SKY NETWORK TELEVISION LIMITED (SKT)
Share Price Analysis and Chart

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24/02/2025

1

Buy

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SKY Network Television reported 1H25 EBITDA of NZ$61m, -6% below UBS' estimate, impacted by programming cost timing and one-off restructuring expenses.

UBS analysts have maintained a Buy rating, lowering the price target to NZ$3.25 from NZ$3.35.

FY25, FY26, and FY27 EBITDA estimates have been cut by -4%, -4%, and -3%, respectively, due to higher costs and minimal revenue changes.

Key catalysts include the completion of the satellite migration in April 2025 and an upcoming decision on New Zealand Rugby rights, the broker suggests.

UBS sees the stock as attractively valued at a forward EV/EBITDA of circa 2x but also notes ongoing structural challenges in the pay-TV market.

FORECAST
UBS forecasts a full year FY25 dividend of 20.94 cents and EPS of 17.30 cents.
UBS forecasts a full year FY26 dividend of 27.31 cents and EPS of 40.05 cents.

03/03/2025

2

Overweight

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Jarden notes Sky Network Television's 1H25 subscriber momentum was better than 2H24, which can be a source for potential upside given the ability to put prices up in sport and streaming platforms. The broker is taking a cautious approach for now.

In the 1H25, revenue was down -3% y/y and the network downgraded FY25 EBITDA guidance to NZ$145-152m from NZ$150-170m.

The broker is forecasting flat revenue in FY26 versus FY25, but expects EBITDA to get a boost over FY26-27 on Rugby savings.

Target price cut to NZ$2.95 from NZ$3.09. Overweight retained.

FORECAST
Jarden forecasts a full year FY25 dividend of 19.12 cents and EPS of 28.13 cents.
Jarden forecasts a full year FY26 dividend of 27.31 cents and EPS of 34.96 cents.