Slides
Page 1
© SKY 2021 Sky Network Television 28 August 2026 FY26 Results Presentation For the year ended 30 June 2026
Page 2
Agenda ‣ Results highlights ‣ Financial and operational performance ‣ Outlook, guidance and capital management ‣ Looking ahead ‣ Questions
Page 3
© SKY 2021 Page 3Results Presentation For the year ended 30 June 2026 Result Highlights A year of strategic wins and strong financial performance Strong financial performance achieved in a difficult market delivers EBITDA1 growth Strengthened Sports portfolio with key sports locked in through expanded, longer term deals. Refreshed entertainment strategy and content agreements enabling flexible, audience-focused decisions Strategically significant acquisition of Sky Free. Successful completion of stage one integration creating an operationally and culturally unified business. Delivered $8.0m of synergies across the Group and was cashflow positive for the year Strong cash generation from operations underpin increased final dividend of 17 cps, bringing fully imputed dividends for the year to 32 cps Healthy cash balance, including one-off benefits accruing from the acquisition, and confidence in Sky’s ongoing cash generation profile enable targeted dividend growth of 10% p.a. for FY27 to FY29 and introduction of quarterly dividend payments from FY27. 1.EBITDA is a non-GAAP measure. Information is presented on an underlying basis. Information on unadjusted numbers is available on page 33 and a table of adjustments is available on page 34.
Page 4
© SKY 2021 Page 4 • Revenue1 up 9%, driven by contribution from Sky Free and continued growth in Broadband and Streaming • EBITDA1 up 6% and towards the upper end of guidance, supported by revenue growth and reduction in combined programming spend across the Group • Statutory NPAT1 includes the one off impact of a Gain on bargain purchase and Optus compensation • Capital Expenditure1 was 9% lower, returning to a more normal level • Free cash flow1 grew significantly through improved operating cash flows including favourable working capital and lower capex • Dividend up 45%, to 32 cps (fully imputed), above guidance and the target set in FY23 Financial Highlights Strong results delivered by a match fit team 1. Where indicated, FY25 and FY26 numbers are shown on an underlying basis to allow a like for like comparison of underlying performance. Information on statutory numbers is available on page 33 and a table of adjustments is available on page 34. $826.1m +9% UNDERLYING REVENUE1 FY26 Sky Standalone: $748.9m (1%) FY25: $755.1m $59.8m +190% STATUTORY NPAT FY25: $20.6m FY26 Underlying NPAT1: $41.8m +2% FY25 Underlying NPAT1: $41.1m $59.1m (9%) UNDERLYING CAPEX1 FY25: $65.2m $157.0m +6% UNDERLYING EBITDA1 FY25: $148.5m $58.9m +60% NORMALISED FREE CASH FLOW FY25: $36.7m 32cps +45% DIVIDEND FY25: 22cps Results Presentation For the year ended 30 June 2026
Page 5
© SKY 2021 Page 5Results Presentation For the year ended 30 June 2026 Three-year targets largely achieved Proven ability to drive margin despite challenging economy 1. Revenue, programming costs, margin and capex outcomes are shown on an underlying Sky Standalone basis to the extent possible following the integration of Sky Free. Refer to page 34 for adjustment details. 2. FY24 and FY25 ratios are restated due to advertising revenue share cost reclassification to Programming from Advertising (refer to page 35 for details). FY26 Target Year 3 FY26 1 Year 2 FY25 1 Year 1 FY24 3-Year status Comments Revenue Growth2 1-2% pa - 3 . 1 % -0.8% -1.5% +1.6% Not yet where we planned on a stand alone basis Programming Costs to Revenue %2 47% - 49% - 0 . 2 % 47.3% 51.2%2 51.4%2 Delivered EBITDA Margin2 21% - 23% - 0 . 3 % 21%-22% 19.7% 20.0% Delivered Capex to Revenue % 7% - 9% - 2 . 2 % 7.5% 8.6% 10.2% Delivered Employee Engagement +14 pts + x p t s +22pts +17pts +12 pts Exceeded our own expectations Customer NPS +19 pts + x p t s +11pts +7 pts +6 pts We’re not done yet Double the FY23 Dividend 30 cps + x x % 32.0 22 cps 19 cps Delivered
