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Things-co-nz
Sky TV has reported its results for the year Covid-19 struck.
Sky Television has reported a loss of $ 157 million for the year through June 30, following a write-down of $ 178 million.
The company’s operating profit before the impairment was $ 45 million.
Sky TV said its revenue was toward the upper limit of the $ 748 million guide, thanks to a 35 percent increase in streaming revenue.
He had forecast revenue of $ 730 million to $ 750 million.
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Sky said it had to assess the “fair value” of its intangible assets each time it reported its results, and the downgrade reflected “the continuing uncertainty of the impacts of Covid-19 on the business.
The non-cash impairment was supported by an independent valuation of the business and was made relative to the current share price, he said.
Stuff
Sports coverage in the coming year will be different than what fans are used to, Sky TV CEO Martin Stewart warned.
The company said it had reduced its staff by 18 percent over the course of the year.
Its annual report said the number of staff had fallen from 145 to 992 at the end of June, which is less than a 13 percent drop.
Although the downgrade resulted in a huge loss, there seemed to be some reasons to cheer on Sky’s results.
Sky said it slowed the decline in its satellite subscriber base to 5.5 percent, ending the year with 585,000 subscribers, after a 6.4 percent decline the previous year, and achieved “net growth” in June.
Roughly one in 12 Sky Sports customers downgraded their service when live sports were wiped out by Covid restrictions in April and late May, but more than half of them had restored their service by late June.
The company has updated its guidance for its new financial year and is now forecasting a profit of between $ 10 million and $ 20 million, up from its previous forecast of $ 5 million to $ 15 million, thanks to the return “faster than expected. “of live sports. .
Its revenue guidance for the year through next June has also increased to $ 660 million to $ 700 million, from its previous forecast of $ 610 million to $ 640 million.
Tom Pullar-Strecker / Stuff
Relatively few Sky Sports customers canceled their service during the Covid hiatus, and of those who did, most have returned.
Sky said it expected to start offering broadband to customers next year, after a pre-Christmas trial.
CEO Martin Stewart said he was having conversations with all of his sports partners about the impact of Covid-19.
“There is a real commitment to offering attractive sports competitions for fans.
“It will almost certainly be different than what customers are used to and some of the Covid-19 restrictions mean that we will have to stay flexible, but it also means that there is a great opportunity to try new things and innovate,” he said.
Shares of Sky TV rose 20 percent to 16.6 cents in the days leading up to the result after stalling at around 14 cents during the prior month.
