SKT Sky Network Television Limited.

[mistaTea]

If this one stays under 14 - I may pick up some more this week. Must be one of the most undervalued, unloved stocks around. The sentiment is the danger but watching other companies have big uptakes against weak results emboldens me to pick up some more.

Remember SKYTV is generating some big cash every month unlike others & the some insiders bought @15c a few months back.
https://simplywall.st/stocks/nz/medi...zseskt-shares/

Even without a take over, SKY is going to around for awhile; they are still going to be generating some cash in a market that is in and out of lockdown & they have no debt with the money to pay their bond in full 2022 with a 200m untouched debt facility.

Agreed. SKT is still producing underlying ‘owner earnings’ in the region of 3.5-4.5 cents per share, has no debt and the ability to borrow up to $200M for future investments which sounds pretty good to me.

And there is no way the banks would have agreed to lend Sky $200M if they thought thought it was all doom and gloom for the business (like Mr Market does).

[dompf]

Agreed. SKT is still producing underlying ‘owner earnings’ in the region of 3.5-4.5 cents per share, has no debt and the ability to borrow up to $200M for future investments which sounds pretty good to me.

And there is no way the banks would have agreed to lend Sky $200M if they thought thought it was all doom and gloom for the business (like Mr Market does).

There are key indicators for the results which have already been advised they are meeting expectation, one is the uptake of subscribers with the goal being 1mil by 2021 - streaming numbers will be of particularly interesting for uptake with both their sports platforms & core content and Neon.

SKYTV revenue is set to remain strong despite a smaller satellite base - my opinion is Satellite has a need in NZ market and will do for still some time to come, but the streaming services are more of interest to me for their future. BUT the point remains for companies in todays environment to have strong revenue is a good spot to be in.

Retail isn't that invested in this stock, management have never invested in SKYTV only until recently albeit small. Given sentiment so low from the public, its basically owned by a group of institutional investors; who knows how it will play out. But as i said above I dont think its going anywhere in NZ; @240mil market cap - without takeover surely the only way is off the dance floor and up.

*bond up next year 2021 100m (which they already have in their accounts with cash to pay - made error above that it is 2022, its 2021 March).

[mistaTea]

Yes satellite will be a big presence for some time to come.

The first step in Sky’s broadband plans is to market to the “hundreds of thousands” of their satellite customers that have fibre available but have not yet connected to it.

In other words, there are currently hundreds of thousands of existing satellite subs that have not fully embraced streaming and are unlikely to ditch their satellite subs any time soon.

That should give investors comfort - even though satellite subs will continue to decrease, Sky will continue to generate healthy revenues from satellite for the foreseeable future while evolving to streaming.

And the new OPTUS deal gives us much more opportunity to manage satellite costs as demand changes (reduces) over time.

[dompf]

Yes satellite will be a big presence for some time to come.

The first step in Sky’s broadband plans is to market to the “hundreds of thousands” of their satellite customers that have fibre available but have not yet connected to it.

In other words, there are currently hundreds of thousands of existing satellite subs that have not fully embraced streaming and are unlikely to ditch their satellite subs any time soon.

That should give investors comfort - even though satellite subs will continue to decrease, Sky will continue to generate healthy revenues from satellite for the foreseeable future while evolving to streaming.

And the new OPTUS deal gives us much more opportunity to manage satellite costs as demand changes (reduces) over time.

It will be of interest to see what Martin Stewart has done to reduce costs for some of their current contracts as well - I do remember a few months ago an interview where he was advising he is working with them to reduce programming costs around sport that can't be broadcast because of Covid,

I don't find it interesting for the cost saving as the company will make money anyway, i would find it interesting to see how successful he has been doing it.

I guess all will be revealed in 11 days. I look forward to both Ogg and your posts mistaTea. Perhaps once all the shenanigans have happened and are behind us; we all meet up for a celebratory beer or a sad one. Hopefully the former

[mistaTea]

It will be of interest to see what Martin Stewart has done to reduce costs for some of their current contracts as well - I do remember a few months ago an interview where he was advising he is working with them to reduce programming costs around sport that can't be broadcast because of Covid,

I don't find it interesting for the cost saving as the company will make money anyway, i would find it interesting to see how successful he has been doing it.

