It distributes local and overseas content, including sports, to its customers via a digital satellite network. 

It has attracted an optimistic price target from broker Macquarie after already rising 21.10% YTD.

Lets see what the broker had to say about this ASX small-cap stock. 

FY25 result in line with guidance

Last week the company released FY25 results which included: 

• Operating revenue of $755m (-2% on pcp)
• Adj EBITDA of $148.5m (-3% on pcp)
• Adj programming costs $384m (-$7m on pcp)
• Adj NPAT $41.1m (- 16% on pcp) 
• Dividend 22.0s (19.0cps in pcp)

Macquarie's analysis of Sky Network Television shows that FY25 results were in line with guidance, with revenue down 2% due to economic pressures, though growth areas like Sky Sport Now, Broadband, and Advertising contributed positively. 

Despite reduced programming costs and disciplined expense control, earnings declined slightly as growth investments outpaced cost savings, and programming costs were front-loaded due to Olympic and one-off amortisation impacts.

Price target sparks optimism

The broker has placed a price target of NZD $3.56. 

It's important to note that Sky Network Television's primary reporting currency is NZD.

When issuing target prices, analysts usually use the company's base currency for consistency with its financial reporting, earnings, and valuation models.

Based on yesterday's closing price of $3.15 NZD, the price target indicates an upside of 13%. 

In its report, the broker said Sky Network Television is one of the most undervalued stocks on the NZ market, especially if it delivers on its published 3-year plan: revenue CAGR of 1-2% (at risk given weak FY25), a sustainable EBITDA margin of 21-23%, reduce programming costs as a percentage of revenue to 47-49%, and return capex to 7-9% of revenue. 

Macquarie suggested these factors support a doubling of the FY23 dividend of 15cps by FY26, and a further lift in FY27.

We believe SKT is delivering on this strategic plan, with a growth plan that leverages its proven content advantage. While cognisant of the value of the satellite subscribers, SKT's more recent investment in technology and enhanced streaming services, together with refreshed pricing, means that it is becoming increasingly agnostic as to the content delivery platform selected by its subscribers.

The post Macquarie tips 13% upside for this ASX small-cap media stock appeared first on The Motley Fool Australia.

And according to the analysts at Macquarie Group Ltd (ASX: MQG), both Sky's dividends and its share price look well-placed for significant growth.

Shares in the dual-listed, New Zealand-based satellite TV provider closed up 3.64% on Wednesday, ending the day at $2.85 apiece. That sees the Sky share price up an impressive 20% so far in 2025.

As for that passive income, the ASX All Ords stock delivered a total of 18.7 Aussie cents a share in unfranked dividends over the past year.

At Wednesday's closing price, that sees shares trading on a trailing dividend yield of 6.55%.

Now, here's why Macquarie expects Sky to outperform in the year ahead.

Should I buy the ASX All Ords stock today?

As you may be aware, on Tuesday, Sky announced that it had agreed to acquire 100% of the shares in Discovery NZ Limited for NZ$1 on a cash-free, debt-free basis.

The ASX All Ords stock expects the sale to be completed on 1 August.

Sky said the acquisition should deliver revenue diversification and an uplift of around $95 million on an annualised basis.

The company also forecasts "material cost synergies" primarily across its content and broadcasting infrastructure.

Sky said it expects to achieve incremental, underlying free cash flow from FY 2026 and sustainable earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of at least $10 million from FY 2028.

"It positions us to scale faster, accelerates our growth, and further diversifies our revenue streams, particularly in advertising and digital," Sky CEO Sophie Moloney said of the acquisition.

"We are acquiring a business with complementary operations that is a strong strategic fit for Sky, in an accretive way for our shareholders," Moloney added.

Why Macquarie is bullish on Sky shares

Following on the Discovery NZ acquisition announcement, the analysts at Macquarie reiterated their outperform rating for the ASX All Ords stock.

"Despite being inherently wary about acquisitions within the NZ media space (essential due to scale), SKT's acquisition of Discovery NZ makes good strategic and financial sense to us", the broker said.

The broker added:

While Discovery NZ had a limited future as a stand-alone vehicle, its assets, brands and delivery platform are highly complementary to SKT's existing business, provide expanded audience reach and open up considerable advertising (especially digital) revenue opportunities.

Macquarie also highlighted that the structure of the transactions ensures that the acquisition will be free cash flow positive in year one.

As for the passive income on offer from the ASX All Ords stock, Macquarie said:

SKT noted that the 30cps FY26 dividend target was unaffected by the transaction, and the potential for a further (accelerated) increase in EBITDA from FY28 provided support for higher dividend forecasts in the medium term.

Connecting the dots, Macquarie concluded:

SKT has invested in locking in core Entertainment/Sports content and delivery technology. Stabilisation of its core subscriber base while continuing to grow streaming subscribers, would underpin operating leverage, boosting future dividends.

Macquarie has a 12-month target price on Sky shares of NZ$3.56. That represents a potential upside of just over 14% from Wednesday's closing price of NZ$3.12 a share.

Adding in the forecast dividend growth, and this ASX All Ords stock is likely to remain high on the radar for passive income investors.

