Annual report
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Annual Report 2026
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FY26 at a Glance 1 Chairman and Chief Executive Letter 2 Financial Commentary 6 FY26 Highlights Content 10 Sky’s Expanded Audience 20 Our Environment, Our Communities, and Our People 23 Board of Directors 28 Leadership Team 30 Corporate Governance Statement 31 Company Information 45 FY26 Financials Financial Statements 53 Independent Auditor’s Report 89 Directory 94 Contents
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FY26 at a Glance REVENUE (REPORTED) $824.8m FY25: $750.7m 10% EBITDA 2 (REPORTED) $170.2m FY25: $120.6m 41% NPAT (REPORTED) $59.8m FY25: $20.6m 190% REVENUE (UNDERLYING 1) $826.1m FY25: $755.1m 9% EBITDA 2 (UNDERLYING 1) $157.0m FY25: $148.5m 6% NPAT (UNDERLYING 1) $41.8m FY25: $41.1m 2% Dividend FINAL DIVIDEND (CENTS PER SHARE) 17cps 26% PAYABLE ON 25 SEPTEMBER 2026 FULL YEAR DIVIDEND (CENTS PER SHARE) 32cps 45% 1. Sky has provided underlying numbers to enable a like-for-like comparison. Information on adjustments is available on page 8 of this Annual Report. 2. EBITDA is a non-GAAP measure. Sky uses this measure when discussing financial performance, as the Company believes it provides useful information on Sky’s performance. Sky / 2026 Annual Report / 1
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Chairman and Chief Executive Letter Three years ago, we set and communicated ambitious targets as a reflection of our belief in the outlook for this business. Since then, we have successfully navigated one of the toughest economic environments in recent memory despite the impacts of two significant projects - an accelerated migration to a new satellite in FY25, and the acquisition of Discovery NZ, now Sky Free, in FY26. Throughout this period, our over- arching focus has been firmly on delivering for our customers, strengthening Sky for the future, and creating long-term value for our shareholders. Delivery against the three-year targets that we communicated to the market is testament to the hard work of the entire Sky team. In this final year of our three-year plan, our improved ability to execute came to the fore as we successfully completed the complex technical and operational integration of Sky Free into the Sky Group. At the same time, we implemented our refreshed entertainment strategy while continuing disciplined investment in the sport and entertainment content that matters most to New Zealanders. The result is a stronger Sky. Today we are a larger, a more diversified and an increasingly digital business, with greater scale and strengthened competitive advantage. The acquisition and integration of Sky Free has provided a significant growth opportunity. Through a series of products spanning paid and free-to-air, linear and digital, we now reach more New Zealanders than ever before. Audiences have more choice as to how they engage with us, while advertisers can connect with larger, more diverse and better targeted audiences through a single integrated offering. Dear Shareholders, Welcome to Sky’s Annual Report for FY26. 2 /
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FY26 In Review During the year, we secured several significant and strategically important long-term rights agreements. These include renewing our partnership with New Zealand Rugby through to December 2030 and extending our rights to the Olympic Games through to Brisbane 2032. More recently, securing an exclusive seven-year broadcast partnership to the end of 2034 for the New Zealand NRL rights with the Australian Rugby League Commission represents a massive milestone for Sky. Subject to shareholder approval, this is a highly strategic long-term rights win for Sky, which incorporates our disciplined, data-led approach to the rights valuation and reflects the importance of our ability to engage a larger, more diverse audience, as a result of our Sky Free acquisition alongside the enduring strength of our Sky Sport customer base. As of today, Sky has also secured a six-year extension of exclusive Premier League rights through to 2034, locking in one of the world’s most-watched sporting competitions for New Zealand fans. Combined with our existing portfolio of premium sports rights, these rights reinforce our unrivalled position to deliver a steady and compelling, year-round schedule for customers. In parallel, we will continue to broaden access through our free-to-air platforms to help grow audiences, to build fandom, and to strengthen the long-term value we can provide our customers through our aggregated offering of these partnerships. This year also marked a significant evolution in our entertainment strategy which gives us greater control over our content destiny, ensuring that we invest where we can create the greatest value for audiences and shareholders alike. This refreshed strategy enabled our announcement in February that we would not be renewing our agreement with Warner Bros. Discovery for HBO Max content. At the same time, we announced an expanded partnership with Paramount, strengthening our entertainment offering with premium high-demand content including the much-sought after Yellowstone spin-offs, Dutton Ranch and The Madison. We have also built a broader and more flexible content pipeline through partnerships with leading global studios, including Sony Pictures Television, NBCUniversal and BBC Studios to name a few. These international studio deals are complemented by a strengthened commitment to local New Zealand programming across Three, ThreeNow and Sky, with the ongoing and vital support for such engaging local storytelling from NZ On Air. FY26 Financial Results The strategic wins of FY26 have also contributed to a strong set of financial results. These include the now fully integrated Sky Free and represent a 10% uplift in reported revenue to $824.8m, and evidence of increased revenue diversity from scaling advertising. Reported earnings increased by 41% with reported EBITDA of $170.2m reflecting a continued focus on costs together with a number of one-off benefits accruing largely from the Discovery NZ acquisition. In this year’s Annual Report, we have included additional commentary on the financial performance of the business on pages 6-8, and we encourage you to read this analysis. Based on the strong FY26 result combined with confidence in the ongoing cash generation profile of the business, the Board has declared a fully imputed final dividend of 17 cents per share, payable on 25 September 2026. This brings total dividends for the year to 32 cents per share, a year-on-year increase of 45%, and a three-year increase of 113% which is comfortably ahead of our stated target to double the FY23 dividend over this period. The year ahead We have three key priorities for FY27. The first is to finalise our strategic plan for the next five years, as described in more detail later in this letter. The second is to optimise the expanded business by unlocking more of the opportunities created through bringing Sky and Sky Free together. This optimisation work aligns with our continued focus on delivering at least $10 million of incremental Group EBITDA from this business combination in FY28. The third is to increase our focus on accelerating the uptake of the New Sky Experience (NSE) by our valuable Sky Box customer base. The enhanced user experience is reflected in improved Net Promoter Scores and lower churn results for customers who have adopted the NSE, as well as providing more opportunities for digital advertising. Sky / 2026 Annual Report / 3
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Capital Management Our Capital Management policy reflects the ongoing confidence of the Board in the leadership team’s ability to deliver strong free cash flow. This confidence underpins our target to deliver 10% annual growth in dividends over the next three years. In addition, we will move to paying dividends on a quarterly basis to provide a more frequent income stream for shareholders, with the first quarterly dividend expected to be paid in December 2026. The health of Sky’s balance sheet, which included $79.1m of cash on hand at 30 June, also enables your Board to consider additional capital management action. Subject to there being no superior opportunities to deploy capital, the Board will consider initiating an on-market share buyback following the announcement of FY27 Interim Results. Looking to the Future Development of our refreshed strategy through to FY31 is well advanced, informed by extensive analysis of customer behaviour, major global media and entertainment trends, the evolving competitive landscape, and the impact of emerging technology – all overlaid by the insight and experience of the leadership team and the input and challenge of the Board. Based on the growth opportunities identified to date, we have aligned around an ambition to grow revenue significantly by FY31, with 20–30% of revenues coming from non-subscription sources. At the same time, we will remain focused on margin expansion, earnings growth, and disciplined capital management to deliver sustainable value for shareholders. At the heart of the strategy is a fundamental shift from thinking about products and subscribers to thinking about audiences, connected by one Sky ecosystem powered by our people, data and technology. Premium, high-attention video content will remain our shopfront and the reason audiences choose to spend time with us. However, data and technology will increasingly provide the operating leverage behind the business – helping us to better understand and monetise our audiences, to use AI and IP-based solutions to simplify our technology environment and progressively reduce complexity. This will be achieved within a tighter capex envelope of 6% to 8% of revenue. With the critical building blocks including long term strategic rights acquisitions now in place, we are excited to plot a clear path to our FY31 ambitions while delivering sustainable revenue growth and margin expansion to support 10% p.a. growth in dividends to FY29. In closing As we reflect on the past year and the progress that we have made, we are grateful for the collective efforts of many people. To our Sky crew, thank you. You have embraced significant change while continuing to deliver for our customers every day. Your commitment and willingness to challenge yourselves has transformed Sky into the stronger business it is today. We also thank our strengthened Leadership team for successfully navigating another period of significant change and the Board for its stewardship, guidance and constructive challenge. To our partners, thank you for your collaboration and shared ambition. Together we continue to share stories, share possibilities and share joy, connecting audiences with the sport and entertainment they love. Finally, to our shareholders, thank you for your continued confidence and support. Sky is entering this next chapter from a position of strength, and we look forward to sharing that journey with you. While there is still much to do, we are excited by the opportunities ahead and confident in Sky’s ability to continue delivering sustainable growth and long-term shareholder value. Chairman and Chief Executive Letter continued Share Stories. Share Possibilities. Share Joy. Sophie Moloney Chief Executive Philip Bowman Independent Chairman 4 /
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OUR PURPOSE Share Stories. Share Possibilities. Share Joy. FY26 PRIORITIES Grow engagement together Supercharge new Sky experience Accelerate advertising Deepen content engagement Successful integration of Sky Free OUR AMBITION To be Aotearoa NZ’s most engaging and essential media company OUR ENDURING COMMITMENT A responsible and sustainably profitable, Aotearoa-focused business STRATEGIC PATHWAYS Making Sky a great place to work Giving customers content they love Meeting customers where they are Giving customers the experience they expect Providing innovative solutions for our partners and clients / 5 Sky / 2026 Annual Report
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Sky’s Earnings before interest, tax, depreciation and amortisation (EBITDA1) increased to $170.2m compared to $120.6m in the prior year, and Net Profit after Tax (NPAT) increased to $59.8m, up from $20.6m a year earlier. These results included a number of one-off items such as a $31.4m ‘gain on bargain purchase’ resulting from the acquisition of Discovery NZ for $1. As one-off items can affect comparability, we have provided underlying numbers to enable a like for like view of business performance. Information on the adjusted items is provided on page 8. On an underlying basis, EBITDA increased by 6% to $157.0m, from $148.5m in the prior year. Net Profit After Tax was $41.8m compared to $41.1m in FY25. Revenue Underlying revenue grew 9% to $826.1m. The first 11 months of Sky Free ownership made a significant contribution, driving a 131% lift in advertising revenue whilst also expanding the diversification of revenue streams. Total advertising revenue of $131.7m is evidence of Sky’s increased scale in this important segment which now represents 16% of total revenue. This result was achieved while unifying the Sky and Sky Free sales teams together, and despite softer market conditions that only began to improve in the second half. Importantly, 22% of advertising revenue now comes from the fast-growing digital segment that provides high-value targeted opportunities for advertising partners. 1. EBITDA is a non-GAAP measure. Sky uses this measure when discussing financial performance as the Company believes it provides useful information on Sky’s performance. Sky’s strong FY26 results highlight a significant increase in advertising revenue, a reshaping of the programming cost line, and the relative resilience of the business in the face of challenging economic and consumer conditions. Financial Commentary Discovery NZ acquisition The acquisition of Discovery NZ (now Sky Free), opened up new audiences and accelerated advertising revenue streams at a time when Sky’s content strategy and disciplined viewer led decisions are restoring balance in programming costs. Combined with a strong pipeline of premium rights, this creates opportunity for Sky to maximise the value of its content investment across a wider audience while offering customers more choice and greater value. EBITDA1 (REPORTED) $170.2m FY25: $120.6m EBITDA1 (UNDERLYING) $157.0m FY25: $148.5m NPAT (REPORTED) $59.8m FY25: $20.6m NPAT (UNDERLYING) $41.8m FY25: $41.1m 6 /
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Streaming revenue increased 8% to $128.3m, through growth in both Sport and Entertainment. Sky Sport Now revenue grew 13% to $76.3m driven by continued subscriber growth and higher average monthly revenue per customer. After a challenging first half Neon customers rebounded strongly, with 5 consecutive months of growth to close the year at over 252,000, only fractionally behind FY25. This saw Neon revenue up 2% on the prior year to $52.0m. In total, subscription revenue across Streaming, Sky Box and Broadband customers generated $622.2m, down just 0.6% or $3.5m. This was due to a reduction in Box customers, although the decline slowed significantly from FY25. As a result of added revenue diversification through growth in Advertising, Streaming and Broadband, Box revenue of $446.5m now makes up 54% of total revenue, down from 62% a year ago. Broadband customers grew 15%, contributing to a 28% increase in revenue to $47.4m. Sky’s Venue business delivered a revenue of $52.8m, down 2% year on year in a challenging trading environment. Expenses Underlying operating expenses increased 10% to $670.3m, reflecting the acquisition of Sky Free, partly offset by cost reductions in the Sky Standalone business and year one integration synergies of $8.0m delivered across the Group. Programming expenses, which include rights and production costs across the expanded business, increased by just 2% or $7.9m on an underlying basis to total $394.8m. This included estimated savings of $32.4m in Sky Standalone, delivered through disciplined negotiation and content choices as well as the timing of one-off sporting events. As a result, standalone programming costs as a percentage of revenue are estimated at 47.3%, well within the 3-year target of 47% - 49% set in FY23. Broadcasting and infrastructure cost, which include transmission of content to customers, broadband input costs and operating costs for Sky facilities, increased by 26% to $127.5m on an underlying basis. The incremental spend largely reflected the addition of the Three and ThreeNow platforms, growth in Broadband, and additional technology costs. Underlying subscriber related costs which include customer care and equipment services, sales and marketing, were limited to an increase of 8% to $77.0m. This included marginally lower costs in the Sky Standalone business despite additional marketing activity for Neon. Underlying advertising costs to support revenue were 108% higher at $33.0m as a result of the larger, unified sales team and agency fees. Capital Expenditure Underlying capital expenditure reduced by 9% to $59.1m in part driven by technology capacity constraints as the Company prioritised resources to support the integration of Sky Free. Capital expenditure was 7.2% of revenue, at the low end of our 7% to 9% target range. Cash and Cashflow Sky finished the year with a cash balance of $79.1m, up 144% from $32.4m in the prior year. The strong cash position reflected an increase in net cash from operations to $152.8m including Optus compensation, a positive working capital movement, lower capex, leasing, and tax payments, partly offset by a 38% increase in dividend distributions. It also included $24.9m of cash acquired on the acquisition of Sky Free including a cash contribution towards integration and to settle payables. Dividends On the basis of a strong 2026 result, balance sheet strength and confidence in the ongoing cash generation profile of the business, the Board declared a fully imputed final dividend of 17 cents per share, payable on or about 25 September 2026. This brings total dividends for the year to 32 cents per share, an increase of 45%. 446 54% 128 16% 47 6% 53 6% 132 16% 19 2% FY26 $826m FY25 $755m FY26 $670m FY25 $609m Sky Box Streaming Broadband Venue Advertising Other FY25 FY26 Programming Broadcasting & Infrastructure Subscriber Related Advertising Other 38 6%33 5% 77 11% 127 19% 395 59% 341857 54 37 119 470 16 71 101 387 FY25 FY26 REVENUE (UNDERLYING, $M) EXPENSES (UNDERLYING, $M) Sky / 2026 Annual Report / 7
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There are three main categories of one-off items: • Sky Free: relates to the acquisition of Discovery NZ and includes the impact of the gain on bargain purchase, integration and transaction costs. • Optus migration: relates to financial impacts and resulting compensation due to accelerated migration to the new satellite in early April 2025. • Accelerated content amortisation: is a non-cash cost resulting from changes in amortisation methodology. Other cost adjustments include those relating to organisational change. The following information is provided as supplementary information to the 2026 Financial Statements: In NZD millions FY26 Underlying FY25 Underlying % change Underlying FY26 Reported FY25 Reported Revenue 826.1 755.1 9.4% 824.8 750.7 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 (gain)/loss 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 Capex 59.1 65.2 (9.4%) 64.5 78.4 Adjustments Table In NZD millions 2026 2025 Statutory profit after tax 59.8 20.6 Adjustments to earnings as follows: Gain on Bargain purchase 1 (31.4) Sky Free integration & transaction costs 2 13.9 2.3 Recovery of satellite migration costs from Optus 3 (8.2) Gain on satellite lease modification 3 (4.9) Accelerated content amortisation and content impairment 4 7.0 19.7 Foregone Revenue 5 1.2 4.4 Organisational changes 4.2 6.9 Tax effect on above adjustments (4.8) (8.0) Total Adjustments (18.0) 20.5 Underlying profit after tax 41.8 41.1 1. Assessed fair value of assets acquired for $1. Refer to Note 5 in the Financial Statements. 2. Sky Free Integration costs of $12.8m. Transaction costs of $1.1m (FY25: $2.3m) relating to the acquisition. 3. Compensation received from Optus. Refer to Note 6 in the Financial Statements. 4. FY26 Accelerated amortisation methodology change $2.7m (FY25: $18.3m). Content impairment $4.3m (FY25: $1.4m). Refer to Note 11 in the Financial Statements. 5. Customer credits related to Optus migration. Additional Information for Shareholders Sky’s 2026 Results include the impact of a number of one-off items in the current and prior year. The following information is provided to enable a like for like comparison of results. 8 /
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Content Across sport, entertainment and news, we invest in the moments, stories and experiences that matter most to New Zealanders. The addition of Three and ThreeNow has strengthened our ability to reach and engage Kiwi audiences while creating greater value for our content partners and advertisers. Drawing on data-driven insights, we have a deep understanding of what people value, how viewing habits are evolving, and where we can create even better experiences. Those insights shape our content strategy and guide where we invest. Sky’s ContentFY26 Highlights 10 /
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As viewing habits continue to evolve, so too has our approach to entertainment. Across Sky, Neon and our free-to-air channels, we have sharpened our content strategy to deliver more of what audiences want, when they want it. During the year, we completed a significant reset of our entertainment strategy, using data-driven insights to inform our investment decisions. This gives us greater control over how we build our content offering and supports a more agile and sustainable approach to content acquisition. A key priority has been building a consistent flow of relevant, audience-focused entertainment throughout the year, reducing reliance on individual tentpole titles. Our entertainment strategy is designed to deliver a steady drumbeat of compelling content that attracts new customers, deepens engagement and strengthens long- term retention. Our approach is underpinned by a range of partnerships with leading international studios including Paramount, Sony Pictures Television, BBC Studios and StudioCanal, alongside other world-class content providers. Together, this provides the flexibility to respond to changing audience tastes while ensuring New Zealand viewers can be part of the cultural conversations surrounding global hit shows as they unfold. The strength of our strategy was reflected in the performance of titles across Sky and Neon in FY26. From fan-favourite franchises to premium drama and local, standout titles including Yellowstone, Heated Rivalry, The Agency, Bust Up, The Audacity, Outlander, The Madison and Dutton Ranch resonated strongly with viewers. As part of this evolution, Neon has undergone a significant brand and content refresh, with a clearer identity and a sharper curated mix of premium international and local programming. We also continued to strengthen our channel portfolio, including the launch of new Sky- built channels Sky Drama, Sky Kids and Sky Comedy, creating a more distinctive and locally relevant entertainment experience for our customers. During the year, we introduced a range of improvements to the Neon customer experience, including better content discovery and the launch of shared watchlists that allow users to create and share viewing recommendations. Together, with our new ‘Something to Stream About’ brand position, these initiatives encourage audiences to discover, share and discuss Neon’s deep array of content. Entertainment Sky / 2026 Annual Report / 11
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Neon has undergone a significant brand and content refresh, with a clearer identity and a sharper curated mix of premium international and local programming. 12 /
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Local Content The addition of Three and ThreeNow to the Sky portfolio has significantly expanded our local content offering, strengthening our ability to bring distinctive Aotearoa New Zealand stories to audiences across free-to-air, streaming and pay platforms. Alongside premium international entertainment, we continued to invest in local storytelling, recognising the important role it plays in connecting with audiences. High-performing titles across Three and ThreeNow in FY26 included David Lomas: Breakthrough, The Traitors NZ, 7 Days and Nadia’s Farm Kitchen. Devotion:The Gloriavale Story and premium scripted show Tangata Pai also performed well on ThreeNow, attracting new audiences to the platform. Alongside our expanded free- to-air offering, we continued to commission distinctive Aotearoa New Zealand storytelling through Sky Originals. Standout FY26 commissions included premium drama The Ridge and comedy series Bust Up and Small Town Scandal. Alongside their free-to- air windows, all three resonated strongly with viewers across our pay platforms, ranking among Neon’s top 10 programmes during their release periods. Sky Originals also demonstrated the global appeal of New Zealand stories through international partnerships and co-production opportunities, that attracted additional investment, supported higher production values, and extended the reach of local stories to global audiences. Happiness became the first New Zealand series to screen on a United States public television network, while Ms X. achieved international success, securing distribution deals in Australia, Ireland and the US. Our local productions earned recognition in New Zealand and internationally throughout FY26, reflecting the strength of our storytelling and the growing reach of our productions. Happiness received a Best Supporting Actor win at the New Zealand Screen Awards and was shortlisted for Best Comedy at three prestigious international awards: the Asian Academy Creative Awards, C21 Drama Awards and Rose d’Or Awards. Secrets at Red Rocks won a Children’s & Family Emmy Award for Outstanding Music Direction and Composition, while Choir Games won both Best Unscripted Pilot and the Unscripted Audience Award at SeriesFest. Paddy Gower Has Issues received the New Zealand Media Award for Best Current Affairs for its Bowel Cancer Investigation, and 7 Days - produced in-house by Sky - became New Zealand’s longest running television comedy, surpassing 400 episodes and reaching its 18th season. We thank NZ On Air and Te Māngai Pāho for their continued partnership and investment in New Zealand storytelling, helping bring local stories, voices and perspectives to audiences across our platforms. Sky / 2026 Annual Report / 13
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Unrivalled Sport Offering FY26 was a landmark year for Sky Sport, with a series of major rights agreements strengthening our long-term content pipeline and reinforcing our position as Aotearoa New Zealand’s leading destination for live sport. Early in FY26, we announced an expanded five-year partnership with New Zealand Rugby and its SANZAAR partners, securing an unparalleled rugby portfolio through to 2030. The agreement includes every All Blacks match played in SANZAAR countries, the Black Ferns’ expanded international programme, Super Rugby Pacific, Super Rugby Aupiki, the NPC, Farah Palmer Cup and Heartland Championship finals, as well as marquee events including the 2029 British and Irish Lions Tour. Adding to the excitement are new fixtures including the Greatest Rivalry series against South Africa and the Nations Championship, the new international competition featuring leading teams from the northern and southern hemispheres. Another defining milestone was securing the exclusive New Zealand broadcast rights to the Olympic Games through to Brisbane 2032. This agreement included the Milano Cortina 2026 Winter Olympics, and continues with Los Angeles 2028, French Alps 2030 Winter Olympics and Brisbane 2032, ensuring New Zealanders can experience the world’s biggest sporting event across Sky’s paid and free-to- air channels. It also reflects the strength of Sky’s multi-platform offering, enabling us to deliver events of national significance to audiences across the country with Three and ThreeNow playing an important role from both an audience and financial perspective. More recently, we announced a new exclusive seven-year partnership with the Australian Rugby League Commission, securing New Zealand NRL broadcast rights from 2028 to 2034. As one of the most significant rights agreements in Sky’s portfolio, the partnership provides long-term certainty for one of New Zealand’s most popular sports and reflects the strength of our expanded multi- platform business. From 2028, fans will continue to enjoy exclusive live coverage of every NRL and NRLW match, the NRL Finals Series and Grand Final, and every State of Origin match across Sky Sport, Sky Sport Now, and Sky Venue, with select content available on free-to-air, bringing rugby league to more New Zealanders than ever before. The agreement is subject to shareholder approval at Sky’s 2026 Annual Shareholder Meeting. We also secured exclusive New Zealand broadcast rights for the 2026 Rugby League World Cup, bringing comprehensive coverage of the men’s, women’s and wheelchair tournaments to customers across our platforms. Beyond these rights agreements, we strengthened our portfolio across cricket, motorsport, golf and international sport. This included expanding our England and Wales Cricket rights and adding the Black Caps’ tour of Bangladesh, extending partnerships with Formula 1, Supercars, the DP World Tour and UFC, securing a new broadcast and production agreement for the New Zealand Open, renewing our distribution agreement with ESPN, and Silver Ferns netball. Together, these agreements ensure customers continue to enjoy a year- round line-up of live sport from New Zealand and around the world. As Sky’s ecosystem has grown, so too has our ability to deliver premium sport to more New Zealanders. Free- to-air has long played an important role in our strategy, and the addition of Three and ThreeNow has further expanded our reach. Alongside Sail GP, which joined Sky’s rights portfolio through the acquisition, we are making more of our premium sports available free-to-air. During the year, Three broadcast the All Blacks’ Nations Championship Test, expanding free-to-air access to one of New Zealand’s biggest sporting moments of the year. This was followed by Rugby’s Greatest Rivalry Tour on Three and ThreeNow, and a further expansion of access, with all remaining All Blacks matches and Tests in the 2026 season available on Three and ThreeNow, and all Black Ferns matches available on Three. We will continue to grow audiences, build fandom and make more world-class and homegrown sport accessible in FY27, with selected Tauihi basketball games, every Sal’s NBL and Rapid League game, and selected NRL and NRLW matches streaming on ThreeNow. More recently, we announced a new exclusive seven-year partnership with the Australian Rugby League Commission, securing New Zealand NRL broadcast rights from 2028 to 2034. 14 /
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One of the standout moments of FY26 was the Milano Cortina Winter Olympic Games, where our team delivered comprehensive multi-platform coverage. Through dedicated channels, on- demand content and more than 100 hours of free-to-air coverage on Sky Open and, for the first time, ThreeNow, audiences were able to follow every New Zealand athlete throughout the Games. Our Olympic coverage combined world-class event delivery with a distinctly human, athlete-first storytelling approach. Sky also delivered the international production of the All Blacks v Ireland test at Chicago’s Soldier Field after securing the international production tender ahead of leading global broadcasters, reinforcing our reputation for delivering premium rugby coverage on the world stage. Our Olympic coverage combined world- class event delivery with a distinctly human, athlete-first storytelling approach. Delivering World-Class Sport 16 /
