SKY TELEVISION INTERIM RESULTS 2015 THE INTERIM POSITION Dec 2013 - PowerPoint PPT Presentation

SKY TELEVISION INTERIM RESULTS 2015

THE INTERIM POSITION Dec 2013 Dec 2014 % Change Residential - Digital 198.6 167.2 (15.8%) Residential - MYSKY 486.3 529.0 8.8 Wholesale 135.4 119.2 (12.0) Commercial & Other 36.9 40.9 10.9 TOTAL SUBSCRIBERS 857.1 856.4 (0.1%) | Page 2

TOTAL DISCONNECTS (WEEKLY FOR THE 6 MONTHS ENDING DECEMBER 14) 3.0 2.5 2.0 2014/15 1.5 2013/14 1.0 Thousands 0.5 0.0 | Page 3

TOTAL NON PAY DISCONNECTS (WEEKLY FOR THE 6 MONTHS ENDING DECEMBER 14) 0.9 0.8 0.7 0.6 0.5 2014/15 2013/14 0.4 0.3 Thousands 0.2 0.1 0.0 | Page 4

TOTAL ACTIVATIONS (WEEKLY FOR THE 6 MONTHS ENDING DECEMBER 14) 3.0 2.5 2.0 2014/15 1.5 2013/14 1.0 Thousands 0.5 0.0 | Page 5

TOTAL NET GAIN (WEEKLY FOR THE 6 MONTHS ENDING DECEMBER 14) 1.0 0.8 0.6 0.4 0.2 2014/15 2013/14 0.0 -0.2 Thousands -0.4 -0.6 -0.8 | Page 6

THE SKY JOURNEY SO FAR UHF Std SKY Wholesale SKY MY SKY Other | Page 7

SKY PREMIUM PRODUCTS 3.0 Millions HD Access Ticket 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 Dec-13 Dec-14 | Page 8

TOTAL ARPU $85.00 $79.43 $80.00 $77.51 $75.78 $75.00 $71.81 $69.45 $70.00 $67.35 $65.00 $63.49 $60.00 $55.00 $50.00 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec-14 | Page 9

ADVERTISING REVENUE 80 Millions 70 71 68 67 67 60 63 58 54 50 40 30 20 38 36 35 10 0 2008 2009 2010 2011 2012 2013 2014 Interim 2015 | Page 10

-20% -15% -10% 10% 15% -5% 0% 5% (YOY QUARTERLY CHANGE) TOTAL TELEVISION ADVERTISING REVENUE 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 Sep 10 Qtr Dec 10 Qtr Mar 11 Qtr Jun 11 Qtr Sep 11 Qtr Dec 11 Qtr Mar 12 Qtr Jun 12 Qtr Sept 12 Qtr Dec 12 Qtr Mar 13 Qtr Jun 13 Qtr Sept 13 Qtr Dec 13 Qtr Mar 14 Qtr Jun 14 Qtr Page 11 Sept 14 Qtr Dec 14 Qtr

REVENUE 1000 Millions 900 909 885 800 843 797 700 742 692 600 659 500 400 300 465 456 443 200 100 0 2008 2009 2010 2011 2012 2013 2014 Interim 2015 | Page 12

PROGRAMING COSTS % REVENUE 33% 32% 33% 33% 32% 32% 32% 32% 31% 30% 28% 26% 24% 22% 20% 2008 2009 2010 2011 2012 2013 2014 Interim 2015 | Page 13

EBITDA Millions 379.0 353.1 336.0 321.7 287.5 266.6 261.0 190.4 192.4 177.5 2008 2009 2010 2011 2012 2013 2014 Interim 2015 | Page 14

NET PROFIT 180 Millions 160 161.4 140 137.2 120 123.7 120.3 100 103.0 97.7 80 88.1 60 92.5 40 82.1 67.4 20 0 2008 2009 2010 2011 2012 2013 2014 Interim 2015 | Page 15

