• Revenue of $755.1 million, down 1.5%
• EBITDA of $148.5 million, down 3%
• FY25 dividend of 22 cents per share, up 15.8%

Sky Network Television Limited (Sky) has today released Full Year Results with all metrics within the revised Market Guidance ranges provided in February this year and with a 15.8% increase to the fully imputed FY25 dividend. Delivered in the context of a challenging economic environment and a complex satellite migration, along with the completion of a number of important projects including the necessary preparation to successfully acquire Discovery NZ, this is a solid result. Key points include revenue of $755.1 million (down 1.5%), EBITDA of $148.5 million (down 3%), and Sky's free cash flow funded FY25 dividend of 22 cents per share (fully imputed), representing a year-on-year increase of 15.8%. The results were achieved despite the backdrop of satellite migration challenges and continued pressure on household wallets. Sky has made good progress against its three-year targets, with capex intensity and employee engagement targets already consistent with FY26 ambition, though revenue and EBITDA margin remain challenging. The company has also secured a new five-year partnership with New Zealand Rugby. Sky remains in a healthy fiscal position, with ongoing sustainable free cash flow generation, $32 million of cash on hand, and a strong balance sheet. The acquisition of Discovery NZ is expected to deliver positive proforma underlying free cash flow in FY26, with potential for at least $10m p.a. of incremental EBITDA on a Group basis by FY28.

Sky has provided 'stand-alone' Sky-only guidance for FY26, reflecting expectations that economic conditions will remain challenging. This guidance includes revenue of $745 to $770 million, EBITDA of $142 to $162 million, and capex of $60 to $70 million. Sky will no longer provide guidance on net profit after tax.

Sky expects economic conditions to remain challenging in the near term. While FY26 includes a six-month impact from the new NZR deal, the first year reduction will be more muted as a portion of the final payments under the existing deal flow through to FY26. Sky will continue to be disciplined in cost management, but will reinvest in marketing, customer experience and people after a challenging FY25 to lay the groundwork for acceleration from FY27.