Sky TV Fair Value Raised, Strong Performance and Cash Flow Support Generous Dividends (Corrected)

We lift our fair value estimate for Sky Network Television, or Sky TV, to NZD 7.00 per share from NZD 6.50 reflecting the additional cash generated since our last update and a modest increase in our longer-term forecasts. At the current price, Sky TV shares appear modestly undervalued offering an attractive dividend yield of 5.8%. Our wide moat rating on Sky TV, reflecting the company's scale advantage given its near monopoly position in the New Zealand pay TV market, remains intact.