Appendix 4D Release to ASX under rule 4.2A

Half Year Information for Sky Network Television Limited for the six months to 31 December 2020

To be read in conjunction with Sky Network Television Limited financial statements for the year ended 30 June 2020

1. Market Release
1. Results for Announcement to the Market
1. Consolidated Interim Financial Statements
1. Directors Declaration
1. Other Information
1. Half Year Presentation

Sky New Zealand PO Box 9059 Newmarket Auckland 1149 New Zealand

10 Panorama Road Mt Wellington Auckland 1060 New Zealand T. +64 9 579 9999 sky.co.nz

Sky delivers strong first half result; Sky Box customer base stabilising; firm focus on execution of key initiatives

Sky Network Television Limited delivered a strong first half performance for the six months ended 31 December 2020, as announced at the earnings upgrade on 3 February 2021 and continuing the positive momentum of the business.

"We are encouraged with the solid results achieved in the first half. Sky has a unique role to play as the content aggregator which can deliver to all of New Zealand, and Sophie Moloney and her team have a clear focus to maintain performance in the coming months and years," said Philip Bowman, Sky Chairman.

Key results ¹

23 February 2021

Revenue of \$356.9m (from \$384.8m) including strong growth in streaming revenue and gradual recovery in commercial and advertising
EBITDA of \$116.3m, up 30% (from \$89.7m)
Net profit after tax of \$39.6m, up 234% (from \$11.9m)
18% reduction in operating expenses to \$242.8m (from \$295.1m), with permanent savings of \$18m representing 42% of the underlying movement
Strong positive indicators of reaching a stable Sky Box (satellite) customer base, including strengthened acquisitions and continued reduction in churn
Confirmation of OSB sale to NEP post-balance date in line with the move to a lower capital base

Sky ended the reporting period with 926,530 total customer relationships. It made significant progress towards stabilising the Sky Box subscriber base, including a net increase in direct customers, while also continuing to grow streaming. While revenue was lower year on year, some of the difference was due to the impact of COVID-19 which was balanced by negotiated reductions in programming costs and lower production spending.

Permanent cost savings from a range of initiatives also contributed to a strong EBITDA result and a pleasing increase in net profit after tax.

Customers

Total Sky Box customer numbers are continuing to stabilise, with the 1.8% reduction in the six months to 31 December 2020 being a significant improvement from the 3.2% reduction in the same period in 2019.

¹ Comparisons to past results in this announcement are to the six months to 31 December 2019 unless otherwise stated.

Following a successful long-term reseller partnership with Vodafone, Sky was pleased to welcome reseller customers to a direct relationship in October, with the migration expected to benefit customer experience and further improve churn levels.

Sky recorded a net increase in direct Sky Box customer numbers for the period as acquisitions rose by 50%, while disconnections of direct satellite customers improved by 16%.

Gross churn continued to trend positively, reducing to 12.4% (from 12.8%) with direct churn (excluding Vodafone reseller customers) reaching 9.5% (from 11%).

Sky's Chief Executive, Sophie Moloney said: "Our strong base of loyal customers who enjoy Sky via their Sky Box in the home, and our Sky Go app when they're on the move, is incredibly important to us. We will continue to focus our efforts to better understand the needs of these customers in order to deliver added value to them."

Sky is focused on delivering key initiatives for Sky Box customers that will further support customer experience and loyalty, including:

Significantly upgrading the Sky Go companion app, with better content discovery and up to 30% more content.
Offering Sky Broadband first to fibre-ready Sky Box customers as a way to create more value and ease.
Commissioning a new set top box, with an emphasis on improved search functionality and overall viewing experience, to meet the future needs of customers.

"We have been listening carefully to our customers to understand what they want from the inhome Sky experience. Some don't want us to touch a thing and we will respect their wishes, but others, including the 1/3rd of New Zealand households who tell us they are open to joining Sky² , have given clear feedback on what they want with our new Sky Box. We are now moving towards that with a clear focus on what we need to deliver," said Sophie Moloney.

"We are also excited to be rolling out Sky Broadband in the coming weeks. We have put significant focus on service and the user experience. We received valuable customer feedback during the trial phase which has helped us to strengthen the offer, and we will commence targeted selling shortly."

Sky's streaming products continued the significant growth trajectory of recent periods, recording an increase of 80% year-on-year through both strong organic growth and acquisitions. Following the July launch of the new Neon platform, Sky was pleased to convert over one-third of hardbundled Lightbox customers to paying Neon customers. The new Neon's wider content offering and improved functionality have resonated with Kiwis, leading to further customer growth and a 47% increase in retention rates since the launch. Sky's sports streaming service, Sky Sport Now also recorded significant growth and strong customer engagement with the extensive Sky Sport content offering.

² Source: Sky commissioned survey of NZ households carried out by international research specialist fiftyfive5, September 2020

RugbyPass continues to focus on growing and enhancing its audience and network business, within a lower cost model. As one of the most significant rugby content destinations in the world it remains an appealing service provider for the global game of rugby.

Content

Sky confirmed several multi-year rights agreements with leading content providers during the reporting period, including Discovery and Studiocanal, along with several major sports events across golf, tennis, football, cricket and motor racing³ .

Since 31 December 2020 Sky has also announced a multi-year renewal with ViacomCBS (securing SHOWTIME, CBS and Paramount Television Studios content).

Sophie Moloney said: "We have been striving to retain the rights that matter to our customers. We remain a highly attractive partner for content providers wanting to access all of New Zealand's Pay TV viewers and we are developing strong co-exclusive partnerships, such as the relationship with Discovery. We will also strive to win exclusive rights where it makes sense."

"The reality of the world we operate in, with global content giants and direct-to-consumer plays, is that co-exclusivity is sometimes the best option. We're absolutely fine with that. Our sole concern is ensuring Sky customers can access the best news, sport and entertainment on Sky. We know our customers love the ease and reliability of our service, and the question is not whether it can also be bought elsewhere, but whether it's on their Sky Box (or streaming on Neon and Sky Sport Now). Our priority is getting the content that customers want on Sky – be it through exclusive deals, co-exclusive deals, partnerships, and of course our own Sky originals."

Financial

Revenue for the period was \$356.9m, including strong growth in streaming revenue and the gradual recovery in commercial and advertising. It was 7% lower than H1 FY20 (a period before Sky and other businesses had to deal with the impact of COVID-19). After removing the direct impact of COVID-19 and a one-month discount provided to migrating satellite reseller customers, revenue was 3% lower than H1 FY20, compared to a 5% reduction in the prior period.

Satellite revenue was down 9%, reflecting customer losses in H2 FY20 and reseller customer churn prior to the October migration, as well as lower average revenue per user (ARPU). The reduction in ARPU was largely due to the one-off impact of the reseller migration discount, the full period effect of COVID-19 on sports package downgrades and pay-per-view events, and a focus on re-aligning packages to deliver better value to customers.

Streaming revenues continued to grow, increasing by 45% year-on-year through a combination of organic growth and acquisition.

³ Rights secured include golf (PGA Championship, Ryder Cup), tennis (Wimbledon, Roland Garros), football (NZ Football, A League, Champions Cup), cricket (Pakistan Cricket Board, Cricket West Indies) and motor racing (Australian Racing Group).

Commercial revenues were down by 27% year-on-year due to the impact of COVID-19, although they showed improvement against H2 FY20 as licenced premise customers returned to normal billing from August and discounts provided to accommodation providers were halved from November. Advertising revenues were down by 14% year-on-year, also impacted by COVID-19, however they had recovered half of the reduction into H2 FY20.

Operating expenses of \$242.8m were 18% lower year-on-year.

One-off operating expenses of \$12m in the prior period resulted in a like-for-like reduction of 15% or \$44m, including \$18m in permanent savings. These included permanent reductions as a result of lower headcount and savings from transitioning the RugbyPass business to a lower cost model. Equitable reductions were negotiated with a number of content rights holders to reflect cancellations and postponements due to COVID-19, with sports production costs also lower as a result.

Capital expenditure of \$20m was 40% lower year-on-year, partly due to project phasing.

Outlook

Sky will continue to focus on revenue stabilisation through protecting and satisfying its important Sky Box customer base. Sky expects organic growth in Neon and Sky Sport Now, and ongoing recovery in Advertising and Commercial revenues, during the remainder of FY21.

Additional investment will be undertaken in H2 FY21 for Sky Broadband ahead of projected revenue growth.

Sky will maintain an ongoing sharp focus on unlocking further savings as it absorbs costs associated with programming rights increases through the renewed SANZAAR deal and a more fulsome calendar of sports.

Sky confirms the FY21 guidance⁴ provided on 3 February 2021 of revenue in the range of \$695m- \$715m, earnings before interest, tax, depreciation and amortisation (EBITDA) of between \$170m- \$182.5m, net profit after tax (NPAT) of between \$37.5m-\$45.0m, and capital expenditure in the range of \$45m-\$55m.

Sky remains in a strong financial position following its capital raise last year. It has grown cash balances on hand to \$123m (as at 31 December 2020), which along with undrawn debt facilities enables it to repay the \$100m of bonds that mature in March 2021 and provides significant headroom going forward.

