BOND ISSUE ROADSHOW SKY NETWORK TELEVISION LIMITED - FEBRUARY 2014
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SKY NETWORK TELEVISION LIMITED
BOND ISSUE ROADSHOW
FEBRUARY 2014
|
SPEAKERS AND
AGENDA
Speakers
John Fellet – Chief Executive
Jason Hollingworth – Chief Financial Officer
Agenda
Offer highlights
SKY overview
Business overview
Business model
Business operations
Financial results
Key Bond terms
Issue timetable
| Page 2
OFFER HIGHLIGHTS
Issuer SKY Network Television Limited
Bonds Unsecured, unsubordinated fixed rate debt obligations (“Bonds”)
Issue Size Up to $100 million
Maturity 31 March 2021 (7 years)
Interest Rate [6.25-6.50]% p.a. paid quarterly in arrears
Interest Rate to be announced on or before Opening Date, 3 March 2014
Credit Rating Not rated
Applications Minimum $5,000 and multiples of $1,000 thereafter
Brokerage Brokerage 0.75% Firm 0.50%
Early Bird Payable at the Interest Rate
Interest
Quotation Application has been made to NZX Limited (NZX) for permission to quote the
Bonds on the NZX Debt Market (NZDX) and all the requirements of NZX relating
to that application that can be complied with on or before the date of the
Simplified Disclosure Prospectus dated 24 February 2014 (Prospectus) have
been duly complied with. However NZX accepts no responsibility for any
statement in the Prospectus or this Issue Flyer. NZX is a registered exchange
which operates a registered market, regulated under the Securities Markets Act
1988
Joint Lead
|
ANZ, BNZ, Westpac Page 3
Managers
BUSINESS OVERVIEW
HIGHLIGHTS AT DECEMBER 2013
(SKY GROUP UNAUDITED - 6 MONTHS )
1,217 Subscriber Net Gain
857,115 Subscribers ARPU $77.51
Net Profit $82.1m 13.3% Subscriber Churn In 49% of NZ households
MYSKY subscribers Programming costs 30%
1150 employees
56.7% of customers of SKY revenue
117 Channels
Broadcasted
| Page 4
Page 5
Dec-13
Jun-13
Dec-12
Jun-12
Dec-11
Other
Jun-11
Dec-10
Jun-10
Dec-09
mySKY
Jun-09
Dec-08
THE SKY JOURNEY SO FAR
Jun-08
Dec-07
Jun-07
Wholesale SKY
Dec-06
Jun-06
Jun-05
Dec-04
Jun-04
Dec-03
Jun-03
Dec-02
Std SKY
Jun-02
Jun-01
Jun-00
Jun-99
Jun-98
UHF
Jun-97
Jun-96
Jun-95
Jun-94
Jun-93
|
Jun-92
Jun-91
900
800
700
600
500
400
300
200
100
0
Subscribers in Thousands
Page 6
Jun-13
Dec-12
Jun-12
MOVING ANNUAL SUBSCRIBER CHURN
Dec-11
Jun-11
Dec-10
Jun-10
Dec-09
Jun-09
Dec-08
Jun-08
Dec-07
Jun-07
Dec-06
Jun-06
Dec-05
Jun-05
Dec-04
Jun-04
Dec-03
Jun-03
Dec-02
Jun-02
Dec-01
Jun-01
Dec-00
Jun-00
Dec-99
Jun-99
|
Dec-98
Jun-98
35%
30%
25%
20%
15%
10%
5%
0%
NET GAIN BY MONTH
30
Subscribers in Thousands
25
20
2009
15 2010
2011
10
2012
2013
5
0
5
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
| Page 7
AVERAGE MONTHLY REVENUE (ARPU)
$80.00
RESIDENTIAL SUBSCRIBERS AT JUNE 30
$75.83
$75.00
$71.93
$70.45
$70.00
$67.61
$65.00 $64.00
$62.10
$60.00
$55.00
$50.00
2008 2009 2010 2011 2012 2013
| Page 8
SKYWATCH | Page 9
SKY PREMIUM PRODUCTS
HD Access Ticket
AT JUNE 30
2.75
Millions
2.7
2.65
2.6
2.55
2.5
2.45
2011 2012 2013
| Page 10|
FINANCIAL TRENDS
SKY GROUP AT JUNE 30 (DRAWN FROM AUDITED FINANCIAL INFORMATION)
1000 Capital
Revenue ($m) 843
885 150.0 Spend ($m) 132.2
139.0 139.6
132.3
797
800 692
742 119.5
659
619
600 100.0 81.4 83.6
400
50.0
200
0 ‐
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
150.0 132.2
Programming Cost % Net Profit ($m) 120.3 122.8
97.7 103.0
33% 33%
33% 100.0 88.1
33% 77.9
32% 32%
32%
50.0
‐
2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013
| Page 12SKY GROUP at 30 June 2013
(DRAWN FROM AUDITED FINANCIAL INFORMATION)
Installation Revenue
Advertising
1% Other
8% subscriptions
7%
Other Income
2%
Subscriptions
residential
Operating expense
Advertising 3%
82%
Sales and
Other
marketing 6% administrative
5%
Programme
operations 9%
Programming
Subscriber rights 34%
management
10%
Broadcasting
and Depreciation and
infrastructure amortisation
13% 20%FINANCIAL PERFORMANCE
SKY GROUP RESULTS SUMMARY
$m Dec 2013 Dec 2012 June 2013
(6 months) (6 months) (1 year)
unaudited unaudited audited
Revenue 456.4 443.3 885.0
Operating Expenses 266.0 266.2 531.9
EBITDA 190.4 177.1 353.1
Depn & Amort 61.8 67.6 134.3
EBIT 128.6 109.5 218.8
Interest/Finance Expense 14.4 15.9 29.8
(net)
Tax 32.1 26.3 56.8
NET PROFIT after TAX 82.1 67.3 132.2
Non-Controlling Interest -1.4 -0.8 -5.0
Attributable to equity holders 83.5 68.1 137.2
of the Company
| Page 14FINANCIAL PERFORMANCE
SKY PARENT BALANCE SHEET
$m Dec 2013 Dec 2012 June 2013
(6 months) (6 months) (1 year)
unaudited unaudited Audited
Current Assets 138.4 148.7 127.6
Non – Current Assets* 1,740.9 1,772.8 1,749.9
Total Assets 1,879.3 1,921.5 1,877.5
Current Liabilities 184.9 170.4 178.7
Non – Current Liabilities 476.8 601.3 521.0
Total Liabilities 661.7 771.7 699.7
Equity 1,217.6 1,149.8 1,177.8
Total Equity and Liabilities 1,879.3 1,921.5 1,877.5
* Q
* Goodwill 1,422.5 1,422.5 1,422.5
| Page 15DEBT OVERVIEW
AT DECEMBER 2013
FACILITY DRAWN MATURITY
