Sky Network Television Limited (ASX:SKT): FY26 Earnings, Content Rights and Media Operations

Aditi Sarkar

21 October 2026 10:29 PM AEDT

Sky Network Television Limited (ASX:SKT): FY26 Earnings, Content Rights and Media Operations

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Highlights

Sky Network Television Limited (ASX:SKT) reported FY26 revenue of NZD 824.8 million.
FY26 reported EBITDA was NZD 170.2 million, compared with NZD 120.6 million in FY25.
FY26 statutory net profit after tax reached NZD 59.8 million; normalised free cash flow was NZD 58.9 million.
Sky announced an Australian Open rights extension through 2032 in October 2026.

Sky Network Television Limited (ASX:SKT) operates sport and entertainment media services, advertising and telecommunications in New Zealand. Its 2026 disclosures cover changes in the television business following the acquisition of Discovery New Zealand, now Sky Free, alongside renewed sports-content arrangements and annual financial results. On 21 October 2026, Sky Network Television Limited (ASX:SKT) closed at AUD 2.90, down 1.36% for the day. The company also issued a notice in October for its November annual shareholders meeting.

Company Business

Sky provides subscription television and streaming services, sport and entertainment programming, advertising inventory and broadband services. Its consumer services include Sky television packages, Sky Sport and streaming options, while commercial arrangements include advertising sales and wholesale or distribution relationships. Operations are principally based in New Zealand, and the company reports financial results in New Zealand dollars.

The acquisition of Discovery New Zealand, completed in 2025 and incorporated into FY26 results as Sky Free, added free-to-air television and associated advertising operations. The expanded business consequently reports subscription and advertising-related revenue alongside content, transmission, technology and customer-service expenditure. Sky Network Television Limited (ASX:SKT) also maintains sports-rights agreements that determine the programming available across its services.

Recent Development

In October 2026, Sky announced an extension of its Australian Open partnership through 2032. The announcement followed the company’s August 2026 disclosures of an extension of Premier League rights through 2034 and its July announcement of a seven-year partnership for National Rugby League coverage. These agreements describe the duration of content access; the company’s releases do not establish their eventual individual earnings contribution.

Sky released its FY26 annual results in late August. The company said the addition of Sky Free contributed to revenue growth, while its results separated reported and underlying performance to explain adjustments. The October 2026 notice scheduled the annual meeting for 20 November 2026 in Auckland with online attendance available.

Financial Performance and Sector Context

For the year ended 30 June 2026, Sky reported revenue of NZD 824.8 million, compared with NZD 750.7 million in FY25. Underlying revenue was NZD 826.1 million, up 9% from NZD 755.1 million. The company identified the inclusion of Sky Free as a driver of the underlying revenue increase. The reported and underlying measures differ because the company applies specified adjustments in its annual disclosures.

Reported EBITDA increased to NZD 170.2 million in FY26 from NZD 120.6 million in FY25. Underlying EBITDA was NZD 157.0 million, compared with NZD 148.5 million in FY25, an increase of 6%. The distinction matters when comparing earnings because the reported measure includes items excluded from the company’s underlying calculation. EBITDA is a non-GAAP measure and differs from statutory profit.

Statutory net profit after tax was NZD 59.8 million in FY26, compared with NZD 20.6 million in FY25. Underlying net profit was NZD 41.8 million versus NZD 41.1 million. Normalised free cash flow reached NZD 58.9 million, up 60%, and the company reported closing cash of NZD 79.1 million. These measures show different aspects of accounting earnings and cash generation.

Sky declared a fully imputed final dividend of NZD 0.17 per share, paid on 25 September 2026. The FY26 total dividend was NZD 0.32 per share. The company also stated an intention to move to quarterly dividend payments and targeted annual dividend growth; these are corporate plans rather than guaranteed distributions. The sector remains affected by subscription behaviour, advertising demand, content costs and competition between distribution formats.

Risks to Consider

Broadcasting-rights renewals can change programming expenditure and contractual commitments. Consumer cancellations, changes in viewing habits and competition for audiences may affect subscription revenue. Advertising income is sensitive to advertiser budgets, while technology systems, streaming reliability and content delivery create operational requirements. Sky Network Television Limited (ASX:SKT) also faces integration risks associated with operating subscription and free-to-air services within one group.

What to Watch Next

The 20 November 2026 annual shareholders meeting provides a scheduled forum for management and shareholder questions. Subsequent trading and interim disclosures can report subscriber developments, advertising conditions, operating costs, programme expenditure and cash flow. Implementation of announced sports-rights agreements, the integration of Sky Free and any update to dividend policy remain identifiable monitoring points.

For Sky Network Television Limited (ASX:SKT), comparisons between statutory and underlying earnings will also help describe the effect of adjustments. Future company announcements are needed to establish any changes to its FY27 operational or financial expectations.

Key Insights

Sky’s FY26 accounts recorded higher reported revenue, EBITDA and net profit, alongside increased underlying revenue and EBITDA. Its 2026 announcements also detailed several multi-year sports-rights partnerships. Sky Network Television Limited (ASX:SKT) remains exposed to subscription demand, advertising conditions, programme expenditure and the integration of Sky Free. Subsequent operating figures and formal announcements will provide the next measures of business performance.

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