Looking ahead, the Board and Executive team have great clarity on what needs to be done to ensure Sky continues to add value to its customers, partners, people and shareholders, and most importantly, have the confidence that it can deliver this.

ENDS

⁴ FY21 includes one-off impacts of \$3.6m for the RugbyPass earnout settlement, and the sale of OSB assets to NEP and subsequent commencement of the NEP services agreement

Sky will host a webcast and conference call briefing to discuss the results at 10.30am NZDT on Tuesday 23 February 2021. Details on how to participate are available here.

Authorised for release by the Board of Sky Network Television Limited.

For investor enquiries, please contact: For media enquiries, please contact:

Amanda West Chris Major Investor Relations Director of External Affairs P: +64 210 439 674 P: +64 29 917 6127 E: [email protected] E: [email protected]

Results for announcement to market

Name of issuer	Sky Network Television Limited
Reporting Period	6 months to 31 December 2020
Previous Reporting Period	6 months to 31 December 2019
Currency	NZD
	Amount (000s)	Percentage change
Revenue from ordinary activities	\$356,870	7.3% decrease
Net profit/(loss) from ordinary activities after tax attributable to security holders	\$39,427	236.6% increase
Total net profit/(loss)	\$39,581	233.5% increase
Interim Dividend
Amount per security	Nil interim dividend
Franked amount per security	Not Applicable
Record Date	Not Applicable
Dividend Payment Date	Not Applicable
	Current period	Prior comparable period
Net tangible assets per security	\$0.055	\$(0.205)
A brief explanation of any of the figures above necessary to enable the figures to be understood	For further explanation refer the interim financial statements and the results presentation attached.

Sky Network Television Limited

What matters most.

Our Interim Report 2021

For the six months ended 31 December 2020

Interim Report 2021

CSky Network Television Limited What Matters Most.

Since starting as CEO, I've been focused on getting to the heart of what matters most for Sky to create better value for our customers, our partners, our people, and our shareholders.

What matters most is our customers

I know many CEOs say this, so what does it really mean to be completely customer-focused at Sky?

It means that every decision we make should start by asking ourselves 'how does this make Sky better for our customers?'. If we put that first, the value creation will follow.

To do that well, we need deep insights into what our customers want. Over the past couple of years, we have invested in our customer insight capability and have built up a great data set about Sky customers. And now we're putting it to use.

What we know is that one size does not fit all. Where you live, whether you have access to decent broadband, and your life stage all influence what content you watch, how you watch it, and what you are willing or able to pay for it. • Some of our customers love their Sky box, the

remote, the recording functionality and the way the programme guide looks. They don't want us to touch a thing, except they'd quite like the Black Caps playing at home back on their Sky Box - we hear them on that.
Others want better ways to find great content – they want a solution for searching across Sky's huge array of content, as well as across various other services from free-to-air TV to streaming apps.
Some just want to stream. No dish, no contract, just sign up and go. Neon and Sky Sport Now have them covered.

• We believe Sky Broadband will also have appeal with one bill, fast fibre speed and great service. We are in the final stages of receiving customer feedback and we will soon deliver a service that reflects it.

What all of our customers want – regardless of how they watch it – is the best news, sport and entertainment content.

So, you won't hear me talking about our business divided into streaming, satellite and broadband units. We're a content business.

We strive at all times to secure the content rights that matter to our customers.
We partner where it makes sense to ensure our customers have access to the content they want. The world has changed. We won't turn back the 'direct-to-consumer' trend in a hurry, and neither will we try. We're happy to co-exist with our partners in a new world of co-exclusivity – what matters to us is that our customers can access the content they want, with ease, via Sky.

Our goal is to ensure Sky is the preferred content aggregator for Kiwis who love news, sport, and entertainment. And we must deliver that content in the ways that work best for them.

We know this is what matters most and we are determined to deliver.

Sophie

FINANCIAL

CUSTOMERS

REVENUE

\$356.9^m

OPERATING EXPENSES

18% (Includes one offs)

CUSTOMER RELATIONSHIPS

+17% YOY

TOTAL CUSTOMER RELATIONSHIPS

926,530

EBITDA

\$116.3^m

30%

NPAT

566,497 SKY BOX CUSTOMERS

GROWTH IN STREAMING CUSTOMERS

80%

Our performance has been good, but we need to do better

In a reporting period so heavily dominated by COVID-19 and the subsequent global upheaval that it has caused, it is encouraging to report that our performance in the six months to 31 December 2020 has been good, but we know that we need to do better.

The first half highlights

Revenue for the period was \$356.9m, down 7% against the six months to 31 December 2019 when we were living in a world unaffected by COVID-19. We have had – and continue to have – a strong focus on stabilising our revenue, and we have made significant progress in stabilising our Sky Box customer numbers, which is key to achieving this objective.

• Satellite customer acquisitions and retention have both improved significantly due to a renewed focus on our customer management, and a strong presence in key customer segments. While customer numbers reduced by 1.8% during the six-month period this was a marked improvement on the prior period, and we also achieved net growth in our direct customer relationships. There is strong evidence that we are reaching a stable core and we expect the recently completed migration of Vodafone Reseller customers to continue to support this positive trend.

Philip Bowman Chairman

"We have great clarity on what we need to do to ensure Sky continues to add value to our customers, partners, people and shareholders, and most importantly, the confidence that we can deliver this."

Streaming customer numbers have continued to rise with organic growth and acquisitions resulting in an 80% increase since the previous reporting period. We are pleased with the growth in Neon, including strong conversion of Lightbox customers following the merge of the two services, whilst the return of sport after COVID-19 disruptions saw excellent growth in Sky Sport Now.
Commercial customer numbers have remained stable despite the impact of COVID-19 on the events and hospitality sectors. We supported our customers through the 2020 lockdown periods, and, absent any further prolonged periods of lockdown, we expect further improvements in our Commercial revenues this calendar year.

We have continued prudently to invest in areas that add value for our customers, strengthen our relationships and secure Sky's long-term future, including:

• Progressing our Sky Broadband product launch. Sky crew and customer trials have been valuable, and we are confident we have developed a product that will make life easier for our customers and create more value for them. But we also promise to keep testing and learning as we roll Sky Broadband out in the coming weeks, with our initial focus on ensuring we offer a great value product to our loyal Sky Box customers.

• Striving to secure the content rights that matter to our customers, while remaining disciplined in valuing content and rationalising where it makes sense, including by means of co-exclusivity Renewed deals have been concluded with Discovery, Viacom CBS, Studiocanal and Sony as well as securing rights for major events in golf, tennis, football, cricket, and motor racing.

We have also made progress in reducing our cost base, with operating expenses of \$242.8m (down 18%) and capital expenditure of \$20m (down 40%); our emphasis in the coming period is to lock in further permanent cost savings.

We secured a range of one-off cost reductions in programming rights and through lower production costs due to COVID-19.
Permanent savings were delivered from operating efficiencies, headcount reductions in FY20, programming changes and by bringing RugbyPass costs under control.
Our approach to capital expenditure has been disciplined, and the recently approved sale of Outside Broadcast Ltd (OSB) is further evidence of our focus on becoming a less capital intensive business and with capital spend in the future focused to meet customer-facing needs.

Our earnings before interest, tax, depreciation, and amortisation of \$116.3m were 30% higher than the previous period and we delivered a net profit after tax of \$39.6m, an improvement of \$234%.

In reporting these encouraging results to our investors, we acknowledge the role of Martin Stewart who served as Chief Executive during most of the period. Martin injected a much needed energy to kick off the transformation of Sky when he joined in early 2019, and we thank him for his service during his time with Sky in New Zealand.

We also acknowledge and are grateful for the contribution of Susan Paterson and Derek Handley, both of whom retired from the Sky Board since the last reporting cycle.

Looking ahead, we have great clarity on what we must do to ensure Sky continues to add value for our customers, partners, people, and shareholders, and most importantly, the confidence that we can deliver this.

What's coming next?

THE IMMEDIATE FOCUS FOR SKY IS:

1. Stabilising revenue by:

a. Protecting and satisfying our core Sky Box customer base customer base
b. Continuing to grow streaming subscriptions
c. Continuing to grow Commercial and other revenue opportunities (including in the digital advertising space).
1. Delivering sustainable cost reduction
1. Focusing on successful delivery of key initiatives
1. Growing a confident and capable organisation by:
a. Accelerating our efforts to nurture the very best talent
b. Continuing to build a business that reflects the customers and communities we serve
c. Creating an environment where our people are enabled to do their life's best work.

All successful businesses have a unique advantage; something their customers and partners value over others.

Ours is clear: our investment in satellite delivery technology means we are here for all New Zealanders. From farms in the foothills to central city apartments, you can easily stay connected, entertained and informed with Sky.

To maximise this unique advantage, we must:

Secure the content our customers want via exclusive and co-exclusive partnerships, together with Sky original content.
Reward the loyalty of our strong base of customers with a Sky Box - they are crucial to our future. Yes, streaming is important to some customers and we will continue to deliver excellent streaming choices, but we are clear that our Sky Box customers in the home are fundamental to our success.
Shift gears when it comes to execution. We are working swiftly to turn our customer insights into tangible initiatives that will add value for customers, improve our financial performance, reduce our content cost base and continue the momentum we are gaining.

