Table of Contents
What changed
Revenue grew 3.5% to $736.1m — the first top-line increase since 2016 per prior-period commentary. Reported EBITDA fell 9.3% to $169.0m, but the release discloses an adjusted EBITDA of $153.7m after stripping out a $14.0m gain on the Mt Wellington property sale and other one-offs, implying underlying EBITDA declined further than the headline. Despite that, PBT rose 18.9% to $80.8m and NPAT rose 31.6% to $62.1m, with the effective tax rate dropping from ~30.0% to ~23.0%. Operating cash flow improved 11.6% to $119.6m, capex eased from $51.1m to $44.7m, and pre-lease free cash flow stepped up to $74.9m from $56.1m. Cash on balance sheet rose to $138.9m and equity to $494.5m (+16.8%). A final dividend of 7.3cps was declared, restoring distributions after the prior year's nil.
What matters
- EBITDA vs PBT divergence. Headline EBITDA fell 9.3% yet PBT grew 18.9%. Lower D&A and/or interest expense, combined with the $14.0m property gain sitting in EBITDA, are doing much of the work. On an adjusted basis ($153.7m EBITDA), the operating engine was weaker, not stronger.
- Tax-rate flattering NPAT. The 12.7pp gap between PBT growth (18.9%) and NPAT growth (31.6%) is a tax-rate effect (~23% vs ~30%), not an operating improvement. PBT is the cleaner read.
- Capital allocation reset. Dividend reinstatement at 7.3cps (payout ~20.5% of NPAT, ~17% of pre-lease FCF) alongside a stated capital allocation framework is the strategic headline. It is comfortably covered by this year's cash generation, but relies on ongoing FCF stability rather than the property gain repeating.
Expectations
No quantitative forward-work or earnings guidance was disclosed in the supplied excerpts, and no stated multi-year targets are provided. The half-on-half shape shows HY22 revenue of $371.7m against full-year $736.1m (H1 ≈ 50.5%), while HY22 NPAT of $28.3m was only 45.5% of the full-year outcome — consistent with a modestly second-half-weighted profit result. With revenue returning to growth and capex intensity dropping from 7.2% to 6.1% of revenue, the release supports a narrative of stabilisation and cash-flow recovery; it does not, on the figures provided, support a claim of underlying earnings acceleration.
Quality of result
Mixed. The cash story looks durable: OCF/EBITDA improved to ~70.8% (from ~57.5%), pre-lease FCF converted at ~120.6% of NPAT, and capex fell in absolute terms. Receivable days also improved slightly (16.8 vs 18.7). Against that, the earnings quality is weaker than the headlines imply: the $14.0m Mt Wellington gain sits in reported EBITDA, the adjusted EBITDA of $153.7m is below prior-period EBITDA, and the NPAT jump leans heavily on a lower effective tax rate. Programme-rights inventory rose 17.7% to $121.4m (inventory days up 7.3), indicating content spend is being front-loaded onto the balance sheet rather than expensed — a point to watch as those rights amortise.
Unresolved
- What the underlying revenue mix looks like — the release references streaming and Sky Box but no segment revenue split or margin is provided.
- What the FY21 EBITDA "several one-offs" were, which makes the -9.3% EBITDA comparison difficult to interpret cleanly.
- The true leverage picture: the supplied borrowings figures are internally inconsistent in scale, so net debt/EBITDA cannot be reliably computed from the extraction.
- Whether the ~23% effective tax rate is a recurring base or a one-period benefit, which materially affects forward NPAT trajectory.
- The sustainability of the dividend policy through a year without property-sale gains or favourable tax outcomes.
This briefing cannot assess subscriber trends, content cost commitments, or management's forward earnings outlook because none were provided in the supplied material.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $736.1m | $711.2m | +3.5% ↑ |
| EBITDA | $169m | $186.4m | -9.3% ↓ |
| Net profit after tax | $62.1m | $47.2m | +31.6% ↑ |
| Net cash inflow from operating activities | $119.6m | $107.2m | +11.6% ↑ |
| Final dividend per share | 7.3c | — | — |
| Profit before tax | $80.8m | $67.9m | +18.9% ↑ |
| Cash and cash equivalents | $138.9m | $34800m | -99.6% ↓ |
| Total assets | $776.9m | $701.6m | +10.7% ↑ |
Reference: annolyse.ai/briefings/skt-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| PBT growth | +18.9% | — | cleaner earnings measure |
| Effective tax rate | 23.0% | 30.0% | — |
| OCF / EBITDA (cash conversion) | 70.8% | 57.5% | stable |
| FCF pre-lease | $74.9m | $56.1m | +$18.8m |
| FCF / NPAT | 120.6% | 118.8% | complementary conversion metric |
| Capex % revenue | 6.1% | 7.2% | — |
| Capex | $44.7m | $51.1m | −$6.4m |
| Debtor days | 16.8 | 18.7 | -1.9 days |
| Inventory days | 60.2 | 52.9 | +7.3 days |
| Trade debtors | $33.8m | $36.4m | −$2.6m |
| Net debt | $896.1m | $3648.2m | −$2752.1m |
| Net debt / EBITDA | 5.30x | 19.60x | Strengthening |
| Gross borrowings | $1035.0m | $3683.0m | −$2648.0m |
| Payout ratio vs NPAT | 20.5% | — | — |
| Payout ratio vs FCF pre-lease | 17.0% | — | covered |
| ROE (annualised) | 12.6% | 11.2% | Strengthening |
| HY22 share of FY22 revenue | 50.5% | — | Other half was 49.5% |
| HY22 share of FY22 NPAT | 45.5% | — | Other half was 54.5% |
| Profit from continuing operations | $62.1m | $47.2m | +$14.9m |
Reference: annolyse.ai/briefings/skt-fy22
This analysis was generated using Annolyse, an AI-powered tool that extracts and analyses NZX company announcements. The underlying data is extracted from official company filings and verified against source documents. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.