Sky Network Television Ltd SKT

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NZD 2.73 +0.01 (0.37%)

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As of May 10, 2024 5:00am Delayed Price Closed

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Company Report

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Sky Network Television's No-Moat Rating Reiterated

Brian Han Mar 28, 2024

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.

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Price vs Fair Value

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SKT is trading at a 87% premium.

Price

NZD 2.73

May 10, 2024

Fair Value

NZD 3.00

Nov 21, 2022

Uncertainty

High

1-Star Price: NZD 1.81
5-Star Price: NZD 9.70
Economic Moat: Txnb
Capital Allocation: Cybjhtvpq

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.

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Trading Information

Previous Close Price: NZD 2.72
Day Range: NZD 2.72–2.75
52-Week Range: NZD 2.31–2.98
Bid/Ask: NZD 2.73 / NZD 2.75
Market Cap: NZD 391.49 Mil
Volume/Avg: 57,603 / 303,208

Key Statistics

Price/Earnings (Normalized): 6.55
Price/Sales: 0.51
Dividend Yield (Trailing): 5.88%
Dividend Yield (Forward): 5.88%
Total Yield: 7.21%

Company Profile

Sky Network Television is the monopoly 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
Website: https://www.sky.co.nz

Competitors

Valuation

Metric	SKT	NWS	NEC
Price/Earnings (Normalized)	6.55	37.86	9.41
Price/Book Value	0.87	1.78	1.45
Price/Sales	0.51	1.47	0.93
Price/Cash Flow	3.19	11.61	6.24

Price/Earnings

SKT

NWS

NEC

Financial Strength

Metric	SKT	NWS	NEC
Quick Ratio	0.52	1.11	0.58
Current Ratio	1.13	1.36	1.09
Interest Coverage	9.28	5.71	3.66

Quick Ratio

SKT

NWS

NEC

Profitability

Metric	SKT	NWS	NEC
Return on Assets (Normalized)	8.19%	2.21%	5.42%
Return on Equity (Normalized)	12.72%	4.59%	12.66%
Return on Invested Capital (Normalized)	11.97%	3.33%	11.28%

Return on Assets

SKT

NWS

NEC

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