SKT Sky Network Television Limited.

[mistaTea]

Sky Sport increases by $3/month. Effective from my May Bill. If memory serves, we have around $350K subs that have Sky Sport - so that would be ~$13M a year extra revenue (including GST). If you take out GST it is probably around $11M that should mostly flow through to the bottom line (after taking out tax).

We’re writing to let you know about a change to our Sky Sport pricing, with an increase of $3 per month from 1 May 2022.

The Sky Sport monthly price change to $34.99 will appear on your May bill.Our goal at Sky is to deliver to our customers the sport they love, right across the year. This means we continue to make substantial investments in local and global sport, through event rights fees, production of live games and highlights, team and event sponsorships and partnerships with sport associations.

Every Sky Sport customer contributes to the strength of New Zealand sport through these investments, and your support is greatly appreciated.

As we head into the winter sports season, this investment has ensured sports fans can look forward to more Super Rugby action, as well as the All Blacks and Rugby Championship, the NRL and State of Origin, ANZ Premiership Netball and the Silver Ferns, A-League Football, Supercars, NBL and ANBL basketball, PGA and LPGA. We’re also excited to deliver this year’s FIFA World Cup, the Commonwealth Games, the T20 World Cup and the Premier League which will join our great line-up of global football from August.

And as a Sky Sport customer you can also watch your favourite sport anytime, anywhere, through our Sky Go app, as well as the BeIN Sports Connect and ESPN apps, available at no additional cost.

We look forward to bringing you an incredible year of sport and thank you again for being a Sky Sport customer. You can find out more about this change at www.sky.co.nz/sportpricechange.

Regards,
The Sky Crew

[mistaTea]

Herald article: https://www.nzherald.co.nz/business/...DOYYA7GLZAX7M/

Good move capping the increase at $3/month for now.

Some of the impact of rights cost inflation (the majority coming from sport) has been reduced by the cost saving initatives Sophie has led with guidance from the Foxtel guy. More savings to come too.

Bridging the remaining gap as much as possible with a modest increase to Sky sport is good - after all, how many satellite subs are likely to cancel their sub because sport has increased by 10 cents a day?

It is a modest increase in charges to each customer, however in aggregate will have a very big positive impact to earnings in FY23.

[Rustycage]

Would have preferred mistaTea being named as a director but you can’t always get what you want

Experience in “technology digital innovation” sounds like 10/10 ****ery 😞

Looking forward to June!

[mistaTea]

Would have preferred mistaTea being named as a director but you can’t always get what you want

Experience in “technology digital innovation” sounds like 10/10 ****ery 😞

Looking forward to June!

I am as shocked as you are mate.

By now I would have thought they would have tracked me down and begged me to join the Board…

[mistaTea]

https://www.nbr.co.nz/node/233821

Opinion piece in NBR.

[Balance]

https://www.nbr.co.nz/node/233821

Opinion piece in NBR.

What's the gist of the article?

My view is that it's not if but when M&A with SKT happens.

[mistaTea]

What's the gist of the article?

My view is that it's not if but when M&A with SKT happens.

Speculates on the likely future of Sky TV and in particular the likelihood of a deal with 2D once they have sorted out their merger and are ready to buy something else to gain more scale and something to differentiate their offering.

Also talks about the increased likelihood of someone else potentially coming in to get Sky at a relatively cheap price given the low SP (the vultures the headline refers to):

"As one source points out, private equity can pay a premium of 30% - 50% to take a business private; for Sky that would be $600-$700m, but because of around $140m in cash and no debt situation an interested party would effectively be paying only $460 - $560m, or 63c to 77c for every dollar of revenue Sky creates (based on the low end guidance range of $725m for the 2022 full year).

For a profitable company that has over a million customers and free cash flow in the order of $60m a year, he says it’s a good deal - one that would make sense for the new Vocus/Two Degrees merged entity, as soon as that $1.7b deal is done and dusted. But in the meantime, also an irresistible bargain for vultures, especially those for whom the future is not a driving factor."

[Almost-confused]

Speculates on the likely future of Sky TV and in particular the likelihood of a deal with 2D once they have sorted out their merger and are ready to buy something else to gain more scale and something to differentiate their offering.

Also talks about the increased likelihood of someone else potentially coming in to get Sky at a relatively cheap price given the low SP (the vultures the headline refers to):

"As one source points out, private equity can pay a premium of 30% - 50% to take a business private; for Sky that would be $600-$700m, but because of around $140m in cash and no debt situation an interested party would effectively be paying only $460 - $560m, or 63c to 77c for every dollar of revenue Sky creates (based on the low end guidance range of $725m for the 2022 full year).

For a profitable company that has over a million customers and free cash flow in the order of $60m a year, he says it’s a good deal - one that would make sense for the new Vocus/Two Degrees merged entity, as soon as that $1.7b deal is done and dusted. But in the meantime, also an irresistible bargain for vultures, especially those for whom the future is not a driving factor."

It was a good write up, I thought! Really hammers home the undervalued peice

[Habits]

Did someone press the go button? Forget about red lights, this is all in the green baby

[Balance]

It was a good write up, I thought! Really hammers home the undervalued peice

And the takeover and M&A scenario which will play out - sooner or later.