The post Why Macquarie expects this high-yielding ASX All Ords stock to charge higher AND boost its dividends appeared first on The Motley Fool Australia.

You've come to the right place.

If you're like me, there's nothing like the sound of dividends hitting your bank account on the heels of your ASX stock holdings' half-year and full-year earnings results.

OK.

There is no sound.

But you get what I mean.

Earning passive income from your investments, while also hopefully watching their share prices push higher, beats the heck out of working longer hours.

Just bear in mind that a properly diversified income portfolio should contain more than just three stocks. There's no magic number. But 10 is a decent ballpark, with the companies ideally operating in various sectors and geographic locations. That will reduce the overall risk to your passive income portfolio if one company or sector hits a rough patch.

And remember that the dividend yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific or macroeconomic factors.

With that said, here are three high-yielding ASX dividend shares that I believe also have strong potential to deliver capital gains in the year ahead.

Tapping into ASX dividend stocks for passive income

First up, we have dual-listed, New Zealand-based satellite TV provider Sky Network Television Ltd (ASX: SKT).

Over the past 12 months, Sky Network has paid 18.7 cents a share in unfranked dividends, and its share price has increased 5.0%.

At Friday's closing price of $2.46, Sky Network shares trade on an unfranked trailing dividend yield of 7.6%.

As for the passive income and share price outlook, this week, Macquarie Group Ltd (ASX: MQG) called Sky Network "one of the most undervalued stocks". The broker has an outperform rating on the stock, with expectations of a materially higher share price and dividend payments in the year ahead.

The next ASX dividend stock to consider for market-beating passive income is Woodside Energy Group Ltd (ASX: WDS).

Over the past 12 months, the Aussie oil and gas giant has paid out $1.87 a share in fully franked dividends, and the Woodside share price has fallen 22%.

At Friday's closing price of $21.58 a share, Woodside trades on a fully franked trailing dividend yield of 8.7%.

As for the outlook, Simon Mawhinney, chief investment officer at Allan Gray, said earlier this week that he believes "there's an asymmetric skew to the upside" for Woodside shares. "That's one of the reasons it's our largest investment," he noted.

Which brings us to the third-top ASX dividend stock offering market-beating passive income, WAM Capital Limited (ASX: WAM).

Over the past 12 months, the asset manager has paid out 15.6 cents a share in dividends, franked at 60%. The WAM Capital share price has gained 6% over this time.

At Friday's closing price of $1.57 a share, WAM Capital trades on a partly franked trailing dividend yield of 9.9%.

The post 3 top ASX dividend stocks paying market-beating passive income appeared first on The Motley Fool Australia.

Then you may want to have a look into All Ordinaries Index (ASX: XAO) listed Sky Network Television Ltd (ASX: SKT).

Shares in the dual-listed, New Zealand-based satellite TV provider are up 4.3% on the ASX today, trading for $2.42 apiece.

On the passive income front, the ASX All Ords stock paid out 18.7 Aussie cents a share in unfranked dividends over the past year. At the current share price, that sees Sky Network shares trading on a juicy 7.7% trailing dividend yield. 

But according to the analysts at Macquarie Group Ltd (ASX: MQG), both Sky Network's dividends and its share price are poised for outsized growth. 

Why Macquarie is bullish on this ASX All Ords stock

In a research report released this week, Macquarie labelled Sky Network "one of the most undervalued stocks" on the New Zealand stock market, "especially if it delivers on its published 3-year plan".

That's despite the broker noting that macroeconomic headwinds will likely see the ASX All Ords stock deliver in the low end of its full-year guidance range.

Macquarie believes Sky Network is delivering on its strategic growth plan, which the broker said leverages its proven content advantage.

According to the research report:

While cognisant of the value of the satellite subscribers, SKT's more recent investment in technology and enhanced streaming services, together with refreshed pricing, means that it is becoming increasingly agnostic as to the content delivery platform selected by its subscribers.

On the passive income front, Macquarie said this will support a doubling of the FY 2023 dividend of 15 NZ cents per share by FY 2026, and a further lift in FY 2027. 

The ASX All Ords stock has previously stated it expects to pay an FY 2026 dividend of at least 30 NZ cents per share.

Investors will also want to keep an eye on the upcoming rugby broadcasting rights negotiations. According to Macquarie:

Retention of the valuable rugby rights will be the final plank in the journey. While SKT values the rugby rights, they no longer enjoy the historic must have sacred cow status. Accordingly, we expect SKT to negotiate a commercially prudent outcome, consistent with delivering on the programming cost as a percentage of revenue target of 47-49%.

What's the expectation for the Sky Network share price?

Macquarie has an outperform rating on the ASX All Ords stock.

The broker noted:

Sky Network has invested in locking in core Entertainment/Sports content and delivery technology. Stabilisation of its core subscriber base while continuing to grow streaming subscribers, would underpin operating leverage, boosting future dividends.

Macquarie has a 12-month price target of NZ$3.56 on Sky Network shares, which is 34.3% above the current share price of NZ$2.65 on the New Zealand exchange.

While returns on the ASX won't exactly match this forecast, with factors like foreign exchange rates playing a role here, Aussie investors can expect a similar story to play out.

The post Guess which high-yielding ASX All Ords dividend stock Macquarie expects to surge 34% in a year appeared first on The Motley Fool Australia.

