SKT - Sky Network Television

[System]

Sky Network Television (SKT) provides UHF & digital satellite television to paying subscribers in New Zealand. Sky offers a wide range of sports, movies, music, on-demand and general content across more than 100+ channels.

http://www.skytv.co.nz

 

[Gringotts Bank]

Large volume increase + rise in SP over the last few months.

Anyone know about this company?

 

[oldblue]

Large volume increase + rise in SP over the last few months.

Anyone know about this company?

Holds exclusive casino rights for Auckland. Also has casinos in Christchurch, Queenstown, Adelaide and Darwin. Has this week entered into agreement to build a new convention centre in Auckland in exchange for increased and extended gaming rights in that city.

Its been a leading performer on the NZX for around 20 years.

 

[Gringotts Bank]

Holds exclusive casino rights for Auckland. Also has casinos in Christchurch, Queenstown, Adelaide and Darwin. Has this week entered into agreement to build a new convention centre in Auckland in exchange for increased and extended gaming rights in that city.

Its been a leading performer on the NZX for around 20 years.

Thanks for the info.

 

[piggybank]

Breakout today on increasing volume.

 

[piggybank]

Still in an up-trend.

 

[Gringotts Bank]

What's goin' on 'ere?

 

[VSntchr]

What's goin' on 'ere?

Poor guidance given at the AGM today.

 

[Gringotts Bank]

Poor guidance given at the AGM today.

Cheers.

Guidance as in how they plan to compete with others in this marketplace?

 

[VSntchr]

Cheers.

Guidance as in how they plan to compete with others in this marketplace?

Rather, the financial numbers they expect to achieve for FY16. Looks like their new digital box offering thing is costing them upfront.

 

[galumay]

SKT looks like it might be a contrarian turnaround at current prices of $1 something. More debt than I like, but would need to miss guidance by about 50% to have a valuation anything like its current price. A recent history of falling revenue and earnings, but that combined with the impairment last FY seems to have led to an over reaction by Mr Market.

The risk is probably another impairment (which will come at some point due to the nature of how the goodwill was created), or further erosion of profits.

 

[Knobby22]

Interesting Galumay, it's like an utility, flat on everything, no growth, low PE but good yield. Looking at its history most earnings surprises have been on the negative. Has been among the worst performers on the ASX over last 3 years.

It might be a bargain, debt has been slowly reducing, improvement in fundamentals would cause a big rerating.

However receipts were down last year, and a bit the year before, why? Competition from streamer services? Bit too risky for me.

 

[galumay]

I agree its pretty risky, I think the growth of Netflix etc combined with a proper NBN rollout in NZ has had an impact, still the guidance is for $85m NPAT this year, which does make them look pretty cheap.

The FCF conversion is healthy too, so my DFCF model spits out a significantly higher range of IV even assuming very low growth. (I realise its actually been negative in recent years!)

I reckon you need to value it like a utility, its never going to have much growth, but its unlikely to go under completely, a simple reversion to mean should see it trade at a meaningfully higher price.

On the other hand, the highish debt, potential of further impairments and squeezing margins could mean it treads water for a long time.

 

[Knobby22]

I had a look at the annual report. They have had a bit of capital expenditure to roll out the new network boxes and that's finished now which is good. And there is the new deal with Optus and the new satellite, not sure if costs have risen due to this, operating costs are down over the last year though.
I don't think you would lose money investing but like a typical utility not make much either.
Really would like to see the next half year results.
Reminds me of Foxtel which is struggling now to compete. Not a buy and hold, maybe hold for 6 months.

 

[galumay]

Yep, I agree overall, not really my cup of tea, if I could see a long term stable future for the SKT's of the world then maybe, but as you say the best case is really a re-rate over the next 12 months and a short term profit.
Need to keep looking for something better!

 

[PZ99]

Well that went straight to the keeper. Glad I didn't buy it after all.

Ann: Sky Network Television received notification from NZ Cricket that it has awarded a six-year broadcasting rights agreement with Spark Sport from April 2020. The Company's partnership with Cricket Australia includes Black Caps tours in 2019/20 and 2020/21, along with all Men's and Women's International matches that will be played in Australia, BCCI (India) which includes Black Caps tours in 2021/22 and 2022/23, and the Indian Premier League

Down 16%

 

[galumay]

Looks like we dodged a wicked ball there @PZ99 !

I reckon its nearly more satisfying when I get a decision not to buy correct, than when I get a buy decision right!

 

[noirua]

Alan Sugar 'wants The Apprentice to move to Australia after COVID' (msn.com)

Alan Sugar - Wikipedia

en.wikipedia.org

 

[Dona Ferentes]

Revenue, margins, and Operating Profit after Abnormals all dropping

But might there be a Covid benefit if programs / content is made in Aust or NZ (because its possible)

 

[Knobby22]

My pick for this coming year.
Been a long fall but now the turnaround is starting. NZ , cashed up with sale of Mt Wellington property. Cost savings resulting in a better bottom line.