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

2. Subscribers

3. 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

4. Total Net Gain

5. Moving Annual Churn

6. Monthly Churn

7. Total ARPU

8. Total Revenue

9. ARPU

10. Big Mac Index

11. Advertising Revenue

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

13. Programming Costs % Revenue

14. EBITDA

15. Net Profit/(Loss) after Tax

16. Capital Expenditure
(excluding transponders and Prime assets)

17. 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

18. 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)

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

20. 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%)

21. 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

22. 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

23. 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%

24. 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

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

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

27. 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

28. 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

29. 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

30. 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

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

32. 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

33. 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

34. Prime Programming Highlights Top 10 Shows since purchase
TARP
Top Gear
Prime News
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
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

35. 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%

36. 2006/07 Guidance
Our August 2006 survey of brokers forecasts indicates:
NZ$m
EBITDA
NPAT
Capex
Subscribers
Guidance is:
EBITDA 255 – 265
NPAT
Capex
Subscribers

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

38. Next Six Months

39. SKY NETWORK TELEVISION ANNUAL RESULTS 2006
18 November 18