SKY NETWORK TELEVISION ANNUAL RESULTS 2004

Transcription

1 SKY NETWORK TELEVISION ANNUAL RESULTS 2004

2 Subscribers 500, , , , ,000 0 Jun-04 Jun-03 Jun-02 Jun-01 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 Jun-95 Jun-94 Jun-93 Jun-92 Jun-91 Wholesale DBS (Satellite) UHF

3 Subscriber Growth % Change UHF Residential (22.4%) DBS (Satellite) Residential % DBS Wholesale % Commercial % Total Subscribers %

4 Moving Annual Churn Jun-04 Feb-04 Oct-03 Jun-03 Feb-03 Oct-02 Jun-02 Feb-02 Oct-01 Jun-01 Feb-01 Oct-00 Jun-00 Feb-00 Oct-99 Jun-99 Feb-99 Oct-98 Jun-98 32% 30% 28% 26% 24% 22% 20% 18% 16% 14% 12% 10%

5 May Jun Apr Jul Aug Sep Oct Nov Dec Jan Feb Mar 2.50% 2.00% 1.50% 1.00% Monthly Churn

6 2004 Monthly Churn Split 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun DBS (Sa te llite ) UHF

7 Mar May Jun Apr Jul Aug Sep Oct Nov Dec Jan Feb Subscriber Viewer Hours per Day

8 % Share of All NZ TV Viewing Sky s Share of All Television Viewing is Growing. % Share of viewing in all NZ Homes All Sky TV 12 Month Moving Average Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Month Source: Nielsen TV Ratings/TVMap, All New Zealanders 5+

9 % Share of all NZ TV Viewing Sky now attracts more viewing than TV3 in all NZ homes % Share of viewing in all NZ Homes Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec Month Moving Average Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Source: Nielsen TV Ratings/TVMap, All New Zealanders 5+, Rolling 12 month moving average ALLSKY C4 PRIME TV1 TV2 TV3

10 % Change on Base Year Sky s average audience has increased by 36% in the last 12 months at the expense of TVNZ & Canwest % Change in average audience on base year Jul 02 Jun 03 40% 30% 20% 10% 0% -10% -20% -30% -40% Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec Month Moving Average Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Source: Nielsen TV Ratings/TVMap, All New Zealanders 5+, Rolling 12 month moving average ALLSKY C4 PRIME TV1 TV2 TV3

11 Viewer hours generated per subscriber Sport Movies Pass Through Jun-02 Aug-02 Oct-02 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Source: Nielsen/TVMap, 12 month moving average, Digital Subs & Viewer Hours Only, Sport = Sport Subs, Movies = Movie Subs, Pass Through = Digital Subs

12 Monthly Net Gain Comparison 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,000-2,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

13 Total Revenue $450 $400 $350 $NZ millions $300 $250 $200 $150 $236 $262 $300 $345 $391 $441 $100 $50 $ Year End 30 June

14 Total ARPU $55.00 $54.00 $53.00 $52.00 $54.55 $NZ $51.00 $50.00 $49.00 $48.00 $47.00 $50.14 $

15 ARPU $60.00 $50.00 $56.56 $59.35 $61.33 $NZ $40.00 $30.00 $20.00 $41.86 $40.68 $36.94 $42.06 $40.36 $36.09 Satellite UHF Wholesale

16 Big Mac Index 32 BIG MAC's Foxtel Sky NZ Direct TV BSkyB

17 Advertising Revenue $30 $25 $NZ millions $20 $15 $10 $5 $10.7 $11.6 $12.6 $16.5 $19.6 $26.6 $ Year End 30 June

18 Programming Costs % Revenue 52% 50% 48% 46% 44% 47% 50% 48% 42% 40% 44% 43% 40% 38% Year End 30 June

19 EBITDA $200.0 $180.0 $NZ millions $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 $187.2 $150.8 $108.2 $73.7 $74.1 $ Year End 30 June

20 Capital Expenditure $160 $140 $120 $NZ millions $100 $80 $60 $40 $20 $114.7 $103.3 $153.3 $105.9 $86.1 $57.4 $ Year End 30 June (excluding transponders)

21 Net Profit/(Loss) $40.0 $30.0 $20.0 $35.3 $NZ millions $10.0 $0.0 -$10.0 -$20.0 $4.5 -$27.0 -$42.3 -$30.2 $0.7 -$30.0 -$40.0 -$ Year End 30 June

22 Results Summary $NZ million % Change Revenue Operating Expenses % 5.4% EBITDA % Depn & Amort % EBIT Interest Other (2.0) % (20.7%) (180.0%) Net Profit after Tax %

23 Free Cash Flow $NZ million % Change Net Operating Cash Flow % Net Investing Cash Flows (96.0) (52.9) (44.9%) Free Cash Flow %

24 Revenue Analysis $NZ million % Change Residential % Commercial % Sky Watch % Advertising % Installation, programming sales & % other Total Revenue %

25 Expense Analysis $ million % Change Programming % Subscriber Management % Transmission % Selling, General & Administration % Depreciation & Amortisation % Total Operating Expenses %

26 Programming Expense Analysis $ millions %Change Rights % Production % Other % Total %

27 Programming Expense Analysis 2004 NZ$ % US$ % First Half % % Second Half % % Total Rights Cost NZ$ % US$ % First Half % % Second Half % % Total Rights Cost

28 Foreign Currency Hedging Sky s hedging positions at 30 June % hedged for 0-12 months $US 48% hedged for months $US 29% hedged for months $US 94% hedged for 0-12 months $A 69% hedged for months $A 61% hedged for months $A average $US payment rate for opex for year to June 04 = 50.4c In 2004, 1c movement in USD/NZD rate impacts operating costs by NZ$ 2.0 million.

29 Tax Tax Assets of NZ$42.6m not recognised - timing losses carried forward INL offset 33.6 $42.6 Sky to utilise INL offset in 2005, will fund Sky provisional tax payments. Sky will receive imputation credits for payment recognition of INL receipts, will offset tax expense in 2005 DR Bank 33.6 CR Tax Expense 33.6 DR Tax Expense 33.6 CR Bank 33.6

30 Capital Expenditure Analysis $ million % Change Transponder Lease (100%) Subscriber Equipment (29.2%) Digital Expansion % Interactive Applications (71.4%) Right of renewal Other (100%) 21.1% Total Capital Expenditure (45.7%)

31 DBS (Satellite) Decoder Stock Opening decoders 50,224 (including 25,748 broken) Add purchases Less written off Less installed at customer 48,902 (3,083) (68,012) Net movement for the year Closing decoders (22,193) 28,031 (including 11,604 broken)

32 DBS (Satellite) Install Costs $900 $803 $719 $512 $800 $700 $452 $600 $NZ $500 $400 $300 $200 $100 $ Forecast Decoder Material/Labour

33 2004 Key Messages Net profit of $35.3m, a $34.6m improvement Operating cash flow up 34% to $171m Free cash flow improved by $86m to $118m Subscriber numbers up 6.2% to 576,602. ARPU up 5.2% to $54.55, DBS ARPU up 3.3% to $61.33 Churn down 2.9% to 17.1%

34 Subscription DVD Service A web based DVD rental service that ensures customers have the ability to watch unlimited movies each month with no due dates, no late fees and no delivery or return fees. How it works.. Sign up and order films online Receive DVD s by mail free postage Keep DVD s as long as you want no late fees Return DVD s to receive more

35 SKY NETWORK TELEVISION ANNUAL RESULTS 2004