Page 6
© SKY 2024P 6 Financial and operational performance
Page 7
© SKY 2021 Page 7Results Presentation For the year ended 30 June 2026 148.5 71.0 -1.5 -7.9 -5.6 -26.4 -17.1 -3.9 157.0 FY25 Revenue Other Income Programming Subscriber Related Broadcasting & Infrastructure Advertising Other FY26 Key Drivers of EBITDA1 improvement 6% increase in underlying EBITDA driven by revenue uplift and focus on costs • Growth in underlying EBITDA of 6% reflects: - Incremental revenue contribution from Sky Free in the first 11-months of ownership - Significantly reduced Programming costs for Sky Standalone and largely offset content cost additions for Sky Free - Increased revenue has been partially offset by costs related to Sky Free and costs associated with the growth in Broadband customers 1.EBITDA is a non-GAAP measure. Information is presented on an underlying basis. Statutory numbers are available on page 33 and a table of adjustments is available on page 34 . 2. Revenue share costs have been reclassified from Advertising to Programming to better reflect the underlying nature of the arrangements (FY25 impact $2.6m). Additional information is available on page 35. EBITDA1 MOVEMENTS (UNDERLYING) ($m) FY25 Revenue Other Income Programming2 Subscriber Related Broadcasting & Infrastructure Advertising2 Other FY26
Page 8
© SKY 2021 Results Presentation For the year ended 30 June 2026 Page 8 (14.0) 10.5 (1.1) 74.6 1.0 826.1 755.1 FY25 Subscription Revenue Broadband Venue Advertising Other FY26 Sky Standalone Revenue1 9% increase in underlying Revenue as Sky Free adds diversity and scale 1. Revenue, is shown on an underlying basis. Information on statutory numbers is available on page 33 and a table of adjustments is available on page 34.. • 9% increase in underlying Revenue was driven by the Sky Free acquisition, with a modest net reduction for Sky standalone of (0.8%) with improving trend in H2 • Lower Subscription revenue reflects continued growth in Streaming offset by the impact of lower Sky Box customer numbers • Streaming revenue increased 8% in the year driven by strong growth in Sky Sport Now of 13% and a 2% increase for Neon • The 11 month revenue contribution from Sky Free totaled $77.2m, including $74.2m advertising revenue and $3.0m of service fee income • Sky Standalone advertising recorded modest growth despite the prior period benefitting from the Paris Olympics REVENUE MOVEMENTS (UNDERLYING1) ($m) FY25 Subscription Revenue Broadband Venue Advertising Other Revenue FY26
Page 9
© SKY 2021 Page 9Results Presentation For the year ended 30 June 2026 REVENUE Sky Box customer retention continues to improve • Sky Box customer retention continued to improve with annualised churn of 10.2% the lowest since FY22 acting to slow customer and revenue decline • Take up of new digital devices rose to 41% of the base. Accelerating adoption is a priority for the year ahead given enhanced viewer experience and positive impact on NPS and churn • ARPU increased by 1.4% to $85.45 included: Sports price increases in May 2025 and April 2026; higher average sport customers to 73.4% (from 72.7% in FY25); partly offset by discounts and some non- sport spin-down UNDERLYING REVENUE ($m) & ARPU1 CUSTOMERS (000) CUSTOMER CHURN BY TENURE2 1. Revenue is presented on an underlying basis see page 34 for details. Sky Box ARPU is monthly average revenue calculated as the average for the period 2. FY24 and FY25 churn has been restated to reflect a revised methodology following implementation of a new data warehouse 510 499 470 446 $81 $83 $84 $85 FY23 FY24 FY25 FY26 515 479 448 422 FY23 FY24 FY25 FY26 New Sky Box Classic Sky Box 9% 21% 37% 41% CONTENT CHOICES 27.6% 27.5% 27.3% 27.0% 19.8% 19.2% 18.9% 19.2% 7.2% 8.8% 8.9% 8.3% 10.3% 11.1% 10.9% 10.2% FY23 FY24 FY25 FY26 0-1 Year 1-4 Years 5 Years + Total 4% of base 10% of base 86% of base