As a result, you can expect to see us:

Roll out a new Sky Go companion app that improves the search and viewing experience for customers on the go, delivering on feedback our customers have shared with us.
Deliver Sky Broadband as a value-add service, first to our Sky Box customers.
Commission a new set top box to meet the future needs of our customers, improving search functionality, and improving the overall viewing experience. But if you want to keep the old box, that will be all good too: it's our customer's choice.
Rethink our Sky packages to ensure we deliver value and choice to customers whatever their life stage, so we can achieve the crucial goal of growing our Sky Box customers.
Strengthen and deepen our customer relationships through improved customer insights, service, communication and being responsive to their feedback.

Thirty years ago, we changed how Kiwis watched TV forever by introducing more choice. Much has changed since then, but what has remained constant is what our customers expect – to watch great content, wherever,

We haven't always got it right. Commercial realities, the rise of streaming, new competitors and not listening well enough to our customers meant we took our eye off the ball at times.

whenever and however they want it.

And that's why we have firmly refocused on our customers, what they want the most from us, and making sure we deliver it well.

We also have a strong focus on our people and culture, bringing in fresh leadership to our People team and implementing changes to ensure we have the right foundations in place to be a high performing, customerfocused business in the future.

It's a real privilege to lead a business that is here for all New Zealanders. I'm excited about what lies ahead and look forward to sharing more progress on our delivery against these goals and our strategy, roadmap and key targets throughout the year.

Consolidated Interim Statement of Comprehensive Income

For the six months ended 31 December 2020 (unaudited)

In NZD 000 Notes	31-Dec-2020 (6 months)	31-Dec-2019 (6 months)	30-Jun-2020 (1 year audited)
Revenue from contracts with customers 4	356,870	384,839	746,641
Other income	2,220	-	1,005
Expenses
Programming 8	141,739	174,685	342,096
Subscriber related costs	42,569	50,767	106,554
Broadcasting and infrastructure	30,655	38,837	77,942
Depreciation and amortisation	55,069	61,336	119,318
Other costs	27,842	30,830	56,803
Total expenses	297,874	356,455	702,713
Operating profit before impairment	61,216	28,384	44,933
Impairment of goodwill	-	-	177,500
Operating profit/(loss)	61,216	28,384	(132,567)
Finance costs, net	4,692	8,800	13,739
Profit/(loss) before tax	56,524	19,584	(146,306)
Income tax expense	16,943	7,716	10,466
Profit/(loss) for the period	39,581	11,868	(156,772)
Attributable to:
Equity holders of the Company	39,427	11,715	(156,979)
Non-controlling interests	154	153	207
	39,581	11,868	(156,772)
Earnings/(loss) per share
Basic and diluted earnings/(loss) per share (cents) 12	2.26	2.20	(23.91)
OTHER COMPREHENSIVE INCOME
Profit/(loss) for the period	39,581	11,868	(156,772)
Items that may be reclassified to profit and loss
Exchange differences on translation of foreign operations	(228)	283	220
Deferred hedging gains transferred to operating expenses during the period	510	523	1,196
Income tax effect	(143)	(146)	(335)
Net other comprehensive income to be reclassified to profit or loss in
subsequent periods, net of income tax Items that may not be reclassified to profit or loss	139	660	1,081
Deferred hedging losses transferred to non-financial assets during the period	(6,974)	(4,095)	(51)
Income tax effect	1,953	1,146	14
Net other comprehensive loss not being reclassified to profit or loss in subsequent periods, net of income tax	(5,021)	(2,949)	(37)
Total comprehensive income/(loss) for the period	34,699	9,579	(155,728)
Attributable to:
Equity holders of the Company	34,545	9,426	(155,935)
Non-controlling interests	154	153	207
	34,699	9,579	(155,728)

Consolidated Interim Balance Sheet

As at 31 December 2020 (unaudited)

In NZD 000	Notes	31-Dec-2020	31-Dec-2019	30-Jun-2020 (audited)
Current assets
Cash and cash equivalents	10	123,279	3,898	110,677
Trade and other receivables		54,089	59,731	56,854
Programme rights inventory	8	95,285	112,786	113,822
Income tax receivable		-	294	-
Derivative financial instruments	10	626	2,865	3,265
		273,279	179,574	284,618
Non-current assets
Property, plant and equipment		116,455	162,053	124,585
Intangible assets		57,357	45,491	66,556
Right of use assets		81,978	68,133	96,821
Deferred tax asset		82	-	216
Goodwill	3	256,312	433,812	256,312
Derivative financial instruments	10	164	261	461
		512,348	709,750	544,951
Assets held for sale	9	8,225	-	8,367
Total assets		793,852	889,324	837,936
Current liabilities
Interest bearing loans and borrowings	6/10	100,671	1,103	100,765
Lease liabilities	10	41,219	39,114	36,562
Contingent consideration	3/14	2,542	-	-
Trade and other payables		115,424	125,379	176,021
Contract liabilities		51,256	51,788	51,180
Income tax payable		6,358	-	15,041
Derivative financial instruments	10	6,170	4,650	922
		323,640	222,034	380,491
Non-current liabilities
Interest bearing loans and borrowings	6/10	876	215,854	1,883
Lease liabilities	10	52,664	41,619	73,303
Contingent consideration	3/14	2,741	5,283	5,283
Derivative financial instruments	10	1,589	2,546	405
Deferred tax liability		-	10,374	-
		57,870	275,676	80,874
Liabilities associated with assets held for sale	9	1,676	-	1,601
Total liabilities Equity		383,186	497,710	462,966
Share capital
		767,608	617,094	767,608
Reserves Retained deficit		(2,894)	(2,149)	991
Total equity attributable to equity holders of the Company		(355,448) 409,266	(224,813) 390,132	(394,875) 373,724
Non-controlling interest		1,400	1,482	1,246
Total equity		410,666	391,614	374,970
Total equity and liabilities		793,852	889,324	837,936

Philip Bowman Director and Chairman For and on behalf of the Board 22 February 2021

Keith Smith

Director

Consolidated Interim Statement of Changes in Equity

For the six months ended 31 December 2020 (unaudited)

			Attributable to owners of the parent
	Share		Retained		Non controlling	Total
In NZD 000 Notes For the six months ended 31 December 2020	capital	Reserves	deficit	Total	interest	equity
Balance at 1 July 2020	767,608	991	(394,875)	373,724	1,246	374,970
Profit for the period	-	-	39,427	39,427	154	39,581
Exchange difference on translation of foreign operations	-	(228)	-	(228)	-	(228)
Cash flow hedges, net of tax	-	(4,654)	-	(4,654)	-	(4,654)
Total comprehensive income for the period	-	(4,882)	39,427	34,545	154	34,699
Transactions with owners in their capacity as owners
CEO share based remuneration 5	-	997	-	997	-	997
	-	997	-	997	-	997
Balance at 31 December 2020	767,608	(2,894)	(355,448)	409,266	1,400	410,666
For the six months ended 31 December 2019
Balance at 1 July 2019	577,403	(53)	(227,111)	350,239	1,329	351,568
Impact of change in accounting policy	-	-	(9,417)	(9,417)	-	(9,417)
Adjusted balance	577,403	(53)	(236,528)	340,822	1,329	342,151
Profit for the period	-	-	11,715	11,715	153	11,868
Exchange difference on translation of foreign operations	-	283	-	283	-	283
Cash flow hedges, net of tax	-	(2,572)	-	(2,572)	-	(2,572)
Total comprehensive income for the period	-	(2,289)	11,715	9,426	153	9,579
Transactions with owners in their capacity as owners
Issue of ordinary shares related to business combination	24,378	-	-	24,378	-	24,378
Issue of ordinary shares to NZ Rugby Union	15,436	-	-	15,436	-	15,436
Transaction costs relating to share issues	(123)	-	-	(123)	-	(123)
CEO share based remuneration 5	-	193	-	193	-	193
	39,691	193	-	39,884	-	39,884
Balance at 31 December 2019	617,094	(2,149)	(224,813)	390,132	1,482	391,614
For the year ended 30 June 2020 (audited)
Balance at 1 July 2019	577,403	(53)	(227,111)	350,239	1,329	351,568
Impact of adoption of new accounting standard	-	-	(10,785)	(10,785)	-	(10,785)
Adjusted balance	577,403	(53)	(237,896)	339,454	1,329	340,783
Loss for the year	-	-	(156,979)	(156,979)	207	(156,772)
Exchange difference on translation of foreign operations	-	220	-	220	-	220
Cash flow hedges, net of tax	-	824	-	824	-	824
Total comprehensive (loss)/ income for the year Transactions with owners in their capacity as owners	-	1,044	(156,979)	(155,935)	207	(155,728)
Rights issue and placement of shares	157,091	-	-	157,091	-	157,091
Issue of ordinary shares related to business combination	24,378	-	-	24,378	-	24,378
Issue of ordinary shares to NZ Rugby Union	15,436	-	-	15,436	-	15,436
Transaction costs relating to share issues	(7,086)	-	-	(7,086)	-	(7,086)
Dividend paid	-	-	-	-	(290)	(290)
CEO share based remuneration 5	386	-	-	386	-	386
	190,205	-	-	190,205	(290)	189,915
Balance at 30 June 2020	767,608	991	(394,875)	373,724	1,246	374,970

