Insights

The Sky Network (ASX:SKT) share price has slipped 5% today. Here’s why

The Sky Network (ASX: SKT) share price has dropped 5.88% today as the company announced its half-year results. We take a closer look.
The post The Sky Network (ASX:SKT) share price has slipped 5% today. Here’s why appeared first on The Motley Fool Australia. –

A businessman holds his glasses in concern, indicating uncertainly in the ASX share price

The Sky Network Television Limited (ASX: SKT) share price is trading lower today after the company announced its half-yearly report.

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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!