SKT - Sky Network Television

[Mysterion]

The phrase "synergies" is probably being thrown around too much these days.

Do you really want a side order of fries with your morning paper?

[mistaTea]

Given the prospect of a dividend and capital return (of some form) MUST be factored into the current share price...

It really is amazing how small a valuation has been put on sky's operation by the market AND it doesn't bode well for August 25.

Sure, once the exact amount of the divvy is declared the SP will probably go up somewhat.

But I think it is safe to say we can forget about $3.

[Shareguy]

I think current share price is about right when you consider the NZX 50 is down 18%. Add the healthy dividend/cash return and you're back at three bucks.

[Mysterion]

Sky is losing it's edge as a value stock because all other stocks are starting to become "value" as the broader market declines.

You can get 4% in a term deposit now!!!

The idea of investing in Sky as a cash cow business in a low interest environment is losing it's appeal. A lot of people in 2020/2021 were talking about Sky having a high yield dividend and that was attractive when interest rates were 0% and growth stocks were expensive. That's all changed now.

Now it looks like Sky's dividend will barely keep up with inflation plus you have the risk of holding Sky with practically no growth. Better to put money in term deposit. Wait and see what happens, then get back into growth stocks.

The selling recently is defiantly people moving out looking for bargains elsewhere. And those investors looking for yield are now finding it easily somewhere else.

I think investors were also spoked by this line here in the newsletter: "accelerating organic investment in the business to drive further growth". To me this a red flag as it means costs are likely going higher, not lower.

The cost of doing business just keeps going up and Sky are no immune to this. The results next month will likely be about expenses not how many customers or how many broadband customers there are.

The cash return and dividend are likely to be both low end of market expectation. And outlook for additional costs is likely to be higher.

Maybe I'm wrong, but you would have thought they would have given back all the surplus cash straight away. But no, they have to come up with a "plan" and make everyone wait. I smell something fishy bro!!

As Peter would say, let's wait and see.

[mistaTea]

Sky is losing it's edge as a value stock because all other stocks are starting to become "value" as the broader market declines.

You can get 4% in a term deposit now!!!

The idea of investing in Sky as a cash cow business in a low interest environment is losing it's appeal. A lot of people in 2020/2021 were talking about Sky having a high yield dividend and that was attractive when interest rates were 0% and growth stocks were expensive. That's all changed now.

Now it looks like Sky's dividend will barely keep up with inflation plus you have the risk of holding Sky with practically no growth. Better to put money in term deposit. Wait and see what happens, then get back into growth stocks.

The selling recently is defiantly people moving out looking for bargains elsewhere. And those investors looking for yield are now finding it easily somewhere else.

I think investors were also spoked by this line here in the newsletter: "accelerating organic investment in the business to drive further growth". To me this a red flag as it means costs are likely going higher, not lower.

The cost of doing business just keeps going up and Sky are no immune to this. The results next month will likely be about expenses not how many customers or how many broadband customers there are.

The cash return and dividend are likely to be both low end of market expectation. And outlook for additional costs is likely to be higher.

Maybe I'm wrong, but you would have thought they would have given back all the surplus cash straight away. But no, they have to come up with a "plan" and make everyone wait. I smell something fishy bro!!

As Peter would say, let's wait and see.

After the MW fiasco...if I was the CEO I couldn't get cash into the hands of shareholders fast enough!

The fact that they are continuing to drag their feet is worrying.

Something definitely stinks, you're right.

[Mysterion]

What's this bro? Know anything about it???

[mistaTea]

What's this bro? Know anything about it???

No idea.

Maybe Sophie will walk out dressed as a Targaryen....

[Mysterion]

https://www.geekzone.co.nz/forums.asp?forumid=106&topicid=253090&page_no=54



Proof that old Sky box is still king!

Lot of people claiming issues with SSN and poor support/compatibility.

It's likely that the new sky box is going to be full of bugs and issues too.

Old box will likely still be around in 10 years time. (assuming Sky is still around)

[Mysterion]

I reckon the new Sky box will be a big flop.

Why would you want to the new box?

There's basically no point in changing over.

Smart TV's have the apps built in.

Unless you want 4k but how much content is there???

[Mysterion]

It's gonna end up like Sky Glass. Just a nothing burger!

I can see some Vodafone TV customers wanting the new box and maybe some tech nerds, but we're probably talking about 5% of the user base and likely those are the customers that churn the most.

New Sky Box is just a PR stun! Barely worth mentioning, yet this is being touted as a survivor or something!!

[mistaTea]

I reckon the new Sky box will be a big flop.

Why would you want to the new box?

There's basically no point in changing over.