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Delivering World-Class Sport Throughout the year, we continued to enhance the viewing experience through production innovation, the launch of 4K Ultra High Definition (UHD) coverage, more dynamic and creative graphics and immersive storytelling. Introduced in time for the Boxing Day 2025 Ashes Test, 4K UHD delivers sharper picture quality and greater detail across selected premium sporting events, bringing fans even closer to the action. Innovations such as Raptor Cam, augmented graphics and expanded wraparound programming at the Super Round and A-League grand final elevated the viewing experience for fans, while our remote production hub also enabled efficient delivery of live sport at a competitive cost without compromising broadcast quality. Our creative capability extends beyond live broadcasting. During the year, we partnered with New Zealand Rugby to produce an All Blacks brand campaign, narrated by Temuera Morrison, further strengthening our reputation as a leading creative partner. The launch of Late Braking, a fully remote motorsport show hosted by Greg Murphy, also demonstrated how we can deliver engaging, cost- effective content through innovative production approaches. Our creative work also received industry recognition at the New Zealand Screen Awards with Marcus Kennedy winning Best Multi-Camera Director for Sky’s coverage of the Bledisloe Cup, and We The South: The Manukau Rovers Story winning the NZ On Air Best Pasifika Programme award. Beyond production innovation, we continued to invest in expert talent, content and experiences that connect fans with the sports they love. Warriors’ legend Shaun Johnson joined Sky Sport in an expanded role for the 2026 NRL season, leading our rugby league coverage and a second season of Ford League Lounge with Shaun Johnson. We also welcomed Roger Tuivasa-Sheck to our NRL coverage and Quade Cooper to our rugby broadcasts, further strengthening our expert commentary teams. Original programming remained an important part of our sports offering. Crowd Goes Wild entered its 21st year in 2026, hosted by Andrew Mulligan and Storm Purvis. We also produced Dave Rennie & Paddy, an exclusive interview between newly appointed All Blacks Head Coach Dave Rennie and journalist and broadcaster Patrick Gower, complementing our live coverage with distinctive local storytelling. We continued to create memorable fan experiences including bringing the Premier League Trophy to New Zealand for the first time and delivering the Sky Fan Zone at Eden Park for the All Blacks v Wallabies Test, bringing fans together through interactive activities, live entertainment and family-friendly experiences. Sky / 2026 Annual Report / 17
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Big Sport Viewing During the 2026 Super Rugby Pacific season, more than 1.9 million viewers watched the competition across Sky Sport and Sky Open1, while more than 750,000 viewers tuned in via Sky Go, Sky Sport Now and ThreeNow2. The season demonstrated the strength of Sky’s multi- platform offering, with digital audiences continuing to grow alongside broadcast viewing. The 2025 All Blacks domestic Test series attracted a combined audience of 1.8 million viewers3 across Sky Sport and Sky Open, alongside more than 750,000 viewers on Sky’s digital channels4. This recorded Sky Sport’s highest engaged audience for an All Blacks match since the 2023 Rugby World Cup Final. Driven in part by the emergence of Kiwi driver Liam Lawson, Formula 1 also delivered strong audience growth during the 2025 season. More than 1.1 million viewers tuned in across Sky Sport and Sky Open, with a further 470,000 viewers engaging via Sky Sport Now and Sky Go, highlighting its appeal across Sky’s platforms5. 1. Nielsen TAM, AP05+, Cume Reach, Sky Sport + Sky Open 2. Sky Internal data. Viewers based on Sky internal Unique Account data and a co-viewing factor of 2.3 (Source Glasshouse Consulting streaming co-viewing study) 3. Nielsen TAM, AP05+, Cume Reach, Sky Sport, Sky Open, All Blacks domestic tests 2025 4. Sky Internal data. Co-viewers based on Sky internal Unique Account data and a co-viewing factor of 2.8 (Source Glasshouse Consulting streaming co-viewing study) 5. Sky Internal data. Viewers based on Sky internal Unique Account data and a co-viewing factor of 2.3 (Source Glasshouse Consulting streaming co-viewing study) Growing Audiences Audience growth across our sports portfolio reflects the enduring appeal of live sport and the continued growth of streaming. Sky Sport Now delivered 10% average subscriber growth during FY26, supported by initiatives designed to introduce new audiences to the platform, including trialling free one-day access to major events such as The Ashes, ASB Classic, Winter Olympics and Super Rugby Super Round. During the year, we also enhanced the Sky Sport Now experience with new features such as instant replays alongside additional subscription options including a Premium Month Pass and a Sky Sport Now + Neon bundle. 18 /
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Te Reo Māori Commentary Supporting the normalisation of te reo Māori remains an important part of how Sky tells Aotearoa New Zealand’s stories. During FY26, we continued to expand its use across our sports coverage, with more than 450,000 New Zealanders choosing the te reo Māori commentary option across major sporting moments including the All Blacks, Black Ferns, Māori All Blacks and the Winter Olympic Games. Our first Olympic Games glossary, Te Reo Māori ki Parī 2024, was recognised with Te Tira Kaiwhakamāori – the Language Vitality Award at Ngā Tohu Reo Māori 2025, recognising its contribution to supporting and championing te reo Māori. Beyond sport, Sky partnered with Whakaata Māori and TVNZ to broadcast live te reo Māori simulcasts of Waitangi Day, Anzac Day and Matariki events on Sky Open, strengthening the visibility of te reo Māori and sharing stories that connect and celebrate the unique identity of Aotearoa New Zealand. A Collaborative Approach to Trusted News Access to trusted, high-quality news is an important part of Sky’s role in New Zealand’s media landscape. Through partnerships with leading New Zealand news organisations, we deliver trusted news and current affairs across Three and ThreeNow. Daily news bulletin ThreeNews is produced through a partnership with Stuff, providing local reporting alongside comprehensive international coverage. During FY26, we further strength- ened our local news offering through a strategic partnership with New Zealand Media and Entertainment (NZME), bringing daily breakfast show Ryan Bridge TODAY to ThreeNow. The show is also live on Three from August 2026, delivering a strong morning news offering for Three viewers. Our international news channels continue to offer New Zealanders a comprehensive line-up of coverage from across the globe. We saw an increase in audience share between February and April, as audiences turned to trusted coverage during a period of heightened geopolitical uncertainty, reinforcing the importance of our international news offering. / 19 Sky / 2026 Annual Report
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Sky’s Expanded Audience Sky connects with audiences across New Zealand, spanning subscription television, free-to-air, streaming, and social media. Together, these platforms create multiple opportunities for New Zealanders to discover and engage with our content, whether they’re watching live sport, bingeing the latest must- see show, catching up on news or connecting with us online. 20 /
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Our reach is a key competitive advantage, enabling us to build deeper relationships with audiences throughout their viewing journey, while creating greater value for advertisers through a single, scaled media offering. The acquisition of Discovery NZ marked a transformational milestone for Sky, significantly expanding our reach and strengthening our position as a leading multi-platform media business. By bringing together Sky, Three and ThreeNow, we’ve created a broader portfolio spanning subscription television, free-to- air and streaming, enabling us to reach more New Zealanders than ever before while creating greater value for customers, advertisers and content partners. The acquisition also allows us to strengthen and optimise our investment in premium content across a wider audience and diversify our revenue base, particularly through advertising and digital. The integration of Sky and Sky Free (formerly Discovery NZ) occurred at pace throughout FY26, including bringing our advertising sales teams together into a single team across our expanded portfolio. Together, our combined business now reaches more than 2.4 million New Zealanders every week, providing advertisers with a single point of access to audiences across our ecosystem. During the year, we amplified this proposition through the development of a new trade website introducing Sky’s Unified Digital Ad Network which launched in August 2026. The platform enables advertisers to buy and reach audiences across our digital platforms through an integrated offering. These initiatives simplify engagement with Sky while positioning the business for continued growth in digital advertising. Our commercial momentum was publicly recognised with the Sky Business Sales team receiving the Team Digital Sales Excellence Award at the 2026 IAB New Zealand Digital Advertising Awards, recognising its outstanding performance in digital advertising sales. A significant milestone was Sky’s first combined Advertiser Upfront, held in February 2026. Attended by advertisers, agencies, partners and industry leaders, the event showcased the scale and opportunities of the unified Sky, Three and ThreeNow portfolio, highlighting our 2026 content slate across sport, entertainment and news, alongside our expanded multi- platform advertising proposition. The Upfront generated strong commercial momentum, creating significant lead opportunities that the team have been able to translate into new partnerships and sales, and strong industry engagement. STREAMING BROADCAST SOCIALS Sky Sport Now Neon ThreeNow Sky Go Sky Box Three/Sky Open Venues Social Media 1.2m MONTHLY VIEWERS1 2.2m MONTHLY VIEWERS2 2.5m MONTHLY VIEWERS2 5k CUSTOMERS3 4.1m FOLLOWERS4 ADVERTISING Sky Venue In FY26 we launched Guest+ for accommodation providers, a bespoke business solution combining Sky content, video on demand and selected third-party streaming apps in a secure in- room entertainment solution. Since launching in October 2025, 191 motels have either contracted or installed the service, demonstrating strong early demand. Guest+ provides an easy upgrade path for accommodation providers while ensuring guests’ personal streaming credentials are securely cleared between stays. Demand for premium entertainment solutions remained strong across accommodation and hospitality with Sky Venue delivering integrated solutions for major developments including the 231-room DoubleTree by Hilton Auckland, and premium installations for regional operators such as Edgewater Wānaka. Sky also partnered with TVNZ to deliver the FIFA World Cup 2026™ to Sky Venue customers through a dedicated commercial solution, enabling venues to show all 104 matches via a dedicated channel, reinforcing Sky Venue’s role as a trusted partner for premium in- venue sports viewing. 1. Nielsen CMI Q2 2025 to Q1 2026 API5+ (weekly) 2. Sky Box and Free to Air - Nielsen TAM, AP5+ Average monthly reach for July 2025 to June 2026 3. Sky customer data 4. Sprout Social Report June 2026 Sky / 2026 Annual Report / 21
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Sky’s first combined Advertiser Upfront in February 2026 brought the industry together to showcase the strength of the unified Sky, Three and ThreeNow offering. 22 /
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Our Environment, Our Communities, and Our People Sky is committed to being a responsible, sustainably profitable business that makes a positive impact on Aotearoa New Zealand. Grounded in our purpose and guided by te ao Māori principles, our Sustainability Framework is built around three pillars: Our Environment (Kaitiakitanga), Our Communities (Whanaungatanga), and Our People (Manaakitanga), where we can make the most meaningful difference. / 23 Sky / 2026 Annual Report
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Our Environment Kaitiakitanga – caring for the environment and using resources wisely. Environmental impact During FY26, we continued to build awareness and understanding of environmental sustainability across Sky through initiatives led by our Sustainability Champions network. We marked Earth Week for the first time with a speaker event hosted by ThreeNews presenter, Samantha Hayes, featuring the talent and creators behind Sky commissioned shows Tane Tarlton’s Ocean Adventures and Wild Heroes. The session highlighted the power of storytelling to raise awareness of environmental issues and inspired several emissions reduction projects across Sky. We also used our platforms to highlight important environmental stories across Sky, Sky Go and Neon, including Earth Week content collections that celebrated the natural world and encouraged audiences to engage with environmental issues. Other Earth Week inspired initiatives included our ’60 Seconds on Sustainability’ videos. These were shared with crew to showcase projects that are helping to reduce our resource and emissions footprint. Serving as a way to educate and inspire, these stories have sparked new ideas for projects that ‘Reduce, Reuse or Recycle’ Reducing our environmental footprint Supporting the goals of our Sustainability Framework, we continue to reduce our environ- mental footprint while improving the customer experience. During the year, we redesigned our customer bills to make account information easier to access and understand, while encouraging more customers to switch to digital billing and reduce paper use. Through this initiative, online communication take-up increased by 17%. For customers who continue to prefer physical copies, the redesigned format reduced printed pages by 43% each month. Together, these changes have significantly reduced paper use and transport- related emissions, with a growing number of customers choosing to receive their bills online. Utarenga Tinokura, Customer Care Technician, reporting on Sky Box recycling with our partners Echo Andreia Pinto, Logistics Manager, discussing manufacturing and packaging initiatives 24 /
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Our Environment continued Reported GHG emissions (tCO2e)1 Emissions Source FY26 Performance against FY25 FY25 FY24 FY23 Base Year Performance against FY23 Scope 1 Direct emissions (restated1) 142 4% 137 255 702 -80% Previously reported 137 224 307 Scope 2 Indirect emissions from imported energy (restated1, location based) 568 -37% 896 998 689 -18% Previously reported 698 718 419 Total gross Scope 1 and Scope 2 710 -31% 1,033 1,253 1,391 -49% Actual Electricity usage (kWh), removing the impact of changes in MfE2 factors related to the efficiency of the electricity generation network Total Scope 2 (kWh) (restated1) 7,987,951 -11% 9,007,220 10,015,039 11,917,066 -33% Previously reported 6,978,538 7,186,142 8,486,817 1. FY23 base year, FY24 and FY25 data has been restated to include emissions from Discovery NZ following the acquisition of this business on 1 August 2025. FY26 emission reporting includes 12 months of data for the acquisition in line with GHG Protocol guidance. 2. Sky uses emissions factor data provided by the Ministry for the Environment (MfE) to calculate the impact of emissions, expressed as equivalent tons of carbon dioxide (tCO2e). Emissions reporting Sky published our second Climate Statement in October 2025, outlining our approach to climate-related risks, opportunities and emissions management. While subsequent changes to New Zealand’s climate reporting regime mean Sky is no longer required to publish climate disclosures, we remain committed to transparency and will continue to report our Scope 1 and Scope 2 greenhouse gas emissions. Other aspects of the climate reporting requirements such as our approach to managing risks and opportunities arising from climate impacts remain in focus as part of Sky’s enterprise risk management process. Following the acquisition of Sky Free, historical emissions data has been restated back to our FY23 baseline, in line with GHG Protocol recommendations, to provide a consistent basis for tracking performance over time. Reporting for the first time as a Group, Sky’s total scope 1 and scope 2 emissions profile has reduced over time, with a combined 49% reduction recorded since the FY23 base line year. Scope 1 emissions improved 80% against the base year. This included the impact of reducing emissions from fuels used in leased vehicles, largely through the FY24 closure of Discovery NZ’s NewsHub operations. In FY26 70% of scope 1 emissions related to leased vehicles used by Sky customer care technicians and sports production crew. The remainder related to generator and air conditioning system top-ups. An 18% improvement in scope 2 emissions from imported electricity includes a reduction in the building footprint across both Sky and Sky Free and efficiency gains through reduction initiatives against the base year. From October 2025 all Sky Free employees relocated to Sky premises, further reducing combined electricity emissions. To remove the impact of changes in the MfE factors related to the efficiency of New Zealand’s electricity generation network, we have provided additional information on Actual Electricity usage, measured in kilowatt hours (kWh). On this basis, the actual reduction in electricity usage is 33% against the base year, including an 11% reduction in FY26. Sky / 2026 Annual Report / 25
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Our Communities Whanaungatanga – reflecting and connecting with New Zealanders, championing excellence, local stories and positive social impact. Sky For Good Our Sky For Good programme is about using our platforms, our content and our people to make a meaningful difference in the communities we serve. Aligned with our focus of connecting New Zealanders with the sport and entertainment they love, in ways that work for them, we support a range of community initiatives and charitable organisations across Aotearoa New Zealand. One way we deliver this impact is through in-kind support for organisations including the Starship Foundation, Wellington children’s hospital rooms and Auckland’s Westpac Rescue Helicopter. This includes complimentary Sky services in children’s hospital rooms, helping improve the experience of children and their whānau during their stay. During the year, more than 60 Sky crew volunteered at the Special Children’s Christmas Parties, helping create memorable experiences for thousands of children. Through our Volunteer Day programme, crew also gave their time to community organisations including Auckland City Mission. Shaun Wallace returned to New Zealand in November 2025, supporting eight Cure Kids quiz events, in partnership with our Sky quiz business, Believe it Or Not (BION), that raised more than $180,000. Our commitment to celebrating sporting excellence and supporting future talent is brought to life through our involvement with the Halberg Awards. Broadcasting the event and sponsoring the Sky Sport Emerging Talent Award enables Sky to celebrate the achievements of athletes while supporting the Halberg Foundation’s work to increase opportunities for young people with physical disabilities to participate in sport and recreation. In 2026, the award was presented to track athlete Sam Ruthe. Championing the craft – next generation Supporting the next generation of talent remains an important commitment for Sky. We are proud to sponsor the Sky Julian Walker Award for Outstanding Achievement, presented annually to the top Screen graduate at the New Zealand Broadcasting School. The 2026 award recognised Kieren McPeake for outstanding achievement and potential in New Zealand’s screen industry. We also launched Tākaro Pāpāho in collaboration with Whakaata Māori and TVNZ under the leadership of Ngā Aho Whakaari, Māori in Screen Society. This initiative is developing the next generation of te reo Māori sports broadcasters by providing emerging talent with experience in live broadcasting environments, growing their capability and confidence. Tākaro PāpāhoSam Ruthe, winner of the Sky Sport Emerging Talent Award at the Halberg Awards Responsible broadcasting We are committed to making our content as accessible as possible, including through the provision of closed captions across Sky, Neon, Three, ThreeNow and Sky Open where available, and we continue to explore practical and sustainable ways to improve accessibility. We support audiences to make informed viewing choices through clear content classifications and maintain strong compliance practices across the Broadcasting Standards Code and Commercial Video on Demand Code. We also adhere to the Advertising Standards Authority codes across relevant activities. Across all of Sky’s channels, four complaints were referred to the Broadcasting Standards Authority during the year, of which two were upheld. 60 Sky crew volunteered at the Special Children’s Christmas Parties 26 /
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Manaakitanga – creating a safe, inclusive, values-led workplace. Our commitment to our people is reflected in employee engagement, which remains a key priority for Sky. This year, we were pleased to surpass our three-year engagement target. Measured through our six-monthly Life@Sky survey, the June 2026 result showed a 22-point increase since June 2023, well ahead of our target improvement of 14 points. The result is particularly encouraging given engagement continued to improve throughout the year as we integrated the Sky and Sky Free teams. Within the team setting, investment in leadership training through our company-wide Leadership Boost programme has contributed to engagement results across the business. Quarterly Sky Kōrero events provide an opportunity to bring our crew together, strengthening connection to our strategy and fostering a shared understanding of the role we all play in delivering for our customers. These events also provide an important forum for recognising the outstanding contributions of individuals and teams across the business. During the year, we launched our Playbook, a behavioural framework that outlines how we work together at Sky and the behaviours we expect of ourselves and each other. Grounded in our values and informed by te ao Māori concepts including Whanaungatanga (relationships), Manaakitanga (care for others), Kotahitanga (unity) and Ngākau Pono (integrity), it guides how we make decisions, collaborate and show up for our customers, partners, communities and crew. Supported by our policies and ways of working, the Playbook helps foster a positive, inclusive and high- performing culture across Sky. Diversity and inclusion Creating an inclusive workplace where all crew feel they belong remains a priority for Sky and is supported by our Diversity and Inclusion Policy. We believe an organisation that reflects the diversity of its current and future customers will be able to deliver better, more personalised customer experience while adding value to our business. Sky crew diversity Our diversity metrics include gender- balanced leadership, where we aim to have 40% men, 40% women and 20% of either gender in senior leadership positions. Our Board continues to maintain over 30% female representation, consistent with FY25, while women comprised 57% of our Executive team in FY26. Across our workforce, gender representation is well balanced, with women comprising 45% of employees, men 52%, and approximately 3% identifying as gender diverse or preferring not to disclose their gender. Our crew proudly represent over 60 ethnicities. At Rangiata Sky, Māori and Pasifika peoples make up 17% of the workforce, reflecting the diversity of the communities in which we operate. Inclusivity is measured through the six-monthly Life@Sky survey, with our June 2026 results showing an inclusivity favourability score of 85% while 90% of employees agreed that Sky values diversity. Marking Diwali as a crew Matariki, welcoming the Māori New Year Celebrating Eid together Our People Sky / 2026 Annual Report / 27
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Philip Bowman Independent Chairman Keith Smith Independent Director Belinda Rowe Independent Director Mark Buckman Independent Director Mike Darcey Independent Director Dame Joan Withers Independent Director Board of Directors 28 /
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Philip Bowman Independent Chairman Philip was appointed Chair of Sky in September 2019. Philip is a distinguished businessman who has led several major global companies and served on the board of a significant number of public and private companies. Philip brings knowledge of the media sector, including having served on the board of Sky UK for ten years. Other roles include Group Finance Director of Bass, CEO of Bass Retail, CEO of Allied Domecq, CEO of Scottish Power, CEO of Smiths Group, senior non-executive director of Burberry, Chair of Liberty, Chair of Coral Eurobet, Chair of Miller Group, and non-executive director of Scottish & Newcastle. Philip currently sits on the boards of two other listed companies, as the recently appointed Chair of KMD Brands, and as a director of Ferrovial SE. Philip has a degree with honours in Natural Sciences (University of Cambridge) and Master in Natural Sciences (University of Cambridge). Keith Smith Independent Director Keith was appointed to the board in April 2020. He has a long-standing record of governance and leadership as a director and advisor to companies in a diverse range of industries, including the energy sector, retail, rural services, printing, media and exporting. Keith is a director of several private companies and is a past director and Chair of Goodman Property Services (NZ) Limited. He is also a past President of the Chartered Accountants Australia and New Zealand. Dame Joan Withers Independent Director Dame Joan was appointed to the Board in September 2019. She brings a wealth of experience spanning a 25-year career in the media industry, including CEO positions at Fairfax and The Radio Network, as well as being the former Chair of TVNZ. Joan’s depth of governance experience includes her current role as a director of ASX-listed Origin Energy Ltd, and she has previously held Chair positions at The Warehouse Group, Auckland International Airport and Mercury NZ Ltd, and as a director of many large NZ companies, most latterly at ANZ Bank New Zealand. Joan is a Trustee of the Louise Perkins Foundation and was formerly Chair of a steering committee focused on increasing the number of South Auckland Māori and Pacific students entering the health sector. She holds a Master of Business Administration from the University of Auckland. Joan was named Supreme Winner at the Women of Influence Awards and Chairperson of the Year at the Deloitte Top 200 Management Awards in 2015. In 2024, she was made a Dame Companion of the New Zealand Order of Merit, and in 2025 was admitted to the New Zealand Business Hall of Fame. Belinda Rowe Independent Director Belinda was appointed to the board in March 2023. Belinda has extensive experience in C Level roles across marketing, digital, marketing communications and the media sector in Global, UK and Australian companies. She brings a strong commercial focus on customer- centric growth, digital innovation and expertise in strategy, leadership and business transformation. Belinda also successfully led the creation of a compelling content marketing and sport evaluation and activation practice across 32 markets. Belinda’s governance experience includes current Non-Executive Director roles at ASX- listed Australian media company ARN Media Ltd and Temple & Webster Group. She is also on the board of AFL club, Sydney Swans. Active member in Chief Executive Women, Minerva Network, AICD, Marketing Group Great Britain, WACL UK. Mike Darcey Independent Director With an extensive track record of strategy and delivery across television, publishing and technology, Mike was appointed to the board in September 2017. A New Zealander, he has lived and worked in the UK since 1989. Fifteen of those years were spent at Sky UK, initially as the Director of Strategy, then six years as Chief Operating Officer. He played a prominent role in most of Sky UK’s major strategic decisions and its major commercial and regulatory dealings during this period. From 2013 to 2015, Mike was CEO of News UK. Since 2015, Mike has had a series of governance roles and these currently include Chair of British Gymnastics. He is an internationally recognised authority on media matters through his Tellynomics blog, and active as a strategy advisor to a series of major players in the media sector. Mark Buckman Independent Director Mark was appointed to the board in March 2022. Mark is a highly skilled business leader based in Australia with a deep background in technology digital innovation, marketing, media and broadcasting, and customer engagement. His executive career has spanned North America, UK/ Europe, and APAC, with roles at Foxtel, Telstra, the Commonwealth Bank of Australia and McCann. Mark was the Group Managing Director of Telstra Media overseeing the company’s PayTV and digital platforms portfolio. Mark is the Managing Partner, Leadership Advisory at Hourigan International and specialises in Board and c-suite advisory; is a past Advisor to Tech Central; and for a decade served as a Senior Advisor to Accenture’s Communications, Media and Technology practice. Mark’s governance credentials include the Chair of OzTAM, the Australian free- to-air television consortium and was formerly the Delegate Director across Telstra’s media investments. He is actively involved in several technology start-ups and social enterprises. Mark holds an MBA from Macquarie Business School and has completed post-graduate studies in Digital Strategy at Kellogg Business School, Sustainability and Circular Economy at Cambridge, AI at MIT and Cybersecurity at Harvard University. Sky / 2026 Annual Report / 29
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David Mackrell Chief Financial Officer Interim Chief Sales Officer Chris Major Chief Corporate Affairs Officer Oleg Gribanov Interim Chief Technology Officer Antony Welton Chief Operating Officer Nikki Goodman Chief Customer Officer Sophie Moloney Chief Executive Kym Niblock Chief Transformation Officer (Project Role) Katie Williams Chief People Officer Leadership Team 30 /
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Corporate Governance Statement / 31 Sky / 2026 Annual Report
