SKT Sky Network Television Limited.

[RTM]

... positive news trend forming now with more good news to follow soon.
Bugger, shudve listened to gut and topped up on recent lows. Still bargain buying IMHO so will keep buying at these levels. Can't go wrong medium/long-term?

I don’t think so. And I see them returning to paying a dividend at some stage, no rush, and that will further support the share-price. Happy days, not adding, happy with my modest holding @ 13.9c and looking forward to reaching 50c!

[Rawz]

quote " due to further one-off cost savings, a second half management reforecast, ongoing cost control and continued improvement in satellite and streaming revenues."

Also they say "Sky’s revised guidance includes the impact of the proposed sale of OSB assets to NEP NewZealand Limited, announced on 12 August 2020 and currently awaiting CommerceCommission approval."

What is the one off impact to profit? Because revenue growth is nominal.

[Entrep]

Most of it is one-off (OSB).

[JohnnyTheHorse]

Any one-off proceeds from OSB sale would have been included in the November guidance upgrade one would think. Looks like operating efficiencies are significantly increasing margins. The company should however clarify.

[Ogg]

I've been asleep all morning.... What's going on?

[LaserEyeKiwi]

I'm grateful all the ravings from you misanthropes convinced me SKT was undervalued enough to enter a position.

[Rawz]

I've been asleep all morning.... What's going on?

Sky increased their revenue guidance by less than 1%. Booking a big one off gain from sale of OSB assets. Nothing to see here, go back to sleep

[Almost-confused]

Great upgrade!! I think they could comfortably restart dividends from this point. However they maybe saving their pennies for an acquisition...

[mistaTea]

Quoted value still way below what it should rationally be even before the earnings guidance increase.

A low-ball, ultra-conservative EBITDA multiple of 4 should be around $700M (40c/share).

The good news is Sky could comfortably pay a total dividend of 4c/share in FY21 (that would represent a payout of roughly 70% of underlying Owner Earnings).

I would still prefer that money being spent on a buyback at these prices, but The Board may issue a dividend in the hope it pushes the SP up more than a buyback would.

If they are going down the dividend route, they may declare an earlier-than-expected dividend at the HY results (1c-2c per share which would be approx $18M - $35M).

[mistaTea]

Sky increased their revenue guidance by less than 1%. Booking a big one off gain from sale of OSB assets. Nothing to see here, go back to sleep

Actually, they have provided much more revenue certainty.

The top end only increased by $5M, but the low end expectation has increased by $15M.

The earnings increase is in part due to one-off savings but also ongoing OPEX savings. OSB CAPEX savings would have already been baked in before.

Cost control is absolutely critical to Sky’s success as a going concern. The Board and Management have put a huge amount of work into reducing ongoing costs and should be commended for this result (which is far better than anyone, including myself, expected).