Page 10
© SKY 2021 Page 10Results Presentation For the year ended 30 June 2026 1. Sky Sport now customers and ARPU are based on recurring monthly and annual subscribers, removing the impact of transactional passes, includes Pay Per View. 2. Customers are reported on a 90-day lookback basis. FY25 customers are restated from 150k. • Revenue growth of 13% was driven by 9% customer growth, price increases, and incremental revenue from day pass sales • Removal of weekly pass in Jan 2025 contributed to 31% increase in monthly pass sales between July and Jan in the respective periods • 7% growth in ARPU reflects price rises for month and annual passes in March 2025 and April 2026 (10% and 9%), and the launch of a Premium Pass in Nov 2025 REVENUE ($m) & ARPU1 CUSTOMERS1,2 (000) REVENUE Sky Sport Now revenue grows by 13% 44 58 68 76 $37 $41 $45 $48 FY23 FY24 FY25 FY26 113 125 146 159 FY23 FY24 FY25 FY26
Page 11
© SKY 2021 Page 11Results Presentation For the year ended 30 June 2026 • Neon’s customer base rebounded 17% in the second half of FY26 (from 215k in H1), delivering 5 consecutive months of customer growth • Revenue and ARPU uplift included a 20% increase in Standard tier pricing in Apr 2025 and 15% for Basic tier in Oct 2025, and despite 9% lower average subscribers • New brand Identity launched May 2026 with steady pipeline of premium content REVENUE ($m) & ARPU1 CUSTOMERS (000) REVENUE Neon revenue increases 2% through H2 rebound 57 52 51 52 $15 $16 $17 $18 FY23 FY24 FY25 FY26 318 258 259 252 FY23 FY24 FY25 FY26 259 215 252 H2 FY25 H1 FY26 H2 FY26 STRONG CUSTOMER REBOUND (000) +17%
Page 12
© SKY 2021 Page 12Results Presentation For the year ended 30 June 2026 REVENUE Broadband delivers double digit revenue and customer growth Customer info? Venue business responding to challenging market dynamics • Sector pressure led to softer revenue from Accommodation and Retail customers that outpaced revenue growth in the Licensed Premise segment, resulting in a 2% reduction year on year • Encouraging early adoption of bespoke new Sky Box business edition launched in the first half, including 22% conversion of Accommodation sector devices • Broadband revenue growth of 28% reflects 15% higher average customer numbers in a competitive market • APRU increased 1.4% to $71.32 through a $5 price increase in Oct 2025. This partly offset a mix shift favouring the lower price Starter plan, now 38% of base from 29% a year ago • 11% of Sky Box customers have bundled broadband, rising to 14% for Box customers acquired in FY26 REVENUE ($m) & ARPU CUSTOMERS (000) REVENUE ($m) CUSTOMER BASE (%) 20 28 37 47 $72 $75 $70 $71 FY23 FY24 FY25 FY26 26 36 51 59 FY23 FY24 FY25 FY26 53 55 54 53 FY23 FY24 FY25 FY26 23% 37% 40% Accomodation Licensed Premises Retail Customers by Sector
Page 13
© SKY 2021 Page 13Results Presentation For the year ended 30 June 2026 16% 84% Advertising Other REVENUE Advertising Revenue 131% higher through acquisition • Significant revenue growth reflects 11 months of Sky Free ownership and modest growth from Sky standalone, a positive result given FY25 included revenue related to Paris Olympics • 22% of revenue is from fast-growing digital, with Sky standalone delivering 113% digital growth year on year – well ahead of 27% year on year growth in NZ digital video segment. This includes new digital advertising products on Sky Go and the new Sky Box launched in Q2 and Q3 • NZ digital ad spend of $3.0Bn in 2025 (+12%), with 22% share for Video, the fastest growing segment (+27% yoy)2 • Broadcast revenue market share more than doubled to 35% (in-line with acquisition modelling), and with signs of market improvement in Q4 FY26 • 31% growth in sponsorships and integration as more opportunities were created for brands to participate • Unified sales team has been in place from H2 creating advertising opportunities for our customers REVENUE ($m) REVENUE MARKET SHARE1 (Linear) 1. Source: SMI Linear market spend data for each period. 2. Source: IAB New Zealand full-year 2025 digital advertising revenue report (March 2026) ADVERTISING NOW 16% OF TOTAL REVENUE (FROM 8%) SKY TOTAL REVENUE 47 53 52 47 1031 5 11 28 47 54 57 58 132 FY23 FY24 FY25 FY26 Sky Standalone FY26 Sky Linear Digital 9.5% 9.8% 11.6% 14.3% 35.2% FY23 FY24 FY25 FY26 Sky Standalone FY26 Sky 22% 78% Video Other MARKET OPPORTUNITY: NZ DIGITAL AD SPEND 20252 TOTAL SPEND $3.0B VIDEO $0.7B +27% yoy