These companies have managed to defy waning consumer sentiment triggered by the rising cost of living.

The higher-for-longer inflation, interest rate hikes, and falling asset prices are major risk factors for the sector.

Small-cap ASX retail shares outperforming the big end of town

This explains why some of our biggest ASX retail shares have slumped by 20% or more in the past year. This includes the JB Hi-Fi Limited (ASX: JBH) share price and Wesfarmers Ltd (ASX: WES) share price.

However, there have been a number of retail gems at the smaller end of the market that have delivered double-digit returns in the past financial year.

I am not talking about illiquid micro-caps, where a single trade can drive their share prices into the stratosphere. These are ASX consumer discretionary shares with a market cap of at least $100 million.

The top-performing ASX retail shares in FY22

What's more, you probably haven't heard of some of these names. And in another blow to our Aussie ego, a few of these are New Zealand businesses listed on the ASX!

The best performing ASX retail share in FY22 is Mydeal.Com Au Ltd (ASX: MYD). The online retailer surged just over 60% over the financial year.

What really helped was Woolworths Group Ltd (ASX: WOW) buying an 80% interest in the company as opposed to operational growth. But a win's a win!

The second top performer for the year is NZME Ltd (ASX: NZM). The Kiwi media and entertainment group managed to deliver a 41% increase in share value.

This will be enough to embarrass its Aussie peers like Nine Entertainment Co Holdings Ltd (ASX: NEC) and Seven West Media Ltd (ASX: SWM). Nine fell 29% while Seven is about flat over the period.

More Kiwis beating the Aussies

But NZME isn't the only New Zealand media share to be shooting the lights out. In third spot is the SKY Network Television Limited (ASX: SKT) share price with its gain of around 32% for the year.

Adding insult to Aussie injury is New Zealand-founded jeweller Michael Hill International Ltd (ASX: MHJ). The ASX retail share jumped around 27% in value thanks to strong sales across all of the company's markets and its ability to hold margins.

Meanwhile, the Supply Network Limited (ASX: SNL) share price isn't far behind with a gain of around 24%. This is no doubt helped by the Australian and New Zealand auto parts retailer issuing a pleasing FY22 sales and profit guidance.

The post Top 5 outperforming ASX retail shares in FY22 that you may not have heard of appeared first on The Motley Fool Australia.

Sky Network shares closed yesterday trading for $2.38 apiece and are currently at $2.23.

The early morning selling comes after the dual-listed, New Zealand-based satellite TV provider confirmed media speculations over a potential acquisition.

What acquisition is in the pipeline?

The Sky Network share price has come under pressure after the company confirmed recent speculation that it is in exclusive negotiations to acquire MediaWorks Holdings Limited's radio and out-of-home advertising business.

Rumours began to circulate when Sky Network last month said it would hold off releasing any additional capital allocation and strategy updates until reporting its full-year financial results in August with an eye on "investment opportunities".

MediaWorks radio networks include Today FM, Mai-FM, The Rock, and The Edge. The company is privately owned by Oaktree Capital Management and Quadrant Private Capital.

Sky Network stated: "The likelihood of a transaction proceeding is still highly uncertain with discussions and due diligence ongoing and incomplete."

The company said that should the acquisition of Mediaworks proceed, it would not need to raise additional equity. However, the deal would need to be approved by an ordinary resolution by shareholders at an extraordinary shareholder meeting.

When it reported its half-year results on 24 February, Sky said it was "assessing opportunities to invest capital to accelerate the growth of the business, generate new revenue streams, and deliver improved returns for shareholders".

Today the company's board said it believes acquiring MediaWorks is in line with that strategy.

Sky Network share price snapshot

Following some difficult years, the Sky Network share price has rebounded over the past 12 months, up 44% despite this morning's retrace. That compares to a 1% full-year loss posted by the All Ordinaries Index (ASX: XAO).

The company has a market cap of $403 million.

The post Sky Network share price tumbles 6% on acquisition news appeared first on The Motley Fool Australia.

Below we take a look at the New Zealand satellite pay-TV provider's guidance update for the 2022 financial year (FY22) that looks to be driving ASX investor interest.

What guidance update was provided for FY22?

The Sky Network share price is heading skywards after the company raised its guidance for FY22. The midpoint guidance for earnings before interest, taxes, depreciation and amortisation (EBITDA) improved by 27% while net profit after tax (NPAT) was raised by 96%.

The improved guidance comes following what Sky labelled a "rigorous cost review and consideration" by its Board.

The review saw operating cost estimates slashed by $35 million, with $9 million of one-off savings and $26 million in recurring savings.

With costs revised down, Sky Network increased its EBITDA guidance from $115–130 million up to $150–160 million. It raised NPAT guidance from the previously announced $17.5­–27.5 million up to $40–48 million.

The Sky Network share price could also be getting a lift from the company's bullish longer-term outlook, with Sky targeting additional recurring savings in FY23 "and beyond" via other transformative initiatives.

The company said that the sale of its Mt Wellington properties was not included in the guidance. While this is progressing, the terms have yet to be finalised.

