Sky TV chief executive Sophie Moloney. Photo / Supplied
Sky TV has for the third time upgraded its 2020/21 June year earnings forecasts, due in part to one-off cost savings.
The pay TV operator now expects its net profit to be between $37.5million and $45m, up from a previous forecast of $20m-$30m.
Shares in Sky TV rallied sharply on the news.
The company last year reported a loss after tax of $156.8m, which included a non-cash impairment of goodwill of $177.5m.
Sky TV said today it now expects 2021 revenue to be in the range of $695m-$715m, up from $680m-$710m.
It now expects its earnings before interest, tax, depreciation and amortisation to be between $170m-$182.5m, up from a previous range of $140m-$155m.
Capital expenditure expectations remained unchanged at $45m-$55m.
Sky TV said the upgrade builds on the positive sentiment outlined in its November earnings guidance update.
The increased revenue and profit expectations for 2021 were due to further one-off cost savings, a second half management "reforecast", ongoing cost control and continued improvement in satellite and streaming revenues.
"It is particularly encouraging to see improvements in our satellite customer loyalty alongside further growth in our streaming revenues," chief executive Sophie Moloney said.
"Reducing Sky's ongoing operating costs remains in sharp focus while we continue to deliver the content that our customers value in ways that work for them," she said.
Sky TV's revised guidance includes the impact of the proposed sale of OSB assets to NEP New Zealand Limited, announced last August, and which is currently awaiting Commerce Commission approval.
Timing remained uncertain, but Sky TV was confident it would complete the sale process.
Sky TV is due to report its first half result on February 23.
The company's shares last traded at 17.7c, up 1.7c or 10 per cent from Tuesday's close.
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