Page 14
© SKY 2021 Page 14Results Presentation For the year ended 30 June 2026 Operating Expenses Programming cost reduction contains expanded business cost base • Lower programming costs in the Standalone business and above plan delivery of year one group synergies limited the total cost increase to 10% following acquisition, with further optimisation opportunities ahead • Programming Costs2: 8% reduction in Sky Standalone costs to $354.5m which is 47.3% of revenue and reflects: - timing of one-off events (Paris Olympics in FY25 vs Winter Olympics and ICC Cricket World Cup in FY26); - disciplined negotiations and content choices (including non-renewals), across entertainment and sport, that more than offset new commitments, including additional entertainment in H2 • Subscriber Related: Largely reflects additional Sky Free costs including investment in brand and marketing across paid and free products weighted to H2 • Broadcasting & Infrastructure: Increase reflects cost of growth in Broadband and Sky Free related expenses • Advertising 3 : Reflects the increased scale and activity that underpins significant revenue growth • Other: Largely related to inclusion of Sky Free 1. Operating Expenses are shown on an underlying basis. 2. Revenue share costs have been reclassified to Programming from Advertising, see page 35 for details. 3. Advertising costs, including agency commissions, people and operational costs, have been disaggregated from Other. OPERATING EXPENSES (UNDERLYING1) ($m) (32.4) 40.3 5.6 26.4 17.1 3.9 670.3 609.4 FY25 Sky Standalone Programming Sky Free Programming Subscriber Related Broadcasting & Infrastructure Advertising Other FY26 SkyFY25 Programming - Sky Standalone Programming - Sky Free Subscriber Related Broadcasting & Infrastructure Advertising Other FY26 Net Programming increase limited to $7.9m across expanded business
Page 15
© SKY 2021 Page 15Results Presentation For the year ended 30 June 2026 • Underlying capex spend reduced 9% to $59.1m due to: • Lower spend on customer equipment • Early replacement of transmission equipment in FY25 to support satellite migration • Deferral of some projects given focus on integration • Capital expenditure related to the Integration of Sky Free was $4.4m Capital Expenditure Returned to a lower, more normal profile CAPITAL EXPENDITURE ($m) CAPEX TO REVENUE % SKY STANDALONE: 7.5% CAPEX TO REVENUE % CONSOLIDATED GROUP: 7.2% 77 78 65 59 0 5 13 1 4 77 83 78 64 FY23 FY24 FY25 FY26 Underlying CAPEX Satellite Migration Integration
Page 16
© SKY 2021 Page 16Results Presentation For the year ended 30 June 2026 32 145 (63) (26) 87 (41) 46 8 25 79 Cash Flow Increased free cash flow • The core business generated $55.1m of free cash flow, up 122% from $24.8m in FY25 • Free cash flow benefitted from improved earnings, lower capex, no tax payments, and favourable working capital movements, partially offset by higher lease principal • Cash on hand benefitted from $24.9m received on completion of the Sky Free acquisition (less some working capital unwind to settle liabilities and part- funding integration costs), and $8.2m of Optus compensation related to spend in prior periods • The net cash impact of integration costs in FY26 was $7.1m, with around $4.8m expected in FY27 • Closing cash balance of$79.1m, a $46.7m on last year Cash on hand Jun 2025 Cash from operations (ex-Optus claim) Capex Lease Principal Cash available for distribution Dividends Cash post FY26 distribution Optus claim Net cash acquired Cash on hand Jun 2026 1. Includes supplementary dividends. 1 CASH FLOW ($m) $55m Free cash flow