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The following disclosures and compliance statements are provided in accordance with the NZX Corporate Governance Code (dated March 2026) (NZX Code). This corporate governance statement is current as at 27 August 2026 and has been approved by the Board. All key governance policies and charters referred to below are available on Sky’s website www.sky.co.nz/investor-centre/corporate-governance. Sky has a full listing on the NZX Main Board and a Foreign Exempt listing on the ASX. Sky confirms, for the purposes of ASX Listing Rule 1.15.3, that it has complied with and continues to comply with the Listing Rules of the NZX, which is its home exchange. NZX Corporate Governance Best Practice Codes The NZX Code sets standards for effective corporate governance in New Zealand and Sky is committed to reporting against these standards. The Board considers that Sky has complied with the NZX corporate governance best practice code in all material respects during the 2026 financial year. 1. Ethical standards Directors should set high standards of ethical behaviours, model these behaviours, and hold management accountable for these standards being followed throughout the organisation. Statement of Values Sky’s values “Be Yourself”, “Create Something Amazing” and “Make Someone’s Day” create a common understanding of the expectations directors, executives and employees have of each other and themselves. Code of Ethics Sky has a Code of Ethics which provides a practical set of guiding principles for a code of ethical behaviours in respect of various matters including conflicts of interest, gifts and entertainment, corporate opportunities, confidentiality, insider trading and dealing with corporate assets, in addition to highlighting the requirement to comply with applicable laws and regulations. The Code of Ethics applies to Sky’s directors, senior executives, employees and other people representing Sky or engaged to carry out work for Sky and is available on Sky’s website. All potential breaches of the Code of Ethics are to be notified to Sky’s Chief Financial Officer or Chief Executive (or the Chair of the Board if the Chief Financial Officer or Chief Executive are potentially implicated), and any material breaches will be notified to the Board. Sky managers are responsible for ensuring that all Sky employees are aware of and adhere to Sky’s Code of Ethics. Whistleblowing/Protected Disclosures Sky’s Protected Disclosures Policy (or Whistleblower Policy) provides a process for staff and any other persons to report any serious wrongdoing and gives protection to the person making the disclosure in accordance with the policy. The policy outlines types of behaviour that may be considered serious wrongdoing, when and how a person can make a disclosure and how they are protected. This includes access to an independent third party, qualified to provide comprehensive advice and access to support. The Protected Disclosures Policy is posted on Sky’s website. Any serious wrongdoing reported under the policy will be notified to Sky’s People and Performance Committee and/ or the Board and this process is formalised in the Protected Disclosures Policy. Securities Trading Sky has a formal Securities Trading Policy, which is available on Sky’s website. Sky’s Securities Trading Policy includes robust procedures to minimise the risk of insider trading and these were reviewed and further strengthened in FY26. The policy outlines that directors, officers, employees and contractors of Sky may not buy or sell securities in Sky, nor may they tip off others, while in the possession of material information which is not generally available to the market. Additional restrictions apply to prohibited persons who are prohibited from trading during prohibited periods (other than in exceptional circumstances) and must always (including outside prohibited periods) obtain written consent to trade from the Chief Financial Officer, Chair of the Board or the Chair of the Audit and Risk Committee (as applicable). Sky’s Securities Trading Policy affirms the law relating to insider trading contained in the Financial Markets Conduct Act 2013 and the Australian Corporations Act 2001 (Cth). Anti-Bribery and Corruption Policy Sky’s Anti-Bribery and Corruption Policy sets out the minimum standards of conduct expected of all those representing Sky including directors, employees, contractors, consultants, and any other individuals engaged to act on behalf of Sky or its subsidiaries. The purpose of the policy is to set minimum standards of conduct for Sky to ensure it can comply with all applicable anti-bribery and corruption laws. The policy builds on the strong foundations of Sky’s Code of Ethics and reinforces our commitment to integrity and ethical conduct. It includes clear guidance and controls regarding the offering and acceptance of gifts and entertainment. Breaches of the Anti-Bribery and Corruption Policy must be reported to the Chief Executive, with the Board notified of any material incidents. Modern Slavery Sky has continued to strengthen its efforts to reduce the risk of modern slavery practices across the Group’s operations and supply chain through building awareness and accountability, with all Sky employees required to complete annual mandatory training on identifying and avoiding modern slavery risks. Corporate Governance Statement 32 /
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Corporate Governance Statement (continued) Sky’s Supplier Code of Conduct sets out the requirements and expectations of suppliers, including specific expectations regarding human rights, labour standards and modern slavery. Sky will continue engaging with key suppliers, including new relationships entered into through the acquisition of the Sky Free business, to understand their capacity to assess and address modern slavery risks. Previously, Sky has developed a targeted modern slavery questionnaire and engaged with selected service providers both locally and offshore. Responses from this initiative were collated and assessed using a risk scoring methodology, with the overall risk ratings indicating a low level of risk. Sky is following the progress of New Zealand’s Modern Slavery legislation and expects to be well positioned to meet the requirements once passed into law. 2. Board composition and performance To ensure an effective board, there should be a balance of independence, skills, knowledge, experience and perspectives. Board of Directors – Composition Sky’s Board is appointed or ratified by the shareholders of Sky by ordinary resolution. The NZX Listing Rules provide for a minimum of three directors, and Sky’s constitution provides for a maximum of ten directors. As at 30 June 2026, the Board consisted of six directors whose relevant skills, experience and expertise are outlined in their biographies on page 29. The Board operates under a written charter (Board Charter), which sets out the respective roles and responsibilities of the Board, the Chair and management, and (together with the Delegated Authorities Policy) those matters expressly reserved to the Board and those delegated to management. A copy of the Board Charter is available on Sky’s website. Nomination and Appointment The Board considers the Board’s skills, experience and diversity when evaluating potential board candidates. The objective is to have a mix of skills represented on the Board that are relevant to Sky’s business and strategy. The Board is also responsible for board succession planning. The Board may appoint directors to fill casual vacancies that occur or add persons to the Board up to the maximum number prescribed by Sky’s constitution. At each annual meeting all directors appointed by the Board since the last annual meeting must retire and seek re-election, if eligible. Directors must not hold office (without re-election) past the third annual meeting following the director’s appointment or 3 years, whichever is longer. As at 30 June 2026 the Board is comprised of: Appointed Philip Bowman Independent Chair 1 September 2019 Keith Smith Independent Director and Deputy Chair 21 April 2020 Mike Darcey Independent Director 19 September 2017 Dame Joan Withers Independent Director 17 September 2019 Mark Buckman Independent Director 21 March 2022 Belinda Rowe Independent Director 1 March 2023 Before appointing directors to the Board, or putting candidates forward at annual meetings for re-election, the Board ensures that appropriate checks are carried out to ensure candidates have the necessary skills to act for Sky. Material information that is relevant to a decision on whether to elect or re-elect a director is provided to shareholders. Written agreements are in place with each Board member and senior executive setting out the terms of their appointment. New Board members receive induction training to gain an understanding of Sky’s business and operations including its financial, strategic and risk management position as well as a director’s rights, duties and responsibilities, the role of the Board, the Board committees and the executive management team. It is expected that all directors will be required to stay informed of changes to, and emerging issues in, director duties and responsibilities. In addition, visits to specific company operations, when appropriate, and briefings from key executives and industry experts will be arranged. The Board will periodically review whether there is a need for existing directors and/or the Board to undertake professional development to maintain the skills and knowledge to perform their roles as directors effectively and to deal with new and emerging business and governance issues. Sky will reimburse directors for reasonable costs incurred in attending appropriate conferences and training courses. Sky ensures that a majority of its Board are independent directors and that the role of Chair of the Board and Chief Executive are separate. At 30 June 2026 all of the directors of Sky were independent directors, having regard to the factors in NZX Recommendation 2.4 (none of which apply to the directors of Sky). The Chair of Sky’s Board is Philip Bowman, an independent director (and is not the Chief Executive of Sky). Sky / 2026 Annual Report / 33
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Corporate Governance Statement (continued) Delegations To enable the effective functioning of the day-to-day business of Sky, the Board has delegated certain of its powers to Sky’s Chief Executive and senior management. Those powers are set out in Sky’s Delegated Authorities Policy (with treasury management delegations set out in the Treasury Policy) and relate to how Sky employees are able to authorise any transaction with a financial implication, or to perform other functions relating to human resource matters or finance and legal matters. Specifically, Board approval is required for: • any action or transaction that exceeds the limits delegated to the Chief Executive; and • entering into overdraft facilities or similar credit arrangements, or entering into loans, mortgages, debentures or other financial instruments. There is no delegation to any person to raise capital or to specifically borrow money by any means whatsoever. Such transactions may only be performed with Board approval. The Board is responsible for monitoring those delegations and approving all changes to the Delegated Authorities Policy and the Treasury Policy from time to time (the Board may amend or withdraw delegations at its sole discretion at any time). All delegated authorities are exercised on the Board’s behalf in accordance with relevant company policies and procedures. Meetings The Board has regularly scheduled meetings and also meets when a matter of particular significance arises. During the year between 1 July 2025 and 30 June 2026, there were 13 Board meetings. Attendance was as follows: Board meetings held while a director Attendance at Board meetings Philip Bowman 13 13 Keith Smith 13 13 Mike Darcey 13 13 Dame Joan Withers 13 13 Mark Buckman 13 12 Belinda Rowe 13 12 Role of the Board The Board oversees Sky’s business and is responsible for its corporate governance. The Board sets corporate policies and the strategic direction of Sky and oversees management with the objective of enhancing the interests of shareholders. Management is responsible for the implementation of the corporate policies set by the Board, as well as the day-to-day running of Sky’s business including risk management and controls and liaising with the Board about these matters. Various information reports are sent to the Board to keep them informed about Sky’s business including reports during the financial year ended 30 June 2026 on the effectiveness of the management of material legal and business risks. Directors also receive operating and financial reports, and have access to senior management at Board and committee meetings. Directors Skills and Experience The aim of the Board is to have a mix of skills represented on the Board that are relevant to Sky’s business. The skills matrix for the directors is set out below: Primary skills Secondary skills Skills attribute Philip Bowman Keith Smith Mike Darcey Dame Joan Withers Mark Buckman Belinda Rowe Media Industry Leadership – including experience in overseas markets Strategic Content Partnerships Customer Insight and Experience Technology, Data, Digital and AI Public Company Governance including Risk and Sustainability Management Finance/Accounting and Commercial including Corporate Transactions CEO and Executive Experience People Management and Culture 34 /
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Corporate Governance Statement (continued) Board Performance Board performance, including the performance of Board committees and individual directors, is reviewed and evaluated periodically and as the need arises in accordance with the process set out in the Board Charter. A formal Board effectiveness survey was completed in FY26. Executive Performance Executive performance is reviewed and evaluated on a continual basis by the Board and Chief Executive, and periodically as the need arises, in accordance with the People and Performance Committee Charter and the Remuneration Policy, and more formally, annually at financial year end. Executive performance is assessed as input into annual salary reviews and through participation in Sky’s short-term incentive (STI) and long-term incentive (LTI) scheme. Sky’s STI scheme considers in the first instance a participation gateway regarding Health and Safety performance. Assessment criteria for the STI and LTI are set out in the Remuneration section on page 38. Formal evaluation of senior executive performance for the 2026 financial year has been undertaken following the completion of that period. Company Secretary The Company Secretary is accountable directly to the Board, through the Chair, on all matters to do with the proper functioning of the Board. The Company Secretary is Kirstin Jones. Independent Advice Sky has a procedure for Board members to seek independent professional advice at Sky’s expense (as set out in the Board Charter). Diversity Sky recognises diversity and inclusion as a strategic asset for Sky’s current and future success. Sky values diversity of gender, age, nationality, ethnic and cultural background, sexuality, experience and beliefs. Sky’s Board and management believe that an organisation which reflects the diversity of its current and future customers will be able to deliver better, more personalised customer experiences and value, to continue to grow successfully, and to attract and retain the best talent. Sky’s commitment to both diversity and a company environment of inclusivity where all crew know they belong is reflected in Sky’s Diversity and Inclusion Policy, which is reviewed every two years. Sky measures its inclusivity six- monthly as part of a company-wide engagement survey. As of June 2026, inclusivity has an 85% favorability score which means that employees believe Sky is an inclusive workplace. Further, 90% of employees believe Sky values diversity which is a critical element to supporting an inclusive culture. Sky believes that a diverse workforce supports an inclusive culture, starting with inclusive recruitment practices including the way we advertise. The Board acknowledges the importance of diversity both on boards and within companies, as noted in Sky’s Board Charter. This is one of the characteristics that is considered when evaluating new director candidates. As at 30 June 2026, Sky’s Board has two female directors and four male directors. Sky’s officers include the Chief Executive and the members of Sky’s Executive Leadership team who report directly to the Chief Executive. This group comprises five female officers and three male officers. Sky’s diversity metrics include gender-balanced leadership. Under Sky’s Champions for Change partnership, Sky is committed to the measurable objectives in this area of 40% men, 40% women and 20% of either gender in our senior leadership cohort. Sky’s Board is currently 66% men, 33% women. Sky’s officer cohort is currently 38% men, 62% women. At 30 June 2026 Sky’s senior leadership team (the top three tiers of the organisation) comprised 55% men and 45% women. As set out on page 27, Sky has committed to embedding the principles of te ao Māori into Sky’s ways of working. In addition to this commitment, Sky has focused on three inclusion priorities over the last three years, including in FY26: Gender Balance, Pasifika and Rainbow Communities. The Kia Rere programme sets the strategic direction for Sky to normalise te reo, tikanga and Māori leadership on air, with Sky’s people and in the community. Sky continues to uplift all leaders’ cultural competence through the Te Kaa programme. Sky has fostered an authentic approach to Māori & Pasifika employee impact through the Kuaka leadership development programme, and by making indigenous cultures more visible to all crew through company-wide events and communication. Sky’s approach to workplace inclusion ensures appropriate enablement mechanisms are in place for all crew to demonstrate leadership which celebrates diversity and strengthens unity. Sky has continued to run regular company-wide events that celebrate the diversity of the crew, including celebrating Samoan, Tongan and Cook Island Language weeks, Sky is a Pride Pledge Gold supporter and has undertaken employee education and awareness raising activities in this area throughout FY26. The chart below represents Sky’s gender and age diversification as at 30 June 2026: 2026 Board Level Officers All staff Women 2 4 334 Men 4 3 390 Gender diverse 0 0 5 Prefer not to say 0 0 19 Total number 6 7 748 Over 45 100% 100% 39% 2025 Board Level Officers All staff Women 2 5 266 Men 4 4 353 Gender diverse 0 0 7 Prefer not to say 0 0 12 Total number 6 9 638 Over 45 100% 100% 41% Sky / 2026 Annual Report / 35
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Corporate Governance Statement (continued) 3. Board committees The Board should use committees where this will enhance its effectiveness in key areas, while still retaining Board responsibility. The Board has established the following committees to act for, and/or make recommendations to, the full Board on certain matters as described below. Audit and Risk Committee The Audit and Risk Committee is responsible for overseeing the financial and accounting activities of Sky including accounting and reporting, external and internal auditors, tax planning and compliance, treasury and general risk management. The Committee operates under a formal Audit and Risk Committee Charter available on Sky’s website. The Charter also contains the External Audit Independence Group Policy, the object of which is to ensure that audit independence is maintained, such that Sky’s external financial reporting is viewed as being highly reliable and credible. As at 30 June 2026, the members of the Committee, who are independent directors, are Keith Smith (ARC Chair, Board Deputy Chair), Philip Bowman (Board Chair, CRC Chair), and Dame Joan Withers. There are no non-independent committee members. All directors who are not members of the Audit and Risk Committee may attend Audit and Risk Committee meetings without invitation. A standing invitation exists for the Chief Executive and the Chief Financial Officer to attend Audit and Risk Committee meetings. Sky management may only attend Committee meetings by invitation. People and Performance Committee The People and Performance Committee is responsible for providing recommendations regarding the appointment, compensation levels and evaluation of Sky’s directors, Chief Executive and senior executives, overseeing Sky’s people and performance strategy and policies, including remuneration. The Committee also ensures that before appointing executives, appropriate checks are carried out to ensure candidates have the necessary skills to act for Sky. As at 30 June 2026, the members of the Committee who are independent directors are Mark Buckman (PPC Chair), Dame Joan Withers and Belinda Rowe. There are no non- independent committee members. The Committee’s Charter is available on Sky’s website. Sky management may only attend Committee meetings by invitation. Content Rights Committee The Content Rights Committee is responsible for (i) providing guidance, challenge, strategic input and counsel to Sky’s management in relation to content rights arrangements; (ii) approving Sky’s pursuit and negotiation of content rights arrangements; and (iii) where applicable authority has been delegated to the Committee by the Board, approving Sky’s entry into and modification of content rights arrangements in accordance with such delegated authority. As at 30 June 2026, the members of the Committee who are independent directors are Philip Bowman (CRC Chair, Board Chair), Keith Smith (Board Deputy Chair, ARC Chair), and Mike Darcey. There are no non-independent committee members. The Committee’s Charter is available on Sky’s website. Sky management may only attend Committee meetings by invitation. Disclosure Committee The Disclosure Committee is responsible for monitoring, determining, implementing and enforcing Sky’s disclosure obligations under relevant legislation and stock exchange listing rules. The Committee members are Philip Bowman (Board Chair, CRC Chair) and Keith Smith (ARC Chair, Board Deputy Chair), or in the absence of either Chair, another director, along with the Chief Executive, Chief Financial Officer, Chief Corporate Affairs Officer and Company Secretary. Sky management may only attend Committee meetings by invitation. Ad-hoc Committees From time to time the Board may establish ad hoc or special purpose committees to examine, or have the delegated authority to deal with, specific matters on behalf of the Board. Where such a committee is required this is established by Board resolution (clearly prescribing the membership of the committee and the role of the committee) and required to regularly report back to the Board on proceedings. The Board retains ultimate responsibility for the relevant matters. No ad hoc committees were established during the 2026 financial year. Board Membership Sky’s Board is responsible for ensuring the balance of skills, knowledge, experience, independence and diversity of directors remains relevant to Sky’s business and strategy and enables the Board to discharge its duties and responsibilities effectively. The Board considers these factors when assessing Board succession and evaluating potential Board candidates. The Board does not have a formal nomination committee constituted by a Board committee charter. The Board or a nominations sub-committee of the Board (which is distinct from the People and Performance Committee) evaluates potential Board candidates to be considered for appointment. To be eligible for appointment as directors, candidates must demonstrate appropriate qualities and experience. Directors will be selected based on all the above factors including the needs of the Board at the time. 36 /
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Corporate Governance Statement (continued) Committee Meetings During the financial year ended 30 June 2026 attendance at committee meetings were as reflected in the table below: Committee meetings held while a Committee member Attendance at Committee meetings Audit and Risk Committee Keith Smith (Chair) 4 4 Dame Joan Withers 4 4 Philip Bowman 4 4 People and Performance Committee Mark Buckman (Chair) 6 6 Dame Joan Withers 6 6 Belinda Rowe 6 6 Content Rights Committee Philip Bowman (Chair) 6 6 Keith Smith 6 6 Mike Darcey 6 6 Takeover Protocol The Sky Board has appropriate protocols in place that outline the procedures to be followed if there is an offer to take a controlling interest in the Company. A committee of independent Directors would be formed which would have responsibility for managing the takeover process in accordance with the Board protocols and the New Zealand Takeovers Code. 4. Reporting and disclosure The Board should demand integrity in financial and non-financial reporting and in the timeliness and balance of corporate disclosures. Sky is committed to providing investors and stakeholders with financial and non-financial reporting that is clear, meaningful, timely and balanced. All key governance documents and policies, as well as all material stock exchange announcements, interim and annual reports and investor presentations are available online at www.sky.co.nz/investor-centre. Financial Reporting The Audit and Risk Committee oversees the preparation of Sky’s financial statements, including materiality guidance and setting policy to ensure the information presented is useful for investors and other stakeholders. Sky endeavours to prepare financial statements that are easy to read by using clear, precise language and by structuring the report so that it is logically presented, and that policies and related notes are combined in a format that is consistent and logical. Directors, Chair and Board Committees’ Confirmation of Financial Statements Each year Sky’s Chief Executive and Chief Financial Officer confirm in a written statement to the Board that the financial statements are true and correct, are prepared in accordance with applicable accounting standards and present fairly Sky’s financial position. Continuous Disclosure Sky is committed to keeping shareholders and the wider market informed of material information relating to its business, financial performance and strategy to ensure that trading in Sky’s securities takes place in an efficient well- informed market at all times. When Sky provides a substantive investor or analyst presentation, such as those prepared for investor results briefings, shareholder meetings, or investor day events, a copy of the material to be presented is released to the NZX and ASX ahead of the presentation. Sky has a Continuous Disclosure Policy that is available on Sky’s website. The policy sets out Sky’s responsibilities in relation to its continuous disclosure obligations under the NZX Listing Rules and the Financial Markets Conduct Act 2013. The policy establishes the procedures required to fulfil Sky’s obligations and details the process to appropriately identify and determine any material information that may require disclosure. In most circumstances, material market announcements are approved by the full Board prior to their release. Copies of all material market announcements are promptly circulated to the Board after they have been made. 5. Remuneration The remuneration of directors and executives should be transparent, fair and reasonable. Sky’s Remuneration Framework Sky is committed to being a good employer: offering fair, market comparable and inclusive remuneration strategies to ensure the strongest talent is attracted to, remains with and is committed to the performance of the business. Sky’s approach to remuneration demonstrates the intention to ensure clear alignment between remuneration and sustainable, long-term stakeholder interests. Sky’s Remuneration Policy provides detailed information regarding the company’s remuneration framework and the approach to Board and key management personnel (KMP) remuneration. A copy of the policy is available on Sky’s website. Stakeholder views and interests were considered in the design of Sky’s remuneration framework to ensure an appropriate focus on the performance that supports the delivery of Sky’s business strategy. This is achieved through the delivery of commercial results and shareholder returns being a core component of Sky’s senior leaders’ compensation. Sky / 2026 Annual Report / 37
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Corporate Governance Statement (continued) The People and Performance Committee is responsible for providing recommendations regarding the appointment, compensation levels and evaluation of Sky’s directors, Chief Executive and senior executives, and overseeing Sky’s People strategy, plans and policies, including remuneration. The Board approves Sky’s Remuneration Policy and all components of KMP remuneration, including director fees, executive fixed remuneration, and short- and long-term incentives. Fixed Remuneration Fixed remuneration for executives and all employees includes base salary and KiwiSaver. The salary component of fixed remuneration is reviewed on an annual basis against New Zealand labour market benchmarks, while benefits are reviewed regularly. Sky’s employee benefits were reviewed in FY26. Executive team fixed remuneration is reviewed annually and tested against relevant independent external benchmark data, with any increases approved by the PPC and the Board. KiwiSaver is offered to employees in line with the New Zealand Government’s recommendation. Sky lifted its KiwiSaver employee contribution to 3.5% of base salary on 1 April 2026. Employee Benefits Sky is committed to offering additional benefits that support employee wellbeing, customer service and both attract and retain great talent. These benefits are reviewed regularly to ensure their continued efficacy. Current benefits offered include: • Paid parental leave • Family support beyond parenting and leave associated with intergenerational family units to care for in the home • One volunteer day per year • Free and discounted Sky products • Discounted wellbeing services. Short Term Incentive Plan Sky’s Short Term Incentive plan (STI) provides a direct link between the delivery of commercial performance objectives (both financial and non-financial) and remuneration outcomes for senior roles. The Chief Executive, the executive team and direct reports to the executive team are eligible to take part in Sky’s STI. The STI framework and specific metrics and targets are considered by the People and Performance Committee and recommended to the Board for approval on an annual basis. The Board retains discretion to deny an award under Sky’s STI plan where it would reward conduct that is contrary to Sky’s long-term performance, values or risk appetite. The entitlement percentage for the FY26 period was set at 50% of base salary for the Chief Executive and 35% of base salary for other executives. Other eligible staff are entitled to an award at target equal to 15% of base salary. The STI measures for FY26 were divided between financial performance, accounting for the majority of the award, and non-financial, lead performance indicators. The financial measures used were: total revenue, EBITDA and content costs as a percentage of revenue. The non-financial performance indicators were: People (measured by employee engagement, and Health & Safety culture), Customer Experience (as measured by 3 month rolling average Net Promotor Score), and Viewership (measured by Average Viewer Hours per month, 12 month rolling). Sky’s Short Term Incentive plan includes an overarching Health and Safety hurdle whereby any STI award is forfeited in the case of a successful prosecution under the Health and Safety at Work Act 2015. Short Term Incentive (STI) achievement FY26 Overall Award Performance Indicator Target Weight Achievement Financial (set on a Sky Standalone basis) 96% Revenue $765m 15% 0% EBITDA $155m 30% 117% Programming costs as % of revenue 47. 3% 10% 150% Non-financial People: Engagement +4pts 10% 125% People: Health & safety culture +5pts 5% 125% Customer experience +8pts 20% 75% Viewership +2.3pts 10% 120% Long Term Incentive Plan Sky’s Long Term Incentive plan (LTI) was introduced in FY24 for the Chief Executive and executive team and was also offered to these participants in FY25 and FY26. The purpose of the LTI is to incentivise the performance and retention of Sky’s key executives and create strong alignment with shareholders’ interests, consistent with contemporary market standards. The plan is structured as a performance share rights plan with a three-year vesting period, with service rights conditions. The performance conditions are set by the Board, having regard to Sky’s medium- and longer-term performance objectives, with two equally weighted measures: • 50% based on Absolute Total Shareholder Return as measured by CAGR performance of greater or equal to the company’s cost of equity plus 1% (FY26: 12.9%) per annum to achieve 100% vesting with proportional straight-line vesting from 50% at performance of greater or equal to the company’s cost of equity (FY26: 11.9%) per annum. • 50% based on Relative Total Shareholder Return as measured by Sky’s performance of greater or equal to the 75th percentile of the NZX50 performance 1 to achieve 100% vesting with proportional straight-line vesting from 50% at performance of greater or equal to 50th percentile. Participants in the LTI are prohibited from entering into transactions to hedge or otherwise limit the economic risk of participating in the plan. The percentage of potential LTI varies by role with the Chief Executive’s LTI set at a maximum of 50% of base salary and executive participation set at a maximum of 25% of base salary. (1) Based on the constituent companies of the S&P/NZX50 Index at the date options were granted, less any entities delisted during the Grant Period. 38 /
