Sky Network Television Ltd SKT

Morningstar Rating
A$2.48 +0.07 (2.69%)
View Full Chart

Company Report

Sky's Fiscal 2024 Result Underwhelms

Sky is the sole set-top box-based pay-television provider in New Zealand, with a satellite distribution platform covering the whole country. It has a grip on key content (especially sports), and its large subscriber base was relatively sticky until fiscal 2015, given limited home entertainment options.

Price vs Fair Value

SKT is trading at a 724% premium.
Price
A$2.48
Fair Value
A$5.90
Uncertainty
High
1-Star Price
A$5.95
5-Star Price
A$8.44
Economic Moat
Xfwm
Capital Allocation
Lzhmqzy

Bulls Say, Bears Say

Bulls

Sky Network Television is a monopoly provider in the New Zealand pay-TV market, with a substantial subscriber base and scale.

Bears

Sky Network Television's core pay-TV business has reached maturity, further affected by increasing popularity of broadband-enabled streaming services.

Trading Information

Previous Close Price
A$2.42
Day Range
A$2.402.48
52-Week Range
A$2.112.70
Bid/Ask
A$2.39 / A$2.50
Market Cap
A$341.43 Mil
Volume/Avg
34,343 / 12,845

Key Statistics

Price/Earnings (Normalized)
7.98
Price/Sales
0.48
Dividend Yield (Trailing)
7.04%
Dividend Yield (Forward)
7.04%
Total Yield
11.62%

Company Profile

Sky Network Television is the only traditional, set-top-box-based pay-TV service operator in New Zealand. It distributes local and overseas content, including sports, to its customers via a digital satellite network. It generates subscription and content revenue from these customers via set-top-boxes. This business is augmented by an advertising-supported free-to-air television channel, Prime. Sky also operates subscription video on demand, or SVOD, streaming businesses Sky Sports Now and Neon, while it began reselling fixed-line fiber broadband access in 2021.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Small Value
Total Number of Employees
900

Competitors

Valuation

Metric
SKT
NEC
SWM
Price/Earnings (Normalized)
7.989.982.49
Price/Book Value
0.841.230.67
Price/Sales
0.480.760.20
Price/Cash Flow
2.656.804.47
Price/Earnings
SKT
NEC
SWM

Financial Strength

Metric
SKT
NEC
SWM
Quick Ratio
0.420.540.86
Current Ratio
1.101.031.41
Interest Coverage
14.974.042.52
Quick Ratio
SKT
NEC
SWM

Profitability

Metric
SKT
NEC
SWM
Return on Assets (Normalized)
7.38%4.71%5.23%
Return on Equity (Normalized)
11.28%11.45%19.33%
Return on Invested Capital (Normalized)
10.56%8.88%11.52%
Return on Assets
SKT
NEC
SWM

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