Sky TV remains on target

Sky Network Television has reported a net profit after tax for the year to June down 19.2 per cent to $60.15 million.

Total revenue was up 11.5 per cent to $548.9 million, the results published today said.

Sky's subscriber base grew by 48,102 subscribers over the previous year, to a new high of 667,270.

Sky chief executive John Fellet said the result was pleasing, particularly as it included $50.4 million of interest costs from the additional $500 million of debt raised as part of the merger of Sky and its major shareholder INL on July 1 2005.

Gains continued across all key areas, including growth in subscriber numbers, and average revenue earned per subscriber, as well as a reduction in operating expenses relative to revenue, Mr Fellet said.

Earnings before interest, tax, depreciation and amortisation (ebitda) increased 12.7 per cent to $247.7 million.

Sky's subscriber base included 492,381 residential digital subscribers (73.8 per cent), 64,927 residential UHF subscribers (9.7 per cent) 97,812 wholesale subscribers (14.7 per cent) and 12,150 (1.8 per cent) commercial and other subscribers.

Sky was now in 42 per cent of New Zealand homes, while churn -- the percentage of subscribers who disconnect their service -- continued to fall, the company said.

Gross churn fell from 15.8 per cent for the June 2005 year to 13.5 per cent in June 2006.

Four new channels were launched during the year, contributing to a 6 per cent increase in Sky's share of television viewing, Sky said.

The Optus D1 satellite, scheduled for launch in September, would initially increase channel capacity by 25 per cent, with the option to add more bandwidth in the future.

The Sky board declared a fully imputed final dividend of 4 cents per share, giving a total dividend for the year of 8c.

That represented a distribution of 52 per cent of Sky's after tax profit.

Sky Television shares closed at $5.57 yesterday, having ranged between $5.40 and $6.70 in the past year.

- NZPA