SKT Sky Network Television Limited.

[mistaTea]

New travel restrictions will have massive impact on Super Rugby, NRL etc now.

Will be interesting to see how this unfolds.

Current market cap is now equal to the low range of the FY20 EBITDA guidance given.

Unreal.

[GR8DAY]

........my take........ subscriptions will skyrocket with self isolation and the general fear of socializing etc. Prospects of a take over at current SP just gone up several notches.

[stoploss]

........my take........ subscriptions will skyrocket with self isolation and the general fear of socializing etc. Prospects of a take over at current SP just gone up several notches.

A lot of sport being cancelled , so maybe they take up Netflix instead ????

[k14]

Does anyone have an idea what the clauses in the rights deals Sky has might say for situations when the sporting event is cancelled? Will Sky still have to pay the sporting org the rights fee if the event doesn't take place? Same for advertisers, will the advertisers still pay Sky the ad fees?

[Sideshow Bob]

A lot of sport being cancelled , so maybe they take up Netflix instead ????

Sky is a pretty unappealing product for me without sport.

Self-isolation comes, could put me into a stupor watching the Living Channel for 2 weeks......

[Beagle]

This "we must win rugby coverage at any price" stratagy and that's the panacea of all our troubles was always a very high risk and poorly conceived one in my opinion.
Its clear the board and the CEO are sports enthusiasts who have no idea that people tune in for many other reasons including movies, CNBC, news e.t.c.

They are the author's of their own demise and while this is a thread I seldom comment on I made the comment several times late last year that this stock is un-investable with the current board and strategy. A substantial number of people couldn't care less about sport but the board has no understanding of this basic fact.

[Entrep]

Sky TV closed at 30.5c (-22%) and is now -57% YTD. SKT now trades with negative equity (market cap of $133m, net debt of c$200m) (Craigs)

[blackcap]

Sky TV closed at 30.5c (-22%) and is now -57% YTD. SKT now trades with negative equity (market cap of $133m, net debt of c$200m) (Craigs)

That negative equity is a bit of a misnomer. Yes their market cap is less than their debt. However when their market cap was higher than debt, from an accounting perspective their NTA was still negative. Their assets are not affected by the SP. It may make it more difficult for them to raise equity should they require it.
If I was an entrepreneur with limitless pockets, I would buy SKY now at these prices, not invest in the business but just take the future cashflows that will well exceed the Market Cap that I had to pay for the business.

[mistaTea]

One thing investing in Sky TV has taught me - I clearly have no idea how low this stock can go.

Just incredible.

Current market Cap is $126.4M - below the low range of forecast adjusted EBITDA for FY20 ($170M - approx $30M Optus lease = $140M).

No doubt there will be some impact on earnings - but how much is far from clear. It looks like NZ Rugby are collaborating with Sky to keep a NZ derby tournament going so fans can still enjoy some live rugby.
Super Rugby will probably be cancelled for 2020, but that is not certain yet. I think I read that they could delay for up to 5 weeks and still be able to finish the season.
The constant barrage of coronavirus stories makes it seem unlikely things will have calmed down enough in 5 weeks. But we shall see.

And the Warriors are staying in Australia so they can strill participarte in the NRL.

Sport subs will be affected I am sure, but it is also reasonable to think that Sky's entertainment offerings will pick up to some degree if people are going to be staying at home more often. Might pick up more NEON subs and lower churn of existing entertainment package customers cancelling their subs. Customers who do decide to suspend their Sport package may spend some savings by picking up other content like SOHO, Rialto etc.

Not all doom and gloom imo, and depending on how it all plays out the earnings guidance provided previously may not change significantly.

[Sideshow Bob]

One thing investing in Sky TV has taught me - I clearly have no idea how low this stock can go.

Just incredible.

Current market Cap is $126.4M - below the low range of forecast adjusted EBITDA for FY20 ($170M - approx $30M Optus lease = $140M).

No doubt there will be some impact on earnings - but how much is far from clear. It looks like NZ Rugby are collaborating with Sky to keep a NZ derby tournament going so fans can still enjoy some live rugby.
Super Rugby will probably be cancelled for 2020, but that is not certain yet. I think I read that they could delay for up to 5 weeks and still be able to finish the season.
The constant barrage of coronavirus stories makes it seem unlikely things will have calmed down enough in 5 weeks. But we shall see.

And the Warriors are staying in Australia so they can strill participarte in the NRL.

Sport subs will be affected I am sure, but it is also reasonable to think that Sky's entertainment offerings will pick up to some degree if people are going to be staying at home more often. Might pick up more NEON subs and lower churn of existing entertainment package customers cancelling their subs. Customers who do decide to suspend their Sport package may spend some savings by picking up other content like SOHO, Rialto etc.

Not all doom and gloom imo, and depending on how it all plays out the earnings guidance provided previously may not change significantly.

Indeed, I have no idea either! It is pretty incredible that holders are looking to get out at this level......presumably many would have bought at anywhere between 1-6 x this price - or possibly even more!!

Just like Spark making Spark Sport free, I think some sort of carrot for subscribers would go along way - like a couple of free movie channels. I bet a few people at Sky are busily looking up contracts and whether they still have to pay while almost all major sports are cancelled and no live games.

Otherwise I'm due to give them a call and cancel sport or similar.