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

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23/07/2025

1

Outperform

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Macquarie notes the acquisition of 100% of Discovery NZ for $1 on a cash-free and debt-free basis by SKY Network Television with settlement expected on August 1.

The analyst expects the acquisition will diversify revenue with an incremental increase of around NZ$95m per annum and earnings (EBITDA) of $10m for FY28.

There will also be a rise in linear television advertising revenue share to around 35% from 25%.

Outperform retained. Target set at NZ$3.56.

FORECAST
Macquarie forecasts a full year FY25 dividend of 19.18 cents and EPS of 25.48 cents.
Macquarie forecasts a full year FY26 dividend of 27.39 cents and EPS of 33.33 cents.

24/07/2025

2

Overweight

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Jarden likes SKY Network Television's acquisition of Discovery NZ for -NZ$1 with around -NZ$10m in transaction and integration costs, and the timing of the deal at a low point in the advertising cycle infers value accretion will be easier to generate.

The analyst notes Discovery has already downsized the workforce, shut down news and limited content creation.

Commentary suggests cost synergy benefits should deliver at least NZ$10m in sustainable earnings before interest and tax by FY28.

Target price lifted to NZ$3.15 from NZ$2.95. Overweight retained. No change to the broker's EPS estimates.

FORECAST
Jarden forecasts a full year FY25 dividend of 19.18 cents and EPS of 28.22 cents.
Jarden forecasts a full year FY26 dividend of 27.39 cents and EPS of 35.06 cents.