Commenting on the revised guidance, Sky Network's CEO Sophie Moloney said:

Our firm strategic focus is on growing revenues and reducing operating costs, particularly against the background of the step-up in rights costs to secure the sports and entertainment content that matters to our customers. We've sought to uncover opportunities that are starting to reset Sky's cost base, leveraging the learnings from operating in a Covid-impacted environment as well as challenging the way we operate our business across every area of spend.

Sky Network share price snapshot

The Sky Network share price is up 22% since this time last year, outpacing the 10% gains posted by the All Ordinaries Index (ASX: XAO) during that same period.

Over the past month, Sky Network's shares have gained 5%.

The post Sky Network (ASX:SKT) share price soars 12% on guidance upgrade appeared first on The Motley Fool Australia.

Despite earnings before interest, tax, depreciation, and amortisation (EBITDA) increasing in the latest half-year result, the company's share price has jostled between 15 cents and 17 cents since late February.

Let's take a look at this morning's news.

Try time with NRL and NZRL

In an announcement to the market this morning, Sky Network has landed a partnership with Australia's NRL and New Zealand's NZRL through to the end of 2027.

The agreement will see Sky continue to provide sports fans with every NRL and State of Origin game. Additionally, all NZRL-run matches involving the Kiwis and the Kiwi Ferns will stream via the company's service.

A point of difference from previous agreements is the new digital aspect. According to Sky Network, this deal involves a digital partnership with the NRL and NZRL in a bid to deliver content that is convenient for viewers.

Growing the game

As part of the agreement, Sky Network will work closely with the NRL and NZRL to grow the game of Rugby League in New Zealand.

The focus will be on encouraging the next generation of league watchers and players. This push will span from grassroots to high performance and have an emphasis on the women's game.

Sky Network Chief Executive Sophie Moloney commented on the partnership:

We love Rugby League and so do many New Zealanders. More than 1.1 million New Zealand fans have tuned into the NRL this year already.

In 2020 League lovers and occasional sport fans alike enjoyed 276 matches across NRL, the Kiwis and Kiwi Ferns, State of Origin, the NSW and QLD Cups and the National Premiership Men's and Women's.

Sky Network share price recap

The Sky Network Television share price has been unable to outperform the S&P/ASX 200 Index (ASX: XJO) so far this year.

At the time of writing, the company's share price is up 3.2% year to date. This compares to the benchmark index's return of 11.1% over the same period.

Sky remains in the small cap basket with a market capitalisation of $279 million.

The post Sky Network (ASX:SKT) share price flies following NRL partnership appeared first on The Motley Fool Australia.

The Sky Network share price has been trading flat since mid-March. Shares in the New Zealand broadcasting and streaming company are currently 16 cents apiece.

Let's look closer at this morning's announcement from Sky Network.

New agreement

The new deal between Sky Network and NBCU will give Sky Network customers access to NBCU-owned channels, movies, and series.

It will see big-name channels such as E! and CNBC offered on Sky Network's platforms and free-to-air broadcasting. As well as NBCU's Universal TV ­– a channel dedicated to crime and drama.

Sky Network also stated the deal with NBCU will allow it to deliver "thousands of hours of blockbuster films and hit television series". These include new series such as Young Rock, The Equalizer, and We Are Lady Parts. As well as NBCU feature films Trolls World Tour, The Croods: A New Age, the Bourne franchise, Pitch Perfect, and Back to the Future.

Also included in the deal will be Sky Studios' original productions, although details of their involvement are scarce.

Commentary from management

Sky Network's CEO Sophie Moloney commented on the company's excitement over the agreement's expansion.

With an amazing stream of new blockbuster movies and TV series to come, an incredible collection of popular library content, a brand-new channel for our customers in Universal TV and continued access to E! and CNBC, we're really excited by this deal. Not only does it strengthen the depth and breadth of our offering, but it also secures more of the content that our customers love and value. Having tested the channel concept through our Sky Nation panel, customers are excited to be welcoming Universal TV to Sky.

Sky Network Television share price snapshot

2021 has been a productive year on the ASX for Sky Network.

The broadcaster's share price is up 6.67% year to date. It's also up by 14.29% over the last 12 months.

The company boasts a market capitalisation of around $279 million, with 1.75 billion shares outstanding.

The post The Sky Network (ASX:SKT) share price is on watch after NBCU deal appeared first on The Motley Fool Australia.

At the time of writing, its shares are down by 5.88% at 16 cents.

What's driving the Sky Network share price today?

In today's release, the company reported revenue for the first half of FY21 at $356.9 million. This was 7% lower than the prior corresponding period (pcp). 

Management put that down to the impact of the COVID-19 pandemic, despite Sky Network experiencing strong growth in streaming revenue and the gradual recovery in advertising. 

Despite the slide in revenue, the company increased its earnings before interest, tax, depreciation and amortisation (EBITDA). EBITDA rose 30% from $89.7 to $116 million.

Furthermore, net profit after tax was up 234%, climbing to $39.6 million. The company said permanent cost savings from various initiatives contributed to the strong EBITDA and NPAT results.

This was also reflected in the company's operating expenses, which fell to $242.8 million, 18% lower than the pcp. Notably, the company managed to cut $18 million in permanent savings.

