By Tina Morrison
Sky Network Television has posted a better than expected 21 percent gain in annual profit as it boosted revenue from more subscribers.
The Auckland-based company, New Zealand's dominant pay-TV operator, said profit rose to $165.8 million in the 12 months to June 30, ahead of the $160.5 million forecast by analysts in a Reuters poll.
It was higher than the $137.2m profit a year earlier.
Revenue increased 2.7 percent to $909m as sales from subscription fees rose 2.7 percent to $809m.
Sky, which is present in almost half of New Zealand's households, increased its annual profit for a fifth consecutive year as it garners more fees from an increasing number of subscribers, more of whom are moving on to its higher value My Sky service.
The company added a net 9,157 subscribers in the year through June, taking its total to 865,055.
The number of residential subscribers, who account for about 82 percent of the total, rose 3.5 percent.
Wholesale subscribers fell 15 percent as customers who previously received the service through Telecom, now called Spark, transferred to Sky after the companies ended a wholesale agreement.
Average monthly revenue per subscriber rose to $77.52.
The number of customers who disconnected from the pay-TV service during the year fell to 13.2 percent from a 14.4 percent pace the year earlier, Sky said.
The company will pay a final dividend of 15 cents a share, up from 12 cents the year earlier. That takes the total annual dividend to 29 cents a share, from 24 cents in 2013.
source: newshub archive