I guess all will be revealed in 11 days. I look forward to both Ogg and your posts mistaTea. Perhaps once all the shenanigans have happened and are behind us; we all meet up for a celebratory beer or a sad one. Hopefully the former

My preference is that he did not secure the maximum reduction possible in sporting content costs...

But rather took a smaller reduction than the contracts allow for...but gained an ‘agreement’ that Sky is very much in the drivers seat for the next round of negotiations. Maybe not explicitly, but in this climate relationships are more important than ever - we look after you, and when the time comes we trust you will remember what fantastic partners we are...

Cost control full stop is going to be key moving forward. Martin has been spending a lot of our money on the new streaming platforms (including the purchase of RP), and I support him on that...but now that the foundations have been set down...controlling all costs is going to be a tricky balance. I have met the man, and I do think he is up to the job.

[dompf]

My preference is that he did not secure the maximum reduction possible in sporting content costs...

But rather took a smaller reduction than the contracts allow for...but gained an ‘agreement’ that Sky is very much in the drivers seat for the next round of negotiations. Maybe not explicitly, but in this climate relationships are more important than ever - we look after you, and when the time comes we trust you will remember what fantastic partners we are...

Cost control full stop is going to be key moving forward. Martin has been spending a lot of our money on the new streaming platforms (including the purchase of RP), and I support him on that...but now that the foundations have been set down...controlling all costs is going to be a tricky balance. I have met the man, and I do think he is up to the job.

You hit the nail on the head a few comments ago, which I didn't realise until now.

They secured their 200m facility without much fanfare on not only an arrangement but a more preferential one for Sky.

At the time I didnt take much gumption on this, but the bank that gave them this facility has already done the work for investors.

GL all, guess im scooping up a few more.

[mistaTea]

You hit the nail on the head a few comments ago, which I didn't realise until now.

They secured their 200m facility without much fanfare on not only an arrangement but a more preferential one for Sky.

At the time I didnt take much gumption on this, but the bank that gave them this facility has already done the work for investors.

GL all, guess im scooping up a few more.

Yep, the $200M facility is very close to Sky’s current market cap.

No way is the bank lending $200M to a company if they agreed with Mr Market that the business is only worth ~$240M today and probably zilch in the next few years as NETFLIX and Spark Sport conquer all...

[dompf]

Yep, the $200M facility is very close to Sky’s current market cap.

No way is the bank lending $200M to a company if they agreed with Mr Market that the business is only worth ~$240M today and probably zilch in the next few years as NETFLIX and Spark Sport conquer all...

I doubt it’s one bank it would be a few that did full due diligence. For lines over a certain size the banks get together and banks don’t like losing money.

[mistaTea]

I doubt it’s one bank it would be a few that did full due diligence. For lines over a certain size the banks get together and banks don’t like losing money.

Yes it is definitely a group of banks.

Sky would have had to present a Business Case to the the syndicate...they would have had to give all of their financials as well as earnings projections (based on various scenarios, including 'worst case').

And the syndicate of banks would have had to believe the projections to be realistic, and that their downside is minimal.

The bankers are not idiots - so yeah, it is a big vote of confidence in Sky. Not that the market has picked up on it.

[Dlownz]

Yes it is definitely a group of banks.

Sky would have had to present a Business Case to the the syndicate...they would have had to give all of their financials as well as earnings projections (based on various scenarios, including 'worst case').

And the syndicate of banks would have had to believe the projections to be realistic, and that their downside is minimal.

The bankers are not idiots - so yeah, it is a big vote of confidence in Sky. Not that the market has picked up on it.

Shhhh. The sharesies Facebook users might be listening and realise they are missing out on a good thing. Rather than those companies not making anything cough cbd cough bgi
Lol