This is my problem with Sky. Why does it take them so long to do anything and everything, the new STB, the broadband, the property deal. Absolute dinosaur of a company. Still holding... for now.
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Yeah that’s how I have been feeling the last 6 months or so.
For a business in the fights of its life - these guys are just taking too long.
Making the right moves for the most part…but taking too damn long to execute.
It’s part of the reason the market has not renewed their faith in the business, even though it’s a good little earner.
But, as I say, it’s not all doom and gloom. We have waited patiently (well, some of us anyway!) while the business made the investments needed to start to turn things around. Investments including securing the rights to key content, even if on a co-exclusive basis for some.
And those things are looking to start paying off, even if the roll out has been slower than I want.
February is only 4 months away - a blink of an eye.
I think the property will sell this month - and spare capital will be distributed to shareholders in December or Jan. Hopefully they do my idea of a capital return instead of a buyback - I have let Joan Withers know about that and she said she would raise it with the Board. They executed a similar scheme some years ago at AIA when she was Chair.
Then a divvy should be declared in Feb, and that will naturally push the SP up further.
So we shouldn’t be anxious at this stage I don’t think.
If the new STB is the grand savior why is it taking so long to produce?
Such things must be quite common globally surely or are SKT going through a process of re-inventing the wheel...?
I can't get a handle on what's going on with SKT
We have been reassured numerous times that a take-out was imminent (which still hasn't surfaced)
then the focus went on selling the sticks & mortar which seems to have got stuck in the Auckland mud ..
Through all this, the SP seems to have started drafting further south - are the believers starting to doubt
what's supposed to be happening ? ;)
At this rate all could be still sitting in their deck chairs hoping to see some action out in 2030 :)
SnailSky aside, I think we might see a pretty sizeable boost to neon revenue next reporting date. When we last heard from them Auckland had just entered a lockdown, and they said they were seeing increased interest in Neon that correlated to that. Google trends showed a good increase in neon interest, not so much for the boxes though. Are we to expect any reductions in sports rights costs this time around? That could sweeten things further.
Patience Monarch. Good things take time. The property sale is complicated in the fact that there is cross lease and a potential rezoning to consider and of course to find alternative premises. I think we can take comfort in the fact that the board of Sky realised very quickly that premiums would be obtained to sell potentially the lot. The Auckland property market is on fire with records being smashed.
Agree while the market is/has been hot for property, commercial does tend to take long. It is not your standard residential fee simple property.
The sale will happen and will go through soon enough and Mista and Co will be happy Millionaires. Which will buy them a nice little 3 bedroom property on the North shore.
Yes, that sounds good to me :t_up:
After all of the twists and turns over the last few years, this is definitely not the time to be getting too antsy about things.
Revenue increasing, Earnings stabilised and on path for growth, property sale should be finalised before Xmas which will give the business way more cash than they need to invest, Capital Return and Dividend happening in about 4 months...
Back when Sky was in its prime an investor had to pay around $2.50 for every $1 of revenue the business produced.
Oh how things have changed - right now you only have to pay ~45c for every dollar of revenue produced.
Probably time for the Tea family to do a little top up I think.
https://www.nbr.co.nz/story/westpac-...-share-buyback
Christ I hope Sky don't do an off market tender process like Westpac are going to do.
Sky would offer a small premium to the SP (which you would expect). But the problem is that, because the SP is so low...I don't think you would get much volume as the offer price would still be low relative to the economics of the business.
So if they offer to buyback at $2/share, for example, I don't think Sky will be rushed off their feet with orders.
Better to just reduce shares on a 7:1 or 6:1 bases and then distribute $x/share (tax free!) from the money we get from the property sale that is not needed for CAPEX.
When I reflect on the fact that I own 0.155% of Sky TV...I like to imagine that I am Logan Roy...
Sky GO in the UK to be available as an app on Apple TV soon as part of their closer collaboration with Apple.
https://www.express.co.uk/life-style...pdate-Apple-TV
I think this is long overdue (and I hope SNT follow suit).
I think it becomes a key step in eventually offering Sky GO as a standalone product.
Though, under our current contracts Sky GO can only be offered as a companion app to a 'full subscription' and these are the supported devices. So that would need some working out.
But in the meantime, being able to navigate Sky GO on an Apple TV would be much nicer than having to Chromecast.
The new STB will be better than Sky GO by a wide margin...but it would be nice to get to the point where we can offer Sky GO (or something like it) to those who just fundamentally do not want a Sky STB.