Moreover, Sky Network has grown cash balances on hand to $123m following its capital raise last year. Along with undrawn debt facilities, this enables it to repay the $100m of bonds that mature in March 2021 and provides significant headroom going forward.

Management comments

Sky Network chair Philip Bowman welcomed the report, saying:

We are encouraged with the solid results achieved in the first half. Sky has a unique role to play as the content aggregator which can deliver to all of New Zealand, and [chief executive] Sophie Moloney and her team have a clear focus to maintain performance in the coming months and years.

Outlook 

Looking ahead, the company said it would continue to focus on revenue stabilisation. Sky Network expects organic growth in Neon and Sky Sport Now. With an ongoing recovery in advertising and commercial revenues during the remainder of FY21.

The company also stated it would undertake additional investment in the second half of FY21, primarily for its Sky broadband service ahead of projected revenue growth.

Sky Network also reaffirmed its guidance for FY21 with revenue from $695 to $715 million. EBITDA will increase to between $170 and $182.5 million.

The post The Sky Network (ASX:SKT) share price has slipped 5% today. Here's why appeared first on The Motley Fool Australia.

At market close yesterday, the Sky Network share price finished the day at 14.5 cents.

Sky upgrades guidance

The Sky share price will be in focus this morning after the company provided investors with a positive update.

According to its release, Sky advised that strong trading conditions have continued to run throughout the second-half of FY21. Management noted that it has diligently implemented cost saving measures as well as seen an uptick in satellite and streaming revenues.

As a result, the company upgraded its guidance again for the full year from its November earnings forecast announcement. The company projects revenue for FY21 to be in the vicinity of $695 million to $715 million. This is an increase on the previous $680 million to $710 million in revenue estimated.

In addition, earnings before tax, interest, depreciation and amortisation (EBITDA) is expected to come between $170 million to $182.5 million. On November forecasts, Sky was anticipating EBITDA to be in the range of $140 million to $155 million.

Net profit after tax (NPAT) is assumed to increase around $37.5 million to $45 million. Originally NPAT planned to lay between $20 million to $30 million.

Capital expenditure is expected to remain unchanged at $45 million to $55 million.

As a whole, Sky revealed that the revised guidance includes the proposed sale of its OSB assets to NEP New Zealand. Indeed, the one off transaction cost is sure to bump up the Sky's coffers. Completion of the deal is currently with New Zealand's government agency, Commerce Commission. It's assumed that the sale process will be given the green light in the near future.

The company is scheduled to release its full year results on 23 February, 2021.

Management commentary

Sky Chief Executive, Sophie Moloney, hailed the continued positive momentum, saying:

It is particularly encouraging to see improvements in our satellite customer loyalty alongside further growth in our streaming revenues. Reducing Sky's ongoing operating costs remains in sharp focus while we continue to deliver the content that our customers value in ways that work for them.

How has the Sky share price performed?

The Sky share price has tumbled over the past 12 months, reflecting losses of almost 80% for shareholders.

The company's shares reached a high of 67 cents this time last year, and has treaded lower ever since.

In March, its shares fell to an all time low of 11.5 cents due to COVID-19 disrupting Sky's revenues and outlook.

Based on the current share price, Sky commands a market capitalisation of roughly $257 million.

The post Why the Sky Network (ASX:SKT) share price will be on watch today appeared first on The Motley Fool Australia.

Discovery is a popular American multinational television network that provides viewers with real-life entertainment, including factual and lifestyle shows.

Renewed partnership

According to the announcement, Sky has extended its partnership with Discovery under a multi-year agreement.

Although no exact terms have been released, Sky said customers would be offered a raft of well-known programs. These include Discovery Channel, TLC, Discovery Turbo, Living, Food Network, Animal Planet, and the newly launched channel, Investigation Discovery.

In addition, Video on Demand (VOD) rights will be expanded for Sky Go, Sky On Demand, and Neon. And the Discovery Channel will be included in its starter package to attract new customers.

Furthermore, Sky said Investigation Discovery would debut in New Zealand under the entertainment package in early 2021.

What did management say?

Commenting on the partnership extension, Sky chief executive Sophie Moloney said:

We know our customers love Discovery's premium programming, and we are delighted to continue our 26-year partnership through a renewed deal that responds to our customers' needs and the content landscape in New Zealand.

New Zealanders are spoiled for choice when it comes to content. Our partnerships with the world's leading content creators makes it easy for Sky customers to enjoy the best and broadest range of storytelling; all in one place. We are excited to deepen our offering of Discovery's premium content by welcoming Investigation Discovery to New Zealand in 2021.

About the Sky share price

The Sky share price has fallen dramatically in the past 5 years. After reaching the $6 mark in 2015, the Sky share price is now swapping hands for 16 cents, a 98% wipe out of its prior value. 

The post Why the Sky Network (ASX:SKT) share price is marching higher today appeared first on The Motley Fool Australia.

Let's take a closer look at what happened within the Sky management team.

Executive change

The Sky share price is dropping lower today after its chief executive decided to resign from the company.

Management advised that current Sky chief executive, Mr Martin Stewart, will be departing the company. The reason given was that Mr Stewart wished to return home to Europe and spend more time with family.

