Sky TV first half profit $48.71m

Digital broadcaster Sky TV has posted a $48.71 million first half profit, nearly 300 per cent up on its $12.38 million result for the same period a year earlier.


Sky TV said its total revenue for the six months to December 31 increased by 12.6 per cent to $238.72 million compared to the same period last year, with advertising revenue rising by 40 per cent to $16.3 million.


Sky TV will pay a fully imputed dividend of 12.5cps on March 11 with a supplementary dividend of 2.21cps also being paid to non-resident shareholders.The company said its operational costs rose by 3.4 per cent over the period to $126.2 million while earnings before interest and tax (ebitda) were $112.5 million, up $22.5 million.

Sky said it added 11,979 subscribers over the period and churn -- the measure of subscribers who disconnect their service, remained low.

Elsewhere, the company said the cost of its programmes as a percentage of revenue fell to an all time low of 36.5 per cent.

Sky TV said its long-term dividend policy was being considered as part of the merger discussions with Independent Newspapers Ltd.

The company said it had no further comment to make about the merger at present.

Cashed-up media group INL -- the local arm of Rupert Murdoch's media empire -- currently owns 78 per cent of Sky TV.

Under the proposed merger, a new company would acquire both Sky and INL, with shareholders in both companies receiving shares and cash payments for their current holdings.

Sky TV shares closed at $6.45 on Friday, while INL shares closed at $6.00.

- NZPA