Sky reports $157m loss for FY20 after big write-down of assets

Forums › Sky, Neon, Lightbox › Sky reports $157m loss for FY20 after big write-down of assets

Handsomedan

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#275804 10-Sep-2020 09:32

https://www.stuff.co.nz/business/122681735/sky-tv-reports-157-million-annual-loss-after-big-writedown

"Sky Television has reported a loss of $157 million for the year to June 30, after a $178m write-down.

The company’s operating profit before the impairment was $45m.

Sky TV said its revenues were towards the upper end of guidance at $748m, thanks to a 35 per cent increase in streaming revenues.

It had forecast revenues of $730m to $750m."

Not unsurprising.

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old3eyes

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#2561560 10-Sep-2020 09:42

Not at all surprising.

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ockel

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#2561585 10-Sep-2020 10:31

Paid $45m for Rugbypass in August last year. And now recognises that it overpaid by $25m.

Paid $13.5m for Lightbox. Spark must still be laughing at the price. Lightbox contributed $10.5m in revenue for 5 months ($25m pa sounds about right - although it was never disclosed by Spark but 3 years to get to a $25m business using Sparks customer base).

And Lightbox still lost $4m for the 5 month period (suggesting its cost base for that $25m in revenue is $35m). Yep, Spark was paying costs of $35m pa for a $25m business that was ex growth. Sky management must be dummies to pay for that business.

And I'd shudder to think what the financials of Spark Sport are. Notice that despite the RWC there were no disclosures on Spark Sport? Except the increase in content costs deep in the financial reports.....

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MikeB4

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#2561591 10-Sep-2020 10:40

Trading revenues are on target and still healthy at $748 Million. The right down of assets I would suspect is strategic and tax liability targetted. Buying Lightbox picked up subs, rights, App without all the development. @ockel As for call Sky staff dummies that is uncalled for and frankly needlessly insulting. May I enquire what multi-million corporations have you managed?

Here is a crazy notion, lets give peace a chance.

kiwiharry

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#2561634 10-Sep-2020 11:27

MikeB4:

The right down of assets I would suspect is strategic and tax liability targetted.

Assets/business unit held for sale too.

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JPNZ

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#2561646 10-Sep-2020 11:45

$45 million profit for the year is actually pretty good before the writedown for taxation purposes.

Spotted this in the NBR

"The streaming service Sky Sport Now, launched in August 2019 and comprising 12 dedicated HD streamed sport channels delivered double digit growth in May and June, against a backdrop of a substantial uptake in streaming revenue.

Sky’s streaming services combined, boosted by the acquisitions in the year of Lightbox and Neon, brought in 35% more revenue over last year ($59m from $44m last year), essentially doubling over the past two years with a compound average growth rate of 40% since FY18."

In a very tough year for live sport its a surprisingly good result

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ockel

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#2561668 10-Sep-2020 12:27

JPNZ:

$45 million profit for the year is actually pretty good before the writedown for taxation purposes.

Spotted this in the NBR

"The streaming service Sky Sport Now, launched in August 2019 and comprising 12 dedicated HD streamed sport channels delivered double digit growth in May and June, against a backdrop of a substantial uptake in streaming revenue.

Sky’s streaming services combined, boosted by the acquisitions in the year of Lightbox and Neon, brought in 35% more revenue over last year ($59m from $44m last year), essentially doubling over the past two years with a compound average growth rate of 40% since FY18."

In a very tough year for live sport its a surprisingly good result

Back out the $10m in acquired streaming revenue and you have organic streaming revenue increasing from $44m to $49m. Thats a growth rate of 11%.

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loceff13

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#2561746 10-Sep-2020 14:32

No modern set top box until July 2022 possibly.. pretty sad given all the cancelled products so far.

JPNZ

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#2561798 10-Sep-2020 15:58

loceff13:

No modern set top box until July 2022 possibly.. pretty sad given all the cancelled products so far.

More likely 2021, you read that as financial year 2022, which is July 2021.

Also interesting to see they already have staff on a test version of their internet services which is due for release next year too

"A new broadband service was in the offing and currently being extensively researched and trialled in the homes of Sky staff including Stewart. While Sky knew the market contained a lot of competition, it was confident the New Zealand market was “under-powered, under-serviced and over-priced” enough for Sky to make an impact with what it thinks are better speeds and prices."

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JarrodM

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#2561862 10-Sep-2020 18:27

52% of entertainment streaming customers as at 30 June, were from spark customers. Be very interesting to see the numbers at the half year report, after the launch of new neon...

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#2561910 10-Sep-2020 20:57

JarrodM: 52% of entertainment streaming customers as at 30 June, were from spark customers. Be very interesting to see the numbers at the half year report, after the launch of new neon...

I’ve got Neon for couple of months, only because they offered it to me for under $10. I’m canceling Netflix for couple of months and will watch a bit of HBO stuff.

Will cancel after 2 months, so do numbers count when they’re offering over 30% discount. It is a lot better then use to be with Lightbox engine and merged content.

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#2561915 10-Sep-2020 21:21

John Fellet may have left Sky, but his decisions certainly seem (IMO) to have cast a long shadow over the company and its future.

https://thespinoff.co.nz/media/09-04-2019/sky-tv-has-a-wild-new-strategy-stop-doing-things-its-customers-hate/