SKT - Sky Network Television

[LoungeLizard]

Yeah but we have all been doing the "the current increase is equivalent to one cup of Joe a month for chr***'s sake" for a few years now.

There will be a tipping point, especially in inflationary environments where people are looking to cut back expenses.

Perhaps we aren't at that tipping point yet? I really don't know.

But I do know that Sky do not have pricing power and need to tread very carefully.

Now that Spark Sport have retired, pride injured, from the game, SKY have more pricing power, not less. Given the range of sport that Sky have exclusive access to - a lot of it expensive to acquire -  and the superior coverage that satellite offers over streamed sport (see Spark) I don't think SKY have much to worry about in raising prices. I mean, what's a boy to do? - everything else has gone up, including all the other streaming channels.

[mistaTea]

Investors should understand that for certain companies, and even for some industries, there simply is no good long-term strategy.

Be suspicious of those managers who fail to deliver for extended periods and blame it on their long-term focus.

—Warren Buffett

[Mysterion]

Big volume at close.

Sky TV price increase went down well.

Looks solid going into next month results

[mistaTea]

https://www.broadbandtvnews.com/2023/01/19/dazn-and-amazon-prime-video-ink-global-deal/

[Teitei]

Big volume at close.

Sky TV price increase went down well.

Looks solid going into next month results

A share buyback to be announced with the results?

[Mysterion]

A share buyback to be announced with the results?

Unlikely. They need to build a war chest again to keep bidding on more sporting content and other programming.

Best to just keep paying a decent dividend and the keep looking for more partnership/merger opportunities.

[Mysterion]

MediaWorks announces 90 staff to lose jobs

https://www.stuff.co.nz/business/300791210/mediaworks-announces-90-staff-to-lose-jobs-in-cost-cutting-move

Time to make an offer for $50m all up!

[Mysterion]

Imagine buying that company for $300m 12 months ago!!

[mistaTea]

Imagine buying that company for $300m 12 months ago!!

Yes, just beggars belief that management were even looking at this for so long.

Media reports had them paying around $300M for it too! And assuming $100M debt.

chr*** Almighty.

[Teitei]

https://www.nzx.com/announcements/405703

Reporting 23rd Feb.

Market consensus is for F23 to deliver $55.8m NPAT & DPS of 16c.

I am picking an earnings upgrade to the market consensus as well as a share buyback which was indicated at the ASM in Nov 2022 :

"The Board believes that Sky's shares are significantly under-priced.

With this in mind - and consistent with the Board's stated capital allocation strategy and focus on
value creation, the Board is currently minded to initiate an on-market buy-back programme following
the announcement of the interim results, noting that the size of any programme would be determined
by reference at that time to the prevailing share price, the cash position of the company, the economic
outlook, and the liquidity of our shares in the market. By way of an example, based on the reduced
number of shares following the proposed return of capital and given Sky's net cash position, a $15
million buy-back programme would be expected to deliver a 5% uplift in both EBITDA and Earnings
Per Share."

[winner (n)]

https://www.nzx.com/announcements/405703

Reporting 23rd Feb.

Market consensus is for F23 to deliver $55.8m NPAT & DPS of 16c.

I am picking an earnings upgrade to the market consensus as well as a share buyback which was indicated at the ASM in Nov 2022 :

"The Board believes that Sky's shares are significantly under-priced.

With this in mind - and consistent with the Board's stated capital allocation strategy and focus on
value creation, the Board is currently minded to initiate an on-market buy-back programme following
the announcement of the interim results, noting that the size of any programme would be determined
by reference at that time to the prevailing share price, the cash position of the company, the economic
outlook, and the liquidity of our shares in the market. By way of an example, based on the reduced
number of shares following the proposed return of capital and given Sky's net cash position, a $15
million buy-back programme would be expected to deliver a 5% uplift in both EBITDA and Earnings
Per Share."

Never believe a Board who believes their shares are 'underpriced' ...esp if they add the significantly and they become 'significantly underpriced'

Underpriced because of their own doing

Share buy back will do little to boost the share price.

[Teitei]

Never believe a Board who believes their shares are 'underpriced' ...esp if they add the significantly and they become 'significantly underpriced'

Underpriced because of their own doing

Share buy back will do little to boost the share price.

Fair point, W69.

But one thing I have learnt over the decades of investing is not to get so wedged to one view that one misses the turning points in a company.

I believe that the MediaWorks episode was one of the crucial turning points in SKT's history. Best thing that ever happened and it also represented another opportunity to buy into SKT at a cheap price.

Let's see what 23rd Feb brings.

Sp action suggests more upside yet to come.

[Mysterion]

mistaTea checking the stock price today

[Teitei]

Powering on higher and higher towards $2.80?

Share buyback of $25m will take it there.

[Teitei]

Powering on higher and higher towards $2.80?

Share buyback of $25m will take it there.

Got close to $2.80 today!

Amazing close at $2.78 equivalent on ASX, albeit on low volume.