• Migration to new satellite remains top priority, with some customer disruption
• Programming costs heavily weighted to first half, expected to be flat year-on-year
• Interim dividend of 8.5 cents per share, with guidance unchanged at no less than 21 cents per share

Sky Network Television Limited has released its Interim Results, which reflect the challenging impact of the satellite migration project and prolonged economic headwinds. The results include a number of one-off items (largely non-cash or expected to be cash neutral) that mask a more positive underlying result, with Sky's dividend protected from these one-offs. The migration to a new satellite on an accelerated timeframe has been the main priority in the period and remains the main priority into H2. This has necessitated delaying planned projects, including some revenue-generating initiatives. However, key migration milestones have been achieved, and Sky remains focused on delivering a successful migration this Financial Year, although this is still not without risk. Programming costs are heavily weighted towards the first half, but this situation is expected to reverse in H2 2025, with costs broadly flat year on year by the end of FY25. Reflecting the confidence of the Board and Management in Sky's financial outlook, Sky's Board has declared an Interim Dividend of 8.5 cents per share (fully imputed). Dividend guidance is unchanged at no less than 21 cents per share, and Sky remains confident of progress towards the targeted dividend level of 30 cents per share in FY26. Consistent with previous advice regarding revenue softness, and given the weak economy and the necessary focus on satellite migration, Sky has provided updated guidance which narrows and slightly lowers the previously published FY25 ranges of Revenue, EBITDA and NPAT. Sky's underlying strategy and business model remain sound, with positive trends evident in revenue growth engines of Streaming, Advertising and Broadband.

Revenue guidance is between $755 to $765 million, EBITDA guidance is between $145m to $152.5 million, and NPAT guidance is between $35 to $42.5 million. Guidance excludes one-offs associated with satellite migration, accelerated amortisation and transformation initiatives.

Sky's multi-product, multi-platform strategy remains a key competitive advantage, providing customers with choice in the way they engage with Sky's unrivalled content. At the same time, notwithstanding the costs to serve, Sky's substantial, high value customer base is compelling for content partners and advertisers. Against the focus of resources on the successful delivery of Project Migrate in H2, and with economic conditions expected to remain challenging in the near term, Sky has reviewed its full year 2025 guidance.