SKY New Zealand reports results for the six months to 31 December 2012

Friday, February 22nd, 2013
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New Zealand’s SKY Network Television Limited (ASX: SKT; NZX: SKT) has reported financial results for the six months to 31 December 2012.

SKY Television ended 2012 with 827,445 DBS satellite subscribers, up from 826,125 at the end of 2011.

MY SKY (digital video recorder) subscribers now represent 51.2% of SKY’s satellite subscriber base compared to 40.1% in the previous period. At 31 December 2012, SKY had 423,973 MY SKY subscribers compared to 331,041 in December 2011, a significant increase of 28.1%.

December 2012 finally saw the launch of Igloo

Igloo Limited is owned 51% by SKY and 49% by TVNZ and provides 11 pay TV channels on a prepaid basis and access to live pay-per-view sports events, plus movies and TV episodes on a video-on-demand basis via the Internet.

The service is available for $25 per month and is targeted at individuals who do not need all of the channels available from the regular SKY pay TV offering. Igloo customers purchase and install their own set-top box that will access both the regular Freeview channels and also Igloo’s prepaid pay TV service.

Total DBS and other subscribers

                                 31-DEC-12  30-JUN-12  31-DEC-11
                                 ---------  ---------  ---------
Subscribers - DBS (Satellite):
  Residential                      688,800   690,267    689,787
  Residential - wholesale (1)      130,166   129,323    127,328
  Commercial                         8,479     9,140      9,010
Total DBS                          827,445   828,730    826,125

Subscribers - Other: (2)            19,543    18,201     20,115
                                 ---------  ---------  ---------
Total subscribers                  846,988   846,931    846,240

MY SKY Subscribers (3)             423,973   382,495    331,041

Gross churn rate (4)                 14.6%     14.2%      14.2%

1. Includes subscribers receiving SKY packages via affiliate services, such as arrangements with TelstraClear, Telecom and Vodafone.
2. Includes subscribers to programmed music and online DVD rentals via SKY’s subsidiary companies, SKY DMX Music Limited and Screen Enterprises Limited. Also includes residential subscribers to Igloo’s package launched in December 2012.
3. Included in total subscribers.
4. Gross churn refers to the percentage of residential subscribers over the 12-month period ended on the date shown who terminated their subscription, net of existing subscribers who transferred their service to new residences during the period.