SKT Sky Network Television Limited.

[mistaTea]

NZME release digital strategy: https://www.nzx.com/announcements/383041

They have declared a 3c divvy for the HY which is ~$6M.

Their dividend guidance (take note Sky! You can actually provide guidance on these things!) is a total of $8M-$14M. I think they will probably end up doing another 3c divvy at the FY, taking the total divvy to around $12M.

Anyway, NZME (a business that is much smaller than Sky in terms of Earning Power) now has a market cap of $263M - only $53M less than Sky TV!!

Why would this be? Well they are generating tangible returns for their shareholders after paying down debt and investing in their paltforms. Investors have confidence in the management and Board to the extent that the quoted value of NZME is based on a 3.133% yield.

3.133% of 263M is ~$8M! So the market is being conservative with NZME and have valued it on the assumption it meets the lower end of dividend guidance! And it still has a healthy market cap relative to Sky.

That being the case, if Sky gave guidance to only pay $20M in total dividends next year that should push the market cap over $600M while still retaining loads of cash for Sky to do other things.

[mistaTea]

They know how to make a presentation look good, with Rocket ships and shet!!

All I know is that the SP for NZME is up 53% since they declared a dividend. And that 53% increase is based on the lower end guidance of total divvy.

If the same happened for Sky our SP would be $485M ($2.77/share).

And we can't even entertain the possibility of merging with a business like NZME while our shares are valued so low. As it stands currently a merger would be a great deal for NZME shareholders but a terrible deal for Sky shareholders.

Let us hope Pooman and the rest of the Board are watching closely and learning how it is done.

[RTM]

Take a look at the Turners thread and consider where they were a couple of years ago.
That is what SKY need to do. Get some runs on the board.
And then the shareprice should look after itself.
Eventually.

[mistaTea]

You should sell your Sky shares and buy Foxtel bro!!

Foxtel is innovative and moving quickly to address the changes in the market place.

Sky NZ is slow!!!

Foxtel announces launch of FoxTest

https://www.adnews.com.au/news/media...xperimentation

https://www.mediaweek.com.au/foxtel-...tion-platform/

“They are doing a great job moving from a subscription to streaming model.

“Positioning themselves as a house of brands and transforming to a streaming company, Foxtel is moving away from legacy perceptions and priming for success.

“The upcoming innovations in Foxtel’s ad deployment capabilities are interesting, with potential new formats, and ease of cross platform buying and campaign delivery. Advertisers will welcome these developments and the $3m commitment to campaign effectiveness and innovation via Foxtest will improve trial of their platform, and lead to some strong innovation outcomes.”

“It’s clear Foxtel is going through a period of rapid change. They have worked very hard to strike a balance between audience needs and advertiser needs, and it shows.
“Their key strength is they are one of the few dual revenue businesses (advertising and subscription revenue) and that means they can be nimble and flexible.

“Foxtel focused on the transformation their business is undergoing; from a subscription TV business to subscription streaming video business. It’s a unique proposition with a future-focussed ambition to serve every ad digitally and drive innovation.

“At the core of this is building a business that is customer focused and IP led, with a clear ambition of becoming Australia’s most dynamic streaming company. To achieve this, Foxtel believes it needs to move away from being a single group TV brand to become an offering of genre lead streaming services.

Yeah well Sky are doing most of that, we are just a year behind them. So I look forward to the 6x EBITDA multiple in 2022!

[mistaTea]

I reckon the best play is for Foxtel and Sky to merge but also for Vocus/2 Degrees to take a 20% stake in the new merged business!!!

You would then have Telstra as the telco in Aussie and then Vocus/2 Degrees as the NZ telco.

This would form a strong Tran-Tasman entity with large capital behind it to invest in sporting deals and secure overseas content.

Many options!

All up from here baby!

Sit tight.

[mistaTea]

You should buy some Threat Protect bro! Can get in at .004 now. That's lower than PK average!!!

But I am still High on Sky mate.

[Meh]

I'm losing any hope in this share... Starting to think we should put a puppy in charge? Imagine the positive press and maybe share gains from the attention! At least puppies are loyal and can't fly off to the UK! If it gets called a dog, it might as well truely identify as one.

[mistaTea]

Just got an email saying they are introducing Sky Rewards to start treating their loyal customers.

Will give options like free channels, free MySky and also sports and entertainment experiences.

Good move.

[winner69]

Mistatea …you are needed over on the MHJ thread …what’s the profile of Railto watchers

[mistaTea]

Jimdog and I were chatting the other day, and one of the things we discussed was the aggressive discounting Sky does to reduce churn.

This has always been an issue for Sky since forever...they did stop the practice for a while under John Fellet because it just upset loyal customers who don't complain, while only retaining marginal customers for a little longer.

Anyway, I think the new Sky Rewards is a great way forward for Sky.

https://www.sky.co.nz/skyrewards

If they get the rewards right (the longer you stay, the larger the rewards) then they won't need to offer big discounts anymore to those who call to cancel their sub.

I have just come up 6 months with my STB sub, so should start being offered loyalty rewards soon.