Smart TV's have the apps built in.

Unless you want 4k but how much content is there???

Only advantage new sky box will have is that it SHOULD allow you to more easily navigate content across multiple services.

But it will definitely have bugs when it is launched.

I was going to put my hand up to be an early adopter - but I won't now.

Until I can see that it works well (and isn't a piece of shit like VTV) my MySky will stay.

As you say, it's hardly a chore to navigate between Sky and NETFLIX etc on my Smart TV.

Also, I usually stream Sky's OnDemand content from SkyGO using the built in Chromecast on my TV. Super easy.

So the benefit of the new box for me is probably limited. And it will be a buggy piece of shit initially - whereas MySky is tried and true. I never have any problems with it.

[Mysterion]

Only advantage new sky box will have is that it SHOULD allow you to more easily navigate content across multiple services.

But it will definitely have bugs when it is launched.

I was going to put my hand up to be an early adopter - but I won't now.

Until I can see that it works well (and isn't a piece of shit like VTV) my MySky will stay.

As you say, it's hardly a chore to navigate between Sky and NETFLIX etc on my Smart TV.

Also, I usually stream Sky's OnDemand content from SkyGO using the built in Chromecast on my TV. Super easy.

So the benefit of the new box for me is probably limited. And it will be a buggy piece of shit initially - whereas MySky is tried and true. I never have any problems with it.

Yeah agreed.

So from an investor point of view what is there to look forward to over the next 1-2 years???

It's safe to say that Sky Broadband is dead and will end up like "Stuff Broadband" or any of the other generic third party companies who have tried to get into the market -  it's just too competitive!!

Sky Broadband won't generate any earnings, if anything it's going to take money away. And it's not going to do anything by the way of keeping satellite customers.

What else is there apart from a "cash return"? We know the dividend is going to be "standard amount".

What are you expecting in the way of cash return? Like $75m??? Or $50m?? $30m?? 10mm? $0??? Another placement!!!

[mistaTea]

Yeah agreed.

So from an investor point of view what is there to look forward to over the next 1-2 years???

It's safe to say that Sky Broadband is dead and will end up like "Stuff Broadband" or any of the other generic third party companies who have tried to get into the market -  it's just too competitive!!

Sky Broadband won't generate any earnings, if anything it's going to take money away. And it's not going to do anything by the way of keeping satellite customers.

What else is there apart from a "cash return"? We know the dividend is going to be "standard amount".

What are you expecting in the way of cash return? Like $75m??? Or $50m?? $30m?? 10mm? $0??? Another placement!!!

I think the broadband numbers will be underwhelming but not sure it will be 'dead' as such.

If they start to bundle streaming services you might see a bit more growth. But it is competitive you're right - so it will probably just 'tick along' paying its way over time but not ever producing huge earnings.

If we are exceptionally lucky they will return a total of $90M between a buyback, special dividend and dividend.

That should still leave them $60M which is heaps.

But they will probably keep more, so let's see if they even return half of the cash.

[mistaTea]

Only advantage new sky box will have is that it SHOULD allow you to more easily navigate content across multiple services.

But it will definitely have bugs when it is launched.

I was going to put my hand up to be an early adopter - but I won't now.

Until I can see that it works well (and isn't a piece of shit like VTV) my MySky will stay.

As you say, it's hardly a chore to navigate between Sky and NETFLIX etc on my Smart TV.

Also, I usually stream Sky's OnDemand content from SkyGO using the built in Chromecast on my TV. Super easy.

So the benefit of the new box for me is probably limited. And it will be a buggy piece of shit initially - whereas MySky is tried and true. I never have any problems with it.

Meant to say...the other advantage of chrome casting OnDemand content from SkyGO is that you can then pick up where you left off on your shows on any device.

Whereas if you series link on MySky (or download to the box using the OnDemand function) then you are ONLY able to watch on your TV.

Sky did say that once they allowed Chromecast streaming volumes on SkyGO went through the roof. This will be why - flexibility.

So the new box gives existing subs like me diminishing returns in terms of 'extra' functionality.

[mistaTea]

Just got an email from Sky Nation...

" Our customers are at the heart of everything we do at Sky and we're looking for a few of our awesome customers to brighten up our Annual Report.

If this is something you'd like to take part in, please complete our short survey and tell us a bit about your household and what you most love to watch on Sky. Those selected will be given a $500 Prezzy Card for their time. The shoot will take place on Saturday 30 July 2022 in an Auckland home with Sky's creative partner HeyYou."

Looking to pad out the Annual Report with some extra fluff.

We are even paying for a bloody photo shoot!!

F*** this, just give me my divvy and let me go.