Mr Stewart first joined Sky in February 2019, and, according to the company, led the team through a significant turn-around, despite COVID-19 challenges. A reached mutual agreement will allow Mr Stewart to assist in the three-month handover to Sky's current chief commercial officer, Ms Sophie Moloney. The position, effective immediately, will see former head, Mr Stewart, provide support to ensure a smooth transition.

Sky highlighted that Ms Moloney will be the first woman appointed to the position in its history.

With over 20 years' experience in international media, Ms Moloney has held a range of commercial, legal and strategic roles.

Having first joined Sky's United Kingdom commercial legal team in 2003, Ms Moloney subsequently undertook other legal commercial secondment roles thereafter. These positions included executive directorships with companies such as Sky News Arabia, Abu Dhabi Media and OSN.

After spending time in the Middle East within those roles, Ms Moloney returned home to New Zealand in 2018. From there she took up the position of general counsel at Sky New Zealand.

In June 2019, Ms Moloney was promoted to chief legal, people and partnerships officer. And in July 2020, she was appointed chief commercial officer.

Ms Moloney holds a Bachelor of Laws (Hons) from Canterbury University, New Zealand. Furthermore, she is also an executive director of Sky Investment Holdings Ltd.

Management commentary

Sky chair, Mr Phillip Bowman, commented on former chief executive Mr Stewart's achievements. He said:

Since joining Sky in February 2019, Martin has led a successful turnaround and the Board acknowledges his significant contribution.

Despite an exceptionally challenging year in 2020, the business is well positioned to achieve its strategic priorities of strengthening our core satellite business, growing streaming services, delivering broadband services and securing the rights to bring the best of sport and entertainment to our customers.

The Board respects Martin's decision to leave and is pleased we have been able to reach a mutual agreement for him to do so. We thank him for his significant contribution to Sky.

In addition, Mr Bowman went on to speak about the new appointment of Ms Moloney as head of Sky, saying:

Sophie has performed outstandingly in a wide range of commercial, legal and strategic roles and has the unanimous support of the Board of Directors. She brings excellent commercial and strategic thinking, a proven record of developing new business opportunities, strong leadership skills and successful delivery.

Sophie's recent achievements include securing the commercial agreement with Spark to secure Rugby World Cup Rights for pubs and clubs around New Zealand, leading the team that secured New Zealand Rugby and SANZAAR rights, negotiating the new Optus satellite agreement and spearheading Sky's purchase of entertainment streaming service Lightbox.

Sky Network share price summary

The Sky share price has been charging higher since the beginning of August, up almost 30%. Although, when looking at the bigger picture, shareholders would be disappointed. The Sky share price is down a massive 60% over the past 12 months, reflecting weak investor sentiment.

The post Sky Network (ASX:SKT) share price falls following significant board change appeared first on The Motley Fool Australia.

In early morning trade, shares in the television services company are up 6.8% to 15.5 cents. In comparison, the All Ordinaries Index (ASX: XAO) is up 1.1% to 6,617 points.

Upgraded guidance

According to the release, Sky advised it has upgraded its revenue and profit guidance for the remainder of FY21. The reforecasting exercise was based on the positive momentum experienced in the first four months of trading for the new financial year.

Sky's direct satellite customer base has grown for six consecutive months, driven by an improvement in FY21 annualised churn to 12.2%. This is a reduction from the 13% and 15% achieved in FY20 and FY19, respectively.

The company attributes it upturn in results to its customer management process and refocused sales efforts. This led to greater-than-anticipated growth in streaming revenue, particularly from the Neon entertainment platform.

As key metrics have outperformed earlier predictions, Sky increased its revenue guidance range for FY21. The company now calculates revenue to be around $680 million to $710 million, compared to the previous estimate of $660 million to $700 million.

In addition, earnings are expected to benefit from one-off cost savings as a result of the renegotiation of certain contract rights. Sky stated that it's also continuing to exercise careful cost control measures across its operations.

Off the back of the upgraded outlook and tight cost control, earnings before interest, tax, depreciation and amortisation (EBITDA) is also projected to lift. Current estimates put EBITDA for FY21 between $140 million and $155 million, a jump from the $125 million to $140 million declared in September.

Net profit after tax is also forecasted to swell to $20 million to $30 million, almost doubling prior guidance.

What did management say?

Sky chief executive Mr Martin Stewart commented on the strong start to the financial year:

While external economic factors remain challenging and uncertain, our internal performance in managing and serving our satellite customers well has resulted in much lower churn and improved acquisitions, leading to six consecutive months of growth in direct Sky satellite customers. We also continue to see pleasing growth from, and engagement with, our Neon streaming service.

The last few months have reinforced the 'power of our bundle' and our ability to offer a one-stop- shop for all of our customers' entertainment and sport needs. We are looking forward to making life even better for our satellite customers when we add Sky Broadband to the mix in early 2021.

Sky share price summary

Despite today's positive announcement, Sky shareholders would be disappointed with the company's share price performance over the last few years. Reaching as high as $6.27 in 2014, Sky shares can be picked up for now 15.5 cents, representing a massive fall of 97%.