FINANCIAL DETAIL

INTERIM RESULTS SUMMARY 2013 2014 % Change Revenue 456.4 464.5 1.8% Operating Expenses 266.0 272.1 2.3% EBITDA 190.4 192.4 1.1% Depn & Amort 61.8 54.1 (12.5%) EBIT 128.6 138.3 7.6% Interest 14.4 10.0 (30.6%) Tax 32.1 35.8 11.5% NET PROFIT after TAX 82.1 92.5 12.7% | Page 17

REVENUE ANALYSIS 2013 2014 % Change Residential Satellite 371.8 380.9 2.4% subscriptions Other subscriptions 31.7 34.8 9.7% Installation 4.3 3.2 (25.1%) Advertising 37.6 36.1 (3.9%) Other Income 11.0 9.5 (13.8%) TOTAL REVENUE 456.4 464.5 1.8% | Page 18

EXPENSE ANALYSIS 2013 2014 % Change Programming rights 137.7 147.7 7.3% Subscriber management 33.1 33.5 1.2% Sales and marketing 20.4 19.0 (7.1%) Advertising 11.7 10.9 (6.5%) Broadcasting and 44.3 44.9 1.4% infrastructure Depreciation and 61.8 54.1 (12.5%) amortisation Corporate 18.8 16.2 (13.9%) TOTAL EXPENSE 327.8 326.3 (0.5%) | Page 19

CAPITAL EXPENSE ANALYSIS 2013 2014 % Change Install 18.7 14.6 (21.9%) Decoders 9.5 8.2 (13.7%) Land and Building 0.1 6.3 6200% Improvements Broadcasting and 4.1 3.7 9.8% Technology equipment Other 15.2 18.0 18.4% TOTAL CAPITAL 47.6 50.8 6.7% EXPENSE | Page 20

OPERATING CASHFLOW 2013 2014 % Change Operating Cashflow 155.7 148.2 (4.8%) Capex (47.6) (50.8) 6.7% Net debt drawn/(repaid) (45.0) (8.0) (82.2%) Dividends (51.8) (65.5) 26.4% Other (2.2) (2.2) 0.0 NET CASH MOVEMENT 9.1 21.7 138.5% | Page 21

FUNDING PROFILE FACILITY DRAWN MARGIN MATURITY Bank Debt $200m $72m 160bp Jul 2019 Bond - A $200m $200m 65bp Oct 2016 Fixed rate at Bond - B $100m $100m Mar 2021 6.25% | Page 22

FOREIGN CURRENCY HEDGING Fo For USD exposures 92% hedged for 6 months to 30 June 2015 @ 0.8103 82% hedged for June 2016 year @ 0.7852 49% hedged for June 2017 year @ 0.7259 Fo For AU AUD exposures 86% hedged for 6 months to 30 June 2015 @ 0.8727 68% hedged for 30 June 2016 @ 0.9034 1% hedged for 30 June 2017 @ 0.9255 Average $US payment rate for Opex for the 6 months to December 14 @ 0.7929 | Page 23

DIVIDEND The Board has declared a fully imputed final dividend of 15.0 cps ($58.4m) to be paid and a supplementary dividend of 2.6471 to be paid to non-residents. Record date is 10 March 2015. Payment date is 17 March 2015. 2015 2014 2013 2012 2011 2010 2009 2008 Interim 15.0 14.0 12.0 11.0 8.0 7.0 7.0 7.0 Final 15.0 12.0 11.0 10.5 7.0 7.0 7.0 Ordinary 29.0 24.0 22.0 18.5 14.0 14.0 14.0 Total Special 0 0 32.0 25.0 0 0 0 TOTAL 29.0 24.0 54.0 43.5 14.0 14.0 14.0 | Page 24

SKY HIGHLIGHTS

THE SKY JOURNEY SO FAR UHF Std SKY Wholesale SKY MY SKY Other Page 26

SKY’S OFFERING TODAY SKY

SKY’S ECOSYSTEM SKY

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POP-UP POP-UP WANT MORE? POP ON IN To say thanks to our subscribers for being such great customers, we’re offering them more than ever before

GUIDANCE Guidance is to the low end of the range provided October 2014 Guidance $m Revenue 930-940 EBITDA 370-380 Depreciation 105-110 NPAT 170-180 Capex 115-125

SKY TELEVISION INTERIM RESULTS 2015