Page 17
© SKY 2021 Page 17Results Presentation For the year ended 30 June 2026 Dividends Three year dividend target exceeded: 113% growth since FY23 1. Normalised Free cash flow available for dividends is defined as net cash from operations, less payments for lease liability principal, less capex, and excluding one off items.2. Sky’s stated intention and usual practice is to pay approximately 40% of the annual dividend by way of an interim distribution. • Final dividend of 17.0 cps (fully imputed), represents a 26% increase year on year and brings total FY26 dividends to 32.0cps, a 45% increase from the prior year • Sky has delivered dividend growth of 113% (29% CAGR) since FY23 DELIVERING DIVIDEND GROWTH (cps)$m FY26 FY26 Free Cash Flow $55.1 Add backs for one-off items: Sky Free integration incl capex $17.3 Organisational Change $4.2 Optus Customer credits and capex $2.3 Optus lease credits ($4.8) Normalisation: Tax ($15.2) Normalised Free Cash Flow1 $58.9 FY26 Dividend (fully imputed) $44.1 Cents per share (cps)* 32.0 cps Dividend % of Normalised FCF 74.9% * Interim2 (March 2026) * Final (September 2026) 15.0 cps 17.0 cps 6.0 7.0 8.5 15.0 9.0 12.0 13.5 17.0 15.0 19.0 22.0 32.0 FY23 FY24 FY25 FY26 Interim Final
Page 18
Results Presentation For the year ended 30 June 2026 Outlook, guidance and capital management
Page 19
Page 19Results Presentation For the year ended 30 June 2026 1. Subject to no adverse change in operating conditions, including future economic headwinds. Guidance excludes one-off items. Outlook and FY27 Guidance Update $m FY27 guidance1 Revenue 825 – 840 EBITDA 155 – 165 Capex 60 – 65 Dividend At least 35 cps Outlook • Trading conditions continue to be challenging in the first half FY27 and economic recovery remains uncertain • Optimisation opportunities remain a focus in FY27 following the successful integrations of Sky Free with further synergies to be delivered FY27 Guidance • Revenue: reflects our view on the prevailing economic conditions • EBITDA: reflects Revenue expectations, synergy delivery and disciplined cost base management • Capex: is expected to be similar to FY26 and within the range of 6% to 8% of revenue • Dividend: represents targeted growth of 10% p.a. Beyond FY27 • We remain confident in our ability to deliver at least $10m of incremental EBITDA in FY28 through delivery of synergies across the Group
Page 20
© SKY 2021 Page 20Results Presentation For the year ended 30 June 2026 CAPITAL MANAGEMENT: 10% p.a. dividend growth target through to FY29, and paid quarterly Net cash from operations Normalised free cash flow Capital expenditure Dividends 60-90% of NFCF Investment for growth Surplus capital Buyback / Special dividends Investment for growth will continue to be measured against alternative uses of capital including returning funds to shareholders. In the absence of superior opportunities to deploy capital, consideration will be given to initiating buybacks or special dividends (to maximise the benefit of imputation credits) SKY’S APPROACH TO CAPITAL ALLOCATION: 1. Within the context of market conditions and investment opportunities. Normalised free cash is defined as net cash from operations, less payments for lease liability principal, less capex, and excluding one off items. 10% p.a. dividend growth target from FY27 - FY29 and paid quarterly Our policy is to distribute 60 – 90% of normalised free cash flow1 Potential for further capital management action by way of a buyback following FY27 Interim Results Lower capital intensity planned at 6 - 8% of revenue
Page 21
© SKY 2021 Looking ahead Beyond FY27
Page 22