Consolidated Interim Statement of Cash Flows

For the six months ended 31 December 2020 (unaudited)

In NZD 000	Notes	31-Dec-2020 (6 months)	31-Dec-2019 (6 months)	30-Jun-2020 (1 year audited)
Cash flows from operating activities
Profit/(loss) before tax		56,524	19,584	(146,306)
Adjustment for non-cash items:
Depreciation and amortisation		55,069	61,336	119,318
Impairment of goodwill		-	-	177,500
Impairment of programme rights	8	3,072	1,396	3,240
Unrealised foreign exchange loss/(gain)		(923)	644	1,953
Interest expense		7,000	8,588	16,020
Bad debts and movement in provision for doubtful debts		245	500	1,352
Other non-cash items		254	447	1,040
Movement in working capital items:
Decrease in receivables		2,520	2,490	10,128
(Decrease)/increase in payables		(57,006)	(11,595)	17,631
Decrease/(increase) in programme rights		15,465	(7,407)	(5,056)
Cash generated from operations		82,220	75,983	196,820
Interest paid		(6,587)	(10,492)	(15,995)
Bank facility fees paid		(928)	(25)	(25)
Income tax paid		(23,500)	(23,500)	(23,500)
Net cash from operating activities		51,205	41,966	157,300
Cash flows from investing activities
Acquisition of property, plant, equipment and intangibles		(11,059)	(10,417)	(27,470)
Acquisition of intangibles		(8,841)	(22,832)	(28,988)
Acquisition of subsidiary, net of cash acquired		-	(15,193)	(18,169)
Net cash used in investing activities	7	(19,900)	(48,442)	(74,627)
Cash flows from financing activities
Proceeds from rights issue and placement of shares		-	-	157,091
Transaction costs incurred for rights issue		-	-	(7,086)
Advances received - bank loan Repayment of borrowings - bank loan		-	49,000	119,000
Payments for lease liability principal		- (18,117)	(23,000) (19,366)	(207,000) (36,901)
Repayment of other borrowings		(586)	(543)	(1,093)
Dividend paid to minority shareholders		-	-	(290)
Net cash used in financing activities		(18,703)	6,091	23,721
Net increase/(decrease) in cash and cash equivalents		12,602	(385)	106,394
Cash and cash equivalents at beginning of the period		110,677	4,283	4,283
Cash and cash equivalents at end of the period	10	123,279	3,898	110,677

Notes to the Consolidated Interim Financial Statements

For the six months ended 31 December 2020 (unaudited)

1. General Information

Sky Network Television Limited (Sky) is a company, incorporated and domiciled in New Zealand. The address of its registered office is 10 Panorama Road, Mt Wellington, Auckland, New Zealand. The consolidated interim financial statements for the six months ended 31 December 2020 comprise Sky and its subsidiaries (the Group).

Sky is a company registered under the Companies Act 1993 and is a reporting entity under Part 7 of the Financial Markets Conduct Act 2013.

Sky is a leading media company in New Zealand and operates as a provider of sport and entertainment media services in New Zealand and overseas.

These consolidated interim financial statements were approved by the Board on 22 February 2021.

2. Basis of Preparation

These consolidated interim financial statements have been prepared in accordance with the requirements of Part 7 of the Financial Markets Conduct Act 2013, the NZX Listing Rules and the ASX Listing Rules.

These consolidated interim financial statements of Sky are for the six months ended 31 December 2020. They have been prepared in accordance with New Zealand generally accepted accounting practice, NZ IAS 34 Interim Financial Reporting and International Accounting Standard 34 (IAS 34). They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 30 June 2020. For the purposes of financial reporting Sky is a profit-oriented entity.

The preparation of interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

These consolidated interim financial statements have been prepared under the historical cost convention except for the revaluation of certain financial instruments (including derivative instruments).

Group structure

The Group has a majority share in the following subsidiaries.

Activity	of Incorporation
		Parent	Interest held Jun 2020 and Dec 2020	Dec 2019
Commercial music	New Zealand	Sky	50.50%	50.50%
Investment	New Zealand	Sky	100.00%	100.00%
Non-trading	New Zealand	Sky	100.00%	100.00%
Broadcasting services	New Zealand	Sky	100.00%	100.00%
Non-trading	New Zealand	Sky	100.00%	100.00%
Non-trading	New Zealand	Sky	100.00%	100.00%
Entertainment quizzes	New Zealand	Sky	51.00%	51.00%
Investment	New Zealand	Sky	100.00%	100.00%
Streaming services	Ireland	Sky Investment Holdings Limited	100.00%	100.00%
Management services	Singapore	Rugby Pass Limited	100.00%	100.00%
Streaming services	New Zealand	Sky	100.00%	0.00%

Igloo Limited was renamed to Sky Network Services Limited on 19 January 2021

3. Significant Accounting Policies and Critical Judgements and Estimations

The accounting policies applied by the Group in these consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 30 June 2020. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

Group performance review

Earnings before interest, tax, depreciation and amortisation (EBITDA1) were \$116 million for the six months to 31 December 2020, ahead of plan and \$26 million higher than the \$90 million for the six months ended 31 December 2019.

• Revenues were \$357 million in the current period, a decrease of \$28 million from the prior half year but ahead of plan. Subscription revenues were down on the prior half year mainly due to declining satellite customer numbers and ARPU's, however the decrease was lower than plan following a period of growth in direct satellite customers (excluding reseller subscribers) driven by improvements in annualised churn. Commercial and advertising revenues were impacted by lockdowns, border closures and event cancellations as a result of COVID-19, however, are recovering ahead of plan. The Group experienced growth in the current period in streaming subscribers and revenues, both organically and through the acquisition of Lightbox in the previous financial year.
• Operating expenses excluding depreciation, amortisation and impairment decreased to \$243 million in the current period from \$295 million in the prior period, primarily due to the impact of decreases in programming rights and sports production costs as a result of COVID-19 restrictions on events, reduced employee costs as a result of restructuring undertaken in prior periods, and a general reduction in expenses as a result of cost saving strategies.

Impact of COVID-19

COVID-19 continues to have an impact on the Group, with a favourable increase in demand for entertainment content and reduced churn for our satellite customers offset by ongoing uncertainties relating to the reduction of live sports, scheduling of sports events and the subsequent lack of content.

As outlined in the 2020 Annual Report, there continues to be uncertainties due to the COVID-19 pandemic that affects the Group's key estimates and judgements, including:

Intangible assets and goodwill – the ability to achieve future forecasts and the consequential impact on the carrying value of goodwill and other finite life intangibles. Management and the directors have considered whether there are any events or changes in circumstances since the recognition of impairment as at 30 June 2020 and the signing of the 2020 financial statements that may be an impairment indicator as at 31 December 2020, having considered factors such as:

• The Group's first half results, which have exceeded the prior year and the first half plan;
• The improvement in the Group's share price between 30 June 2020 and 31 December 2020; and
• The premium of net assets to market capitalisation being broadly consistent to the position as at 30 June 2020, noting that this market capitalisation excludes any control premium,

have concluded that there are no material adverse events or changes in circumstances that would require impairment testing to be performed as at 31 December 2020.

Programming rights – the ability to monetise prepaid and future sports programming rights. Management continues to exercise judgement in assessing both the value and estimated future amortisation profile of programming rights costs in response to uncertainty that COVID-19 has created around the value of certain major sports competitions, some of which may be delayed or postponed. Management has also considered any negotiations for equitable reductions due to COVID-19 that have been concluded prior to balance date.

RugbyPass contingent consideration – Sky continues to measure the fair value of the contingent consideration at NZD 5.3 million, having considered the current performance of RugbyPass, its new strategic direction, the uncertainty surrounding the economic environment given the existence of COVID-19, and the probability of payment. Management commenced negotiations with the vendor to settle the contingent consideration, and while no binding agreement was reached prior to 31 December 2020, a subsequent agreement has been reached to settle the contingent consideration for USD 1.25 million (NZD 1.7 million) (refer note 14).

Capital structure

At 31 December 2020 the Group had negative working capital of \$50 million (31 December 2019: \$42 million; 30 June 2020: \$96 million). This is mainly as a result of the classification as current of the \$100 million of bonds which are due for repayment in March 2021 (refer note 6).

Despite the continuing impact of COVID-19, the directors are satisfied that there will be adequate cash flows generated from operating and financing activities to meet the obligations of the Group for a period of at least 12 months from approving the consolidated interim financial statements, after taking into consideration the current trading results and that the Group has available cash of \$123 million and an undrawn banking facility of \$200 million at 31 December 2020 (refer note 6).

For the six months ended 31 December 2020 (unaudited)

4. Segment and Revenue Information

The table below shows the disaggregation of the Group's revenue from contracts with customers on the basis of when revenue is recognised for its principal revenue streams.

