SKT Sky Network Television Limited.

[LaserEyeKiwi]

Sophie: thanks for listening, earnings will be Feb 24th.

Call over.

[Muse]

I'm too lazy to work this out - but what's the implied PE ratio at (say 2.03), when adjusting the ratio for a slightly conservative outcome from the sale of mt albert?

IE
(market cap at 2.03 less conservative sale proceeds)
/
(forecast NPAT plus additional lease expense from leaseback of studio one)

?

[mistaTea]

Alright.

So, who believes this is all part of the peacocking process???

Something brewing here.

There was no real 'need' for an announcement today...given the property sale is still not finalised.

They could have waited until next week once they confirmed the property sale - at that point they could have revealed the additional good news with the guidance review.

I mean, HY results are only 10 weeks away!

So it absolutely makes one question why they have taken this approach.

Great news though in terms of permanent savings, increase to projected FCF etc.

[sb9]

There's a real possibility of settling the property sale well before Christmas me thinks, could well be by next week

[mistaTea]

Takeover...?

Yes...or some other kind of merger or partnership. Impossible to say.

Very good news today regardless...thought I would pop in for a quick hello before I go back under my rock until Feb 24

[winner69]

Jeez that Sophie is a tease

[Arbroath]

I'm too lazy to work this out - but what's the implied PE ratio at (say 2.03), when adjusting the ratio for a slightly conservative outcome from the sale of mt albert?

IE
(market cap at 2.03 less conservative sale proceeds)
/
(forecast NPAT plus additional lease expense from leaseback of studio one)

?

Ex-cash of $25m and sale proceeds of say $40m? the FY22 PE = 6.6x, FY23 might be more like 5-5.5x
Just too cheap now that its becoming clearer they aren't going belly up but are actually transforming etc.

[mistaTea]

Would love to get the updated Mistatea FCF distribution model.

Stop hiding under a rock like a lizard !

FY22 FCF looking to be more in the range of $70M-$80M now.

Assuming no detrimental market conditions in FY23 (i.e. more lockdowns etc) then FCF will increase again as the full annualised savings are realised.

So just from operations Sky will have around $100M (FCF + cash in the bank) or so of cash by the time they report FY results in October 2022.

Then add in the property sale of ~$50M and we are away laughing.

Market cap of $355M looking very low. Plenty of scope for quoted value to increase from here. If they do a buyback and divvy next year it will explode.

[JohnnyTheHorse]

The timing is not entirely unexpected. They announced in their newsletter that a review would be completed early December. So completed Friday, review and approval by board Monday, announcement today. The wording around the property update suggests it is imminent and will happen within the next 1-2 weeks. They could not sit on such material information to announce both at the same time.

I am now adamant that the board has been focused on unlocking the true value of the business before seriously entertaining any takeover offer. The sale of the property is the final step and then it's game on.

[mistaTea]

The timing is not entirely unexpected. They announced in their newsletter that a review would be completed early December. So completed Friday, review and approval by board Monday, announcement today. The wording around the property update suggests it is imminent and will happen within the next 1-2 weeks. They could not sit on such material information to announce both at the same time.

Yes that is a fair point.

Good news today - the business is performing strongly, they are future proofing the business by making it leaner and meaner, only securing rights that really make a difference etc.

Interest in buying Sky still there, so this could also be a response to that. Or maybe not.

Only time will tell.

But regardless of merger/partnership/takeover possibilities...there is a lot for shareholders to be happy about here.