© SKY 2021 Page 22Results Presentation For the year ended 30 June 2026 BEYOND FY27 to FY31 Informed by the growth opportunities identified to date: Aligned ambition to grow revenue significantly by FY31 20 – 30% of revenue to come from non-subscription sources Remaining focused on margin expansion, earnings growth, and disciplined capital management Planned delivery within a tighter capex envelope of 6% – 8% of revenue To deliver sustainable value for shareholders Our growth ambition to FY31 Cash Generation: Targeting sustainable growth in free cash flow through revenue growth and margin expansion
Page 23
© SKY 2021 Page 23Results Presentation For the year ended 30 June 2026 Match fit team with demonstrated ability to drive margin and free cash flow, despite revenue pressure Strategic, long-term sports rights secured Flexible, audience-led entertainment strategy with diversified studio relationships Greater audience scale and reach with Sky Free and social media Increasing digital audience and revenue opportunities Disciplined, data-led decision-making Confidence in Sky’s growth ambition is driven by:
Page 24
© SKY 2021 Page 24Results Presentation For the year ended 30 June 2026 CONTENT: Sky’s unrivaled position in Sport is stronger than ever OLYMPICS - 2032 NRL - 2034CRICKET – 2032RUGBY - 2030 • Secured the strategically-important rights deals for key sports for the longer term, enabled by our strong financial position and with renewals staggered • Compelling, premium sport bundle, with value not built around one code or one season PREMIER LEAGUE - 2034
Page 25
© SKY 2021 Page 25Results Presentation For the year ended 30 June 2026 • Unmatched, year-round calendar of local and global sporting action across multiple codes and competitions – with the average fan following multiple sports • We go ‘beyond the whistle’, showcasing compelling content via premium paid services, strategic use of free and via social media CONTENT: If you’re a sports fan, or a sport partner, there is simply no better place to be
Page 26
© SKY 2021 Page 26Results Presentation For the year ended 30 June 2026 CONTENT: Refreshed Entertainment strategy to control our destiny • Refreshed multi-studio strategy reduces supply risk, increases access and creates agility • Audience-led and data-driven steady drumbeat of quality content • Acquiring content across both free and paid enhances flexibility and increases utility • Sky’s curated ‘built’ channels enable audience-led decisions with increased viewership for new Sky Drama channel
Page 27
© SKY 2021 Page 27Results Presentation For the year ended 30 June 2026 CONTENT Local content and curation delivers for our audiences 1. Source: Where are the Audiences 2026 (August 2026), NZ On Air commissioned research. • Sky and Three commissioned titles up more than 150% in FY26, supported by NZ on Air funding • 81% of New Zealanders like seeing ourselves on screen1 • Increasing presence in news through partnerships, as an essential media business playing our part
Page 28
© SKY 2021 Page 28Results Presentation For the year ended 30 June 2026 2.2m monthly viewers 5k customers 2.5m monthly viewers Streaming: - Nielsen CMI Q2 2025 to Q1 2026 API5+ (weekly). Broadcast: Sky Box and Free to Air - Nielsen TAM, AP5+ Average monthly reach for July 2025 to June 2026. Venue: Sky customer data. Socal: Sprout Social Report June 2026. BROADCAST STREAMING Sky Sport Now VenueThree / Sky OpenSky BoxNeon Sky GoThreeNow SOCIALS 4.1m followers Social Media AUDIENCE: We’re reaching more New Zealanders than ever before • Delivering more choice across paid and free, broadcast and digital and via social media • Able to optimise and monetise content across a wider product set/ecosystem • Advertisers able to connect through a single integrated offering 2.2m monthly viewers 5k customers 2.5m monthly viewers BROADCAST STREAMING Sky Sport Now VenueThree / Sky OpenSky BoxNeon Sky GoThreeNow SOCIALS 4.1m followers ADVERTISING Social Media 1.2m monthly viewers
Page 29