In NZD 000	Residential satellite subscriptions	Other subscriptions	Advertising	Other revenue	Total revenue from contracts with customers
For the six months ended 31 December 2020
Revenue from customers	270,656	56,201	22,404	15,372	364,633
Inter-segment revenue	-	-	-	(7,763)	(7,763)
Total revenue	270,656	56,201	22,404	7,609	356,870
Timing of revenue recognition
At a point in time	2,422	-	22,404	4,237	29,063
Over time	268,234	56,201	-	3,372	327,807
	270,656	56,201	22,404	7,609	356,870
For the six months ended 31 December 2019
Revenue from customers	298,729	52,439	26,084	15,607	392,859
Inter-segment revenue	-	-	-	(8,020)	(8,020)
Total revenue	298,729	52,439	26,084	7,587	384,839
Timing of revenue recognition
At a point in time	5,875	-	26,084	3,962	35,921
Over time	292,854	52,439	-	3,625	348,918
	298,729	52,439	26,084	7,587	384,839
For the year ended 30 June 2020 (audited)
Revenue from customers	581,962	105,381	45,155	28,000	760,498
Inter-segment revenue	-	-	-	(13,857)	(13,857)
Total revenue	581,962	105,381	45,155	14,143	746,641
Timing of revenue recognition
At a point in time	10,822	-	45,155	7,563	63,540
Over time	571,140	105,381	-	6,580	683,101
	581,962	105,381	45,155	14,143	746,641

Operating segments are reported in a manner consistent with the internal reporting provided to Sky's executive team who are the chief operating decision-makers. Sky's executive team is responsible for allocating resources and assessing performance of the operating segments. Sky operates in a single operating segment; the provision of sport and entertainment media services in New Zealand. RugbyPass has been identified as a separate operating segment and forms a separate cash generating unit. For financial reporting purposes and with reference to the aggregation criteria in the accounting standards RugbyPass will be aggregated with the Sky business operating segment for the purposes of reporting segment disclosure. The table above shows the disaggregation of the Group's revenue from contracts with customers based on when revenue is recognised for its principal revenue streams.

5. Related Party Transactions

There were no loans to directors by the Group or associated parties at any of the reporting dates.

The gross remuneration of directors and key management personnel during the period was \$4,958,000 (31 December 2019: \$9,163,000; 30 June 2020: \$9,517,000). The remuneration in the prior periods includes redundancy costs paid to executive directors and key management personnel (including department heads, who were considered as part of key management personnel at that time). From 1 July 2020, as a result of restructuring the business, key management personnel was re-defined to include only directors and the executive leadership team, and no longer includes department heads. The 31 December 2019 gross remuneration of directors and key management personnel under the new re-defined structure would have been \$6,206,000.

On 1 December 2020 Martin Stewart left by mutual agreement and Sophie Moloney was appointed the new CEO on this date.

The six months ended 31 December 2020 includes the accrued cost of termination benefits associated with the former CEO of \$1,331,000, and short-term employee benefits of \$390,000 which are based on achieving targets for the year to 30 June 2021. Therefore, the actual short-term employee benefits paid may ultimately differ from what has been estimated.

On 21 February 2020, 200,000 ordinary shares vested to the former CEO as part of a contractual entitlement to receive a total of 800,000 ordinary shares in instalments of 200,000 on each of the first four anniversaries of commencement of employment. As a result of the CEO's decision to leave by mutual agreement the 600,000 ordinary shares yet to vest have been recognised at balance date. While the share price at 31 December 2020 was \$0.16, this equity-settled share scheme is accounted for and measured based on the fair value at grant date (1 February 2019) of \$1.93 per share (\$1,158,000).

		31-Dec-2020			31-Dec-2019			30-Jun-2020 (audited)
In NZD 000	Current	Non current	Total	Current	Non current	Total	Current	Non current	Total
Borrowings	738	876	1,614	1,103	116,194	117,297	970	1,883	2,853
Bonds	99,933	-	99,933	-	99,660	99,660	99,795	-	99,795
	100,671	876	101,547	1,103	215,854	216,957	100,765	1,883	102,648

6. Interest Bearing Loans and Borrowings

Bank loans

On 2 July 2020 the Group signed a renegotiated bank facility with a syndicate of banks comprising Bank of New Zealand, Commonwealth Bank of Australia and Westpac Bank securing a facility of \$200 million ending on 31 July 2023. The renegotiated facility does not include a stepdown in facility limit during the term of the facility. Previously the Group's bank facility was for a value of \$200 million expiring in July 2022 with the facility reducing to \$150 million from July 2021.

The facility arrangements (together with certain hedging arrangements and the existing \$100 million bond) take the benefit of shared security granted by certain members of the Group, including (i) a general security deed granted by each of Sky Network Television Limited and Outside Broadcasting Limited, (ii) real property mortgages granted over certain real property interests of Sky Network Television Limited and (iii) a spectrum mortgage granted over certain spectrum. In addition, the renegotiated bank facility also provides for RugbyPass Limited to accede to the shared security arrangements by providing a guarantee and general security deed. The loan facility is subject to certain covenant clauses whereby the Group is required to meet certain key financial ratios.

There have been no breaches of covenant clauses and no breaches are anticipated within the next 12 months.

Bank overdrafts of \$535,000 (31 December 2019: \$6,301,000; 30 June 2020: \$1,902,000) have been set off against cash balances.

Bonds

Terms and conditions of outstanding bonds are as follows:

	31-Dec-2020	31-Dec-2019	30-Jun-2020 (audited)
Nominal interest rate	6.25%	6.25%	6.25%
Market yield	4.65%	3.80%	4.37%
Issue date	31-Mar-14	31-Mar-14	31-Mar-14
Date of maturity	31-Mar-21	31-Mar-21	31-Mar-21
In NZD 000
Carrying amount	99,933	99,660	99,795
Face value	100,000	100,000	100,000
Fair value	100,400	102,977	101,380

The directors' intend to fully repay the bonds upon their maturity on 31 March 2021.

7. Capital Expenditure

The Group acquired the following property, plant and equipment (PPE) and intangibles during the period:

In NZD 000	31-Dec-2020 (6 months)	31-Dec-2019 (6 months)	30-Jun-2020 (1 year audited)
Capital projects in progress (includes PPE & Intangibles)	4,002	22,046	11,729
Land and buildings	-	926	2,419
Broadcasting and studio equipment	340	520	3,681
Plant and equipment and other	1,975	789	5,654
Decoders	-	1,435	681
Installation costs	7,628	6,648	12,597
Intangibles	6,035	786	19,697
	19,980	33,150	56,458
Movement in capital expenditure creditors	(80)	99	-
Cash outflow in the period	19,900	33,249	56,458

For the six months ended 31 December 2020 (unaudited)

8. Programme Rights Inventory

In NZD 000	31-Dec-2020	31-Dec-2019	30-Jun-2020 (audited)
Opening balance	113,822	89,458	89,458
Acquired during the period	98,029	146,206	280,247
Settled by issue of shares to NZ Rugby Union	-	15,436	15,436
Acquired as part of acquisiton of Rugby Pass & Lightbox	-	1,882	9,517
Written off during the year	(3,072)	(1,396)	(3,240)
Charged to profit or loss	(113,494)	(138,800)	(277,596)
Balance at end of period	95,285	112,786	113,822

9. Assets and Liabilities Held for Sale

Outside Broadcasting Limited (OSB)

On 11 August 2020 Sky entered into agreements with NEP New Zealand Limited for:

The sale of OSB's assets to NEP; and
The supply of outside broadcasting services by NEP to Sky for a ten-year period.

The OSB assets to be sold include six HD OB units and all ancillary equipment including leases for two OSB warehouse facilities. The majority of OSB team members and some Sky broadcast specialists will transition to NEP New Zealand.

At reporting date the transaction had not been approved by the Commerce Commission and therefore is still classified as held for sale. Subsequently the Commerce Commission approved the transaction on 4 February 2021 (refer note 14). The table shows the book value of the OSB assets and liabilities.

In NZD 000	31-Dec-2020	30-Jun-2020 (audited)
Assets
Property, plant and equipment (net)	7,245	7,245
Right-of-use assets (net)	980	1,122
Assets held for sale	8,225	8,367
Liabilities
Employee entitlements	462	235
Short term lease liabilities	353	349
Long term lease liabilities	861	1,017
Liabilities associated with assets held for sale	1,676	1,601

10. Fair Value Measurement of Financial Instruments

The Group's activities expose it to a variety of financial risks that include market risk (currency risk, fair value interest rate risk, cash flow interest rate risk and price risk) credit risk and liquidity risk.

The consolidated interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements. They should be read in conjunction with the Group's annual financial statements as at 30 June 2020. There have been no changes in any risk management policies since year end.

Financial assets of the Group include cash and cash equivalents, trade and other receivables and financial assets at fair value through other comprehensive income (OCI) (unquoted investments held for disposal and derivative financial assets). Financial liabilities of the Group include trade and other payables, interest bearing loans and borrowings, lease liabilities, contingent consideration and derivative financial liabilities. The Group does not hold or issue financial instruments for trading purposes.