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Corporate Governance Statement (continued) Sky Executive KMP Remuneration Objectives Shareholder value creation through equity components An appropriate balance of ‘fixed’ and ‘at risk’ components Creation of reward differentiation to drive performance culture and behaviours Attract, motivate and retain executive talent required at each stage of development Total Annual Remuneration (TAR) or Total Target Remuneration (TTR) is set by reference to relevant market benchmarks Fixed At Risk Fixed Annual Remuneration (FAR) Short Term Incentives (STI) Long Term Incentives (LTI) Fixed remuneration is set based on relevant market relativities, as determined by the Board, but will reflect role and responsibilities, performance, qualifications, experience and geographic location STI Key Performance Indicators (KPI) will be determined by the Board based on key financial and non-financial criteria aligned to deliver Sky’s priority business strategies Performance conditions will be set by the Board and linked to a selected matrix of Earnings, Total Shareholder Return or other objectives that the Board will use to align Executive KMP interests with shareholder interests Remuneration will be delivered as Base salary plus any allowances (includes Superannuation or equivalent) Paid, as cash, on completion of the relevant performance period Awarded as equity and will vest (or not) at the end of the performance period which will be a minimum of three years Strategic intent and market positioning FAR for Executive KMP will typically be positioned between the median and 75th percentile (+/-) compared to relevant market data considering expertise, competitive tensions and performance in the role Performance incentive is directed to achieving key strategic or financial targets. FAR and STI opportunity is targeted to be positioned at about the 75th percentile of the relevant benchmark group LTI is intended to align Executive KMP with shareholder interests. LTI opportunity should ideally be positioned at or about the 75th percentile TAR or TTR TAR or TTR is intended to be positioned in the upper 3rd quartile compared to relevant market based comparisons. 4th quartile TAR or TTR may be derived if demonstrable outperformance is achieved by Sky Sky / 2026 Annual Report / 39
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Corporate Governance Statement (continued) Chief Executive Officer’s Remuneration (earned) 1 Base Salary KiwiSaver STI STI as a % of target Incentive Award Total Earned Share rights allocated 2026 1,099,010 63,268 526,425 96% $300,000 1,988,703 174,291 2025 1,067,000 40,318 276,935 52% 1,384,253 191,298 2024 970,000 45,490 546,349 113% 1,561,839 198,329 2023 970,000 34,584 182,785 42% 1,187,369 2022 932,500 36,787 293,737 90% 1,263,024 (1) Amounts shown are the amounts earned during the period. STI and Incentive award payments earned are paid in the following financial year. (2) Share Rights allocated refers to the number of Share Rights allocated under the LTI during the financial year and remaining at risk. No Share Rights had vested at 30 June 2026. 2 On a total earnings basis, including STI paid, the median pay gap was 13.8 times. Employee Remuneration The following table shows the number of employees and former employees of Sky and its subsidiaries whose remuneration and benefits for the year ended 30 June 2026 were within the specified bands above $100,000. The remuneration figures shown in the table include all monetary payments actually paid during the year ended 30 June 2026, including KiwiSaver severance and STI payments. The table does not include amounts paid post 30 June 2026 that relate to the 2026 financial year, such as STI payments. Remuneration Range ($) Number of employees 100,000 - 110,000 40 110,001 - 120,000 36 120,001 - 130,000 46 130,001 - 140,000 38 140,001 - 150,000 25 150,001 - 160,000 29 160,001 - 170,000 41 170,001 - 180,000 23 180,001 - 190,000 10 190,001 - 200,000 12 200,001 - 210,000 12 210,001 - 220,000 11 220,001 - 230,000 6 230,001 - 240,000 5 240,001 - 250,000 6 250,001 - 260,000 9 260,001 - 270,000 2 270,001 - 280,000 4 280,001 - 290,000 4 290,001 - 300,000 4 300,001 - 310,000 1 310,001 - 320,000 6 320,001 - 330,000 4 330,001 - 340,000 1 340,001 - 350,000 3 350,001 - 360,000 2 360,001 - 370,000 1 370,001 - 380,000 1 380,001 - 390,000 1 400,001 - 410,000 1 420,001 - 430,000 1 440,001 - 450,000 1 510,001 - 520,000 1 600,001 - 610,000 1 630,001 - 640,000 1 670,001 - 680,000 1 1,050,001 - 1,060,000 1 1,410,001 - 1,420,000 1 Grand Total 392 Chief Executive Remuneration Sky’s People & Performance Committee (PPC) is responsible for reviewing and recommending Chief Executive remuneration to Sky’s Board annually. In FY26, the PPC commissioned external and independent benchmark data on the Chief Executive’s remuneration. Sky’s Chief Executive, Sophie Moloney has a permanent employment agreement with Sky. The agreement includes a period of notice from the individual of 6 months and allows for a provision of consultative agreed termination notice from the company, referred to as the “No Fault Termination Clause”. This clause allows for the agreed termination of the contract with six months’ pay and six months’ notice. In addition, there is provision for a redundancy payment of 44 weeks. The Chief Executive’s remuneration includes fixed remuneration of base salary plus KiwiSaver. Based on independent benchmark data, the Chief Executive’s base salary was increased by 3% in line with forecast market movements provided by Sky’s external advisor. The actual market movement for FY26 was confirmed to be 4% for relevant CEO roles in April 2026. The Chief Executive has a significant portion of remuneration ‘at risk’ and linked to Sky’s commercial performance. The variable remuneration components are a Short Term Incentive plan (STI) and Long Term Incentive plan (LTI). The STI is set at 50% of base salary. The LTI was introduced in FY24 and is structured as a performance share rights plan with a three-year vesting period with service rights conditions (as set out on page 38). At 30 June 2026 the Chief Executive held a total of 563,918 share rights. The maximum potential earnings from the LTI is 50% of base salary per annum. No Share Rights had vested at 30 June 2026. At the conclusion of the three-year vesting period, Share Rights allocated to the Chief Executive in FY24 will be tested against the LTI performance criteria. The test period begins immediately following the release of FY26 Annual Results. Subject to the test results, the Performance Share Rights could be partially or fully exercised. The conversion to ordinary shares and/or lapse of Share Rights will be advised by a Market release to the NZ and Australian Stock Exchanges. Subsequent to 30 June 2026 the Board agreed to make an additional incentive award to the Chief Executive in recognition of an exceptional contribution over the three-year period to FY26, including successful delivery of satellite migration, the acquisition of Discovery NZ and securing strategically important sports rights. Pay Equity and Diversity Sky has committed to paying all employees the living wage or more. At 30 June 2026 all permanent Sky employees were paid the living wage or more. The median pay gap indicates the number of times greater the Chief Executive’s remuneration is to an employee paid at the median of all Sky employees. At 30 June 2026 the Chief Executive’s base salary of $1,099,010 (on an annualised basis) was 11.0 times that of the median employee at $100,000. 40 /
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Corporate Governance Statement (continued) Director Remuneration Directors do not receive any performance or equity-based remuneration, superannuation or retirement benefits (for their role as directors). This reflects the role of the directors which is to provide oversight and guide strategy, whereas the role of management is to operate the business and execute Sky’s strategy. The directors’ fee pool has been set at a maximum amount of $1,115,000 per annum since it was last approved by shareholders on 14 November 2024, effective from 1 December 2024. Directors received a CPI-aligned fee increase of 3% to the base fee on 1 July 2025. This fee had remained unchanged since July 2023. Annual Fee Structure ($) Year ended 30 June 2026 Year ended 30 June 2025 Board fees Board Chair 252,350 245,000 Deputy Chair 147,625 143,325 Independent Director 113,558 110,250 Board Committee Fees Audit and Risk Committee (ARC) Chair 20,000 20,000 Member 12,000 12,000 People and Performance Committee (PPC) Chair 16,000 16,000 Member 8,000 8,000 Content Rights Committee (CRC) Chair 16,000 16,000 Member 8,000 8,000 (1) FY25 fees payable prior to 1 December 2024 were paid on a pro-rata basis consistent with the FY24 fee schedule. The FY25 fee schedule came into effect from 1 December 2024. Fees paid to Sky Directors in the year ended 30 June 2026 are set out in the table below: Name Board Fees ARC PPC CRC Total Philip Bowman (Chair) 1 252,350 - - 252,350 Keith Smith (Deputy Chair) 147,625 20,000 - 8,000 175,625 Mike Darcey 113,558 - - 8,000 121,558 Dame Joan Withers 113,558 12,000 8,000 - 133,558 Mark Buckman 113,558 - 16,000 - 129,558 Belinda Rowe 113,558 - 8,000 - 121,558 Totals 854,205 32,000 32,000 16,000 934,205 (1) The Board Chair is a member of the ARC and Chair of the CRC. The Chair does not receive a separate fee for committee roles. 6. Risk management Directors should have a sound understanding of the material risks faced by the issuer and how to manage them. The Board should regularly verify that the issuer has appropriate processes that identify and manage potential and material risks. Sky’s risk management framework is overseen and monitored by both the Board and the Audit and Risk Committee. The Audit and Risk Committee in conjunction with management regularly report to the Board on the effectiveness of the management of Sky’s risks and whether the risk management framework and systems of internal compliance and control are operating efficiently and effectively in all material respects. Sky has a Controlling and Managing Risk Policy which provides an overview of Sky’s risk management process. The Policy outlines Sky’s risk management objectives and guidelines and provides a framework to identify, manage and report on risks both financial and non-financial. The Audit and Risk Committee reviews Sky’s risk management framework with management at least annually to satisfy itself that it continues to be sound and to ensure that Sky is operating with due regard to the risk appetite set by the Board. Sky recognises that having a robust and well-documented enterprise-wide risk management framework is critical to support the management of risks across Sky. Management, with oversight by the Audit and Risk Committee, continue to identify and implement improvements to Sky’s risk management processes in line with the enterprise-wide risk management framework, while maintaining its focus on managing both near and long-term risks, including risks due to climate change, to best support Sky’s current and future business and operating goals. Sky’s internal audit function is outsourced to Ernst & Young (EY). An annual internal audit plan is presented and approved by the Audit and Risk Committee and the Audit and Risk Committee receives internal audit reports during the year and monitors completion of action items that arise. Sky’s internal audit function assists it to better accomplish its objectives by bringing a systemic, disciplined approach to evaluating and continually improving the effectiveness of Sky’s risk management and internal control processes. 1 Sky / 2026 Annual Report / 41
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Corporate Governance Statement (continued) Sky has identified the following strategic risks that could affect results and performance: Strategic risks Description Mitigation Technology infrastructure Reliability of the provision of Technology infrastructure (including satellite) is critical to the provision of Sky services. Sky has Business Continuity Management and Disaster Recovery plans which are regularly reviewed, updated and tested (where practicable). Cybersecurity Cybersecurity risk mitigation is critical for the safe and reliable operation of Sky’s business, including to protect sensitive data. Sky has a detailed cybersecurity programme that includes tools and systems designed to prevent and detect potential threats to cybersecurity, privacy and data breaches. This programme is continually monitored, tested and improved. Accessing and securing market leading content Accessing and securing great content at the right price is critical to Sky’s future. Providing customers with the content they value in a financially sustainable way is central to Sky’s strategy. Sky continually reviews the nature of the content acquired and its access to content. Sky is focused on delivering content that is important to its customers and utilises data-based insights and research to ensure its content strategy is achieved. Negative impact of ongoing significant New Zealand economic downturn An ongoing significant downturn of the New Zealand economy could have a major impact on Sky achieving its financial goals. Sky continually monitors the macro-economic environment and utilises trend analysis of its own data to understand the current and possible future impacts of an economic downturn. Sky constantly monitors value to customers, ensuring content is accessible and meeting customers where they are. Sky proactively and responsibly manages its own costs to ensure sustainability while maintaining an exceptional experience for crew and customers. Strategy execution Failure to execute strategic initiatives could impact Sky’s reputation and ability to meet financial goals. In conjunction with the Board, Sky’s executive team continue to refine Sky’s strategic goals and have a clear path to achieving those goals. This includes engaging with the Sky team more broadly to ensure the whole business is aligned. Adverse impact of geopolitical events Sky’s product and content supply chain could be disrupted and Sky's cost structure could be negatively impacted by global geopolitical events. Sky actively monitors for potential adverse impacts of geopolitical events and seeks to mitigate exposure through diversity of supply, alternate delivery methods, local stores of physical assets and close partnerships with its suppliers. Legislative and regulatory compliance The ever changing legal and regulatory landscape within which Sky operates together with Sky’s evolving product mix and delivery methods, and obligations as a publicly listed company create a risk that Sky could inadvertently fail to comply. Sky has robust policies and procedures covering compliance with key legal and regulatory requirements. Sky’s internal legal team monitors changes and proposed amendments to its compliance obligations. Sky also engages external legal advisors to ensure it remains compliant. Physical risks associated with natural disasters or climate change impacts An increase in the intensity or frequency of natural disasters or climate related events could impact Sky’s ability to deliver its content and lead to reduced demand for its services from impacted customers. As noted above, Sky’s Business Continuity and Disaster Recovery plans ensure it is best placed to withstand climatic events and natural disasters. Sky continues to develop its medium to long-term response to the potential impacts of climate change. Health and safety of workers Sky’s health and safety protocols may be insufficient to prevent harm or injuries to its workers while they carry out their duties. Sky takes the health, safety and wellbeing of its workers very seriously and is committed to ensuring that employees and those who work with Sky, do so in a safe environment. Sky continues to invest in its health, safety and wellbeing processes and procedures to ensure it is a safe place to work. This includes risk identification, mitigation and continuous improvement initiatives by in-house experts. Ability to attract, retain and engage specialist talent Attracting, retaining and engaging specialist employees in key areas is critical to Sky delivering on its strategic goals. Sky continues to invest in its people and culture programmes including building leadership capability across the business, improving access to the tools, systems and processes needed to enable employees to achieve their potential. Sky has utilised co- source and out-source partnerships as appropriate to access specialist resource at scale, where needed. Sky continues to focus on te ao Māori and the opportunities presented by embedding its principles within Sky. Table continued over page 42 /
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Corporate Governance Statement (continued) Strategic risks Description Mitigation Competition Sky operates within an extremely competitive market with New Zealanders now able to access the content they want to watch more easily than ever before. If Sky fails to respond to new competitors and/or changes to customers’ needs, it could fail to meet strategic and financial goals. While Sky is focused on delivering its strategic goals, it continually monitors its market environment using customer feedback and data insights to ensure its content and delivery approach remain relevant and in demand. Sky remains focused on connecting New Zealanders with the sport and entertainment they love, in ways that work for them, right across the country. Health and safety Sky is committed to providing a safe, healthy workplace where all workers can thrive. Sky’s strategic approach to health and safety is to: • safeguard the wellbeing of its people by providing a safe and inclusive workplace; • fulfil all safety obligations within the business, in line with the strategic intent, corporate objectives and legislative requirements; and, • maintain a safety culture which drives continual improvement and organisational resilience at all levels within Sky. Sky’s Board plays an active role in Sky’s safety culture and Health & Safety matters are discussed at every meeting. In addition to monthly updates covering initiatives and performance, directors receive quarterly legislative briefings, undertake six-monthly safety visits and participate in an annual Health & Safety capability uplift session with an external advisor. As part of its commitment to workplace health and safety, Sky commissioned an external Health & Safety Audit in 2024 and has taken action on the recommendations. The next audit is scheduled for August 2026. Sky has two primary measures of health & safety performance. The first is the lag indicator of Total Recordable Injury Rate. The second is a lead indicator of Sky’s health and safety culture as measured in Sky’s six-monthly engagement survey. Both measures continue to perform above target in FY26. The below table shows performance in these measures over the past three years: 2026 2025 2024 Total Recordable Injury Rate 2.8 0.9 N/A Health & Safety Culture 90 89 85 The importance placed on health and safety is reflected in Sky’s remuneration framework through the Short Term Incentive (STI) hurdle whereby no annual award is made if Sky has been successfully prosecuted under the Health & Safety Act 2015. In FY26 Sky had no notifiable incidents, 3 lost-time injuries and no incidents in activities involving Sky’s critical risks. 7. Auditors The Board should ensure the quality and independence of the external audit process. External audit The role of the external auditor is critical for the integrity of Sky’s financial reporting. PricewaterhouseCoopers (PwC) is Sky’s external auditor. The Audit and Risk Committee is responsible for reviewing and recommending to the Board the engagement of the external auditors, for reviewing any regulatory requirements, for agreeing the scope of the audit, ensuring no management restrictions are placed on the auditors and for evaluating the performance of the external auditors. Sky’s Audit and Risk Committee Charter (available on Sky’s website), contains the policy for External Audit Independence which sets out the framework for ensuring that independence of the external auditor is maintained. A copy of the most recent audit report, relating to the 2026 financial year is included on page 89. Sky undertakes an internal process of verification for periodic materials released to the NZX and ASX where these have not been audited or reviewed by the external auditor, to ensure the accuracy and integrity of the material prior to release. This process includes the following: • reports are prepared by or under the supervision of subject matter experts; • material statements in the report are reviewed for accuracy and appropriately interrogated; and • all announcements (other than administrative announcements) must be approved by Sky’s Disclosure Committee. Where considered appropriate, Sky requests an external review from a suitably qualified advisor to provide an additional level of independent review. Internal audit Sky currently outsources to EY its internal audit function which is tasked with monitoring Sky’s internal control systems and risk management. Internal audit operates with and independently of management and reports directly to the Audit and Risk Committee. The Audit and Risk Committee reviews the internal audit plan annually as well as the internal audit reports. The internal audit reports are made available to the external auditors. Sky / 2026 Annual Report / 43
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Corporate Governance Statement (continued) 8. Shareholder rights and relations The Board should respect the rights of the shareholders and foster constructive relationships with shareholders that encourage them to engage with the issuer. Investor communication Sky is committed to facilitating effective two-way communication with its shareholders and other stakeholders. Sky’s approach to investor relations is designed to keep both Sky’s shareholders and the broader market properly informed. Communications with investors may take the form of stock exchange releases, press releases, reports, presentations, teleconferences/webcasts, meetings and site visits. Sky’s management team meets with investors and analysts as appropriate, and provides periodic investor briefings to the Market. Sky’s Chairman also engages with investors on governance matters. Sky’s Investor Communications Policy outlines the steps that it takes to enable shareholders to engage with Sky in an informed manner and to allow them to make informed assessments of Sky’s value and future prospects. A copy of this policy is available on Sky’s website. In addition to information provided to the market via NZX and ASX, Sky uses the following methods to communicate with its investors: Investor centre website Sky’s website (www.sky.co.nz/investor-centre) includes copies of documents that have been released to the market to enable investors and stakeholders access to all information about Sky and its governance in one place. This includes copies of annual reports, presentations, market announcements, media releases and corporate governance documents. Information provided to stock exchanges of an administrative or compliance nature will not necessarily be posted on the website. In addition, information may be requested directly from Sky by emailing investorrelations@sky.co.nz to which Sky is committed to responding to in a timely manner. Electronic communications Sky is committed to ensuring the efficiency, timeliness, and sustainability of communications by encouraging shareholders to receive communications material electronically via Sky’s share registry, Computershare Investor Services Limited. Annual shareholder meeting Shareholders are encouraged to attend Sky’s Annual Shareholder Meeting, whether this is in person or online, via a shareholder meeting platform. Details of the Annual Shareholder Meeting, and the ways that shareholders can participate, are available in the Notice of Meeting which is expected to be dispatched to shareholders 20 working days prior to the Meeting in accordance with NZX Corporate Governance recommendations, and made available on Sky’s website. Sky ensures that shareholder meetings are held at a reasonable time and place and all resolutions at a shareholders’ meeting are decided by a poll. Notices of shareholder meetings include explanatory information regarding the resolutions to be considered by the meeting. These are provided in sufficient time to enable shareholders to form a reasoned judgement on the matters to be voted upon. Sky’s external auditors, legal representatives and share registrar attend the Annual Shareholder Meeting. Directors, management and external auditors are available to answer any questions from shareholders at the Annual Shareholder Meeting. Details of how shareholders unable to attend the Annual Shareholder Meeting can submit questions in advance are included in the Notice of Meeting. 44 /
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Company Information / 45 Sky / 2026 Annual Report
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Interests Register Disclosures of interest General Notices Directors have given general notices disclosing interests in various entities pursuant to section 140(2) of the Companies Act 1993. Those notices which remain current as at 30 June 2026 are as follows: Director Entity Relationship Philip Bowman KMD Brands Limited (listed) 1 Tegel Group Holdings Limited Ferrovial N.V. (listed) Tom Tom Holdings, Inc. Vinula Pty. Limited Vinula Super Fund Pty. Limited Chair Chair Director Director Director Director Mike Darcey British Gymnastics Premier League Basketball UK Chair Shareholder Keith Smith Anderson & O’Leary Limited and associated companies Enterprise Group Holdings Limited and associated companies Goodman Property Services (NZ) Limited 2 H J Asmuss & Co Limited and associated companies Healthcare Holdings Limited and associated companies Mobile Health Group Limited Gwendoline Holdings Limited (non-trading) Chair Chair Director Chair Chair Chair Director and Shareholder Dame Joan Withers The Warehouse Group Limited and associated companies 2 ANZ Bank New Zealand Limited Louise Perkins Foundation On Being Bold Limited Origin Energy Limited Chair Director Trustee Director Director Mark Buckman OzTAM Pty. Limited Barangaroo Advisory Pty. Limited Honed Real Estate Pty. Limited Ryke Clothing Pty. Ltd Zion Z Pty. Ltd trading as Zolo Corp Hourigan International Chair Director Shareholder and advisor Shareholder and advisor Shareholder and advisor Managing Partner Belinda Rowe ARN Media Limited Sydney Swans Limited Temple & Webster Group Limited Belinda Rowe Consulting Pty. Limited Rowe-Cuthbert Nominees Pty. Limited Non-Executive Director Non-Executive Director Non-Executive Director Director Director (1) Entries added or updated during the period from 1 July 2025 to 30 June 2026. (2) Entries removed by notices given by the directors during the period from 1 July 2025 to 30 June 2026. Particular Transactions / Use of Company Information During the financial year to 30 June 2026, in relation to Sky: • no specific disclosures were made in the Interests Register under section 140(1) of the Companies Act 1993; and • no entries were made in the Interests Register as to the use of company information under section 145 of the Companies Act 1993. 46 /
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Company Information Directors’ and senior managers’ interests in securities and trading The table below sets out directors’ and senior managers’ relevant interests in Sky’s quoted financial products as at 30 June 2026 (as defined in the Financial Markets Conduct Act 2013) for the purposes of NZX Listing Rule 3.7.1(d), together with transactions recorded during FY26: Director Total number of Ordinary Shares in which relevant interest is held at 30 June 2026 Interest Transaction Date Number of Ordinary Shares acquired/ (disposed of) Philip Bowman 850,000 Beneficial ownership 25 August 2025 26 August 2025 18 March 2026 20 March 2026 23 March 2026 12 May 2026 44,932 5,068 5,807 220 643 43,330 Keith Smith 152,260 Beneficial ownership and other 1 20 May 2026 116,000 Dame Joan Withers 10,500 Beneficial ownership 27 August 2025 10,500 Mark Buckman 5,000 Beneficial ownership 11 November 2025 5,000 Belinda Rowe 23,000 Beneficial ownership 2 - - Mike Darcey 125,000 Beneficial ownership - - Senior Manager Sophie Moloney (CEO) 331,861 Beneficial ownership 25 August 2025 24 March 2026 25 March 2026 26 March 2026 50,000 768 1702 29,030 (1) Includes: 100,000 shares held by Keith Smith; 6,256 shares jointly held by Keith Smith and his brother Robert Smith as trustees of the Gwendoline Trust (in which Keith Smith has no beneficial interest); 6,671 shares held by Gwendoline Holdings Limited (Keith Smith is a discretionary beneficiary of a trust which owns Gwendoline Holdings Limited); 24,333 shares held by Keith Smith’s partner Lily Wong; and 15,000 shares held by Keith Smith as joint registered holder with John Richard Avery and Brian Mayo- Smith as trustees of the Selwyn Trust (in which Keith Smith has a beneficial interest). (2) 23,000 shares held by Belinda Rowe as beneficiary of Rowe-Cuthbert Nominee Pty Limited as trustee of the Rowe-Cuthbert Super Fund. Subsidiaries At 30 June 2026, Sky had the following subsidiary companies: Subsidiary Director(s) Principal Activity Believe It Or Not Limited Annabelle Lochead Brendan Lochead Christopher Shaw Antony Welton Entertainment quizzes Lightbox New Zealand Limited Sophie Moloney Streaming services Media Finance Limited Sophie Moloney Did not trade Non-Trading PS Limited Sophie Moloney Did not trade Screen Enterprises Limited Sophie Moloney Did not trade Sky DMX Music Limited Sophie Moloney Malcolm McRoberts Antony Welton Commercial music Sky Free Limited (previously Discovery NZ Limited) 1 Sophie Moloney (appointed 1 August 2025) David Mackrell (appointed 1 April 2026) 1 Media services Sky Investment Holdings Limited Sophie Moloney Did not trade Sky Network Services Limited Sophie Moloney Broadband services Sky Ventures Limited Sophie Moloney Did not trade (1) David Mackrell replaced Juliet Peterson, who was appointed on 5 July 2024 and retired 1 April 2026. The remuneration of Sky’s employees acting as directors of subsidiary companies is disclosed in the relevant banding for employee remuneration. In the case of Sophie Moloney, remuneration is disclosed under the heading of “Chief Executive Remuneration”. No director of any subsidiary company received directors’ fees or extra benefits by virtue of the fact that they are acting as directors of subsidiary companies. Sky / 2026 Annual Report / 47
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Company Information (continued) Sky subsidiaries’ interests registers In the year to 30 June 2026, in relation to Sky’s subsidiaries, no specific notices were made in the Interests Register pursuant to section 140 of the Companies Act 1993. Insurance and indemnities Sky has in place directors’ and officers’ liability insurance to cover risks normally covered by such policies arising out of acts or omissions of Sky directors or employees in that capacity. Sky has entered into a deed of indemnity pursuant to which it has agreed to indemnify directors, senior management and officers of Sky against liability incurred from acts or omissions of such directors, senior management or officers, subject to certain exceptions which are normal in such indemnities. Sky shares and shareholders Sky Network Television Limited’s shares are quoted on the NZX and on the ASX and trade under the ‘SKT’ ticker. The only class of equity securities on issue in Sky is ordinary shares. As at 30 June 2026 there were 6,145 holders of a total of 137,675,010 ordinary shares in Sky. Each Sky share confers on its holder the right to attend and vote at a shareholder meeting. On a poll, each ordinary share entitles the holder to one vote. Sky did not have any unquoted voting products on issue at 30 June 2026. Substantial Product Holders According to notices given to Sky under the Financial Markets Conduct Act 2013 and the ASX Listing Rules, the following persons were substantial product holders in Sky at 30 June 2026: Substantial Product Holder Name Date of Substantial Product Holder Notice Number of Shares in Substantial Product Holding % held Accident Compensation Corporation 3 December 2024 14,543,637 10.564 FirstCape Group Limited 21 October 2025 7,9 4 6,751 5.772 New Zealand Superannuation Fund 19 May 2026 12,085,086 8.778 Investment Services Group Limited 19 June 2026 7,3 8 3 ,76 3 5.363 (1) Based on disclosures to the company. At Sky’s 30 June 2026 year end the total number of ordinary shares on issue was 137,675,010. Twenty Largest Shareholders at 30 June 2026 Name Number of Shares % of Issued Capital BNP Paribas Nominees (NZ) Limited (BPSS40) Accident Compensation Corporation HSBC Nominees A/C NZ Superannuation Fund Nominees Limited HSBC Nominees (New Zealand) Limited (HKBN90) Citibank Nominees (New Zealand) Limited Custodial Services Limited New Zealand Depository Nominee Limited APEX Custodians Nominees (NZ) Limited (TEAC40) JBWere (NZ) Nominees Limited JPMorgan Chase Bank NA NZ Branch-Segregated Clients Acct HSBC Custody Nominees (Australia) Limited BNP Paribas Nominees (NZ) Limited HSBC Nominees (New Zealand) Limited A/C State Street Rural Equities Limited Citicorp Nominees Pty Limited New Zealand Rugby Union Incorporated JBWere (NZ) Nominees Limited PT (Booster Investments) Nominees Limited BNP Paribas Nominees (NZ) Limited Forsyth Barr Custodians Limited 19,912,487 13,393,806 11,279,274 10,616,244 6,319,316 5,641,205 4,696,093 3,513,425 3,464,679 3,147,867 2,857,397 2,605,313 2,329,811 2,050,000 1,912,892 1,816,777 1,700,000 1,662,000 1,624,187 1,456,583 14.5 9.7 8.2 7.7 4.6 4.1 3.4 2.6 2.5 2.3 2.1 1.9 1.7 1.5 1.4 1.3 1.2 1.2 1.2 1.1 101,999,356 74.1 1 1 48 /