The post Sky Network (ASX:SKT) share price shoots 6% higher on upgraded guidance appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are tumbling lower:

The Myer Holdings Ltd (ASX: MYR) share price has crashed 15.5% lower to 21.5 cents following the release of its full year results. For the 12 months ended 25 July, the department store operator reported a 15.8% decline in sales to $2,519 million. Things were much worse for its earnings, with earnings before interest, tax, depreciation and amortisation (EBITDA) falling 41.6% to $305.3 million.

The Resolute Mining Limited (ASX: RSG) share price is down 7% to 98.5 cents. Investors have been selling the gold miner's shares after it revealed that workers at its Syama operation in Mali have threatened to strike. In light of this planned strike, the company has withdrawn its production and costs guidance for FY 2020.

The SKY Network Television Limited (ASX: SKT) share price has sunk 13% lower to 13.5 cents. This follows the release of its full year results this morning. For the 12 months ended 30 June, Sky reported a 6% decline in revenue to NZ$747.6 million and a loss after tax of NZ$156.8 million. This loss includes a non-cash impairment of goodwill of NZ$177.5 million. Operating profit before the impairment came in at NZ$44.9 million.

The Whispir Ltd (ASX: WSP) share price is down 9% to $3.86. The cloud-based communication platform provider's shares have come under pressure on Thursday after some of its major shareholders sold down their holdings. A total of 20,320,950 shares were sold to new and existing domestic and international investors at a price of $3.81 per share after the market close yesterday. This was a 10% discount to its last close price.

The post Why Myer, Resolute, SKY, & Whispir shares are tumbling lower today appeared first on The Motley Fool Australia.

FY20 results

For the 12 months that ended on 30 June, Sky reported a mixed result although its performance was in line with the upper-end of its guidance range. Revenue declined 6% to NZ$747.6 million but with notable increases in its revenue streaming segment, jumping 35%

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 28% to NZ$164.2 million.

On the company's bottom line, Sky reported a loss after tax of NZ$156.8 million that included a non-cash impairment of goodwill of NZ$177.5 million. Operating profit before the impairment stood at NZ$44.9 million.

Net cash from operating and investing activities came in at NZ$82.7 million. Sky advised that the solid financial position will allow it to navigate through any further COVID-19 uncertainty and deliver on strategy in FY21.

The board determined that no final dividend will be paid as the company intends to reinvest available cash flow during FY21.

COVID-19 response

Sky noted that strong engagement and viewership levels were recorded in its satellite and streaming services during the lockdown period. Access to news, shows, documentaries, movie and e-sports content kept customers informed and entertained.

In addition, the company took proactive steps to minimise its customer 'spin down' from sport packages that proved to be effective. The complimentary upgrades were well received, with only 8% of sport satellite customers downgrading their packages.

The return of premium live sport in May 2020 saw the previously downgraded packages renew their subscriptions in the final five weeks of FY20. As a result, Sky's sport segment saw double digit growth in May and June.

Commercial customers were heavily impacted by COVID-19 restrictions. However, the relaxing of domestic travel restrictions and faster than anticipated return of sport saw a return of normal billing for licenced customers from July.

Outlook

Moving into FY21, Sky provided a guidance of revenue in the range of NZ$660 – NZ$700 million. Furthermore, it anticipates EBITDA will be between NZ$125 – NZ$140 million and a net profit after tax of NZ$10 – NZ$20 million.

Sky announced its intention to enter the broadband market as it sees more customers watching content over broadband. The company is currently trailing its broadband service and is expected to expand to a group of customers before Christmas, followed by a full launch in 2021.

About the Sky share price

The Sky share price has been on a downhill trend for the last 6 years losing up to 98% of its value. Looking at the last 12 months, the Sky share price is up 26% from its 52-week low of 11.5 cents, but is down 74% from this time last year.

The post Sky Network (ASX:SKT) share price plummets 9% on FY20 results appeared first on The Motley Fool Australia.

Four shares that are climbing more than most today are listed below. Here's why they are storming higher:

The ResApp Health Ltd (ASX: RAP) share price is up 5.5% to 28.5 cents following an update on its ResAppDx-EU product. ResAppDx-EU is a software application used by clinicians to diagnose the most common respiratory diseases. This morning the company announced a non-binding memorandum of understanding to integrate ResAppDx-EU into the Coviu browser-based telehealth platform. The Coviu telehealth platform is a spinout from CSIRO's Data61.

The SKY Network Television Limited (ASX: SKT) share price is up 3% to 81 cents. This morning the New Zealand pay TV company confirmed TVNZ as its free-to-air partner for the Tokyo Olympic Games in 2020. Under the partnership, Sky will stream and broadcast all of the Tokyo 2020 action across 12 HD channels and its streaming platforms. TVNZ will have 12 hours of free-to-air coverage throughout each afternoon and evening.

The Telstra Corporation Ltd (ASX: TLS) share price has continued its positive run and is up 3.5% to $3.84. Investors have been buying the telco company's shares after a number of brokers responded positively to its investor update on Wednesday. That update revealed that Telstra is on course to cut its costs by a total of $2.5 billion by FY 2022. It also revealed that it is on track to achieve its FY 2020 earnings guidance. This led to analysts at Goldman Sachs reiterating their conviction buy rating and $4.30 price target on its shares.