The fair value of each financial instrument is categorised in its entirety based on the lowest level of input that is significant to that fair value measurement. The levels are defined as follows:

Level 1: Quoted prices (unadjusted) in active market for identical assets and liabilities.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs), for example discounted cash flow.

Sky's financial assets and liabilities carried at fair value are valued on a level 2 basis.

Classification of financial instruments

The following table presents the Group's financial assets and liabilities according to classifications.

In NZD 000	31-Dec-2020		31-Dec-2019			30-Jun-2020 (audited)
	Carrying amount	Fair value	Carrying amount	Fair value	Carrying amount	Fair value
Financial assets at amortised cost
Cash and cash equivalents	123,279	123,279	3,898	3,898	110,677	110,677
Trade and other receivables	43,139	43,139	49,601	49,601	45,314	45,314
Financial assets at fair value through OCI
Derivatives designated as hedging instruments (cash flow hedges)	505	505	2,152	2,152	2,926	2,926
Derivatives not designated as hedging instruments (fair value hedges)	285	285	974	974	800	800
	167,208	167,208	56,625	56,625	159,717	159,717
Financial liabilities at amortised cost
Bank loans	(1,119)	(1,119)	113,460	110,809	(434)	(434)
Other loans	2,733	2,634	3,836	3,715	3,287	3,218
Bonds	99,933	100,400	99,660	102,997	99,795	101,380
Lease liabilities	93,883	88,828	80,733	76,696	109,865	102,463
Trade and other payables	85,378	85,378	96,896	96,896	145,690	145,690
Financial liabilities at fair value through profit or loss
Contingent consideration	5,283	5,283	5,283	5,283	5,283	5,283
Financial liabilities at fair value through OCI
Derivatives designated as hedging instruments (cash flow hedges)	5,135	5,135	4,613	4,613	683	683
Derivatives not designated as hedging instruments (fair value hedges)	2,624	2,624	2,583	2,583	644	644
	293,850	289,163	407,064	403,592	364,813	358,927

Prepaid expenses, deferred revenue, unearned subscriptions, tax payables and employee benefits do not meet the definition of a financial instrument and have been excluded from the "Trade and other receivables" and "Trade and other payables" categories above. Due to their short-term nature, the carrying amounts of cash and cash equivalents, trade and other receivables and trade and other payables is assumed to approximate their fair value.

The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable inputs. The fair value of forward foreign exchange contracts is based on market forward foreign exchange rates at period end.

The fair value of quoted notes and bonds is based on price quotations at the reporting date being at level 1 basis. The fair value of loans from banks and lease liabilities is estimated on a level 3 basis by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

For the six months ended 31 December 2020 (unaudited)

11. Contracts for Future Programme Commitments

In NZD 000	31-Dec-2020	31-Dec-2019	30-Jun-2020 (audited)
Year 1	294,623	226,600	255,100
Year 2	261,401	211,700	237,100
Year 3	192,490	178,800	184,800
Year 4	167,940	144,500	143,100
Year 5	129,505	130,900	139,600
Later than 5 years	347	112,500	55,500
	1,046,306	1,005,000	1,015,200

12. Earnings Per Share

Basic and diluted earnings/(loss) per share

In NZD 000	31-Dec-2020	31-Dec-2019 (restated)	30-Jun-2020 (audited)
Profit/(loss) after tax attributable to equity holders of the parent (NZD 000)	39,427	11,715	(156,979)
Weighted average number of ordinary shares on issue (thousands)	1,746,280	532,615	656,639
Basic and diluted earnings/(loss) per share (cents)	2.26	2.20	(23.91)

	31-Dec-2020	31-Dec-2019	30-Jun-2020
Issued ordinary shares at the beginning of period/year	1,746,279,558	389,139,785	389,139,785
Ordinary shares issued on 19 August 2019	-	25,085,408	25,085,408
Ordinary shares issued on 1 November 2019	-	21,801,325	21,801,325
Ordinary shares issued on 21 February 2020	-	-	200,000
Ordinary shares issued on 2 June 2020	-	-	998,629,091
Ordinary shares issued on 16 June 2020	-	-	311,423,949
Total number of shares on issue	1,746,279,558	436,026,518	1,746,279,558
Weighted average number of ordinary shares on issue	1,746,279,558	532,615,110	656,638,762

The prior period earnings per share have been restated to adjust for the impact of the rights issue completed in June 2020.

13. Contingent Liabilities

The Group is subject to litigation incidental to its business, none of which is expected to be material. No provision has been made in the Group's consolidated interim financial statements in relation to any current litigation and the directors believe that such litigation will not have a significant effect on the Group's consolidated interim financial position, results of operations or cash flows.

14. Subsequent Events

On 9 February 2021, Sky settled the contingent consideration which arose from the acquisition of RugbyPass, with the previous owners for USD 1.25 million (NZD 1.7 million). The difference of NZD 3.6 million between the agreed settlement amount and amount recorded at balance date will be released to the profit and loss in the 30 June 2021 financial statements.

On 4 February 2021 the Commerce Commission granted clearance for the sale of the OSB business to NEP New Zealand Limited (refer note 9) for a sale price of \$14 million. The sale is now unconditional. The resulting accounting judgements for the sale are yet to be finalised, and therefore any gain or loss attributable to the sale will be determined following completion, which is expected to occur prior to 30 June 2021.

Independent auditor's review report

To the shareholders of Sky Network Television Limited

Report on the consolidated interim financial statements

Our conclusion

We have reviewed the consolidated interim financial statements of Sky Network Television Limited (the Company) and its subsidiaries (the Group), which comprise the consolidated interim balance sheet as at 31 December 2020, and the consolidated interim statement of comprehensive income, the consolidated interim statement of changes in equity and the consolidated interim statement of cash flows for the six month period ended on that date, and significant accounting policies and other explanatory information.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial statements of the Group do not present fairly, in all material respects, the financial position of the Group as at 31 December 2020, and its financial performance and cash flows for the six month period then ended, in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent to International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).

Basis for conclusion

We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised) Review of Financial Statements Performed by the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor's responsibilities for the review of the financial statements section of our report.

We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our firm carries out other services for the Group in the areas of agreed upon procedures on the bank compliance certificate and regulatory reporting. Certain partners and employees of our firm may subscribe to Sky services on normal terms within the ordinary course of the trading activities of the Group. These relationships and other services have not impaired our independence.

Directors' responsibility for the financial statements

The Directors of the Group are responsible on behalf of the Company for the preparation and fair presentation of these consolidated interim financial statements in accordance with IAS 34 and NZ IAS 34 and for such internal control as the Directors determine is necessary to enable the preparation and fair presentation of consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibility for the review of the financial statements

Our responsibility is to express a conclusion on the consolidated interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that causes us to believe that the consolidated interim financial statements, taken as a whole, are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34. A review of consolidated interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing and International Standards on Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might identify in an audit. Accordingly, we do not express an audit opinion on these consolidated interim financial statements.

Who we report to

This report is made solely to the Company's shareholders, as a body. Our review work has been undertaken so that we might state to the Company's shareholders those matters which we are required to state to them in our review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the shareholders, as a body, for our review procedures, for this report, or for the conclusion we have formed.

The engagement partner on the review resulting in this independent auditor's review report is Keren Blakey.

For and on behalf of:

Chartered Accountants Auckland 22 February 2021

Australian Branch Register

Computershare Investor Services Pty Limited

Yarra Falls, 452 Johnston Street Abbotsford, V C 3067 GPO Box 2975 Melbourne V C 3000, Australia

Freephone: 1800 501 366 (within Australia) Tel +61 3 9415 5000 (outside Australia) Fax +61 3 9473 2500 Email: [email protected]

Bondholder Trustee

The New Zealand Guardian Trust Company Limited Level 6, 191 Queen Street Auckland 1010, New Zealand

Mailing address:

PO Box 274, Shortland Street Auckland 1140, New Zealand Tel: 0800 683 909 Fax: +64 9 377 7470 Email: [email protected]

Directors

Philip Bowman (Chair) Geraldine McBride Joan Withers Keith Smith Mike Darcey Derek Handley (retired 15 January 2021) Martin Stewart (resigned 7 December 2020) Susan Paterson, ONZM (retired 13 October 2020)

Officers

Sophie Moloney Chief Executive

Chris Major Director of External Affairs Tex Teixeira Chief Content Officer Michael Frampton Chief People Officer Steve Bayliss Chief Creative Officer Chaz Savage Chief Customer Officer Prabhu Singh Chief Technology Officer Jonny Errington Chief Commercial Officer Andrew Hirst Interim Chief Financial Officer

New Zealand Registered Office

10 Panorama Road, Mt Wellington, Auckland 1060, New Zealand Tel: +64 9 579 9999 Fax: +64 9 579 8324 Website: sky.co.nz

Australian Registered Office

c/- Allens Arthur Robinson Corporate Pty Limited

Level 4, Deutsche Bank Place, 126 Philip Street, Sydney, NSW 2000, Australia Tel: +61 2 9230 4000 Fax: +61 2 9230 5333

Auditors to Sky

PricewaterhouseCoopers

PwC Tower, Level 27 15 Customs Street West, Auckland 1010 Tel: +64 9 355 8000 Fax: +64 9 355 8001

Solicitors to Sky

Buddle Findlay 188 Quay Street, Auckland 1010 Tel: +64 9 358 2555 Fax: +64 9 358 2055

Chapman Tripp

Level 34, PwC Tower 15 Customs Street West, Auckland 1010 Tel: +64 9 357 9000 Fax: +64 9 357 9099

Other Information

Sky Network Television Limited Half Year ended on 31 December 2020 (In NZD)

• Control gained over entities

There was no control gained over entities during the half year.