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Company Information (continued) Shareholder Distribution at 30 June 2026 Range Number of Shareholders Number of shares held % of Issued Capital 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over 3,989 1,226 381 479 70 1,028,141 3,095,471 2,836,169 13,728,213 116,987,016 0.75 2.25 2.06 9.97 84.97 Total 6,145 137,675,010 100.00 Non-Marketable Parcels of Shares As at 30 June 2026, 2,704 shareholders in Sky had non- marketable parcels of shares. Donations During the financial year ending 30 June 2026, Sky made cash donations totaling $72,000. Sky’s broader commitments under the ‘Sky for Good’ programme, as outlined on page 26, are predominantly ‘in kind’ services (such as complimentary Sky in Starship Children’s Hospital rooms). No donations were made to political parties. Sky’s subsidiaries did not make any donations. Auditors The auditors of Sky and its subsidiaries were Pricewaterhouse Coopers. The amount paid to PricewaterhouseCoopers by Sky in the year to 30 June 2026 for statutory audit services and for other assurance services was: Statutory audit services ($000) Other assurance and non-assurance services ($000) Sky 1,289 27 Sky’s subsidiaries did not pay PricewaterhouseCoopers any fees. Waivers and Information Current and ongoing waivers The following is a summary of all waivers which were relied upon by Sky in the year to 30 June 2026. These were: 1. A waiver from ASX Listing Rule 6.10.3 to the extent necessary to permit Sky to set the “specified time” to determine whether a security holder is entitled to vote at a shareholders’ meeting in accordance with the requirements of relevant New Zealand legislation. 2. A waiver from ASX Listing Rule 15.7 to permit Sky to provide announcements simultaneously to both ASX and NZX. 3. A waiver from ASX Listing Rule 14.3 to the extent necessary to allow Sky to receive director nominations between the date three months and the date two months before the annual meeting. Share information Limitations on the acquisition of the company’s securities Sky is incorporated in New Zealand and therefore, it is not subject to chapters 6, 6A, 6B and 6C of the Australian Corporations Act 2001 dealing with the acquisition of shares (such as substantial holdings and takeovers). Limitations on acquisition of the securities are, however, imposed on Sky under New Zealand law by way of the New Zealand Takeovers Code, the Overseas Investment Act 2005 and the Commerce Act 1986. Sky does not otherwise have any additional restrictions. Sky / 2026 Annual Report / 49
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Share Market and Other Information Share market listing details New Zealand Sky’s ordinary shares are quoted on the NZX Main Board and trade under the code SKT. Sky’s International Security Identification Number (ISIN) issued for the Company by the NZX is NZSKTE0001S6. NZX Limited Level 1, NZX Centre 11 Cable Street Wellington 6011, New Zealand Mailing address: PO Box 2959 Wellington 6140, New Zealand Tel: +64 4 472 7599 Website: nzx.com Australia Sky’s ordinary shares are also quoted on the ASX and trade under the code SKT. ASX Limited Exchange Centre 39 Martin Place, Sydney NSW 2000, Australia Mailing address PO Box H224 Australia Square, Sydney NSW 1215, Australia Tel: +61 2 9338 0000 Registry details Shareholders should direct questions relating to changes of shareholder details or address any administrative questions to Sky’s share registrar. Shareholders are able to independently manage a range of queries regarding their holdings by using Computershare’s secure website: www.investorcentre.com/nz. This website enables holders to view balances, view and change address, payment and tax information, and update payment instructions and communication options. Direct payment to a bank account is the only means available for shareholders to receive dividend payments. Shareholders are strongly encouraged to provide bank account details to ensure they are able to receive any future dividend payments. Sky continually strives to improve the efficiency of its communications with investors and stakeholders and encourages all shareholders to elect to receive communications from Sky electronically. This minimises costs, ensures prompt delivery and importantly, supports Sky’s efforts to reduce its environmental impact. New Zealand Computershare Investor Services Limited Level 2/159 Hurstmere Road Takapuna, Auckland Private Bag 92119 Auckland 1142 New Zealand Freephone within New Zealand: 0800 222 065 Telephone New Zealand: +64 9 488 8777 Australia Computershare Investor Services Pty Limited Yarra Falls, 452 Johnston Street Abbotsford VIC 3067 GPO Box 2975 Melbourne, Vic 3000 Australia Freephone within Australia: 1800 501 366 Telephone Australia: +61 3 9415 4083 Email: enquiry@computershare.co.nz Website: www.computershare.com/nz 50 /
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Our 2026 Financials For the year ended 30 June 2026 Our 2026 Financials / 51 Sky / 2026 Annual Report
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The directors of Sky Network Television Limited (Sky) are responsible for ensuring that the consolidated financial statements of Sky and its subsidiaries (the Group) fairly present the financial position of the Group as at 30 June 2026 and the results of its operations and cash flows for the year ended on that date. The directors consider that the consolidated financial statements of the Group have been prepared using appropriate accounting policies, consistently applied and supported by reasonable judgements and estimates and that all relevant financial reporting and accounting standards have been followed. The directors believe that proper accounting records have been kept which enable, with reasonable accuracy, the determination of the financial position of the Group and facilitate compliance of the consolidated financial statements with the Financial Markets Conduct Act 2013. The directors consider they have taken adequate steps to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. The directors present the consolidated financial statements of the Group for the year ended 30 June 2026. The Board of Directors of Sky authorise these consolidated financial statements for issue on 27 August 2026. For and on behalf of the Board of Directors. Philip Bowman Keith Smith Director and Chair Director and Chair of Audit and Risk Committee Date: 27 August 2026 Directors’ Responsibility Statement 52 /
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Financial statements Contents Financial Statements Consolidated Income Statement 54 Consolidated Statement of Comprehensive Income 55 Consolidated Balance Sheet 56 Consolidated Statement of Changes in Equity 57 Consolidated Statement of Cash Flows 58 Notes to the Consolidated Financial Statements Basis of preparation 1. General Information 59 2. Basis of Consolidation 60 3. Material Accounting Policies and Critical Judgements and Estimates 60 Performance 4. Segment and Revenue Information 61 5. Acquisition of Discovery NZ Limited 63 6. Other Income 64 7. Operating Expenses 65 8. Earnings Per Share 66 9. Taxation 66 Working capital 10. Trade and Other Receivables 68 11. Programme Rights Inventory 69 12. Trade and Other Payables and Contract Liabilities 70 Assets 13. Property, Plant and Equipment 71 14. Right-of-Use Assets 72 15. Intangible Assets 73 16. Goodwill 74 Funding 17. Borrowings 76 18. Lease Liabilities 77 19. Finance Costs, Net 78 20. Share Capital 79 21. Reserves 79 Financial risk management 22. Derivative Financial Instruments 79 23. Financial Risk Management – Market Risk 81 24. Financial Risk Management – Credit Risk 83 25. Financial Risk Management – Liquidity Risk 83 26. Classification of Financial Instruments 85 Other 27. Provisions 86 28. Related Parties 87 29. Commitments 88 30. Contingent Assets and Liabilities 88 31. Subsequent Events 88 Independent auditor’s report 89 Sky / 2026 Annual Report / 53
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Consolidated Income Statement For the year ended 30 June 2026 In NZD ’000s Notes 30-Jun-26 30-Jun-25 Revenue 4 824,845 750,723 Gain on bargain purchase – Discovery NZ Limited 5 31,407 - Other income 6 9,444 7,6 81 Expenses Programming 401,856 404,124 Broadcasting and infrastructure 133,452 103,971 Subscriber related costs 76,987 71,367 Advertising costs 1 33,023 18,477 Depreciation, amortisation and impairment of assets 7 97,020 89,141 Other costs 50,175 39,827 Total expenses 792,513 726,907 Finance income 19 1,753 1,700 Finance expense 19 7,5 52 4,276 Profit before tax 67,384 28,921 Income tax expense 9 7,5 8 6 8,331 Profit for the year 59,798 20,590 Attributable to Equity holders of the Company 8 59,375 20,228 Non-controlling interests 423 362 59,798 20,590 Earnings per share Basic earnings per share (cents) 8 43.13 14.69 Diluted earnings per share (cents) 8 42.84 14.61 (1) Advertising costs of $33.0m have been disaggregated from Other costs (30 June 2025: $18.5m). 54 /
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Consolidated Statement of Comprehensive Income For the year ended 30 June 2026 In NZD ’000s 30-Jun-26 30-Jun-25 Profit for the year 59,798 20,590 Items that may be reclassified to profit or loss Deferred hedging gains / (losses) transferred to operating expenses during the year 1,898 (490) Changes in fair value of cash flow hedges 11,149 (2,988) Income tax effect (3,653) 974 Net other comprehensive income / (loss) to be reclassified to profit or loss, net of income tax 9,394 (2,504) Items that may not be reclassified to profit or loss Deferred hedging gains transferred to non-financial assets during the year - 181 Income tax effect - (51) Net other comprehensive income not being reclassified to profit or loss, net of income tax - 130 Total comprehensive income for the year 69,192 18,216 Attributable to: Equity holders of the Company 68,769 17, 8 5 4 Non-controlling interest 423 362 69,192 18,216 Sky / 2026 Annual Report / 55
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Consolidated Balance Sheet As at 30 June 2026 In NZD ’000s Notes 30-Jun-26 30-Jun-25 Current assets Cash and cash equivalents 79,140 32,410 Trade and other receivables 10 67, 8 6 0 60,660 Programme rights inventory 11 90,264 70,927 Income tax receivable 1,153 3,788 Derivative financial instruments 22 11,424 640 249,841 168,425 Non-current assets Trade and other receivables 10 6,765 7,4 67 Property, plant and equipment 13 122,673 126,958 Right-of-use assets 14 45,682 62,147 Intangible assets 15 67,3 3 8 63,386 Goodwill 16 244,264 244,264 Derivative financial instruments 22 2,289 220 489,011 504,442 Total assets 738,852 672,867 Current liabilities Lease liabilities 18 30,521 22,720 Trade and other payables 12 139,203 95,918 Contract liabilities 12 56,847 56,903 Derivative financial instruments 22 24 2,464 226,595 178,005 Non-current liabilities Lease liabilities 18 31,962 49,880 Trade and other payables 12 2,518 1,029 Deferred tax liability 9 8,464 2,499 Derivative financial instruments 22 37 2,439 42,981 55,847 Total liabilities 269,576 233,852 Equity Share capital 20 676,755 676,755 Reserves 21 8,245 (1,619) Retained deficit (217,4 32) (237,570) Total equity attributable to owners of the Parent 467,568 437,566 Non-controlling interest 1,708 1,449 Total equity 469,276 439,015 Total equity and liabilities 738,852 672,867 Philip Bowman Keith Smith Director and Chair Director and Chair of Audit and Risk Committee For and on behalf of the Board 27 August 2026. 56 /
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Consolidated Statement of Changes in Equity For the year ended 30 June 2026 In NZD ’000s Notes Attributable to owners of the parent Non- controlling interest Total equity Share capital Reserves Retained deficit Total For the year ended 30 June 2026 Balance at 1 July 2025 676,755 (1,619) (237,570) 437 ,566 1,449 439,015 Net profit for the year - - 59,375 59,375 423 59,798 Cash flow hedges, net of tax 21 - 9,394 - 9,394 - 9,394 Total comprehensive income for the year - 9,394 59,375 68,769 423 69,192 Transfer of cash flow hedge reserves to non financial assets Cash flow hedges, net of tax 21 - 34 - 34 - 34 Total transfers of cashflow hedges to non financial assets - 34 - 34 - 34 Transactions with owners in their capacity as owners Dividend paid 1 - - (39,237) (39,237) (164) (39,401) Supplementary dividends - - (1,994) (1,994) - (1,994) Foreign investor tax credits - - 1,994 1,994 - 1,994 Share based compensation reserve 28 - 436 - 436 - 436 Total transactions with owners - 436 (39,237) (38,801) (164) (38,965) Balance at 30 June 2026 676,755 8,245 (217,432) 467,568 1,708 469,276 For the year ended 30 June 2025 Balance at 1 July 2024 676,755 359 (229,575) 4 47,5 3 9 1,379 448,918 Net profit for the year - - 20,228 20,228 362 20,590 Cash flow hedges, net of tax 21 - (2,374) - (2,374) - (2,374) Total comprehensive income for the year - (2,374) 20,228 17, 8 5 4 362 18,216 Transactions with owners in their capacity as owners Dividend paid 2 - - (28,223) (28,223) (292) (28,515) Supplementary dividends - - (1,636) (1,636) - (1,636) Foreign investor tax credits - - 1,636 1,636 - 1,636 Share based compensation reserve 28 - 396 - 396 - 396 - 396 (28,223) (27,827) (292) (28,119) Balance at 30 June 2025 676,755 (1,619) (237,570) 437,566 1,449 439,015 (1) Sky paid dividends of 13.5 cents per ordinary share on 5 September 2025 and 15.0 cents per ordinary share on 23 March 2026. (2) Sky paid dividends of 12.0 cents per ordinary share on 20 September 2024 and 8.5 cents per ordinary share on 21 March 2025. Sky / 2026 Annual Report / 57
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Consolidated Statement of Cash Flows For the year ended 30 June 2026 In NZD ’000s Notes 30-Jun-26 30-Jun-25 Cash flows from operating activities Profit before tax 67 ,384 28,921 Adjustments for: Depreciation, amortisation and impairment of assets 7 97,020 89,141 Gain on Bargain Purchase – Discovery NZ Limited 5 (31,407) - Impairment of programming rights 11 4,300 1,400 Accelerated amortisation of programming rights 11 2,730 18,365 Unrealised foreign exchange loss 19 4,585 63 Interest expense 19 5,431 4,276 Interest income 19 (1,753) (1,380) Customer credit losses 7 2,174 1,701 Other non-cash items 1 (282) (4,747) Movement in working capital items: Decrease in receivables 2,118 110 Increase / (decrease) in payables 13,885 (36,914) (Increase) / decrease in programme rights (9,757) 34,819 Cash generated from operations 156,428 135,755 Interest paid (5,395) (4,251) Interest received 1,753 1,380 Bank facility fees paid (36) (25) Income tax paid - (12,658) Net cash from operating activities 152,750 120,201 Cash flows from investing activities Net cash inflow on acquisition of Discovery NZ Limited 5 24,876 - Acquisition of property, plant, and equipment 13 (33,492) (45,817) Acquisition of intangibles 15 (29,935) (31,929) Net cash used in investing activities (38,551) (77,746) Cash flows from financing activities Payments for lease liability principal 18 (26,074) (17,693) Dividends paid (41,231) (29,859) Dividend paid to minority shareholders (164) (292) Net cash used in financing activities (67,469) (47,844) Net increase / (decrease) in cash and cash equivalents 46,730 (5,389) Cash and cash equivalents at beginning of year 32,410 37,79 9 Cash and cash equivalents at end of year 79,140 32,410 (1) Other non-cash items for the year ended 30 June 2025 includes a gain on satellite lease modification, (refer Note 6). 58 /
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Notes to the Consolidated Financial Statements For the year ended 30 June 2026 1. General Information This section sets out the Group’s accounting policies that relate to the consolidated financial statements as a whole. They have been presented in a structure which is intended to make them more relevant to shareholders. Where an accounting policy is specific to one note, the policy is described in the note to which it relates. Sky Network Television Limited (Sky) is a company incorporated and domiciled in New Zealand. The address of its registered office is 10 Panorama Road, Mt Wellington, Auckland, New Zealand. The consolidated financial statements for the year ended 30 June 2026 comprise Sky Network Television Limited and its subsidiaries (the Group). Sky is a company registered under the Companies Act 1993 and is a reporting entity under Part 7 of the Financial Markets Conduct Act 2013. The consolidated financial statements of the Group have been prepared in accordance with the requirements of the Financial Markets Conduct Act 2013 and the NZX Listing Rules. The Group’s primary activity is to operate as a provider of sport and entertainment media services, advertising and telecommunications in New Zealand. These consolidated financial statements were authorised for issue by the Board on 27 August 2026. Basis of preparation The consolidated financial statements of the Group have been prepared in accordance with NZ IFRS Accounting Standards and IFRS Accounting Standards. NZ IFRS Accounting Standards and IFRS Accounting Standards comprise the following authoritative literature: • NZ IFRS Accounting Standards, • IFRS Accounting Standards, • IAS Standards, and • Interpretations developed by the IFRS Interpretations Committee (IFRIC interpretations) or its predecessor body, the Standing Interpretations Committee (SIC Interpretations). These consolidated financial statements have been prepared under the historical cost convention except for the revaluation of certain financial instruments (including derivative instruments) and the identifiable assets acquired and liabilities assumed on the acquisition of Discovery NZ Limited. (Refer Note 5). The consolidated financial statements are presented in New Zealand dollars. Group structure The Group has a majority share in the following subsidiaries: Name of Entity Principal Activity Country of Incorporation Parent Interest held Jun-26 Jun-25 Sky DMX Music Limited Commercial music New Zealand Sky 50.50% 50.50% Sky Network Services Limited (previously Igloo Limited) Broadband services New Zealand Sky 100.00% 100.00% Sky Free Limited (previously Discovery NZ Limited) 1 Media Services New Zealand Sky 100.00% 0.00% Believe It Or Not Limited Entertainment quizzes New Zealand Sky 51.00% 51.00% Lightbox New Zealand Limited Streaming services New Zealand Sky 100.00% 100.00% Sky Ventures Limited Did not trade New Zealand Sky 100.00% 100.00% Media Finance Limited Did not trade New Zealand Sky 100.00% 100.00% Non Trading PS Limited (previously Outside Broadcasting Limited) Did not trade New Zealand Sky 100.00% 100.00% Screen Enterprises Limited Did not trade New Zealand Sky 100.00% 100.00% Sky Investment Holdings Limited Did not trade New Zealand Sky 100.00% 100.00% (1) On 1st August 2025, Sky acquired 100% of the shares in Discovery NZ Limited (refer Note 5). Sky / 2026 Annual Report / 59
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Notes to the Consolidated Financial Statements (continued) 2. Basis of Consolidation The Group financial statements consolidate the financial statements of Sky and its subsidiaries. The acquisition method of accounting is used to account for the acquisition of subsidiaries and businesses by the Group. The consideration transferred in a business combination is measured at fair value which is calculated as the sum of the acquisition date fair value of the assets transferred and the liabilities incurred. Each identifiable asset and liability is generally measured at its acquisition date fair value except if another NZ IFRS requires another measurement basis. The excess of the consideration of the acquisition and the amount of any non-controlling interest in the acquired company, less the Group’s share of the identifiable assets acquired, and the liabilities assumed, is recognised as goodwill. Conversely where the identifiable assets acquired and liabilities assumed is greater than the consideration paid, the difference is recognised as a gain on acquisition. Acquisition related costs are expensed as incurred. Subsidiaries Subsidiaries are entities that are controlled, either directly or indirectly, by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity, and has the ability to affect those returns from its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on which control ceases. Intragroup balances and any unrealised gains and losses or income and expenses arising from intragroup transactions are eliminated in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains unless the transaction provides evidence of an impairment of the asset transferred. Transactions with non-controlling interests Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions – that is, as transactions with the owners in their capacity as owners. The difference between the fair value of any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity. 3. Material Accounting Policies and Critical Judgements and Estimates Material accounting judgements, estimates and assumptions In the application of the Group’s accounting policies the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The table below lists areas of key estimates and judgements: Key estimates and judgements Note Fair value of assets and liabilities acquired from Discovery NZ Limited1 5. Acquisition of Discovery NZ Limited Revenue recognition for new Sky Box and Sky Pod 4. Segment and Revenue Information Unused tax losses 9. Taxation Programme rights amortisation 11. Programme Rights Inventory Estimated life of technical assets 13. Property, Plant and Equipment Impairment testing of finite useful life intangible assets 15. Intangible Assets Assumptions underlying annual goodwill impairment assessment 16. Goodwill Determining the lease term 18. Lease Liabilities (1) These are new key estimates and judgements in FY26. Material accounting policies The accounting policies applied by the Group in these consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2025. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. There are no material impacts arising from new accounting standards or amendments that came into effect during the period. NZ IFRS 18 Presentation and Disclosure in Financial Statements is effective for the Group for the year ending 30 June 2028. NZ IFRS 18 will replace NZ IAS 1 and introduces new presentation and disclosure requirements, including changes to the structure of the statement of profit or loss, new defined subtotals, management-defined performance measure disclosures, and enhanced aggregation and disaggregation requirements. The Group is continuing to assess the impact of NZ IFRS 18. The standard is expected to impact presentation and disclosure only and is not expected to impact recognition or measurement. Management does not currently expect any other issued but not yet effective standards or amendments to have a material impact on the Group’s consolidated financial statements. 60 /
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Notes to the Consolidated Financial Statements (continued) The significant accounting policies which are consistent throughout the financial statements are set out below. Other significant accounting policies which are specific to transactions or balances are disclosed within the note to which they relate. Foreign currency translation Functional and presentation currency: The Group’s consolidated financial statements are presented in New Zealand dollars (NZD or $) which is the Group’s functional and presentation currency. Transactions and balances: Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction. Foreign currency differences are generally recognised in profit or loss and presented within finance costs, except when deferred in other comprehensive income as qualifying cash flow hedges. Goods and services tax (GST) The consolidated statement of comprehensive income and consolidated statement of cash flows have been prepared so that all components are stated exclusive of GST. All items in the consolidated balance sheet are stated net of GST with the exception of receivables and payables, which include GST invoiced. Going concern The financial statements have been prepared on a going concern basis. In making this assessment, the Directors have considered the Group’s forecast cash flows, liquidity position, available financing arrangements and covenant compliance for at least 12 months from the date of approval of these financial statements. Based on this assessment, the Directors are satisfied that the Group has adequate resources to continue operating and to meet its obligations as they fall due. No material uncertainty related to going concern has been identified. 4. Segment and Revenue Information In NZD ’000s 30-Jun-26 30-Jun-25 Sky Box subscriptions 445,218 465,541 Streaming subscriptions 128,279 118,805 Advertising 131,723 57,0 9 8 Venue revenue 1 52,835 53,950 Broadband subscriptions 47,427 36,954 Other revenue 19,363 18,375 824,845 750,723 (1) In the prior year Venue revenue was referred to as Commercial revenue. Description of revenue streams The Group has several revenue streams within its operating business segment which include the following: Sky Box and Sky Pod revenue: This includes all revenue related to Sky’s subscription services for its Sky Box and Sky Pod customers. Subscription fees are invoiced to customers on a monthly basis in advance and customer contracts are normally for a period of 12 months with monthly renewals thereafter. Early termination fees apply to 12-month contracted customers only and subscription revenue is recognised over the period to which the subscription relates. Unearned subscriptions and deferred revenues are revenues that have been invoiced relating to services not yet performed and are reported as contract liabilities (refer Note 12). Contract liabilities also include the portion of one-off upfront fees whereby the customer’s deemed contract period has not yet finished. Streaming revenue: This includes revenue from Neon and Sky Sport Now. This revenue is recognised over time based on the timing of the services provided. Contracts vary in length, including daily, weekly, monthly, annually and are invoiced and payable in advance. Contracts with wholesale customers, where some of the Group’s services including Neon and Sky Sport Now, are combined with the customer’s products and sold as part of a bundled service have differing provisions such that the Group has been determined to be either the principal or the agent depending on the wholesale contract terms. Advertising revenue: This relates to revenue received from customers in return for advertising placed on the Group’s services. This revenue is recognised at the point in time when the advertisement is screened. Contract terms and rates vary depending on the customer and services provided. Customers are billed monthly in arrears. The Group’s advertising services include linear, sponsorship, digital and social media. Venue revenue: This includes commercial revenue earned from Sky subscriptions at businesses throughout New Zealand. Customers are invoiced in advance on a monthly basis and contracts are normally for a period of 12 months with monthly renewals thereafter. 3. Material Accounting Policies and Critical Judgements and Estimates (continued) Sky / 2026 Annual Report / 61
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Notes to the Consolidated Financial Statements (continued) Broadband revenue: This includes revenue from Sky’s Broadband service which is provided primarily to Sky Box customers. Customers are invoiced in advance on a monthly basis either on a twelve month or rolling monthly contract. Early termination fees apply to 12-month contracted customers only. Revenue is allocated across the performance obligations on a relative standalone- selling price basis, using market-based approaches as follows: • The provision of broadband connectivity – recognised on a straight-line basis over the contract term (as billed monthly). • Voice services – recognised either on a straight-line basis over the term (for bundles) or as incurred (additional calls), consistent with billing. • Costs incremental to obtaining a contract are expensed as incurred. Other revenue: This includes revenue from installation services, transmission services, and various other non-subscriber related revenue. This revenue is recognised when the product or service has been delivered to the customer at a point in time or when the performance obligation is received by the customer. Revenue from the lease of Broadband equipment to the customer is recognised on a straight-line basis over the contract term, consistent with monthly billing. Key estimates and judgements New Sky Box and Sky Pod revenue recognition The following are the key judgements in determining how to recognise revenue: • Predetermined use – both devices have a predetermined use governed by Sky and Sky retains control over key functionality, software updates and replacement of devices. This supports the fact the contract arrangement for use of the new Sky Box or Sky Pod does not constitute a lease arrangement. Sky Box and Sky Pod devices are accounted for as customer premises equipment in Property, Plant and Equipment, refer Note 13. • Existing customers on rolling monthly contracts – do not gain a material right from obtaining a new Sky Box. Sky Box customer contracts are normally for 12 months, with monthly renewals thereafter. Providing a new Sky Box or Sky Pod to an existing customer on a rolling monthly contract enables the customer to continue accessing their existing subscription service. It does not provide a discounted future service, create a separate performance obligation, or provide another right that changes the enforceable customer contract term. Providing the device does not extend the customer contract term or change the period over which subscription revenue is recognised. Operating segments are reported in a manner consistent with the internal reporting provided to Sky’s executive team who are the chief operating decision makers. Sky’s executive team is responsible for allocating resources and assessing performance of the operating segments. Sky operates in a single operating segment comprising the provision of sport, entertainment media and telecommunication services in New Zealand. The table below shows the disaggregation of the Group’s revenue from contracts with customers on the basis of when revenue is recognised for its principal revenue streams as described below. In NZD ’000s Sky Box subscriptions Streaming subscriptions Advertising Venue revenue Broadband subscriptions Other revenue Total revenue from contracts with customers For the year ended 30 June 2026 Revenue from customers 445,218 128,279 131,723 52,835 47,427 19,363 824,845 Total revenue 445,218 128,279 131,723 52,835 47,427 19,363 824,845 Timing of revenue recognition At a point in time 1,571 - 131,723 - - 12,212 145,506 Over time 443,647 128,279 - 52,835 47,427 7,151 679,339 445,218 128,279 131,723 52,835 47,427 19,363 824,845 For the year ended 30 June 2025 Revenue from customers 465,541 118,805 57,0 9 8 53,950 36,954 18,375 750,723 Total revenue 465,541 118,805 57,098 53,950 36,954 18,375 750,723 Timing of revenue recognition At a point in time 2,458 - 57,0 9 8 - - 9,438 68,994 Over time 463,083 118,805 - 53,950 36,954 8,937 681,729 465,541 118,805 57,098 53,950 36,954 18,375 750,723 4. Segment and Revenue Information (continued) 62 /
