sky for while now

More lucrative multibag pickings elsewhere, while NZX mostly drifts in places lower

There are times when sacrificing a few small scraps biffed out in by Co's in troubled times
can be better option .. chasing a larger trove elsewhere in the distance

[mistaTea]

FY22 EBITDA guidance = $122.5M mid range.

CAPEX will be $55M mid range ($15M stay in business, $15M 'Enhance' initiatives' and $25M 'Growth').

I advocate that the $25M Growth projects (which will be things like Sky Mobile) should be funded through borrowing to maximise shareholder returns.

If so, then only $30M CAPEX need come from Operating cashflow.

$122.5M EBITDA - $30M CAPEX - $20M tax - $30M lease costs = $42.5M FCF.

An 85% payout ratio would be ~$36M ($18M payment every 6 months).

If they have reduced the s/o to 150M after returning proceeds from the property sale to shareholders tax free then this would be a total dividend of 24c/year over two instalments.

24c total dividend at a high yield of 8% would still be ~$3/share.

And Sky would still have ~$40M cash in the bank for a rainy day ($6M left over FCF + $35M cash already in the bank).

I repeat...it really is not rocket science. This is what BlackCrane are waiting to get to.

Revenue and GAAP earnings are expected to grow from FY23...so the payout amount should be sustainable if not grow.

If Bowman and co can give the market more certainty around dividends, and implement one by Feb (after the capital return), start using some debt to finance growth initiatives...and can get the SP well above the $2.50/share offer we would have likely ended on with PE then fantastic. He can hold his head up high again and he will have some very happy shareholders.

Realised I blundered with this earlier post by not including the lease costs under IFRS16.

I was wondering why the cashflow was suddenly higher than my assumptions when I looked at the release of the financials!

Have updated accordingly.

But the point remains - Sky need to reinstate a meaningful dividend to drive up the valuation of the business.

There are only two ways they can do this.

Either they return all capital to shareholders from the campus sale and fund the growth projects with some debt.

Or they retain the $25M for the growth projects from the campus sale and return a smaller amount to shareholders.

I suspect they will pick the latter to keep the balance sheet clean.

So they probably only end up doing a modest share buyback of $25M-$30M maybe. Or a tax free capital return by destroying 25M shares and paying out $1/share.

Either way, it will be the dividend that drives this valuation sky high.

I don’t really like dividends because of tax etc, but Sky has taught me that dividends are critical in NZ. How much underlying cashflow the business continues to generate is not rewarded at all unless a good chunk of it is paid out like regular coupons.

[LaserEyeKiwi]

Sky announces they have retained the rights to the a-league. Not a major critical deal, but personally for me its one of the few reasons I still have SkySport.

[Topagent]

I also have sky for the a-league mainly