sky network television · 2010. 8. 19. · ‐ commonwealth games ‐oct 2010 – net profit of...
TRANSCRIPT
SKY NETWORK TELEVISIONANNUAL RESULTS 2010
CEO
JOHN FELLET
$549$619
$659 $692$742
2006 2007 2008 2009 2010
Total Revenue
5% 7.2%
Revenue Drivers
High Definition
New Subscribers
FATSO
SKYWATCH
PRIME
Pay Per View
Country 99 TV
Sport Tiers
Movie Tiers
RialtoSKY Sport
The Magazine
Additional OutletsMY SKY
Total Net Gain
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total Net Gain
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
-8.00%
-3.00%
2.00%
7.00%
12.00%
Unemployment GDP (1 Yr lag)
Propensity to Subscribe
1%4%3%
13% 78% 1%
0% 20% 40% 60% 80% 100%
Very likely Fairly likelyNeither likely non unlikely Fairly unlikelyVery unlikely Don't know
Source: Digital Tracker QB9
0.50%
1.00%
1.50%
2.00%
2.50%
Jul
Aug
Sep OctNov
Dec Jan
Feb Mar AprMay Ju
n
2009 2010
Monthly Churn
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Jul
Aug Sep Oct Nov Dec Jan
Feb Mar Apr
May Jun
DBS (Satellite) My Sky
2010 Monthly Churn Split
Subscribers
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
UHF Satellite Wholesale MY SKY
Subscriber Growth
3.0%802.4779.0Total Subscribers
16.4%24.821.3Commercial/Other
6.4%118.4111.3DBS Wholesale
5.7%659.2623.6DBS (Satellite) Residential
(100%)022.8UHF Residential
% Change20102009‘000
8,90019,760 27,764
103,991
189,975
0
25,000
50,000
75,000
100,000
125,000
2006 2007 2008 2009 2010
MY SKY Subscribers
127,703
58,309
73,751
84,770
103,974
0
25,000
50,000
75,000
100,000
125,000
2006 2007 2008 2009 2010
UHF Satellite
Additional Outlets
8,90019,760 27,764 19,989
84,002
19,727
170,248
0
25,000
50,000
75,000
100,000
125,000
2006 2007 2008 2009 2010
MY SKY/ HDi Subscribers
Total ARPU
$58.30
$60.50$62.10
$64.00
$67.61
2006 2007 2008 2009 2010
MY SKY ARPU
$78.02
$84.61
2009 2010
$40
$7
$41
$23
$40
$27
$36
$22
$33
$21
2006 2007 2008 2009 2010Year End 30 June
SKY PRIME
Advertising Revenue
Total Television Market Advertising Revenue
4%
-2%-7%
-10%
-16%-18%
-4%
3%8%
Jun 08 Qtr Sep 08 Qtr Dec 08 Qtr Mar 09 Qtr Jun 09 Qtr Sep 09 Qtr Dec 09 Qtr Mar 10 Qtr Jun 10 Qtr
Programming Costs % Revenue
32%33%
32% 33% 33%
2006 2007 2008 2009 2010
$247.7 $249.4
$266.6$261.0
$287.5
2006 2007 2008 2009 2010
EBITDA
$60.2 $77.9$97.7
$88.1$103.0
2006 2007 2008 2009 2010
Net Profit/(Loss)
CFO
JASON HOLLINGWORTH
Results Summary
(200%)(2.5)2.5Other
88.1
37.7
36.6
164.9
96.1
261.0
431.0
692.0
2009
16.9%103.0Net Profit after Tax
15.4%43.5Tax
(15.3%)31.0Interest
6.1%175.0EBIT
17.1%112.5Depn & Amort
10.2%287.5EBITDA
5.4%454.3Operating Expenses
7.2%741.8Revenue
% Change2010$NZ Million
Revenue Analysis
19.3%16.714.0Other Income
(6.9%)53.757.7Advertising
7.2%741.8692.0Total Revenue
(9.9%)14.616.2Installation
(10.4%)61.969.1Other Subscriptions
11.2%594.9535.0Residential Satellite Subscriptions
%Change20102009$ NZ million
Expense Analysis% Change20102009$million
7.5%566.8527.1Total Operating Expenses
0.0%17.317.3Other administrative
17.1%112.596.1Depreciation and amortisation
6.0%74.570.3Broadcasting and infrastructure
(1.7%)16.917.2Advertising
(6.0%)39.241.7Sales and marketing
10.5%60.254.5Subscriber management
(0.6%)50.450.7Programme operations
9.2%195.8179.3Programme rights
Capital Expenditure Analysis
34.6%17.513.0Other