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Notes to the Consolidated Financial Statements (continued) 5. Acquisition of Discovery NZ Limited On 1 August 2025, Sky Network Television Limited acquired 100% of the issued share capital of Discovery NZ Limited (Discovery NZ). The acquisition of Discovery NZ, which operates national free-to-air channels (Three, Eden, Rush, HGTV) and a digital streaming service (ThreeNow), positions Sky to accelerate growth and diversify revenue streams, particularly in advertising and digital, as well as generating cost savings. Sky has acquired a business that is a strong strategic fit in a manner which it believes is value accretive for shareholders. The fair value amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table below. In NZD ’000s 01-Aug-25 Cash and cash equivalents 16,893 Trade and other receivables 11,365 Trade and other payables (13,356) Programme rights inventory 16,299 Property, plant and equipment1 863 Intangible assets – Software 2,800 Intangible assets – Brand 2,800 Deferred tax asset/(liability) (784) Indemnification asset 228 Other assets and liabilities (3,855) Programme rights payable (4,991) Payables due to Warner Bros. Discovery Inc (3,049) Provision for decommissioning costs (228) Witholding Tax payables (570) Employee benefits payable (991) Total identifiable assets acquired and liabilities assumed 23,424 Total consideration Satisfied by: Cash 0 Total consideration transferred 0 Net debt and working capital adjustments received 7,983 Gain on bargain purchase 31,407 Net cash inflow arising on acquisition Cash consideration received 7,9 8 3 Cash and cash equivalent balances acquired 16,893 24,876 The cash consideration received of $7.983 million comprises the following elements: • Share purchase price of $1, which is rounded to $0 in the table above; • A final net working capital adjustment of $3.749 million received to achieve the contractually agreed target level; and • A $4.234 million adjustment received to achieve a debt-free basis, clear of programme rights payable. The $3.749 million working capital adjustment was granted to extinguish the liabilities that were previously required to be settled prior to acquisition date. The cash and cash equivalent balance acquired of $16.893 million includes a contribution to the Group’s future integration costs, and to adjust for the debt-free basis and minimum working capital commitments of the acquisition. The fair value of the financial assets includes Trade and other receivables with a fair value and gross contractual value of $11.365 million. The best estimate at acquisition date of contractual cashflows not to be collected is $nil. Acquisition-related costs included in Other Costs for the 12 months ended 30 June 2026 amount to $1.131 million. (1) During the measurement period following the acquisition, the Group completed its assessment of the fair values of the assets acquired. As part of this assessment, computer equipment and software acquired that had a provisional carrying value of $3.026 million in the interim financial statements were determined to have a fair value of nil at the acquisition date. Accordingly, the provisional gain on bargain purchase of $34.433 million was reduced by $3.026 million to a final gain on bargain purchase of $31.407 million, recognised at 30 June 2026. Sky / 2026 Annual Report / 63
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Notes to the Consolidated Financial Statements (continued) The fair value of the identifiable net assets acquired exceeded the total consideration transferred, resulting in a gain on bargain purchase of $31.407 million. This gain has been recognised in the consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2026. In the event of the recognition of a gain on bargain purchase in the income statement, IFRS 3 requires that a reassessment be conducted of the measurement process, with the purpose of verifying the completeness and correctness of the process of identification and measurement of all the assets acquired and the liabilities assumed. This reassessment exercise confirmed the correctness and reasonableness of the conclusions reached previously. The transaction resulted in a gain as Sky was able to acquire Discovery NZ on a debt free basis at a significant discount to net asset value given the history of losses and growing indebtedness of the company over recent years under the ownership of the vendor. This situation influenced the Group’s decision to acquire Discovery NZ with the objective of using the skills of its management team to deliver potential revenue synergies and cost savings with the existing business to generate positive profits and cash flow from a deleveraged asset. Key estimates and judgements The fair value of the acquired Programme rights inventory of $16.3 million was determined using management judgement and estimation. The key judgements and assumptions applied include: • Management’s experience and internal knowledge of content acquisition, as there are no observable external benchmarks or independent valuation expertise in New Zealand for the procurement and valuation of broadcast content rights. • Consideration of current market conditions • A valuation approach undertaken from the perspective of a hypothetical market participant, assessing the value of the programme rights available after the acquisition date. This assessment considered, among other factors: – the number of remaining broadcast runs, – whether the remaining licence period could be sold or sub licensed, – the timing of first broadcast, and – whether the genre or type of content influenced the remaining economic value. • The extent to which the programme rights were expected to generate advertising revenues across the Group’s platforms, including Three and ThreeNow. On the date of acquisition 1 August 2025, the name of Discovery NZ Limited was changed to Sky Free Limited (Sky Free). Discovery NZ has accumulated tax losses which are able to be carried forward and offset against future profits of Sky Free provided the legislative requirements of the Business Continuity Test are met. Tax losses incurred after 1 August 2025 are able to be offset against the profits of Sky Network Television Limited. Sky Free’s tax losses that arose prior to 1 August 2025 are not available to be offset within the Group. No deferred tax asset is recognised on the basis that it is not sufficiently probable that taxable profit will be available against which the losses and other deductible temporary differences can be utilised. Sky Free has an unrecognised deferred tax asset of $64m at 30 June 2026, of which $57.7m relates to losses carried forward and $6.3m relates to other temporary differences. Discovery NZ contributed $77.164 million revenue and a negative contribution of $6.372 million to the Group’s net profit before tax for the period between the date of acquisition and the reporting date (11 months of operations). If the acquisition of Discovery NZ Limited had been completed on the first day of the financial year (1 July 2025), contribution to Group revenues for the 12-month period would be estimated to have been $84.178 million with negative contribution to Group net profit before tax estimated to have been $6.952 million, both calculated on a pro-rata basis to the 11-month result. 6. Other Income Other income includes: In NZD ’000s 30-Jun-26 30-Jun-25 Government grant R&D tax credits 1,121 675 Recovery of satellite migration costs 2 8,159 - Gain on lease modification 1 - 4,924 Optus redundancy satellite credit - 1,291 Other 164 791 9,444 7,681 (1) On 31 December 2024, the Group shortened the term of its previous transmission lease with Optus to enable the transition to the current satellite, which became available for use on 15 April 2025 (refer Note 18). This lease modification resulted in a gain recognised in FY25. (2) Agreed satellite migration costs recovered from Optus in the year ended 30 June 2026 total $8.2m (30 June 2025: nil). Other income: Income not related to revenue from contracts with customers (which is required to be disclosed separately, (refer Note 4), and primarily includes Government grant R&D tax credits, investment income, gains or (losses) on the disposal of assets, and gains or (losses) on lease modifications/reassessments. 5. Acquisition of Discovery NZ Limited (continued) 64 /
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Notes to the Consolidated Financial Statements (continued) 7. Operating Expenses Profit before tax includes the following separate expenses: In NZD ’000s Notes 30-Jun-26 30-Jun-25 Depreciation, amortisation and impairment Depreciation and impairment of property, plant and equipment 1 13 39,952 36,948 Amortisation of intangible assets 15 31,228 27,974 Depreciation of right-of-use assets 14 25,840 24,219 Total depreciation, amortisation and impairment 97,020 89,141 Credit loss Movement in provision 335 (258) Net write-off 1,839 1,959 Total credit loss 10 2,174 1,701 Audit and review of financial statements 2 1,289 893 Other assurance services provided by PwC New Zealand Other assurance service engagements 3 15 65 Other agreed upon procedures provided by PwC New Zealand Other agreed upon procedures 4 12 71 Total fees to external auditors 1,316 1,029 Employee costs 5 90,517 72,832 KiwiSaver employer contributions 2,803 2,227 Donations 6 72 72 Operating lease and rental expenses 771 679 (1) Of the net depreciation and impairment charge for property, plant and equipment of $39.952m for the year ended 30 June 2026, $1.063m relates to the loss on disposal for assets no longer in use. $38.889m relates to the depreciation charge for the year. (2) The audit fee includes the fee for the annual audit of consolidated financial statements, the review of consolidated interim financial statements and the stand-alone audit of Sky Free Limited for the period ended 31 December 2025. (3) In relation to Telecommunications Development Levy and Greenhouse Gas (GHG) emissions limited assurance scope 1 and 2 (FY25 assurance performed across FY25). (4) In relation to the Broadcasting Standards Authority Levy and GHG pre-conditions assessment in the prior year. (5) Employee costs include $5.2 million of redundancy expenses (2025: $3.2 million). (6) In FY26, Sky donated to the Special Children’s Christmas party (FY25: Special Children’s Christmas Party). Employee costs Employee entitlements include salaries, wages and annual leave settled within 12 months of the reporting date. They represent present obligations resulting from employee services provided up to the reporting date, calculated at undiscounted amounts based on remuneration rates that the Group expects to pay. Incentive plans are recognised as a liability and an expense for discretionary short-term incentives (STIs) based on a formula that takes into account financial and non-financial targets during the reporting period. The Group recognises this provision where contractually obliged or where there is a past practice that has created a constructive obligation. Sky / 2026 Annual Report / 65
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Notes to the Consolidated Financial Statements (continued) 8. Earnings Per Share Basic and diluted earnings per share Note 30-Jun-26 30-Jun-25 Earnings for the purpose of basic and diluted earnings per share: Profit after tax attributable to equity holders of the parent (NZD ’000s) 59,375 20,228 Weighted average number of ordinary shares on issue (’000s) Weighted average number of ordinary shares for basic earnings per share 137,675 137,675 Effect of dilutive ordinary shares: – Share rights outstanding1 28 927 736 Weighted average number of ordinary shares for diluted earnings per share 138,602 138,411 Basic earnings per share (cents) 43.13 14.69 Diluted earnings per share (cents) 42.84 14.61 Issued ordinary shares at the beginning of the year 137,675,010 137,675,010 Total number of shares on issue 137,675,010 137,675,010 Weighted average number of ordinary shares on issue 137,675,010 137,675,010 (1) As at 30 June 2025 the basic earnings per share of 14.69 cents has been adjusted for share rights outstanding of 735,611 resulting in diluted earnings per share of 14.61 cents. Basic earnings or loss per share Basic earnings or loss per share is calculated by dividing the profit attributable to equity holders of Sky by the weighted average number of ordinary shares on issue during the year. Diluted earnings per share Diluted earnings per share assumes conversion of all dilutive potential ordinary shares in determining the denominator. As at 30 June 2026, 927,091 (30 June 2025: 735,611) share rights constituting dilutive potential ordinary shares were outstanding under the Group’s long-term incentive plan (refer Note 28). 9. Taxation Income tax expense The total charge for the year can be reconciled to the accounting profit as follows: In NZD ’000s 30-Jun-26 30-Jun-25 Profit before tax 67 ,384 28,921 Prima facie tax expense at 28% 18,868 8,098 Non-assessable income (314) - Non-deductible expenses 388 570 Non-assessable gain on bargain purchase (8,794) - Other (2,927) - Prior year adjustment (346) 933 Recognise tax losses previously not recognised - (1,270) Derecognise deferred tax from Sky Free 711 - Income tax expense 7,586 8,331 Allocated between: Current tax 6,072 4,913 Deferred tax 1,514 3,418 Income tax expense 7,586 8,331 Current income tax expense Income tax expense represents the sum of the tax currently payable and deferred tax, except to the extent that it relates to items recognised directly in other comprehensive income, in which case the tax expense is also recognised in other comprehensive income. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Consolidated Income Statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using the rates that have been enacted or substantively enacted by the balance date. 66 /
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Notes to the Consolidated Financial Statements (continued) Imputation credits In NZD ’000s 30-Jun-26 30-Jun-25 Imputation credits available for subsequent reporting periods based on a tax rate of 28% 191,558 202,991 The above amounts represent the balance of the imputation credit account as at the end of the reporting period adjusted for: • Imputation credits that will arise from the payment of the amount of the provision for income tax. • Imputation debits that will arise from the payment of dividends. Availability of these credits is subject to continuity of ownership requirements. Deferred tax assets and (liabilities) The following are the major deferred tax liabilities and assets and the movements thereon during the current and prior reporting periods. In NZD ’000s Fixed assets Leased assets Lease liabilities Other Losses Recognised directly in equity Total For the year ended 30 June 2026 At 1 July 2025 (10,934) (21,261) 21,632 4,789 2,325 950 (2,499) NZ IFRS 9 hedging adjustment recognised through other comprehensive income - - - - - (3,667) (3,667) Recognised as a result of business combinations - - - (784) - - (784) Credited/(charged) to profit and loss (2,500) 4,844 (3,909) 480 (560) 131 (1,514) Balance at 30 June 2026 (13,434) (16,417) 17,723 4,485 1,765 (2,586) (8,464) For the year ended 30 June 2025 At 1 July 2024 (5,722) (4,455) 6,920 1,848 1,497 (92) (4) NZ IFRS 9 hedging adjustment recognised through other comprehensive income - - - - - 923 923 Recognise tax losses previously not recognised - - - - 1,270 - 1,270 Prior period adjustments recognised - - - (491) - - (491) Credited/(charged) to profit and loss (5,212) (16,806) 14,712 3,432 (442) 119 (4,197) Balance at 30 June 2025 (10,934) (21,261) 21,632 4,789 2,325 950 (2,499) Certain deferred tax assets and liabilities have been offset as allowed under NZ IAS 12 where there is a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and liabilities are levied by the same taxation authority. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction neither affects accounting nor taxable profit or loss. Deferred income tax is determined using tax rates that have been enacted or substantively enacted by the balance date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Key estimates and judgements Deferred tax assets are recognised for unused tax losses and other deductible temporary differences to the extent that it is probable that taxable profit will be available against which the losses and other deductible temporary differences can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised based upon the likely timing and level of future taxable profits. During FY26, the Group utilised $2,000,000 ($560,000 tax affected) of tax losses from Sky Network Services Limited (previously Igloo Limited), reducing the deferred tax asset recognised on the balance sheet by $560,000 to $1,765,000 ($2,325,000 30 June 2025). These losses are recognised based on Management’s assessment of the entity’s results in recent years together with estimates of customer base and profitability of the entity in the next three to five years. There are no unrecognised losses remaining in this entity. These tax losses will be carried forward for use against future taxable profits of Sky Network Services Limited subject to meeting the requirements of the income tax legislation, including shareholder continuity and business continuity. 9. Taxation (continued) Sky / 2026 Annual Report / 67
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Notes to the Consolidated Financial Statements (continued) 10. Trade and Other Receivables In NZD ’000s Note 30-Jun-26 30-Jun-25 Trade receivables 47,0 0 9 38,308 Less provision for loss allowance (981) (646) Trade receivables – net 46,028 37,662 Other receivables 4,744 5,307 Transmission 1 - 1,197 Prepaid expenses 23,853 23,961 Balance at end of year 74,625 68,127 Current 67, 8 6 0 60,660 Two to five years 6,765 7,4 67 74,625 68,127 Deduct receivables not classified as financial assets 2 (24,117) (24,065) Financial instruments 26 50,508 44,062 (1) In the prior year 30 June 2025, the Group held an unused credit of $1.2 million from a broadcast service provider, relating to a one-off redundancy benefit associated with its previous satellite lease. This amount had been recognised as other income (refer Note 6). Additional credits received in April 2025 under the current satellite lease have been offset against the lease liability (refer Note 18). There are no unused credits from broadcast service providers at 30 June 2026. (2) Receivables not classified as financial instruments include prepaid expenses, tax receivable and facility fees. Impairment of trade receivables The Group applies the NZ IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses trade receivables have been grouped based on the shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of revenue over the prior 12 months and the corresponding historical credit losses experienced within this period. The impairment provision/loss allowance of trade receivables as at 30 June is as follows: In NZD ’000s 30-Jun-26 30-Jun-25 Gross Impairment provision Gross Impairment provision Residential subscribers 21,868 (355) 23,912 (473) Commercial subscribers 5,441 (141) 5,106 (65) Wholesale customers 690 - 920 - Advertising 17,027 (396) 5,519 (81) Other 1,983 (89) 2,851 (27) 47,009 (981) 38,308 (646) Movements in the provision for impairment of receivables were as follows: In NZD ’000s Note 30-Jun-26 30-Jun-25 Opening balance 646 904 Charged during the year 7 2,174 1,701 Utilised during the year (1,839) (1,959) Closing balance 981 646 The provision charged and the amount utilised for impaired receivables has been included in subscriber related costs in profit or loss. Amounts charged to the allowance account are generally written off when there is no expectation of receiving additional cash, usually ninety days after a customer has been disconnected. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable. The Group holds collateral of $0.8 million (30 June 2025: $0.9 million) in the form of deposits for Sky Box customers. Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. Collectability of trade receivables is reviewed on an on-going basis. Debts which are known to be uncollectible are written off. An impairment loss is recognised based on expected credit losses for each trade receivable group. 68 /
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Notes to the Consolidated Financial Statements (continued) 11. Programme Rights Inventory In NZD ’000s 30-Jun-26 30-Jun-25 Opening balance 70,927 125,644 Acquired during the year 375,236 304,499 Charged to programming expenses 1 (355,899) (359,216) Balance at end of year 90,264 70,927 (1) Represents programming rights costs only, excluding production and programming operations costs of $46.0 million (FY25: $44.9 million). The Group has completed a comprehensive review of the programming expense recognition policy, ensuring that the adopted methodology is aligned with prevailing global practices. The review was informed by enhanced availability of Neon viewership data, and global benchmarking which facilitated a thorough analysis of our content amortisation across all our genres. The updated policy reflects evolving viewership behaviour for each specific content genre, with the trigger for the review being the strategic acquisition of Discovery NZ Limited and its associated content. It is currently anticipated that the revised policy will not require further significant modifications in the coming years. Based on the completed review, the amortisation methodology for all programme rights, except for Neon, Sport, Movies and Local Production, has been updated to better reflect the Group’s understanding of current viewership behaviour. The previous amortisation methodology was based on the type of programme right combined with the platform or channel the content was distributed on. The revised amortisation methodology is based on the genre of the programme right. The revised methodology for each genre is described below. This represents a change in accounting estimate that has been adjusted prospectively. As a result of the change in amortisation methodology for the programme rights, except for Neon and Sport, an accelerated amortisation charge of $2.7m is recognised in the current period. In the prior year ended 30 June 2025, the accelerated amortisation charge for Neon was $18.3m. An impairment of the rights associated to the Commonwealth Games in Glasgow July 2026 was recognised in the programming charge for the year of $4.3m. The impairment arose primarily due to the change in venue and time zone from Victoria, Australia and reduced number of competition events, which impacted the ability to commercialise the event through advertising and sponsorship revenues. In the prior year ended 30 June 2025 impairments for onerous content of $1.4m were recognised. Programming rights inventory The cost of television programme inventory is recognised in the Consolidated Income Statement, with reference to the period over which the Group utilises the programming rights, viewership behaviour, and time-based methods of amortisation depending on the genre of programme right, These circumstances may change or evolve over time. The various genres of programme rights now have the following amortisation methodology: • Sport (Unchanged) – the majority or all of the cost is recognised in the Consolidated Income Statement on the dates when the events occur. Where the rights are for multiple seasons or competitions, such rights are recognised principally on a straight-line basis across the contracted broadcast period or season. This remains consistent with the year ended 30 June 2025. • Neon (Unchanged) – New content – The cost is amortised over 24 months, with 65% of the cost recognised in the first 6 months, 15% in the subsequent 6 months, and 20% in the second year. This remains consistent with the year ended 30 June 2025. • Local Entertainment Production (Unchanged) – the cost is recognised as incurred. • Movies (Unchanged) – the cost is recognised on an “as played” basis or over time (depending on the nature of the rights agreement). • Entertainment Current Affairs/Events/Reality/Competition – 90% of the cost is recognised in the Consolidated Income Statement in the first year, with the remaining 10% of cost recognised in the second year. • Entertainment – Premium – The cost is amortised over 24 months, with 65% of the cost recognised in the first 6 months, 15% in the subsequent 6 months, and 20% in the second year. Premium refers to content where the license period falls within 3 years of the original release date. • Entertainment – Evergreen – The cost is amortised on a straight-line basis over the license period, capped at a maximum of 3 years. Evergreen refers to content where the viewership behaviour is consistent over the license period. • Entertainment – Other – The cost is recognised on a straight-line basis over the license period, capped at a maximum of 2 years. Other refers to content which is not otherwise classified above. The Group regularly reviews its programming rights to ensure they are held at the lower of cost and net realisable value. Where programme broadcast rights are surplus to the Group’s requirements, and no gain is anticipated through the disposal of the rights, or where the programming will not be broadcast for any other reason, a write-down is made in the Consolidated Income Statement. Any reversals of inventory write-downs are recognised as reductions in operating expense. Sky / 2026 Annual Report / 69
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Notes to the Consolidated Financial Statements (continued) 12. Trade and Other Payables and Contract Liabilities In NZD ’000s Notes 30-Jun-26 30-Jun-25 Trade payables 81,794 56,413 Employee entitlements 11,688 8,534 Tax payables 7,41 3 4,537 Accruals 36,157 25,586 Provisions 27 4,669 1,877 Balance at end of year 141,721 96,947 Current 139,203 95,918 Two to five years 2,518 1,029 141,721 96,947 Less Payables not classified as financial instruments 1 (23,770) (14,948) Financial instruments 26 117,951 81,999 (1) Tax payables, provisions and employee benefits do not meet the definition of a financial instrument and have been excluded from the “Financial instruments” category. Trade and other payables are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method. Contract liabilities In NZD ’000s 30-Jun-26 30-Jun-25 Deferred revenue 56,847 56,903 Contract liabilities of $56,903,000 were released into revenue during the year ended 30 June 2026 (30 June 2025: $56,535,000). Contract liabilities are not classified as financial instruments. Contract liabilities are payments received from customers in advance and are recognised in revenue over the service period. Sky invoices customers in advance for both residential and commercial subscriptions. Contract liabilities recognised at the end of the financial year are recognised as revenue in the following year. 70 /
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Notes to the Consolidated Financial Statements (continued) 13. Property, Plant and Equipment In NZD ’000s Land, buildings & leasehold improvements Broadcasting & studio equipment Customer premises equipment Capitalised installation costs Other plant & equipment” Projects under development Total For the year ended 30 June 2026 Cost Balance at 1 July 2025 15,827 109,883 300,450 211,801 46,068 1,025 685,054 Transfer between categories 1,129 2,177 - - 711 (4,017) - Additions 1,2 582 237 15,519 8,710 945 8,811 34,804 Business Combination - 401 - - 159 303 863 Disposals 3 (1,794) (4,173) (1,565) (19,230) (2,011) - (28,773) Balance at 30 June 2026 15,744 108,525 314,404 201,281 45,872 6,122 691,948 Accumulated depreciation Balance at 1 July 2025 6,135 92,850 240,928 178,639 39,544 - 558,096 Depreciation for the year (Note 7) 1,377 4,701 16,852 12,709 3,250 - 38,889 Disposals 3 (1,328) (4,173) (972) (19,230) (2,007) - (27,710) Balance at 30 June 2026 6,184 93,378 256,808 172,118 40,787 - 569,275 Net book value at 30 June 2026 9,560 15,147 57,596 29,163 5,085 6,122 122,673 For the year ended 30 June 2025 Cost Balance at 1 July 2024 14,730 100,306 282,798 227 ,396 49,099 1,806 676,135 Transfer between categories 470 975 - - 143 (1,588) - Additions 1,2 1,212 8,602 18,883 16,495 1,154 807 47,15 3 Disposals 3 (585) - (1,231) (32,090) (4,328) - (38,234) Balance at 30 June 2025 15,827 109,883 300,450 211,801 46,068 1,025 685,054 Accumulated depreciation Balance at 1 July 2024 5,366 89,186 227, 2 92 197, 8 61 39,500 - 559,205 Depreciation for the year (Note 7) 1,262 3,664 14,855 12,868 4,299 - 36,948 Disposals3 (493) - (1,219) (32,090) (4,255) - (38,057) Balance at 30 June 2025 6,135 92,850 240,928 178,639 39,544 - 558,096 Net book value at 30 June 2025 9,692 17,033 59,522 33,162 6,524 1,025 126,958 (1) Additions to customer premises equipment includes purchases of New Sky Box, Pod and Broadband devices. (2) Total additions of $34,804,000 includes a decrease in comparative year creditor accruals of $1,312,000 which are excluded in the $33,492,000 disclosed as acquisition of PPE in the Consolidated Statement of Cash Flows. (3) Disposals include the removal of both the cost and accumulated depreciation of fully depreciated assets that are no longer utilised by the Group. Land, buildings, and leasehold improvements at 30 June 2026 includes land with a cost of $1,600,000 (30 June 2025: $1,600,000). Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses except land which is shown at cost less impairment. Cost includes expenditure that is directly attributable to the acquisition of the items. Capitalised installation costs are represented by the cost of satellite dishes, installation costs and direct labour costs. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that the future economic benefits embodied within the item will flow to the Group and the cost of the item can be measured reliably. The cost of additions to plant and other assets constructed by the Group consist of all appropriate costs of development, construction and installation, comprising material, labour, direct overhead and transport costs. For qualifying assets directly attributable interest costs incurred during the period required to complete and prepare the asset for its intended use are capitalised as part of the total cost. All other costs are recognised in the Consolidated Income Statement as an expense is incurred. Additions in the current year include $1,464,000 of capitalised labour costs (30 June 2025: $1,264,000). Projects under development comprise expenditure on partially completed assets. The projects include items of property, plant and equipment and intangible assets. At completion of the project the costs are allocated to the appropriate asset categories and depreciation or amortisation commences. Costs may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and recognised in other costs. Sky / 2026 Annual Report / 71
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Notes to the Consolidated Financial Statements (continued) Depreciation Property, plant and equipment are depreciated using the straight-line method so as to allocate the costs of assets to their residual values over their estimated useful lives as follows: Leasehold improvements 5-50 years Buildings 50 years Broadcasting and studio equipment 5-10 years Customer premises equipment 3-6 years Other plant and equipment 3-10 years Capitalised installation costs 5 years Depreciation commences when the property, plant and equipment is considered available for use. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date. Key estimates and judgements The estimated life of technical assets such as customer premises equipment and other broadcasting assets is based on management’s best estimates. Changes in technology may result in the economic life of these assets being different from that estimated previously. The Board and management regularly review economic life assumptions of these assets as part of management reporting procedures. 14. Right-of-Use Assets In NZD ’000s Notes Transmission Property Equipment Motor Vehicles Total Right-of-use assets Balance at 1 July 2025 43,998 8,046 9,582 521 62,147 Additions - - 8,554 - 8,554 Lease modification/reassessment - - 786 35 821 Depreciation 7 (16,000) (1,849) ( 7,73 6) (255) (25,840) Balance at 30 June 2026 27,998 6,197 11,186 301 45,682 Right-of-use assets Balance at 1 July 2024 2,531 10,278 3,913 - 16,722 Additions 1 76,042 - 10,696 622 87,3 6 0 Lease modification/reassessment 2 (19,762) - 2,040 6 (17,716) Depreciation 7 (14,813) (2,232) (7 ,067) (107) (24,219) Balance at 30 June 2025 43,998 8,046 9,582 521 62,147 (1) On 1 September 2024, the Group recognised a new lease reflecting its satellite arrangements commencing from that date, resulting in an addition of $28.6m with a lease term ending on 31 December 2026. Subsequently, this lease was modified to end on 15 April 2025, which was the transition date to the Group’s current satellite lease. This lease is reflected above as an addition of $47.4m, and has a termination date of 31 March 2028. (2) On 31 December 2024, as a result of the renegotiation of the satellite transmission services agreement, the satellite lease was modified to have a lease term ending on 15 April 2025, which was the transition date to the current satellite (see additions line above). Right-of-use assets are measured at cost which includes the initial measurement of the lease liability, plus any lease payment made before the commencement date, initial direct costs and restoration costs less any lease incentives received. Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. The Group leases various premises, transmission equipment, motor vehicles, and sundry equipment. Rental contracts vary between one and five years with some office leases containing renewal options. The Group has incorporated renewal options into the lease term where it is reasonably certain that the lease will be extended. 13. Property, Plant and Equipment (continued) 72 /