• Loss of control of entities

There was no loss of control of entities during the half year.

• Dividends

Interim dividend payable: Nil

Prior comparable period: Nil

• Details of aggregate share of profits (losses) of associates and joint venture entities

Not applicable

• Accounting standards

New Zealand international financial reporting standards used in compiling report.

• Directors' Details

The directors of Sky Network Television Limited at any time during the half year are as follows:

Philip Bowman	Chairman
Keith Smith	Director
Martin Stewart	Director (resigned 7 December 2020)
Joan Withers	Director
Mike Darcey	Director
Derek Handley	Director
Geraldine McBride	Director
Susan Paterson	Director (retired 13 October 2020)

Subsequent to balance date Derek Handley retired as a Director on 15 January 2021.

Our Partnerships

Securing the rights that matter to our customers and embracing co-exclusive content deals

New and renewed multi-year deals signed for content that our customers enjoy
Attractive partner, enabling content providers to access a significant customer base of 926,530
Constructive and long-standing partnerships of up to 30 years
Content discussions continue to focus on appropriately valuing content and rationalising where that makes sense, based on our rich data and insights (including from 24,000 Sky Nation customer panel and 35% connected boxes)
Comfortable with co-exclusive content. Recent negotiations involving co-exclusivity confirm the value of partnering with Sky in the NZ market while also providing opportunities for Sky to reduce costs
Continuing to work with partners, including Vodafone via Vodafone TV and Spark via our Neon and Sky Sport Now distribution deals, with the objective to deliver our content as widely as possible

Our Customers

17% growth in customer numbers since December 2019

Sky Box customer numbers continue to stabilise, reducing by 4.0% in the 12 months to December 2020 compared to 6.1% in the prior period
Migration of reseller customers almost complete, successfully converting almost 90%
80% YoY increase in streaming customers through the acquisition of Lightbox and organic growth
16% growth in Neon customers since the merger of the Neon and Lightbox platforms
At Lightbox acquisition¹ there were approximately 130k Spark customers using Lightbox and recognised by the wholesale arrangement with Spark. By June 2020 this number had grown to 154k. After merging Lightbox and Neon, we converted over 1/3rd of hard bundled Lightbox customers to paying Neon customers

¹Lightbox acquisition completed 31 Jan 2020.

² At 31 August 2020, paying streaming customer numbers had reduced to 315k, reflecting the move in the Spark commercial terms from wholesale to direct carrier billing.

³ Streaming customer groups comprise Neon, Lightbox, Sky Sport Now, RugbyPass and Vodafone retransmission customers, but do not include free trials.

Sky Box Customers

We are reaching a stable customer base

Sky's significant Sky Box customer base is the strong core of our business, accounting for 76% of revenue and representing 1/3rd of NZ households
Customer numbers are stabilising, with net growth in direct customers in H1 FY21 (excluding the migrated reseller customers)
This reflects our strong presence in key loyal customer segments as well as the new capability we have built and continue to build in customer value management

Sky Box Customers Improvement in direct activations and lower churn

Significant improvement in direct customer activations (+50%) and disconnections (-16%) to stabilise the base
Acquisition growth supported by broadening sales channels
Seeing more interest from consumer groups not previously as highly represented, including budget conscious, middle/regional NZ
Market research data¹ indicating 1/3rd of New Zealand households are open to being a Sky customer, and are not currently subscribed

¹ Source: Sky commissioned survey of New Zealand households carried out by International research specialist fiftyfive5, September 2020

Sky Box Customers Positive retention trends continue

¹ Sky Nation panel consists of approximately 24,000 Sky customers

Direct annualised churn improved to 9.5% from 11.0%, with total churn (including reseller customers) improved to 12.4% from 12.8%
Following long term successful reseller partnership with Vodafone, agreement to migrate customers to a direct Sky relationship. This is expected to benefit customer experience and further improve overall churn levels
Sky Broadband positioned to add further value for fibre-ready Sky Box customers, with feedback from Sky Nation¹ panelist and local/offshore examples suggesting a meaningful long-term impact on retention

Sky Box Customers

Significant proportion of customers with long tenure and low churn rates

Strong core of loyal Sky Box customers. 70% have been with Sky for over 5 years and with low churn rates of 6%
Significant improvement (27%) YoY in churn rates for new customers (0-1 year tenure)
Customers under contract increased YoY to 11% from 4%, with average contract terms increasing to 14.6 months from 12.1 months

Sky Box Customers Sky Go adding value for Sky Box customers

New Sky Go companion app rolling out this month following customer-led development and feedback, including 1,000 Sky Nation customers involved in the beta trail. The new Sky Go delivers:
enhanced content discovery features
30% increase in available content
Provides additional value for Sky Box customers. Strong evidence Sky Go is valued, with 8% lower churn in the first year of joining compared to non-users
The move to Sky's digital platform enabled a rapid development process and allows greater ongoing flexibility

Sky Box Customers

Sky Broadband on track and positioned to add value

Customer trial phase delivering valuable feedback to strengthen the offer and providing strong validation for launch
On track to begin targeted selling in the coming weeks with initial focus on fibre-ready Sky Box customers to deliver additional value
Substantial focus on service and user experience supported by Sky's NZ-based Broadband team
Latest Wi-Fi tech with fully integrated Wi-Fi 6 router and mesh devices. Allows customers to take full advantage of high speed fibre internet throughout their home

What's coming up? New Sky Box to evolve the Sky experience

We have commissioned in-depth consumer research to help us design the new Sky Box
Rich insights will drive design and user experience decisions
Opens opportunities to significantly enhance the experience for those customers who want it, and increase appeal to wider market
Strengthens positioning as the preferred pay TV content aggregator in the New Zealand market

Streaming Customers Continued growth of new customers to Sky

Continued growth (80% YoY) in streaming, including 16% since the merger of the Neon and Lightbox platforms
Churn rates have significantly improved since we merged the Neon and Lightbox platforms, providing a combined content offering and a better customer experience
New Sky Sport Now pricing & packaging and introduction of 7 day free trial has supported impressive customer growth in the period
This growth is not compromising our Sky Box customer base:
96% of new Sky Sport Now customers in the period didn't have a Sky Box subscription in the previous 90 days
Over 4,000 customers who lapsed from Sky Box more than 1 year earlier rejoined as Sky Sport Now customers
97% of new Neon customers in the period didn't have a Sky Box subscription in the previous 90 days

For the six months ended 31 December 2020 Results Presentation 15

Commercial Customers

Extends Sky's reach to venues throughout NZ

From the Karikari Peninsula in the north to Stewart Island in the south, and in the Chatham Islands

Licensed premises including pubs, clubs, restaurants

High penetration amongst pubs and chartered clubs with room for growth in restaurants, cafés and sports clubs
Implemented a value-based pricing model with a fairer and more appropriate tiered structure recognising the value of Sky's content to a commercial customer's business

Accommodation including hotels and motels

Sky available in 55,000 rooms nationwide, representing 88% share of the market
Currently impacted by COVID-19 but with future growth potential from 2,000+ new rooms under construction and properties undertaking incentivised service upgrades

Corporate including retail, gyms, aged care facilities

• Predominantly sport, news and music focused content delivery to individual premises through to country-wide chains

Financial Performance

Financial Performance H1 FY21 vs H1 FY20

\$m	H1 FY21	H1 FY20	vs	%
Revenue	356.9	384.8	(28.0)	(7.3%)
Other Income	2.2		2.2
Operating Expenses	242.8	295.1	52.3	17.7%
EBITDA	116.3	89.7	26.6	29.6%
Depreciation & Amortisation	55.1	61.3	6.3	10.2%
EBIT	61.2	28.4	32.8	115.7%
Interest	4.7	8.8	4.1	46.7%
Profit/(Loss) before tax	56.5	19.6	36.9	188.6%
Tax	16.9	7.7	(9.2)	(119.6%)
Net Profit/(Loss) after tax	39.6	11.9	27.7	233.5%

Further slow-down of revenue decline (3% in H1 FY21 vs 5% in H1 FY20) after removing the direct impact of COVID-19 and a 'one month free' reseller migration offer¹
Other income of \$2.2m relates to one-off non-cash accounting adjustments, primarily related to RugbyPass
Underlying reduction in operating expenses of \$44m (after excluding one-offs) includes the impact of equitable reductions in content rights and lower production costs due to COVID-19, and permanent savings in the underlying cost base

¹One off impacts in H1 FY21 include direct impact of COVID-19 on commercial, advertising & subscription revenues, and a one-month free offer on migration of reseller customers to mitigate change in billing cycles