5.1%139.0132.2Total Capital Expenditure
377.8%4.30.9Building
70.9%14.78.6Studio Upgrade
(6.6%)102.5109.7Subscriber Equipment
%Change20102009$ NZ million
2006 2007 2008 2009 2010
Decoder Material/Labour
DBS (Satellite) Install Costs
$454 $506 $439 $445$463
2009 2010
Decoder Material/Labour
MY SKY Install Costs
$854 $857
Cash Flow Analysis
237
11
58
29
139
2010
16.2%204Operating Cash Flow
1350%2Debt reduction
(375%)(4)Cash inc/(dec)
60
146
2009
(3.3%)Dividend
(4.8%)Capex
$NZ Million
Prime Financials
3.11.7Margin
3.17.6Operations
20.3
12.7
22.0
2009
17.7Program Costs
14.6Rights
20.8Revenue
2010$NZ Million
Foreign Currency Hedging• SKY’s hedging positions at 30 June 2010
• 91% hedged for 0 ‐12 months $US exposures @ .6623• 73% hedged for 13‐24 months $US exposures @ .6842• 10% hedged for 25‐36 months $US exposures @ .6670• 91% hedged for 0 ‐12 months $A exposures @ .8532• 19% hedged for 13‐24 months $A exposures @ .8228• 0% hedged for 25‐36 months $A exposures
• average $US payment rate – for opex for year to June 10 = 65.06c
June 09 = 67.10c
MY SKY HDi
86,246
84,002
HDi
Net Gain
12%17%41%21%84,0029.9%June 09
6%30%29%19%170,24811.4%June 10
%
Upfront
%
HD Ticket
%
Multiroom
%
New
HDi
Subs
%
Churn
(note from MY SKY HDi subscribers only)
CEO
JOHN FELLET
Impact of the OSB Acquisition
6.0Broadcasting & Infrastructure
(0.0)
$m
1.8Interest
6.5Depreciation
‐ 11.3Programming Cost
3.0 Revenue
STRATEGIC ISSUES
•Security•Transition to 3D or Super HD•Rugby World Cup•Extra event coverage
Online Media Platform
Online Media Platform: Homepage
Growth on Media Platforms
Cable and Broadband
Cable-NO and Broadband-
YES
0
10
20
30
40
50
60
70
Jan-08 Jan-09 Jan-10
% of US Cord-Cutting Homes Remains Stable as Cable and Broadband Homes Grow
Online Media Platform
• Phase #1
– Delivery to home or office computer
– Open to SKY Subscribers only
– Stream 3 Sport Channels
– Movies Tier Subscribers will have the ability to view 100 different movie titles which are scheduled on the SKY Movies tier.
– Viewers able to catch up on 10‐20 programmes on each key Basic Channel and Prime
– Rent Movies and Series. 600 choices on launch and 5000 titles within a year
Online Media Platform
• Phase #2
– Delivery to Home or Office computer
– Options for PPV charges to be put on SKY bill
– Open to Non‐SKY Customers
Online Media Platform
• Phase #3
– Selling content electronically
– Delivery to 3rd Party platforms such as XBOX, IPAD, Play Stations and Internet enabled TV’s
Online Media Platform
• Phase #4
– Delivery to the MY SKY Hard drive
SKY Highlights1. Purchasing of the OSB Fleet
2. New Channels
‐ The Travel Channel ‐May 2010
‐ TVNZ Heartland ‐ June 2010
3. SKY Sports
‐ Winter Olympics ‐ Feb 2010
‐ Tua v Cameron PPV ‐ Oct 2009
‐ FIFA World Cup ‐May 2010
‐ SANZAR renewal ‐May 2010
‐ Commonwealth Games ‐ Oct 2010
– Net profit of $103.0m, up 16.9%
– Subscriber numbers up 3% to 802k.
– Just under 200,000 MY SKY Subscribers , up 83%
– ARPU up 5.6% to $67.61, MY SKY ARPU up 8.4% to $84.61
– Churn decreased from 14.0% to 13.9%
2010 Key Messages
DIVIDEND• The SKY Board has declared a fully imputed final dividend of
7.0 cps.
• Record date is 3 September 2010.
• Payment date is 10 September 2010.
• Total dividend for the year is 14.0 cps
SKY NETWORK TELEVISIONANNUAL RESULTS 2010