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Notes to the Consolidated Financial Statements (continued) 15. Intangible Assets In NZD ’000s Notes Software Brands Other intangibles Projects under development Total For the year ended 30 June 2026 Cost Balance at 1 July 2025 282,171 - 2,921 1,442 286,534 Transfer from projects under development 21,192 - - (21,192) - Additions 1 2,353 - - 27, 2 9 3 29,646 Business Combination 2,800 2,800 - - 5,600 Disposals 2 (104) - - - (104) Balance at 30 June 2026 308,412 2,800 2,921 7,543 321,676 Accumulated amortisation Balance at 1 July 2025 220,227 - 2,921 - 223,148 Amortisation for the year 7 30,973 255 - - 31,228 Disposals 2 (38) - - - (38) Balance at 30 June 2026 251,162 255 2,921 - 254,338 Net book value at 30 June 2026 57,250 2,545 - 7,543 67,338 For the year ended 30 June 2025 Cost Balance at 1 July 2024 248,915 - 2,921 3,477 255,313 Transfer from projects under development 3,111 - - (3,111) - Additions 1 30,188 - - 1,076 31,264 Disposals 2 (43) - - - (43) Balance at 30 June 2025 282,171 - 2,921 1,442 286,534 Accumulated amortisation Balance at 1 July 2024 192,275 - 2,921 - 195,196 Amortisation for the year 7 27,974 - - - 27,974 Disposals 2 (22) - - - (22) Balance at 30 June 2025 220,227 - 2,921 - 223,148 Net book value at 30 June 2025 61,944 - - 1,442 63,386 (1) Total additions of $29,646,000 included an increase in comparative year creditor accruals of $289,000 which are included in the $29,935,000 disclosed as acquisition of intangibles in the Consolidated Statement of Cash Flows. (2) Disposals include the removal of both the cost and accumulated depreciation of fully depreciated assets that are no longer utilised by the Group. Software development costs recognised as assets are amortised on a straight-line basis over their estimated useful lives (generally three to five years). Direct costs associated with the development of broadcasting and business software for internal use are capitalised in line with the recognition criteria under NZ IAS 38. Capitalised costs include external direct costs of materials and services consumed and direct payroll-related costs for employees (including contractors) directly associated with the project and interest costs incurred during the development stage of a project. Additions in the current year to software include capitalised labour costs of $9,517,000 (30 June 2025: $9,420,000) and no interest was capitalised. Costs associated with cloud computing arrangements not controlled by Sky are expensed as incurred. Customisation and configuration costs are capitalised if they are directly attributable to identifiable intangible assets which are controlled by Sky and are generated or acquired during implementation. These assets are amortised over their estimated useful lives (generally three to five years). Customisation and configuration costs are otherwise expensed as incurred unless they relate to services performed by the SaaS vendor which are assessed as not distinct from the SaaS offering, in which case they are capitalised as a prepayment and expensed over the service contract period. Projects under development comprise expenditure on partially completed assets. The projects include items of property, plant and equipment and intangible assets. At completion of the project the costs are allocated to the appropriate asset categories and depreciation or amortisation commences. Key estimates and judgements Assets that are subject to amortisation and depreciation are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value-in-use. Sky / 2026 Annual Report / 73
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Notes to the Consolidated Financial Statements (continued) 16. Goodwill In NZD ’000s 30-Jun-26 30-Jun-25 Opening balance 244,264 244,264 Closing balance 244,264 244,264 Assets that have an indefinite useful life are not subject to amortisation and are tested at each reporting date for impairment and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Impairment tests are performed by assessing the recoverable amount of each individual asset or cash generating unit (CGU). The recoverable amount is determined as the higher amount calculated under a value-in-use or a fair value less costs of disposal calculation. Both methods utilise pre-tax future cash flows which are included in the Group’s five-year business plan. Goodwill represents the excess of the cost of acquisition over the fair value of the Group’s share of the net identifiable assets, liabilities and contingent liabilities of the acquired subsidiary at the date of acquisition and the fair value of the non-controlling interest in the acquired subsidiary. In performing impairment testing, if the carrying values exceed the recoverable amounts for the CGU, then the goodwill is considered to be impaired, and an impairment expense is recognised in the Consolidated Income Statement. The recoverable amount of the Sky CGU for the year ended 30 June 2026 has been determined based on fair value less cost of disposal calculation using a discounted cash flow (DCF) model. For the year ended 30 June 2026 management has utilised the same valuation approach in the prior year for calculating the recoverable amount of the Sky CGU. This valuation methodology uses level three inputs in terms of the fair value hierarchy in NZ IFRS 13. The fair value less cost of disposal calculation includes benefits of future changes to the cost structure as the Group leverages new technologies and continues to refine its operating models. Some of these changes would not be included if value-in-use calculations were used to determine the recoverable amounts of the Sky CGU and therefore fair value less cost of disposal calculations leads to the highest recoverable amount for the Sky CGU. Key estimates and judgements The determination of the number of distinct CGUs and the allocation of goodwill to these CGUs requires a degree of judgement by management and this has been outlined above. For the year ended 30 June 2026 and consistent with the prior year, management has determined that a single CGU exists, the “Sky CGU”. The full goodwill balance has been allocated to the Sky CGU which now includes the acquired business of Discovery New Zealand (refer Note 5). Management has reached this conclusion given the integration and cohesion of the acquired business into the group’s existing activities, for example via a single executive structure, ad-sales team, technology stack and cost base, to ultimately realise the future EBITDA growth outlined in the acquisition business case. The forecasts used in impairment testing also requires assumptions and judgements about the future, such as discount rates, terminal growth rates, forecast revenues, and assumptions around programming rights, and other costs and capital expenditure to which the impairment models are very sensitive, and which are inherently uncertain. Actual results may differ materially from those forecast or implied. The forecasts are not, and should not be read as, a forecast of, or guidance as to, the future financial performance and earnings of the Group. Cash flows over the forecast period (FY27 to FY31) Forecast cash flows are prepared based on management’s current expectations with consideration given to internal information and relevant external industry data and analysis. The cash flow assumptions for the purposes of the impairment testing, referred to as the five-year business plan, were approved by the Board on 24 June 2026. In determining the cash flows for the goodwill impairment test model, the Board acknowledges that there continues to be ongoing uncertainties surrounding factors such as: • the heightened impact of the economic environment (inflation and interest rates) as customers rationalise household spending; • the quantum and timing of subscription revenues including expected acquisition and retention rates for streaming and Sky Box customers; • timing of live sports across the various sporting codes and delivery of rights according to contract, or delivery of equivalent content, and assumptions around the cost of renewing key rights agreements in the future; • expansion of content delivery by means other than satellite, specifically the growth of broadband services. While the core strategy and direction of the business remains broadly the same as the previous five-year plan, which was the basis of the impairment testing at 30 June 2025, the goodwill impairment test model reflects any changes in the business since that time, as well as areas where there has been a shift in focus such as: • the trading performance for the year ended 30 June 2026; • the acquisition of Discovery NZ Limited and associated operating cashflows (refer Note 5); • lower Sky Box revenue reflecting the challenging economic environment; • higher Sky Sport Now revenues reflecting continued customer preference toward streaming of sport; • changes to sport and entertainment costs to reflect new and/or revised rights deals and revised assumptions around content renewals in the future. 74 /
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Notes to the Consolidated Financial Statements (continued) Valuation approach For the year ended 30 June 2026, management has utilised the same valuation approach used in the prior year, other than revising the five-year plan scenario (Goodwill impairment case approved by the Board on 24 June 2026). Key cash flow assumptions include the following: Residential Sky Box and streaming revenues have been forecast based on management’s current expectations of subscriber numbers and average revenues per user (ARPU). In forming these expectations, management has referenced past churn and acquisition performance, and factored in management interventions and planned growth strategies, specifically a more conservative view on the new Sky Box and Pod roll out due to the challenging economic environment, and initiatives focused on customer retention and loyalty. For streaming, continued growth with Sky Sport Now and reduced Neon revenues as the flow of premium entertainment content remains lower than previously anticipated levels. Broadband revenues reflect continued growth from a strong opening subscriber position, with modest growth expected in future as the proposition matures. Programming expenses include both programming rights and programming costs. Programming rights expenses have been forecast with reference to contractual arrangements for content currently in place and management’s expectations of future renewal of content arrangements. Programming costs largely comprise of sports production costs and are forecast with reference to the latest sporting calendar and management’s expectations of future events and renewal assumptions. Broadcasting and infrastructure expenses are forecast with reference to historical trends with assumed cost savings as Sky continues to gain more efficiencies across streaming platforms. Capital expenditure is forecast with reference to revenue consistent with historical trends and the changing nature of the Group’s asset base, and specifically growth in capital expenditure associated with the roll-out of the new Sky Box and Pod products. Discount rates and terminal growth rates The terminal growth rate and discount rate used in the 30 June 2026 impairment assessment calculations (and the equivalent assumptions for 30 June 2025) are detailed below. Costs of disposal are assumed to be 1% (30 June 2025: 1%) of the enterprise value. 30-Jun-26 30-Jun-25 Terminal growth rate 1.5% 1.5% Discount rate (post-tax) 10.7% 10.7% Discount rate (pre-tax) 14.9% 14.9% The terminal growth rate for the Sky CGU takes into account the surety of content supply from entering into long term content supply agreements in the current financial year, the changing balance of future revenues with streaming and other subscription revenue that are typically expected to offset any decline of residential Sky Box revenues. Risks of not achieving the long-term growth rate have been adequately considered in the determination of the discount rate. The discount rate represents the current assessment of the risks specific to the Sky CGU, considering the time value of money and risks of achieving the cash flow estimates. The discount rate calculation is based on the specific circumstances of Sky and is derived from its weighted average costs of capital (WACC). The terminal growth rate and discount rate have been held consistent with the prior year rates which were sourced from independent expert advice, based on prevailing economic, market and other conditions. Management deemed the conditions in FY26 substantially consistent with the prior year and supported this conclusion with a sensitivity analysis on both rates which derived alternative valuation outcomes none of which created indicators of impairment. Market capitalisation comparison The Group compares the carrying amount of net assets with its market capitalisation value at each reporting balance date. The share price as at 30 June 2026 was $3.27 equating to a market capitalisation of $450.2 million, and the share price on the day the financial statements were signed was $3.36 equating to a market capitalisation of $462.6 million. The market capitalisation value excludes any control premium and may not be reflective of the value of the Group’s net assets as at 30 June 2026. The carrying amount of the Group’s net assets as at 30 June 2026 was $469.3 million ($3.41 per share) which exceeded market capitalisation before considering any control premium. Management and the Directors considered this as a potential impairment indicator as part of the goodwill impairment assessment. Market capitalisation reflects the traded value of the Group’s listed shares and does not include a control premium that may be relevant in assessing the value of the Group as a whole. Management considered the market capitalisation comparison, including the impact of a potential control premium, alongside the discounted cash flow valuation and other valuation cross-checks. Based on this assessment, the recoverable amount of the Sky CGU exceeded its carrying amount and no impairment was recognised Conclusion Management and the directors have assessed the recoverable amount for the Sky CGU and also considered whether there are any events or reasonably possible changes in assumptions that may indicate impairment. Management and the directors have concluded that there is no impairment. 16. Goodwill (continued) Sky / 2026 Annual Report / 75
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Notes to the Consolidated Financial Statements (continued) 17. Borrowings Bank loans On 29 July 2024, the Group renegotiated the bank facility with a syndicate of banks comprising Bank of New Zealand, Commonwealth Bank of Australia and Westpac New Zealand Limited securing a facility of $100 million ending on 30 September 2027. The full facility remained undrawn at 30 June 2026. The facility arrangements (together with certain hedging arrangements) take the benefit of shared security granted by certain members of the Group, including: • a general security deed granted by each of Sky Network Television Limited, Sky Network Services Limited, Lightbox New Zealand Limited, Sky Free Limited and Sky Investment Holdings Limited; • real property mortgages granted over certain real property interests of Sky Network Television Limited. As is customary for facilities of this nature, the loan facility is subject to certain covenant clauses whereby the Group is required to meet certain key financial ratios and other performance indicators. There have been no breaches of covenant clauses in the 2026 financial year, and no breaches are anticipated within the next 12 months. Bank overdrafts of $318,000 (30 June 2025: $35,000) have been set off against cash balances. Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the Consolidated Income Statement over the period of the borrowings, using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance date. Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less. Bank overdrafts that are repayable on demand and which form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the Consolidated Statement of Cash Flows. Changes in liabilities arising from financing activities In NZD ’000s 1 July 2025 Additions Repayments Reclass Other movements 30 June 2026 Current liabilities Lease liabilities 22,720 - - 398 7 ,403 30,521 Non-current liabilities Lease liabilities 49,880 8,554 (26,074) (398) - 31,962 72,600 8,554 (26,074) - 7,403 62,483 In NZD ’000s 1 July 2024 Additions Repayments /credits Reclass Other movements 30 June 2025 Current liabilities Lease liabilities 9,335 - - 37,4 8 0 (24,095) 22,720 Non-current liabilities Lease liabilities 15,377 95,498 (25,124) (37,480) 1,609 49,880 24,712 95,498 (25,124) - (22,486) 72,600 (1) Other movements include exchange differences, lease modifications (refer Note 18), and changes in fair value (refer Note 26). 1 1 76 /
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Notes to the Consolidated Financial Statements (continued) 18. Lease Liabilities This note provides information for leases where the Group is a lessee. In NZD ’000s Transmission Property Equipment Motor vehicles Total For the year ended 30 June 2026 Balance at 1 July 2025 47, 8 5 6 14,882 9,339 523 72,600 Additions - - 8,554 - 8,554 Lease modifications/reassessments - - 786 35 821 Add interest for period 2,778 878 527 19 4,202 Less repayments (18,945) (2,933) (8,125) (273) (30,276) Foreign currency revaluation 6,290 - 292 - 6,582 Balance at 30 June 2026 37,979 12,827 11,373 304 62,483 Current 22,769 2,274 5,285 193 30,521 Two to five years 15,210 9,255 6,088 111 30,664 More than five years - 1,298 - - 1,298 Balance at 30 June 2026 37,979 12,827 11,373 304 62,483 For the year ended 30 June 2025 Balance at 1 July 2024 2,871 17,616 4,225 - 24,712 Additions 1 84,156 18 10,700 624 95,498 Lease modifications/reassessments 2 (24,685) - 2,040 5 (22,640) Add interest for period 1,430 1,020 385 10 2,845 Less repayments (9,075) (3,772) ( 7,575) (116) (20,538) Less credits provided by lessor 3 ( 7,4 31) - - - ( 7,4 31) Foreign currency revaluation 590 - (436) - 154 Balance at 30 June 2025 47,856 14,882 9,339 523 72,600 Current 14,744 2,055 5,669 252 22,720 Two to five years 33,112 9,452 3,670 271 46,505 More than five years - 3,375 - - 3,375 Balance at 30 June 2025 47,856 14,882 9,339 523 72,600 (1) On 1 September 2024, the Group recognised a new lease reflecting its satellite arrangements commencing from that date, resulting in an addition of $36.8m with a lease term ending on 31 December 2026. Subsequently, this lease was modified to end on 15 April 2025, which was the transition date to the Group’s current satellite lease. This lease is reflected above as an addition of $47.4m, with a termination date of 31 March 2028. (2) On 31 December 2024, as a result of the renegotiation of the satellite transmission services agreement, the satellite lease was modified to have a lease term ending on 15 April 2025, which was the transition date to the current satellite (see additions line above). (3) In April 2024, the Group received a credit from a broadcast service provider for capital expenditure required to manage migration across various satellites. In the prior year, this credit was recognised as a receivable and unwound against the lease liability. In the prior period ending 30 June 2025, Other Income included a gain from the modification of a transmission lease of $4,924,000. Short term lease costs included in expenses in the consolidated statement of comprehensive income are $315,000 (30 June 2025: $445,000). No leases were terminated or assigned to other parties during the period or in the prior period. The Group leases various properties, transmission equipment, motor vehicles and sundry equipment. Rental contracts vary between one and ten years with some office leases containing renewal options. Sky has incorporated renewal options into the lease term where it is reasonably certain that the lease will be extended. For higher value contracts the Group adjusts the borrowing rate after considering the effect of the lease term, the currency and value of the lease, any security given, and the economic environment in which the Group operates. For leases where there are renewal options, the lease payments may change on renewal. When lease payments are adjusted, the lease liability is reassessed and adjusted against the right-of-use asset. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period. Sky / 2026 Annual Report / 77
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Notes to the Consolidated Financial Statements (continued) Key estimates and judgements Determining the lease term In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise a renewal option. Renewal options are only included in the lease term if the option is reasonably certain to be exercised. Most of the Group’s property leases contain renewal options. Where it is likely that these options will be exercised, they have been included in the calculation of the lease liability. Management reassesses the likelihood of exercising termination options at each reporting date or when there is any significant change in circumstances. Any changes in the lease term or value affect the valuation of the liability and the right-of-use asset and are adjusted accordingly. Allocation of lessor credits In allocating lessor credits between the two transmission leases held during the year, management exercised judgement by considering all relevant facts and circumstances, including the underlying purpose and commercial rationale for the credits. 19. Finance Costs, Net In NZD ’000s Note 30-Jun-26 30-Jun-25 Finance income Interest income 1,753 1,380 Unrealised (gain) – foreign currency payables - (511) Unrealised exchange loss – foreign currency hedges - 574 Realised exchange (gain) – foreign currency payables - (383) Total foreign exchange (income) - (320) Total finance income 1,753 1,700 Finance expense Line fees on bank facilities 999 1,203 Lease interest 18 4,202 2,845 Bank facility finance fees 230 228 Total interest expense 5,431 4,276 Unrealised exchange loss – foreign currency payables 3,108 - Unrealised exchange loss – foreign currency hedges 1,477 - Realised exchange (gain) – foreign currency payables (2,464) - Total foreign exchange expense 2,121 - Total finance expense 7,552 4,276 Interest income is recognised on a time-proportion basis using the effective interest method, which is the rate that exactly discounts estimated future cash flow receipts through the expected life of the financial asset to that asset’s net carrying amount. Borrowing costs directly attributable to acquisition, construction or production of an asset that takes a substantial period of time to prepare for its intended use are capitalised as part of the cost of the respective assets. All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs consist of interest and other costs that the Group incurs. Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Non-monetary items carried at fair value that are denominated in foreign currencies are translated to New Zealand dollars at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not re-translated. Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and from the translation at the year-end exchange rate of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Income Statement except where hedge accounting is applied and foreign exchange gains and losses are deferred in the Consolidated Statement of Comprehensive Income. 18. Lease Liabilities (continued) 78 /
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Notes to the Consolidated Financial Statements (continued) 20. Share Capital 30-Jun-26 30-Jun-25 Number of shares (’000s) Ordinary shares (NZD ’000s) Number of shares (’000s) Ordinary shares (NZD ’000s) Shares on issue at beginning of year 137,675 676,755 137,675 676,755 Shares on issue at end of year 137,675 676,755 137,675 676,755 21. Reserves In NZD ’000s Notes Hedge reserve Share based compensation reserve Total reserves As at 30 June 2026 Balance as at 1 July 2025 (2,196) 577 (1,619) Share based compensation reserve 28 - 436 436 Cash flow hedges (net of tax) Revaluation 11,149 - 11,149 Reclassification to Consolidated Statement of Comprehensive Income 1,898 - 1,898 Reclassification to non-financial assets 48 - 48 Deferred tax 9 (3,667) - (3,667) Balance at 30 June 2026 7,232 1,013 8,245 As at 30 June 2025 Balance as at 1 July 2024 178 181 359 Share based compensation reserve 28 - 396 396 Cash flow hedges (net of tax) Revaluation (2,988) - (2,988) Reclassification to Consolidated Statement of Comprehensive Income (490) - (490) Reclassification to non-financial assets 181 - 181 Deferred tax 9 923 - 923 Balance at 30 June 2025 (2,196) 577 (1,619) 22. Derivative Financial Instruments In NZD ’000s Notes 30-Jun-26 30-Jun-25 Assets Liabilities Notional amounts Assets Liabilities Notional amounts Forward foreign exchange contracts – cash flow hedges 25 10,101 (56) 189,603 610 (3,660) 231,121 Forward foreign exchange contracts – dedesignated 25 3,612 (5) 45,780 250 (1,243) 44,534 Total forward foreign exchange derivatives 13,713 (61) 235,383 860 (4,903) 275,655 Analysed as: Current 11,424 (24) 168,551 640 (2,464) 161,755 Non-current 2,289 (37) 66,832 220 (2,439) 113,900 13,713 (61) 235,383 860 (4,903) 275,655 Sky / 2026 Annual Report / 79
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Notes to the Consolidated Financial Statements (continued) Foreign exchange rates Foreign exchange rates used at balance date for the New Zealand dollar are: 30-Jun-26 30-Jun-25 USD 0.5654 0.6083 AUD 0.8223 0.9291 GBP 0.4270 0.4431 EUR 0.4961 0.5187 JPY 91.7406 87.524 3 Sensitivity analysis for foreign exchange A 10% strengthening or weakening of the NZD against the following currencies as at 30 June 2026 would have resulted in changes to equity (hedging reserve) and unrealised gain/losses (before tax) as shown below. Based on historical movements, a 10% increase or decrease in the NZD is considered to be a reasonable estimate. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for the prior year. In NZD ’000s Gain/(loss) 10% rate increase 10% rate decrease Equity Profit or loss Equity Profit or loss As at 30 June 2026 Foreign currency payables USD - 1,853 - (2,264) AUD - 5,018 - (6,133) Foreign exchange hedges USD (9,049) - 11,059 - AUD (8,500) - 10,388 - (17,549) 6,871 21,447 (8,397) As at 30 June 2025 Foreign currency payables USD - 2,316 - (2,830) AUD - 5,168 - (6,316) Foreign exchange hedges USD (8,631) (871) 10,549 1,065 AUD (11,501) - 14,057 - (20,132) 6,613 24,606 (8,081) Interest rates During the year ended 30 June 2026, interest rates on lease liabilities varied in the range of 3.97% to 6.64% (30 June 2025: 4.48% to 6.65%). The Group’s interest rate structure is as follows: In NZD ’000s Notes 30-Jun-26 30-Jun-25 Effective interest rate Current Non-current Effective interest rate Current Non-current Assets Cash and cash equivalents 2.25% 79,140 - 3.25% 32,410 - Liabilities Lease liabilities 18 5.96% (30,521) (31,962) 6.10% (22,720) (49,880) 48,619 (31,962) 9,690 (49,880) As at 30 June 2026 the Group does not hold any variable rate loans, nor any interest rate hedges (30 June 2025: nil). 22. Derivative Financial Instruments (continued) 80 /
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Notes to the Consolidated Financial Statements (continued) Derivative financial instruments Derivative financial instruments are used to hedge the Group’s exposure to foreign exchange and interest rate risks. The Group does not hold or issue derivatives for trading purposes. However, derivatives that do not qualify for hedge accounting are accounted for as trading instruments. Derivative financial instruments are initially recognised at fair value on the date a derivative contract is entered into and are re-measured at their fair value at subsequent reporting dates. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. At inception, the Group documents the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. All derivatives are designated as hedges on a portfolio basis to specific firm commitments or forecast transactions. The Group also documents its assessment, both at hedge inception and on an on-going basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. Derivatives consist of currency forwards. The fair value is recognised in the hedging reserve within equity until such time as the hedged items will affect the Consolidated Statement of Comprehensive Income. The amounts accumulated in equity are either released to the Consolidated Statement of Comprehensive Income or used to adjust the carrying value of assets purchased. For example, when hedging a forecast purchase of programme rights in foreign currency, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the programme rights. The deferred amounts are ultimately recognised in programme rights’ expenses in the Consolidated Statement of Comprehensive Income. Amounts accumulated in the hedging reserve in equity on interest rate swaps are recycled in the Consolidated Statement of Comprehensive Income in the periods when the hedged item affects profit or loss (for example when the forecast interest payment that is hedged is made). The gain or loss relating to any ineffective portion is recognised in the Consolidated Statement of Comprehensive Income as “interest rate swaps – fair value” in finance costs. The gain or loss relating to interest rate swaps which do not qualify for hedge accounting is recognised in the Consolidated Statement of Comprehensive Income within the interest expense charge in “finance costs, net”. Currently Sky does not hold any interest rate derivatives as it has no variable debt. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the Consolidated Statement of Comprehensive Income. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the Consolidated Statement of Comprehensive Income. Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognised immediately in the Consolidated Statement of Comprehensive Income. 23. Financial Risk Management – Market Risk Financial risk management objectives The Group undertakes transactions in a range of financial instruments which include cash and cash equivalents, receivables, payables, derivatives and various forms of borrowings including bank loans. These activities result in exposure to financial risks that include market risk (foreign exchange risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group seeks to minimise the effects of currency and interest rate risks by using derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the Board of Directors, which provides written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Corporate Treasury function reports monthly to the Board. The Audit and Risk Committee (a standing committee of the Board) is responsible for developing and monitoring the Group’s risk management policies and advising the Board in this respect. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk. The Group buys and sells derivatives in the ordinary course of business, and also incurs financial liabilities, in order to manage market risks. All such transactions are carried out within the guidelines set by the Board. In general, the Group seeks to apply hedge accounting in order to manage income statement volatility. 22. Derivative Financial Instruments (continued) Sky / 2026 Annual Report / 81
