Sky TV posts profit dip

Sky Network Television today reported a 17.3 per cent drop in net profit for the half year ended December 31.

The pay TV operator posted a net profit of $29.7 million, down from $35.9 million for the same time the previous year.

Sky said the fall in profit was due to additional interest costs from the $500 million of new debt that was raised for the merger of Sky and its parent company Independent Newspapers Ltd last July.

A fully imputed interim dividend of 4 cents per share was declared and will be paid on March 7.

Earnings per share rose to 7.63c, from 7.42 cps. More New Zealanders are tuning in to pay television, with Sky's subscriber count hitting a record high of 640,521, as of yesterday.

Over the six months to December 31 Sky signed up 17,118 new subscribers.

The company's revenue rose to $266.1 million, up 10.8 per cent on the same period last year,

The average monthly revenue per subscriber (ARPU) was up 3 per cent, while advertising revenue rose 21 per cent to $19.8 million.

Sky added two new channels to its basic package over the period, Food TV and Playhouse Disney.

It also bought the rights to Formula One motor racing and the FIA world rally championship.

Other new initiatives included the launch of My Sky in December, which allows subscribers to customise their viewing schedule by recording their favourite shows on a hard drive decoder.

Sky has also entered the free-to-air market, through the purchase of Prime Television's New Zealand business, which was completed on February 8.

Sky paid $30.36 million for Prime NZ, with a view to finding a free-to-air home to broadcast delayed sports coverage.

Shares in Sky last traded yesterday at $6.21, having ranged between $5.55 and $6.49 over the past year.

- NZPA