SKY NETWORK TELEVISION ANNUAL RESULTS 2006 John Fellet - CEO Jason Hollingworth - CFO 18 August 2006

Subscribers

Subscriber Growth 619.2 2005 Total Subscribers 7.8% 667.3 % Change 9.3 89.7 442.4 77.8 2005 (16.5%) 64.9 UHF Residential Total Subscribers Commercial/Other DBS Wholesale DBS (Satellite) Residential ‘000 7.8% 667.3 30.6% 12.2 9.0% 97.8 11.3% 492.4 % Change 2006

Total Net Gain

Moving Annual Churn

Monthly Churn

Total ARPU

Total Revenue

ARPU

Big Mac Index

Advertising Revenue

Sky’s Share of All Television Viewing is Growing. % Share of viewing in all NZ Homes Source: Nielsen TV Ratings, All New Zealanders 5+

Programming Costs % Revenue

EBITDA

Net Profit/(Loss) after Tax

Capital Expenditure (excluding transponders and Prime assets)

Capital Expenditure Analysis $ NZ million 2005 2006 %Change Subscriber Equipment 58.2 62.3 7.0% Digital Expansion 0.8 0.7 (12.5%) MYSKY 5.5 9.0 63.6% Studio Upgrade 0.5 5.2 940.0% Building / Leasehold Improvements 5.4 1.9 (64.8%) Other 3.2 7.7 140.6% Total Capital Expenditure 73.6 86.8 17.9% excludes Prime assets

DBS (Satellite)/ PVR Decoder Stock Opening decoders 32,861 (including 13,161 broken) Add purchases 90,591 Less written off (3,648) Less installed at customer (73,053) Net movement for the year 13,890 Closing decoders 46,751 (including 12,312 broken)

DBS (Satellite) Install Costs $803 $719 $512 $487 $455

Results Summary 2005 2006 % Change Revenue 492.4 548.9 11.5% $NZ Million 2005 2006 % Change Revenue 492.4 548.9 11.5% Operating Expenses 272.5 301.2 10.5% EBITDA 219.9 247.7 12.7% Depn & Amort 111.3 106.1 (4.7%) EBIT 108.6 141.6 30.5% Interest (4.6) 50.5 (1174.5%) Tax 36.6 29.9 (18.3%) Other 2.1 1.0 (52.4%) Net Profit after Tax 74.5 60.2 (19.2%)

Revenue Analysis 492.4 2005 Total Revenue 11.5% 548.9 % Change 2006 32.6 35.6 9.1 25.4 389.7 2005 9.9% 428.2 Residential Total Revenue Installation, programming sales & other Advertising SkyWatch Commercial $NZ million 11.5% 548.9 3.1% 33.6 32.9% 47.3 17.6% 10.7 14.6% 29.1 % Change 2006

Total Operating Expenses 6.1% 407.3 % Change 2006 Expense Analysis 383.8 111.3 29.7 26.4 18.2 29.8 168.4 2005 5.5% 177.6 Programming Total Operating Expenses Depreciation and amortisation Other Administrative Sales and Marketing Broadcasting and Infrastructure Subscriber Management $ NZ million 6.1% 407.3 (4.7%) 106.1 4.4% 31.0 24.2% 32.8 33.5% 24.3 19.1% 35.5 % Change 2006

Programming Expense Analysis $ NZ millions 2005 2006 %Change Rights 140.5 146.0 3.9% Programming Operations 27.9 31.6 13.3% Total 168.4 177.6 5.5%

Programming Expense Analysis 2006 NZ$ % US$ First Half 71.8 49.2% 33.0 51.1% Second Half 74.2 50.8% 31.6 48.9% Total Rights Cost 146.0 64.6 2005 NZ$ % US$ First Half 71.0 50.5% 31.9 52.6% Second Half 69.6 49.5% 28.8 47.4% Total Rights Cost 140.6 60.7