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Notes to the Consolidated Financial Statements (continued) (a) Foreign exchange risk The Group is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Australian dollar and the United States dollar in relation to purchases of programme rights, Sky boxes and the lease of the satellite. Foreign exchange risk arises when purchases are denominated in a currency that is not the entity’s functional currency. The net position in each foreign currency is managed by using forward currency contracts and foreign currency options and collars to limit the Group’s exposure to currency risk. The Group’s risk management policy is to hedge foreign capital expenditure (Capex FX) and foreign operating expenditure (Transactional FX) in accordance with the following parameters. Twelve-month forecasts by currency are updated on a rolling monthly basis. Period Percentage of net exposure hedged FEC, Collars and Options Minimum Maximum Year rolling 12 months 1 80% 100% 2 50% 100% 3 0% 90% 4 0% 50% 5 0% 50% 6 – 10 0% 25% (1) Forward exchange contracts. (2) During the prior financial year, the Treasury policy was revised to incorporate a conditional adjustment that if the currency cross spot rate falls below 10% of its corresponding seven-year rolling average, the minimum threshold for Period 2 can be reduced from 50% to 25%. The Group’s exposure to foreign currency risk that has been covered by forward foreign exchange contracts is as follows: In NZD ’000s 30-Jun-26 30-Jun-25 USD AUD Other USD AUD Other Foreign currency payables (11,703) (45,048) (115) (15,496) (52,814) (64) De-designated forward exchange contracts 14,246 31,534 - 17,1 3 5 27,3 9 9 - Net balance sheet exposure 2,543 (13,514) (115) 1,639 (25,415) (64) Forward exchange contracts (for forecasted transactions) 98,876 90,727 - 99,370 131,751 - Total forward exchange contracts 113,122 122,261 - 116,505 159,150 - (b) Cash flow and fair value interest rate risk The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. Group policy is to maintain its borrowings in fixed rate instruments as follows: Period Minimum hedging Maximum hedging Variable rate borrowings 1-3 years 30% 90% 4-6 years 0% 75% 7-10 years 0% 60% The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates. Under the interest rate swaps, the Group agrees with other parties to exchange, at specified intervals (quarterly), the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional principal amounts. The Group also enters into fixed-to-floating interest rate swaps to hedge fair value interest rate risk arising where it has borrowed at fixed rates. 1 2 23. Financial Risk Management – Market Risk (continued) 82 /
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Notes to the Consolidated Financial Statements (continued) 24. Financial Risk Management – Credit Risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises from cash and cash equivalents, deposits with banks, derivative financial instruments and the Group’s receivables from customers. The carrying amount of these financial assets represents the maximum exposure to credit risk at year end. Credit control assesses the credit quality of the customer, taking into account, its financial position, past experience and other factors. In monitoring customer credit risk, customers are grouped according to their classification and their credit characteristics and the existence of any previous financial difficulties. Credit risk with respect to individual residential and commercial customer receivables is limited due to the large number of subscribers included in the Group’s subscriber base. The credit risk for advertising and wholesale customers is assessed individually and trade receivables aging is reviewed monthly. In addition, receivables balances are monitored on an on-going basis with the result that the Group’s exposure to bad debts is not significant. The Group establishes an impairment loss that represents its estimate of expected credit losses in respect of trade receivables. The main component of the impairment loss is based on a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets (refer Note 10). Derivative counterparties and cash transactions are limited to high credit quality financial institutions. The Group has policies that limit the amount of credit exposure to any one financial institution. The maximum exposure to credit risk on the derivative financial instruments is the value of the derivative assets’ receivable portion of $13,713,000 (30 June 2025: $860,000). 25. Financial Risk Management – Liquidity Risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Group aims to maintain flexibility in funding by keeping committed credit lines available. The group continues to focus on managing working capital, including increase in control around accounts payable, more frequent review of cash balances, and a higher level of interaction with customers having overdue balances. Management monitors the Group’s cash requirements, on a daily basis, against expected cash flows based on a rolling daily cash flow forecast for at least 90 days in advance. In addition, management compares actual cash flow reserves against forecast and budget on a monthly basis. The Group has an undrawn facility balance of $100,000,000 as at 30 June 2026 (30 June 2025: $100,000,000) that can be drawn down to meet short-term working capital requirements. The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period from the balance date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows, including interest payments in respect of financial liabilities and the net settled interest rate derivatives that are in a loss position at balance date. Balances due within 12 months equal their carrying value as the impact of discounting is not significant. In NZD ’000s Notes Carrying amount Contractual cash flows Less than one year 1-2 years >3 years At 30 June 2026 Non derivative financial liabilities Lease liabilities 18 62,483 (67,16 4) (33,070) (26,106) ( 7,9 8 8) Trade and other payables 12 1 17,951 (117,951) (115,432) (2,519) - Derivative financial liabilities Forward exchange contracts used for hedging – net outflow/inflow 1 22 61 (61) (24) (37) - 180,495 (185,176) (148,526) (28,662) (7,988) At 30 June 2025 Non derivative financial liabilities Lease liabilities 18 72,600 (80,394) (26,018) (45,304) (9,072) Trade and other payables 12 81,999 (81,999) (80,970) (1,029) - Derivative financial liabilities Forward exchange contracts used for hedging – net outflow/inflow 1 22 4,903 (4,903) (2,464) (2,439) - 159,502 (167,296) (109,452) (48,772) (9,072) (1) The table excludes the contractual cash flows of the forward exchange contracts which are included in assets. Sky / 2026 Annual Report / 83
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Notes to the Consolidated Financial Statements (continued) The table below analyses the Group’s foreign exchange derivative financial instruments which will be settled on a gross basis into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Inflows have been calculated using balance date spot rates. In NZD ’000s Exchange rate Contractual cash flows foreign exchange amount Contractual cash flows Less than one year 1-2 years 3-5 years At 30 June 2026 Forward foreign exchange contracts Outflow (at FX hedge rate) USD (113,122) (68,625) (44,497) - AUD (122,261) (99,926) (22,335) - Inflow (at year end market rate) USD 0.5654 67, 23 8 118,928 72,397 46,531 - AUD 0.8223 109,283 132,899 109,252 23,647 - 16,444 13,098 3,346 - At 30 June 2025 Forward foreign exchange contracts Outflow (at FX hedge rate) USD (116,505) (79,843) (36,662) - AUD (159,150) (81,912) (77 ,238) - Inflow (at year end market rate) USD 0.6083 70,310 115,585 79,994 35,591 - AUD 0.9291 145,825 156,953 80,415 76,538 - (3,117) (1,346) (1,771) - Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders, benefits for other stakeholders and to maintain an optimal capital structure. The capital structure of the Group consists of debt which includes the borrowings disclosed in note 17, cash and cash equivalents and equity attributable to equity holders of Sky comprising share capital, reserves and retained earnings. The Board reviews the Group’s capital structure on a regular basis. The Group has a facility agreement in place with a syndicate of banks. The Group’s bank loan facility is subject to covenants, including fixed charges cover and net debt cover ratios, calculated and reported quarterly, with which it has complied for the entire year reported (2025: complied). As at 30 June 2026 the Group’s debt excluding lease liabilities is $nil (30 June 2025: $nil). Fair value estimation The methods used to estimate the fair value of financial instruments are as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs), for example discounted cash flow. The Group’s financial assets and liabilities carried at fair value are valued on a level 2 basis. 25. Financial Risk Management – Liquidity Risk (continued) 84 /
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Notes to the Consolidated Financial Statements (continued) In NZD ’000s Note 30-Jun-26 30-Jun-25 Assets measured at fair value De-designated forward exchange contracts 22 3,612 250 Derivatives used for hedging – cash flow hedges 22 10,101 610 Total assets 13,713 860 Liabilities measured at fair value De-designated forward exchange contracts 22 (5) (1,243) Derivatives used for hedging – cash flow hedges 22 (56) (3,660) Total liabilities (61) (4,903) The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. The Group uses a variety of methods and assumptions that are based on market conditions existing at each balance date. Techniques, such as estimated discounted cash flows, are used to determine the fair value of financial instruments. The fair value of forward exchange contracts is based on market forward foreign exchange rates at year end. The fair value of interest rate swaps is the estimated amount that the Group would receive or pay to terminate the swap at the reporting date, taking into account current interest rates, observable yield curves and the current creditworthiness of the swap counterparties. 26. Classification of Financial Instruments Financial assets are classified in the following categories: those to be measured subsequently at fair value through other comprehensive income or profit or loss, and those to be measured at amortised cost. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition and reevaluates this designation at each reporting date. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. Purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risk and rewards of ownership. At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial assets. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Consolidated Income Statement. The following table presents the Group’s financial assets and liabilities according to classifications: In NZD ’000s Notes 30-Jun-26 30-Jun-25 Carrying amount Fair value Carrying amount Fair value Financial assets at amortised cost Cash and cash equivalents 79,140 79,140 32,410 32,410 Trade and other receivables 10 50,508 50,508 44,062 44,062 Financial assets at fair value through profit or loss Derivatives designated as hedging instruments (cash flow hedges) 22 10,101 10,101 610 610 Derivatives not designated as hedging instruments (fair value hedges) 22 3,612 3,612 250 250 143,361 143,361 77,332 77,332 Financial liabilities at amortised cost Lease liabilities 18 62,483 62,517 72,600 73,595 Trade and other payables 12 1 17,951 1 17,951 81,999 81,999 Financial liabilities at fair value through OCI Derivatives designated as hedging instruments (cash flow hedges) 22 56 56 3,660 3,660 Derivatives not designated as hedging instruments (fair value hedges) 22 5 5 1,243 1,243 180,495 180,529 159,502 160,497 25. Financial Risk Management – Liquidity Risk (continued) Sky / 2026 Annual Report / 85
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Notes to the Consolidated Financial Statements (continued) Prepaid expenses, deferred revenue, provisions, tax payables and employee benefits do not meet the definition of a financial instrument and have been excluded from the ‘trade and other receivables’ and ‘trade and other payables’ categories above. The fair values of financial assets and financial liabilities are determined as follows: • Cash and cash equivalents, trade and other receivables carried at amortised cost, trade and other payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. • The fair value of lease liabilities is estimated on a level 3 basis by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. Impairment of financial assets The Group assesses, on a forward-looking basis, the expected credit losses associated with its debt instruments carried at amortised costs and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by NZ IFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables (refer Note 10 for further details). 27. Provisions In NZD ’000s Note 30-Jun-26 30-Jun-25 Provision for onerous contracts 1 4,669 1,877 Balance at 30 June 12 4,669 1,877 (1) The onerous contract provision is for life of series entertainment content commitments. The movements in provisions are as follows: In NZD ’000s Notes Onerous contracts Customer Credits Total Balance at 1 July 2025 12 1,877 - 1,877 Arising during the year 3,670 - 3,670 Utilised/paid out (878) - (878) Balance at 30 June 2026 4,669 - 4,669 Current – within one year 12 2,151 - 2,151 Long term – later than one year 2,518 - 2,518 4,669 - 4,669 Balance at 1 July 2024 12 893 3,289 4,182 Arising during the year 1,400 - 1,400 Transferred to trade & other payables - (400) (400) Utilised/paid out (416) (2,889) (3,305) Balance at 30 June 2025 1,877 - 1,877 Current – within one year 12 848 - 848 Long term – later than one year 1,029 - 1,029 1,877 - 1,877 Provisions are recognised when: • there is a present legal or constructive obligation as a result of past events; • it is more likely than not that an outflow of economic resources will be required to settle the obligation; • the amount can be reliably estimated. Measurement is the present value of the expenditure expected to be required to settle the obligation. 26. Classification of Financial Instruments (continued) 86 /
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Notes to the Consolidated Financial Statements (continued) 28. Related Parties There were no loans to directors by the Group or associated parties at any of the reporting dates. Related party transactions include the following: In NZD ’000s 30-Jun-26 30-Jun-25 Consolidated Statement of Comprehensive Income Remuneration of key management personnel (included in employee costs) 1 6,950 5,614 Dividend payments (included in dividends paid) 375 251 Directors’ fees 934 897 Share based compensation reserve 436 396 Total related party transactions through consolidated income statement 8,695 7,158 (1) The year ending 30 June 2026 includes the cost of termination benefits paid to key personnel of $698,000 (30 June 2025: $578,000). The Group’s directors and key management personnel collectively hold shareholdings of 1,513,010 shares (30 June 2025: 1,223,737 shares) which carry the normal entitlement to dividends. Share transactions undertaken by directors can be found as part of the statutory disclosures in the annual report. Equity-settled share-based compensation reserve In August 2023 the Group approved a long-term incentive plan and granted 408,415 share rights to executives of the Group under the incentive plan. The grants were all accepted by the employees between 22 December 2023 and 10 January 2024. Each share right converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the share right. The share rights carry neither rights to dividends nor voting rights. In September 2024 the Group granted 388,742 share rights to executives of the Group under the incentive plan. The grants were all accepted by the employees by 30 October 2024. A further 21,738 shares were granted and accepted in February 2025. Each share right converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the share right. The share rights carry neither rights to dividends nor voting rights. In September 2025 the Group granted 348,968 share rights to executives of the Group under the incentive plan. The grants were all accepted by the employees by 30 October 2025, a further 42,423 share rights under the same issue was granted in March 2026. Each share right converts into one ordinary share of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the share right. The share rights carry neither rights to dividends nor voting rights. The share rights under the 2025, 2024 and 2023 grants are separated into two tranches, one tranche which vests over a three-year measurement period based on achieving certain total shareholder returns. The second tranche vests over a three-year measurement period based on achieving total shareholder returns relative to the constituent companies of the S&P/NZX50 Index at the Grant Date, less any entities delisted during the Grant Period. The executives must remain employed by the Group over the vesting period. The share rights represent an equity-settled share-based payment with market conditions. The share rights approved in September 2025 had an estimated fair value of $630,140 (2024: $529,519). The fair value was determined using a Monte-Carlo simulation model and encompasses the market based vesting criteria. The key valuation assumptions are set out below: Share based compensation valuation assumptions FY26 Grant FY25 Grant FY24 Grant Date of first issue October 2025 October 2024 August 2024 Grant date share price $3.59 $2.79 $2.70 Granted Share Rights 391,391 410,480 408,415 Less Lapsed Share Rights (34,890) (122,049) (126,256) Share rights at 30 June 2026 356,501 288,431 282,159 Dividend yield (over vesting period) 10.00% 10.30% 9.00% Risk free rate 2.90% 4.30% 4.46% The number of share rights that ultimately vest depends on performance over the measurement period. Failure to meet a market- based vesting condition may result in fewer or no rights vesting. However, the expense measured using the grant-date fair value is recognised over the vesting period regardless of whether the market condition is met, provided the service condition and any other non-market vesting conditions are satisfied. Sky / 2026 Annual Report / 87
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Notes to the Consolidated Financial Statements (continued) 29. Commitments In NZD ’000s 30-Jun-26 30-Jun-25 Programme rights commitments: Less than 1 year 3 07,6 0 4 264,603 1 - 5 years 536,455 208,074 Later than 5 years 18,427 1,975 862,486 474,652 Lease commitments: Less than 1 year - - 1 - 5 years 57,76 5 36,326 Later than 5 years 3,420 17, 826 61,185 54,152 Contracts for transmission services: Less than 1 year 1,113 693 1 - 5 years 872 380 Later than 5 years - 167 1,985 1,240 Capital expenditure commitments: Property, plant and equipment Less than 1 year 17,0 8 5 14,626 17,085 14,626 30. Contingent Assets and Liabilities The Group has no undrawn letters of credit at 30 June 2026 (30 June 2025: nil). The Group is subject to litigation incidental to its business, none of which is expected to be material. No provision has been made in the Group’s financial statements in relation to its ongoing litigation and claims, the directors believe that such litigation and uncertainty of claims will not have a significant effect on the Group’s financial position, results of operations or cash flows. 31. Subsequent Events NRL Rights Renewal On 7 July 2026 Sky secured an exclusive seven-year broadcast partnership for New Zealand NRL rights with the Australian Rugby League Commission, commencing January 2028 to December 2034. The agreement is conditional on Sky shareholder approval by special resolution, which will be sought at Sky’s Annual Shareholder Meeting. Sky shareholder approval is required under section 129 of the Companies Act 1993 because the value of the assets to be acquired by Sky over the seven-year period is more than half the value of Sky’s assets before the acquisition and because Sky will incur obligations or liabilities (being principally the obligation to pay for the broadcast rights and related production obligations) in excess of half the value of Sky’s assets before the transaction. Premier League Rights Renewal On 27 August 2026 Sky secured an exclusive six-year broadcast partnership for New Zealand rights with the Premier League, commencing from the 2028-2029 season to 2034. Dividend On 27 August 2026 the Board of Directors resolved to pay a fully imputed dividend of 17.0 cents per share with the record date being 11 September 2026. A supplementary dividend of 3.0 cents per share will be paid to non-resident shareholders subject to the foreign investor tax credit regime. 88 /
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PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand +64 9 355 8000 pwc.co.nz Independent auditor’s report To the shareholders of Sky Network Television Limited Our opinion In our opinion, the accompanying consolidated financial statements (the financial statements) of Sky Network Television Limited (the Company), including its subsidiaries (the Group), present fairly, in all material respects, the financial position of the Group as at 30 June 2026, its financial performance, and its cash flows for the year then ended in accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards Accounting Standards (IFRS Accounting Standards). What we have audited The Group's financial statements comprise: • the consolidated balance sheet as at 30 June 2026; • the consolidated income statement for the year then ended; • the consolidated statement of comprehensive income for the year then ended; • the consolidated statement of changes in equity for the year then ended; • the consolidated statement of cash flows for the year then ended; and • the notes to the financial statements, comprising material accounting policy information and other explanatory information. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board (PES 1) and the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), as applicable to audits of financial statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with PES 1 and the IESBA Code. Independent auditor’s report Sky / 2026 Annual Report / 89
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2 PwC - Independent auditor’s report In our capacity as auditor and assurance practitioner, our firm also provides review, other assurance and agreed- upon procedures services. In addition, certain partners and employees of our firm may deal with the Group on normal terms within the ordinary course of trading activities of the business. The firm has no other relationship with, or interests in, the Group. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Description of the key audit matter How our audit addressed the key audit matter Revenue recognition The Group’s total revenue for the year ended 30 June 2026 amounted to $824.8 million (2025: $750.7 million). Revenue is material to the Group and comprises a high volume of transactions across a range of revenue streams processed through multiple billing systems. Management remains focused on retaining and growing the Group’s customer base and delivering revenue and profitability growth. Given the scale and volume of revenue, and the changes arising from the acquisition of Discovery NZ Limited (then renamed to Sky Free Limited), revenue recognition required significant audit attention and is therefore a key audit matter. Refer to Note 4 of the consolidated financial statements for disclosures on revenue streams. In order to determine whether the revenue has been recognised in accordance with the relevant accounting standards, our procedures included: • updating our understanding of the systems, processes and controls in place over the recognition of revenue; • testing the operating effectiveness of certain controls in respect of the revenue recognition process; and • performing a recalculation of certain revenue streams. On a sample basis, other procedures included: • testing unexpected journal entry combinations that impact revenue; • for selected revenue transactions, agreeing recognised amounts to supporting documentation, such as customer contracts and invoices; and • for selected advertising and other revenue transactions, agreed pricing to the relevant customer contracts and agreed recorded receipts to bank records, where applicable. We also assessed whether the revenue recognition accounting policies and related disclosures in Note 4 were appropriate and met the disclosure requirements of NZ IFRS. Acquisition accounting for Sky Free Limited (Sky Free) On 1 August 2025, the Group acquired 100% of Sky Free for a share purchase price of $1. The acquisition resulted in the recognition of a gain on bargain purchase of $31.4 million. We considered the acquisition accounting to be a key audit matter because of the significance of the transaction and the judgement involved in identifying and measuring the acquired assets and liabilities. Significant auditor attention was required particularly in relation to acquired programme rights. Refer to Note 5 of the consolidated financial statements for disclosures relating to the acquisition. In order to determine whether the acquisition was accounted for in accordance with relevant accounting standards, our procedures included: • obtaining an understanding over the processes and controls in place over the acquisition; • gaining an understanding of management’s approach to identifying separately identifiable intangible assets and determining the fair value of the assets and liabilities acquired; • considering whether all material identifiable assets and liabilities had been recognised in accordance with the requirements of NZ IFRS 3 Business Combinations; • obtaining an understanding of the acquisition by reading the relevant contractual agreements and supporting documents; • assessing the Group’s application of the acquisition method, including whether the assets acquired and liabilities assumed had been appropriately identified and valued; • on a sample basis, agreeing the acquired assets and liabilities balances to supporting documentation; • agreeing the cash balances received to supporting documentation; • assessing the valuation methods and significant 4 PwC - Independent auditor’s report How we tailored our group audit scope We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates. Other information The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the financial statements The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit, in accordance with ISAs (NZ) and ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for the auditor’s opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. 90 /
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3 PwC - Independent auditor’s report assumptions used to determine the fair value of acquired programme rights. This included assessing the remaining licence periods and the expected future economic benefits from the content acquired; • our valuation expert assisted us in evaluating the valuation methodologies and key assumptions applied to the acquired brands, developed technology, and software, and in considering the valuation approach applied to programme rights; • recalculating the resulting gain on bargain purchase; and • considering the appropriateness of the disclosures in the consolidated financial statements. Our audit approach Overview Overall group materiality: $6.15 million, which represents approximately 0.75% of total revenue. We chose revenue as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users and is a generally accepted benchmark. Following our assessment of the risk of material misstatement, we performed full scope audits for two entities within the Group, the Parent entity and Sky Free entity, based on their financial significance. As reported above, we have two key audit matters, being: • Revenue recognition • Acquisition accounting for Sky Free Limited (Sky Free) As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. Materiality The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance about whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the financial statements as a whole as set out above. These, together with qualitative considerations, helped us to determine the scope of our audit, the nature, timing and extent of our audit procedures, and to evaluate the effect of misstatements, both individually and in the aggregate, on the financial statements as a whole. 4 PwC - Independent auditor’s report How we tailored our group audit scope We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates. Other information The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the financial statements The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit, in accordance with ISAs (NZ) and ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for the auditor’s opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. Sky / 2026 Annual Report / 91
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4 PwC - Independent auditor’s report How we tailored our group audit scope We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates. Other information The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the financial statements The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit, in accordance with ISAs (NZ) and ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for the auditor’s opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. 4 PwC - Independent auditor’s report How we tailored our group audit scope We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates. Other information The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the financial statements The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit, in accordance with ISAs (NZ) and ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for the auditor’s opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. 92 /
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5 PwC - Independent auditor’s report • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of the use of the going concern basis of accounting by those charged with governance and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If the auditor concludes that a material uncertainty exists, the auditor is required to draw attention in the auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the group audit. We remain solely responsible for the audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that the auditor identifies during the audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Who we report to This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that we might state those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our audit work, for this report, or for the opinions we have formed. The engagement partner on the audit resulting in this independent auditor’s report is Richard Day. For and on behalf of: PricewaterhouseCoopers Auckland 27 August 2026 4 PwC - Independent auditor’s report How we tailored our group audit scope We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates. Other information The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the financial statements The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit, in accordance with ISAs (NZ) and ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for the auditor’s opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. Sky / 2026 Annual Report / 93
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Directory Directors Philip Bowman (Chair) Keith Smith (Deputy Chair) Dame Joan Withers Mike Darcey Mark Buckman Belinda Rowe Officers Sophie Moloney Chief Executive David Mackrell Chief Financial Officer and Interim Chief Sales Officer Nikki Goodman Chief Customer Officer Kym Niblock Chief Transformation Officer (Project Role) Chris Major Chief Corporate Affairs Officer Antony Welton Chief Operating Officer Katie Williams Chief People Officer Oleg Gribanov Interim Chief Technology Officer New Zealand Registered Office 10 Panorama Road, Mt Wellington, Auckland 1060, New Zealand Tel: +64 9 579 9999 Fax: +64 9 579 8324 Website: sky.co.nz Australian Registered Office c/- Baker McKenzie Tower One – International Towers Sydney Level 46, 100 Barangaroo Avenue, Sydney NSW 2000, Australia Tel: +61 2 9230 4000 Fax: +61 2 9230 5333 Auditors to Sky PricewaterhouseCoopers Level 27, PwC Tower 15 Customs Street West Auckland 1010, New Zealand Tel: +64 9 355 8000 Fax: +64 9 355 8001 Solicitors to Sky Buddle Findlay Level 18, HSBC Tower 188 Quay Street Auckland 1010, New Zealand Tel: +64 9 358 2555 Fax: +64 9 358 2055 Chapman Tripp Level 34, PwC Tower 15 Customs Street West Auckland 1010, New Zealand Tel: +64 9 357 9000 Fax: +64 9 357 9099 Baker McKenzie Tower One – International Towers Sydney Level 46, 100 Barangaroo Avenue Sydney NSW 2000, Australia Tel: +61 2 9225 0200 Fax +61 2 9225 1595 Annual Meeting The next Annual Shareholders Meeting of Sky Network Television Limited will be held on Friday 20 November 2026. Sky will provide further details in due course through its Notice of Annual Meeting of Shareholders. 94 /