New Zealand-based multi-channel pay television provider Sky Network Television Limited's (ASX: SKT) subscriber numbers are down, but net profit and free cash flow are up, according to half-year results handed down today.
Sky Network Television Limited reported on the six months to December 31, 2017 today announcing an increase in net profit to NZ$66.7 million from NZ$59.5 million in the previous corresponding period and a jump in free cash flow from NZ$68.4 million to NZ$81.7 million.
While disconnects were low, Sky reports its net subscriber count declined by 37,359 over the period with the failure to attract enough new customers meaning its On Demand business was not well-tested by the market.
Sky CEO John Fellet said the company looked forward to a strong second-half in Australia given that "Pay TV is a seasonal business" with subscriber numbers usually on the up during the winter months.
Sky have done away with the deep discounts it was using to chase marginal subscribers and shut down marginal business FATSO, which accounted for 30% of the subscriber count decline.
Sky will pay an unfranked interim dividend of NZ7.5c per share.