The Volpara Health Technologies Ltd (ASX: VHT) share price is up 3% to $1.85. This follows the release of favourable results from an eight-year DENSE breast screening trial published in the New England Journal of Medicine. Volpara's founder and CEO, Dr Ralph Highnam, believes this will draw attention to ways of making breast screening more effective and is a significant milestone for both Volpara and women globally.

The post Why ResApp, SKY Network, Telstra, & Volpara shares are storming higher appeared first on The Motley Fool Australia.

What did Sky announce this morning?

The Sky share price is up 2.55% to $0.81 per share at the time of writing. This comes after the group announced its free-to-air partner for the 2020 Tokyo Olympic Games.

Sky confirmed TVNZ as its broadcasting partner for next year's summer games. Sky will stream and broadcast all of the Tokyo events across its 12 HD channels and streaming platforms.

TVNZ 1 will have 12 hours of free-to-air coverage every afternoon and evening over the course of the games. 

CEO Martin Stewart said Sky is "pleased to now be bringing TVNZ on board" as its free-to-air partner.

The Olympic Games is the latest win for Sky following successful coverage of the Rio 2016 Olympic games.

Tokyo 2020 will run from 24 July to 9 August 2020.

How has the Sky share price reacted?

The Sky share price has been boosted higher by the unveiling of TVNZ as its broadcast partner this morning.

The group's shares have been under pressure in recent days and touched a new 52-week low of $0.75 per share on Monday afternoon.

Today's rebound will be welcomed by shareholders after a difficult week. The Sky share price is well below its $2.30 52-week high set one year ago.

Shareholders have watched the company's shares slip lower throughout the year despite a few landmark deals.

The company's shares jumped higher in October after securing a new deal with New Zealand Rugby which saw the sports organisation take a 5% equity stake in Sky.

What else is happening on the ASX today?

Sky is just one of the many companies surging higher today as the S&P/ASX 200 Index (INDEXASX: XJO) looks set to smash its record high.

The benchmark Aussie index is up 0.31% to 6,872.80 points after closing just shy of its July record yesterday.

The post Sky Network share price races higher on Olympics deal appeared first on The Motley Fool Australia.

What did Sky announce this morning?

Sky announced that it has secured the broadcast rights for the 2022 and 2026 Commonwealth Games. Sky will deliver all Birmingham 2022 events live on multiple Sky Sports channels including Sky Go and Sky Sport Now.

The commitment will also see Sky continue its free-to-air coverage of major international events. Recently, these have included the 2015 Rugby World Cup and the 2016 Rio Olympics.

The New Zealand broadcaster also said it has strengthened its relationship with the New Zealand Olympic Committee (NZOC). Sky hailed the "longstanding" partnership with the NZOC this morning in delivering the event to its viewers. The Sky share price will be one to watch after extending its agreement with the NZOC out to 2026.

The Birmingham 2022 Commonwealth Games will be held from 27 July to 7 August.

How has the Sky share price performed this year?

It's been a tough year for Sky shareholders. The Sky share price has slumped in 2019 with competition from overseas streaming services eating into margins. Sky's subscription revenues and total number of subscribers have also fallen lower throughout FY2019.

The Sky share price is down 55.32% to $0.84 per share prior to this morning's open, which is just slightly higher than its $0.80 per share 52-week low.

As a result, Sky's status as an ASX dividend stock may be misleading, given it currently yields 16.83% per annum. That puts it well above the likes of Alumina Limited (ASX: AWC), but the share price decline is the main contributor.

The morning's announcement could provide a timely boost for Sky shareholders as we head towards the end of the year.

The post Sky share price on watch after Commonweath Games update appeared first on The Motley Fool Australia.

This morning the Sky Network Television Limited (ASX: SKT) (NZX: SKT) share price is up 20% after it announced it has secured rugby union broadcast rights out to 2025 with New Zealand Rugby even offered a 5% equity stake in the broadcaster. 

The market is cheering the deal as if New Zealand Rugby owns a serious financial interest in Sky (around NZ$21 million based on Sky's approximate NZ$425 million market cap) then the two bodies' interests are aligned as to what media organisation has broadcast rights beyond 2025. 

Sky will broadcast the rugby on both its paid subscription premium sports channels and free-to-air New Zealand channel Prime. 

The announcement did not disclose either how much Sky has paid in total to secure the rights, or how much NZ Rugby will effectively pay per share for the 21.8 million shares to be issued as part of the deal.

The deal was potentially agreed with Sky offering the equity stake in lieu of cash that can be freed up for other investments or simply serve to lift the bottom line in FY 2020 and beyond. 

Sky expects to provide updated earnings guidance at its February 2020 interim profit report. 

The stock rocketed this morning, but is still down around 45% over the past year as the business struggles against overseas streaming services that contributed to Sky's subscription revenues and subscribers falling over the year to 30 June 2019. 

This resulted in the company scrapping the dividend that heaped even more pressure on the stock.

In Australia media companies like Nine Entertainment Co Holdings Ltd (ASX: NEC) and News Corp (ASX: NWS) are also investing heavily in digital classifieds and streaming services.

The post Sky Television shares rocket as New Zealand Rugby scores 5% stake appeared first on The Motley Fool Australia.