© SKY 2021 Page 29Results Presentation For the year ended 30 June 2026 DIGITAL: Sky’s digital transition is well advanced Page 291. BVOD is broadcast video on demand. 2. Source: IAB New Zealand full-year 2025 digital advertising revenue report (March 2026). • 70% of paid customers access Sky content via digital (including 41% via new Sky Box) • ThreeNow scale in fast-growing BVOD1. extends reach to new and more diverse audiences as does 4.1 million social media followers (up 52% since FY25). • Increased digital engagement means enhanced audience insights, and greater revenue unlock • Sky’s digital revenue growth to come from segment growth and increased share 70% of paying customers are digital (up 40% since FY23) $0.7Bn NZ‘s 2025 spend on digital video advertising (+27%)2 56% increase in Sky’s digital revenue since FY23 (+16% CAGR)
Page 30
© SKY 2021 Page 30Results Presentation For the year ended 30 June 2026 One audience-led, connected Sky ecosystem, enabled by data and technology, with less cost and complexity UNDERPINNED BY: Our Purpose: to share stories, share possibilities, and to share joy Our Enduring Commitment: to be a sustainably profitable, Aotearoa NZ-focused business Leading to:
Page 31
© SKY 2021 Questions
Page 32
Results Presentation For the year ended 30 June 2026 Appendix Appendix
Page 33
© SKY 2021 Page 33Results Presentation For the year ended 30 June 2026 • Underlying EBITDA improved 5.8% and underlying NPAT was up 1.8% FY25. • Statutory Other Income includes a $31.4m gain on bargain purchase (revised from $34.4m at H1) and $8.2m compensation from Optus relating to accelerated migration. The Underlying movement includes a lease modification of $4.9m in FY25. • Interest and FX movement largely relates to the full 12 month impact of the new satellite lease • Depreciation and Amortisation increase reflects uplift for Sky Free, customer equipment, prior year spend on satellite migration and moving to a new satellite lease in FY25 • Statutory EPS increase of 193.5% elevated by gain on bargain purchase and impact of accelerated amortization in prior year. Underlying EPS grew 1.7% dinFinancial Performance 1. A table of adjustments is available on slide 34. $m FY26 Underlying 1 FY25 Underlying 1 % change Underlying 1 FY26 Statutory FY25 Statutory Revenue 826.1 755.1 9.4% 824.8 750.7 Sky (Sky Standalone) 748.9 755.1 (0.8%) 747.7 750.7 Sky Free (11 mths) 77.2 - - 77.2 - Other Income 1.3 2.8 (53.4%) 40.9 7.7 Operating Expenses 670.3 609.4 (10.0%) 695.5 637.8 EBITDA 157.0 148.5 5.8% 170.2 120.6 Interest, FX (gains)/losses 5.8 2.6 (125.1%) 5.8 2.6 Taxation 12.4 16.3 24.1% 7.6 8.3 Depreciation & Amortisation 97.0 88.5 (9.6%) 97.0 89.1 Net Profit after Tax 41.8 41.1 1.8% 59.8 20.6 Earnings per share (cents) 30.08 29.58 1.7% 43.13 14.69
Page 34
© SKY 2021 Page 34Results Presentation For the year ended 30 June 2026 dinSummary of Adjustments Non-recurring items (largely Sky Free acquisition1 and Optus satellite migration) have been adjusted to allow a like for like comparison of underlying performance $m FY26 Description FY25 Revenue $1.2m Optus: Customer credits $4.4m Optus: Customer credits Other Income ($39.6m) Sky Free: ($31.4m) Gain on Bargain Purchase1 Optus: ($8.2m) Compensation for accelerated migration to new satellite ($4.9m) Optus: modified lease term for previous satellite Expenses $25.2m Sky Free: $1.1m Transaction costs, $12.8m Gross Integration costs Other: $2.7m Accelerated amortisation2; $4.3m content impairment; $4.2m Organisational change costs $28.4m Sky Free: $2.3m Transaction costs Optus: $2.9m Opex impact of migration Other: $18.3m Accelerated amortisation2; $3.4m Organisational change costs; $1.4m content impairment Capex $5.4m Sky Free: $4.4m Integration costs Optus: $1.0m $13.2m Optus: $13.2m technology and capitalised costs 1. Refer to note 5 in the 2026 Financial Statements. 2. Refer to note 11 in the 2026 Financial Statements.