Bank Debt $400m $227m Jul 2018
Bond $200m $200m Oct 2016
| Page 16OFFER HIGHLIGHTS
Issuer SKY Network Television Limited
Bonds Unsecured, unsubordinated fixed rate debt obligations
Issue Size Up to $100m
Maturity 31 March 2021 (7 years), unless redeemed earlier
Interest Rate [6.25-6.50%] p.a. paid quarterly in arrears
Interest rate to be announced on or before Opening Date,
3 March 2014
Early Redemption option SKY may in its sole discretion make a full or pro rata
repayment to Bondholders on each of 31 March 2017, 31
March 2018, 31 March 2018, 31 March 2019 or 31 March
2020.
.
| Page 17TIMETABLE
Prospectus Registered 24 February 2014
Roadshow 25 - 26 February 2014
Firm Bids Due 11.00am Friday 28 February 2014
Allocations and Rate Set 28 February 2014
Offer Opens 3 March 2014
SDP Hard Copies Delivered Expected to be available from 4 March 2014
Closing Date Wednesday, 26 March 2014
Issue Date 31 March 2014
Expected NZDX Quotation Date 1 April 2014
| Page 19SUMMARY
Key features of SKY and this offer
SKY
Sky is a leading media company in New
Zealand having been operating for 23 years.
49% of NZ homes are currently subscribed to
SKY
SKY Group had 857,115 subscribers at
December 2013
SKY Group had a Net profit of $82.1m for 6
months to 31 December 2013 (unaudited)
BONDS
$100 million of Bonds on offer
Issue price of each Bond is $1.00
Coupon rate for this Bond is [6.25 – 6.50%]
Maturing on 31 March 2021
| Page 20DISCLAIMER
A simplified disclosure prospectus dated 24 February 2014 has been prepared by Sky Network Television Limited ("Issuer" or "SKY") in respect
of unsecured, unsubordinated, fixed rate bonds (“Bonds”) and registered in accordance with section 42 of the Securities Act 1978
(“Prospectus”).
This document does not constitute a recommendation by ANZ Bank New Zealand Limited (“ANZ”), Bank of New Zealand (“BNZ”) and Westpac
Banking Corporation, acting through its New Zealand Branch (“Westpac”) (together the “Joint Lead Managers”), The New Zealand Guardian
Trust Company Limited (“Trustee”) or any of the directors, officers, employees or agents of the Joint Lead Managers, the Trustee or SKY to
subscribe for, or purchase, any of the Bonds. None of the Issuer (except as required by law), the Joint Lead Managers or the Trustee, nor any
of their respective directors, officers, employees or agents, accepts any liability whatsoever for any loss arising from this document or its
contents or otherwise arising in connection with the Offer.
This document is for preliminary informational purposes only and is not an offer to sell or the solicitation of an offer to purchase or subscribe
for the Bonds and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The
information in this document is given in good faith and has been obtained from sources believed to be reliable and accurate at the date of
preparation, but its accuracy, correctness and completeness cannot be guaranteed. You should not decide to purchase the Bonds until you
have read the Prospectus relating to the Bonds.
Applications for Bonds may only be made by completing and lodging one of the Application Forms accompanying the Prospectus. The
Prospectus is an important document and should be read carefully. Investors should consider the risks that are associated with an investment
in the Bonds, particularly with regard to their personal circumstances (including financial and tax issues). The principal risks associated with
the Bonds are set out in the Prospectus under the heading “What are my risks?”.
The Issuer intends to offer the Bonds to the public in New Zealand. No action has been or will be taken by the Issuer which would permit an
offer of Bonds, or possession or distribution of any offering material, in any country or jurisdiction where action for that purpose is required
(other than New Zealand).
Application has been made to NZX Limited (“NZX”) for permission to quote the Bonds on the NZX Debt Market (“NZDX”) and all the
requirements of NZX relating thereto that can be complied with on or before the date of distribution of this document have been duly
complied with. However, NZX accepts no responsibility for any statement in this document or the Prospectus. NZX is a registered exchange,
and the NZDX is a registered market, each regulated under the Securities Markets Act 1988.
The Bonds constitute unsecured, unsubordinated, fixed rate debt obligations of the Issuer ranking equally among themselves and equally
with all other outstanding unsecured obligations of the Issuer.
To obtain a copy of the Prospectus investors should contact any of the Joint Lead Managers or their usual financial adviser to request a free
copy.
Capitalised terms used in this document and not otherwise defined have the meanings given to them in the Prospectus. No applications will
be accepted or money received unless the subscriber has received the Prospectus.
| Page 21You can also read
