D-Day Eve!
What's your pick re, capital distribution?
I'm picking 30c.p.s fully imputed vanilla dividend.
Super conservative and keeps the company still over capitalized.
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D-Day Eve!
What's your pick re, capital distribution?
I'm picking 30c.p.s fully imputed vanilla dividend.
Super conservative and keeps the company still over capitalized.
think you missed the main threat off content providers leaving sky.... take for example the lastest hbo ... thats why it will always trade at a discount because of the risk.
A streaming service full of HBO content is coming to New Zealand whether Sky likes it or not
https://www.stuff.co.nz/entertainmen...ikes-it-or-not
I think share buybacks and div's anyway is what they do with the need to conserve cash for ever increasing costs of content
In which case you could be most disappointed if market consensus from 6 analysts is any guide :
https://www.marketscreener.com/quote...39/financials/
Expectations are for a 9cps dividend.
9c div would be a surprise given they have stated they will be dividending between 50 and 80% of free cash flow. They would need a very good reason to depart from that and not destroy whatever credibility they have left. It is not as if they are about to buy Media Works and need to reserve cash for that...
Yes, the idea of a 9cps divvy shows the perils of taking the consensus of these so-called analysts.
As you point out, that would not even equate to 50% of adjusted FCF. It doesn't even touch the rest of the large cash pile either.
I think the minimum standard dividend would be around 15cps and maximum 23cps ($26M - $40M).
Then, if Craigs is closer to the mark and Sky are planning to return $90M in total the special dividend would be somewhere between 28cps to 36cps (50M - 64M).
Total payout 51cps.
Less than 24 hours until we find out how generous Sky will be and in what format they will do a capital return. Special dividend seems the most sensible route at this junction, but there is always the possibility of some sort of a buyback too).
Should see some further uplift in SP.
Yes, I agree. Buyback at current market cap far less appealing than when we were ~$400M.
If they do a buyback instead of special dividend I suspect the market may feel a tad disappointed.
Would be great if we got a big special dividend payout and then an upgrade to future dividend policy like Spark have just done : 80%-100% if FCF.
That should see the stock get more interest.
Given a heap of the $'s has come from selling their building...might a "dividend" be structured as a capital return ?
Had a few of those over the years....most recently from an Oz company. In their case they didn't even need to cancel any shares.
A tax free capital return was something I aggitated for months ago when the propery was sold.
But now that we are all these months later I think a special dividend makes the most sense, especially given we have so many imputation credits. Most shareholders won't pay any tax and the ones that do will only pay 5%.
If they try to do a capital return payment now it will take months before you get your money as it has to get court approval and other box ticking exercises. If they initiated it when I was advocating for it then we would have received the money by late August/early September.
If they just do a sepcial dividend we will get the payment by mid September - a much better outcome.
Out of curiosity. Did Sky TV have a dividend reinvestment plan?
Only 48,000 on the NZX and 13,000 on the ASX traded today so far. It seems that there are no leaks from the boardroom about tomorrow's result.