Foreign Currency Hedging Sky’s hedging positions at 30 June 2006 93% hedged for 0 -12 months $US exposures @ .6348 56% hedged for 13-24 months $US exposures @ .6549 47% hedged for 25-36 months $US exposures @ .6373 95% hedged for 0 -12 months $A exposures @ .8624 72% hedged for 13-24 months $A exposures @ .8876 67% hedged for 25-36 months $A exposures @ .8779 average $US payment rate for opex for year to June 06 = 61.82c

Tax SKY’s tax note comprises 2006 Net Profit before Tax 90.0 Tax expense @ .33 29.7 Non deductible expenses 0.2 Income Tax Expense P&L $29.9 Deferred tax asset of $6.0m now recognised

IFRS Impact Capitalisation of internal install costs Recognise deferred tax assets Removal of executory sports contracts Re-open INL/SKY June 2001 business combination Financial instruments

Satellite Impact Finance Lease 2006 F 2007 Interest 2.4 0.8 Depreciation 20.6 5.2 23.0 6.0 Operating lease (9 months in 2007) 19.0

SKY Highlights 2 new basic channels Food TV 1 Nov 2005 Playhouse Disney 24 Dec 2005 2. Launched ‘MY SKY’ Dec 2005 3. Sports Rights Formula One World Rally Championships World Cup Soccer 4. Acquisition of free to air channel - Prime

Purchase of Prime Result $m Land 1.6 Building 2.2 Plant & Equipment 7.6 Net Programming Assets 3.5 Goodwill / Intangible Assets 14.6 Purchase price 29.5

Prime’s Share is improving Source: Nielsen TV Ratings, All New Zealanders 5+ All Day

Prime Share Yr-on-Yr : All Day Prime’s share this week sits at a whopping 6.3% - the yearly average is 5.1%. All 5+ Nationally Source : AGB Nielsen Media Research Dataline Service All Week = Sun-Sat 0000-2400

Prime Results Summary 5 Months to 30 June 2006 $NZ Million June 2006 Total Revenue 7.1 Programming expenses 4.9 Other operating expenses 6.5 Total Operating Expenses 11.4 EBITDA (4.3) Depn & Amort 0.6 EBIT (4.9) Interest/Tax/other 0.0 Net Profit after Tax

Prime Programming Highlights Top 10 Shows since purchase TARP Top Gear 6.3 Prime News 6.2 All Blacks v Ireland (2nd test) 6.1 All Blacks v Ireland (3rd test) 6.0 Who wants to be a Millionaire 5.6 Crusaders v Hurricanes 5.0 Swimming with Roboshark 4.6 All Blacks v Argentina 4.1 Speed 4.0 Deal or No Deal 3.9 BP Ultimate Sports Sunday An anchored Sports block compiled and hosted starting at 2.30pm every Sunday. Combining the best of Rugby Union, Motorsport, Cricket, Rugby League, Golf and a host of other compelling sports Holmes United Travel Getaway The Crowd goes Wild

2006 Key Messages Net profit of $60.2m, includes $50.5 interest expense Subscriber numbers up 48,102 (7.8%) to 667,270 ARPU up 2.5% to $58.30, DBS ARPU up 1.0% to $63.13 Churn down 14.6% to 13.5% SKY’s 22.9% of total TV viewing up from 20.9% SKY’s subscribers average viewing time of 123 hours per month, up 6%

2006/07 Guidance Our August 2006 survey of brokers forecasts indicates: NZ$m EBITDA 255 - 281 NPAT 80 - 110 Capex 87 - 130 Subscribers 686 - 702 Guidance is: EBITDA 255 – 265 NPAT 80 - 90 Capex 120 -130 Subscribers 700 - 710

Dividend The SKY Board has declared a fully imputed final dividend of 4.000 cps. Record date is 1 September. Payment data is 8 September. Total dividend for the year is 8.000 cps

Next Six Months

SKY NETWORK TELEVISION ANNUAL RESULTS 2006 18 November 18