Page 35
© SKY 2021 Page 35Results Presentation For the year ended 30 June 2026 dinReconciliation of Underlying Expenses Revenue share costs have been reclassified to better reflect the underlying nature of these arrangements. This review was prompted by higher levels of revenue share associated with Sky Free, that are more appropriately classified as a content cost rather than advertising expenses $m H1 FY25 H2 FY25 FY25 H1 FY26 Programming 1.0 1.6 2.6 8.1 Advertising (1.0) (1.6) (2.6) (8.1) Operating Expenses 0.0 0.0 0.0 0.0 Reclassification Movements Table of underlying expenses1 by category (restated): $m H1FY25 H2FY25 FY25 H1FY26 H2 FY26 FY26 Programming Costs 210.3 176.7 386.9 202.4 192.4 394.8 Broadcasting & Infrastructure 49.3 51.8 101.1 62.3 65.1 127.5 Subscriber Related 38.7 32.7 71.3 37.0 39.9 77.0 Advertising 8.5 7.4 15.9 15.2 17.8 33.0 Other 18.8 15.3 34.1 20.7 17.3 38.0 Operating Expenses 325.6 283.8 609.4 337.7 332.6 670.3
Page 36
Results Presentation For the year ended 30 June 2026 Disclaimer This presentation has been prepared by Sky Network Television Limited and its group of companies (“the Company”) for informat ional purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it. Information is current only at the date of this pres entation and may change. The Company has no obligation to update this presentation after its release, except as required by law and the rules of the relevant stock excha nge. Information in this presentation has been prepared by the Company with due care and attention. However, neither the Company n or any of its directors, employees, shareholders nor any other person give any warranties or representation (express or implied) as to the accuracy or completene ss of this information and to the extent permitted by law, no such shall have any liability whatsoever to any person for any loss (including, without limitation, arising from a ny fault or negligence) arising from this presentation or any information supplied in connection with it. This presentation contains forward-looking statements which are based on the Company’s current expectations, estimates and assumptions and are subject to a number of risks, and uncertainties, including material adverse events, significant one -off expenses and other unforeseeable circumstances. There is no assurance that results contemplated in any of these forward-looking statements will be realised, nor is there any assurance that the expectations, estimates and assumptions underpinning those projections or forward-looking statements are reasonable. Actual results may differ materially from those projected in this presentation. The Company has used the non-GAAP financial measure EBITDA as the directors and management believe that these measures provide u seful information on the underlying performance of the Company. You should not consider this information in isolation from, or as a substitute for, the informati on provided in the audited consolidated financial statements for the year ended 30 June 2026, which form part of the Company’s 2026 Annual Report, available at https://www.sky.co.nz/investor-centre/results-and-report. The information in this presentation does not constitute financial product advice, investment advice or any recommendation. T he presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale o f any security. Nothing in this presentation constitutes legal, financial, tax or other advice. Page 36