The Sky Network Television Ltd (ASX: SKT) share price is in focus today after the company posted a strong full-year FY26 result, with underlying revenue rising 9% to $826.1 million and underlying EBITDA climbing 6% to $157 million—at the top end of guidance.
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What did Sky New Zealand report?
- Underlying revenue: $826.1 million, up 9% from FY25
- Underlying EBITDA: $157.0 million, up 6%
- Statutory NPAT: $59.8 million, up 190%; Underlying NPAT: $41.8 million, up 2%
- Final dividend: 17cps (fully imputed), full-year dividend of 32cps, up 45% on FY25
- Normalised free cash flow: $58.9 million, up 60%
- Closing cash balance: $79.1 million, up 144% year-on-year
What else do investors need to know?
Sky completed its integration of Sky Free (formerly Discovery NZ), delivering $8 million in annual synergy benefits, well above initial estimates. Advertising revenue more than doubled to $131.7 million, now making up 16% of total income and highlighting Sky's growing diversification beyond subscriptions.
The board has set its sights on 10% annual dividend growth over the next three years and will switch to quarterly payments from FY27. The company is also considering an on-market share buyback if no better capital deployment opportunities arise following the next interim results.
What did Sky New Zealand management say?
Chief Executive Sophie Moloney commented:
Three years ago, we set ambitious targets reflecting our confidence in Sky and the opportunity ahead. Since then, we have navigated a challenging economic environment while completing two significant projects—the accelerated satellite migration in FY25 and the acquisition and integration of Sky Free in FY26. We finish this period a stronger Sky—larger, more diversified and increasingly digital, with greater audience scale and more opportunities for growth.
What's next for Sky New Zealand?
Looking ahead, Sky expects trading conditions to remain challenging in the first half of FY27 amid economic uncertainty. Nevertheless, it's guiding for FY27 revenue between $825 million and $840 million, and EBITDA of $155 million to $165 million. Dividend guidance is for at least 35cps—continuing its policy of annual increases.
The company is targeting at least $10 million of additional Group EBITDA by FY28 from further business optimisation. Longer term, Sky aims to significantly lift revenue by FY31, including 20–30% from non-subscription sources, while cementing margin expansion and ongoing earnings growth.
Sky New Zealand share price snapshot
Over the past 12 months, the Sky New Zealand shares have declined 1%, slightly trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.