Revenue

Further stabilisation of Sky Box and continued growth in streaming

Revenue decline of 7%, but after removing the direct impact of COVID-19 and reseller migration offer, a 3% decline vs 5% in prior period
Majority of direct COVID-19 impact was on Advertising and Commercial revenues of \$10m, impacted by border closures, Auckland restrictions in August and reduction in live sport
45% increase in Streaming revenue through organic growth and acquisitions
Compared with H2 FY20 (when the COVID-19 outbreak occurred) revenue is down by only 1.4%, which reflects a 4% decline in Sky Box offset by growth in Streaming and a partial recovery in Commercial and Advertising

¹ Revenue does not include Other Income which was \$1.0m in H2 FY20 and \$2.2m in H1 FY21

²Sky Box revenue includes direct and Vodafone reseller subscriptions

³ Streaming revenue includes Neon, Lightbox, Sky Sport Now, RugbyPass and retransmission revenues

Sky Box Revenue

While the customer base continues to stabilise, revenue and ARPU was impacted by structural and one-off items

Sky Box revenue decline of 9% compared to 7% in prior period, reflecting customer loss in H2 FY20 (which has since stabilised in H1 FY21), reseller customer churn prior to November migration, and lower ARPUs
Lower ARPUs in H1 FY21 driven by ~\$2.50 impact of structural and one-off items, including:
Migrated reseller revenue previously being recorded gross, with wholesale commissions recognised in operating expenses
Full period effect of package downgrades following COVID-19 impacts on content availability
'First month free' offered for reseller migration customers
Fewer Pay-Per-View sport events
There has been no price increase since April 2019

¹ FY18 Sky Box revenue is adjusted for the adoption of NZ IFRS 15.

2 Sky Box subscription ARPU is the monthly average revenue for residential customers including Vodafone, reseller customers, calculated as the average for the six month period.

Streaming Revenue

Further increase in streaming revenue through organic and acquisition growth

Streaming revenue increased 45%, compared to 35% in the prior period. Revenue doubled over the past two years with compound average growth of 33% since H1 FY18
Significant growth in Neon customers following Lightbox acquisition on 31 January 2020 and further growth following the merger of Lightbox and Neon, lowered average ARPU
16% improvement in average ARPU between H2 FY20 and H1 FY21 reflects a greater proportion of Neon direct customers vs wholesale, and growth in higher ARPU Sky Sport Now customers following the return of key live sports

¹ Streaming subscription ARPU is the blended rate across Neon, Lightbox, Sky Sport Now, RugbyPass and retransmission, calculated as the average for the six month period.

Commercial and Advertising revenues

Impacted by COVID-19 but showing recovery

¹ Source: Quarterly Performance Comparison Report from PWC

Commercial revenue impacted by border and gathering restrictions, with H1 FY21 revenue down \$7.5m (27%) compared to prior year
Proactive support provided on a case-by-case basis through discounts and payments holidays
Return to normal billing for licensed premise customers from 1 August
Accommodation sector discounts (excluding MIQ facilities) remain whilst border closures are in effect, but were halved in November
Advertising revenue down \$3.7m (14%) compared to prior year due to business uncertainty surrounding COVID-19 and the reduction in live sport
Television spend for the NZ market¹ was down ~12.7% YoY. Although Sky's sport content was significantly impacted, overall market share only reduced to 9.1% from 9.6%

Total Expenses

Down \$50m (excluding one-offs) due to COVID-19 impacted content schedule and permanent cost savings

¹ Total expenses is made up of Operating expenses plus Depreciation & Amortisation

For the six months ended 31 December 2020 Results Presentation 23

Operating expenses (excluding Depreciation & Amortisation) decreased by \$52m (18%) on prior period; decrease was \$44m (15%) after excluding one-offs in each period
Significant reduction of \$31m in Programming costs includes:
Equitable reductions in content rights and lower production costs due to COVID-19 cancelled and postponed events
Savings from not renewing domestic cricket rights
Permanent reduction in RugbyPass costs
Subscriber related, Broadcast & Infrastructure and Other reductions of \$12m primarily relate to headcount savings from FY20 restructuring activities and other cost efficiency programmes
One-off costs in the period relate to the mutually agreed exit of the former CEO. H1 FY20 one-offs included \$7m of redundancies, \$2m Satellite reservation fee and \$2.5m consultancy costs
Ongoing reductions in depreciation consistent with our transition to a capital-light model

EBITDA Bridge

Strong cost control during COVID-19 period together with permanent savings

The COVID-19 impact on revenue of \$14m was outweighed by reductions in sports rights costs (\$19m) and production & promotional costs for events cancelled or postponed (\$5m)
COVID-19 impact on commercial and advertising sector continued from FY20, whilst impact on Sky Box revenue was tempered by the early return of key sports content
FY21 one-offs also include the reseller migration credit and \$2.2m of other income from non-cash accounting adjustments primarily related to RugbyPass
Underlying subscription revenue decline of \$11m (3%) vs a 5% decline in H1 FY20
Permanent cost savings of \$18m include benefit of restructuring in FY20, non-renewal of domestic cricket and permanent savings from RugbyPass, discontinued Sky Sport News & Sky Watch magazine, reduced reseller commissions with the move to direct relationship with Sky

Capital Expenditure

Transition to a lighter capital model continues

H1 FY21 capex of \$20m was 5.6% of revenue, down from 8.6% in H1 FY20. We continue to target capex spend within our longterm range of 7%- 9% of revenue
Satellite installation capex increased due to higher acquisition volumes
H1 FY20 included \$5m investment to enhance broadcasting capabilities (such as HD expansion) and \$5m for additional enhancements to our streaming platforms which included the launch of Sky Sport Now in August 2019
Reduction in capex spend resulting from pending sale of OSB to NEP. The sale reduces future capex requirements related to technology upgrades estimated at \$50m over the next 5 years
Expect higher H2 FY21 spend in line with guidance

Free Cash Flow \$121m of cash generated from operations

• Strong cash generated from operations in the period of \$121m

This is after adjusting for working capital, which increased by \$39m in the period as we had inflated cash and payables balances at June 2020 (due to ongoing sport equitable reduction negotiations at that time) returned to normal levels during the period
Sufficient funds on hand (including undrawn \$200m borrowing facility) at H1 FY21 to repay bond in March 2021

Looking Ahead

H2 FY21 Outlook

Sky remains focused on further stabilising Sky Box customer numbers, whilst at the same time continuing our growth in Neon and Sky Sport Now customers
We also expect to see a continued recovery in Commercial revenues
Ongoing sharp focus on unlocking further permanent savings as we absorb costs associated with programming rights increases and a more fulsome calendar of sports
In H2 we will:
Release the new Sky Go companion app
Delver Sky Broadband as a value-add service
Commission a new set top box to meet needs of customers
Strengthen and deepen our customer relationships through improved customer insights and responding to customer feedback

FY21 Outlook

\$m	FY21 Outlook1
Revenue	695 – 715
EBITDA	170 – 182.5
NPAT	37.5 – 45
Capex	45 - 55

Sky reaffirms the revised guidance issued to the market on 3 February 2021
FY21 full year includes one-off impacts of \$3.6m for the RugbyPass earnout settlement, and the sale of OSB assets to NEP and commencement of the NEP services agreement
H2 FY21 expenses will include one-off costs associated with the launch of broadband, and accelerated depreciation on legacy assets as we migrate to Sky's new digital platform
Sky remains in a strong financial position, including cash on hand of \$123m and undrawn debt facilities available to repay the \$100m bonds in March 2021
The Board currently intends to reinvest available free cash flow during the remainder of FY21, and will re-evaluate the commencement of dividends after that
Investor Day planned for Q4

¹Subject to no adverse change in operating conditions, including future economic impacts flowing from COVID-19.

Questions

Disclaimer

This presentation has been prepared by Sky Network Television Limited and its group of companies ("the Company") for informational purposes. This disclaimer applies to this document and the verbal or written comments of any person presenting it.

Information in this presentation has been prepared by the Company with due care and attention. However, neither the Company nor any of its directors, employees, shareholders nor any other person give any warranties or representation (express or implied) as the accuracy or completeness of this information. To the maximum extent permitted by law, none of the Company, its directors, employees, shareholders or any other person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or any information supplied in connection with it.

This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates and assumptions and are subject to a number of risks, and uncertainties, including material adverse events, significant one-off expenses and other unforeseeable circumstances. There is no assurance that results contemplated in any of these projections and forward-looking statements will be realised, nor is there any assurance that the expectations, estimates and assumptions underpinning those projections or forward-looking statements are reasonable. Actual results may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release or to provide you with further information about the Company.

The Company has used the non-GAAP financial measure EBITDA and has presented adjusted results when discussing financial performance, as the directors and management believe that these measures provide useful information on the underlying performance of the Company. EBITDA is defined by the Company as earnings before income tax, interest expense, depreciation, amortisation and impairment, unrealised gains and losses on currency and interest rate swaps. Adjustments made to Sky's GAAP financial measures normalised for non-recurring costs and non-cash impairments, and are described in more detail herein. You should not consider this in isolation from, or as a substitute for, the information provided in the unaudited consolidated financial statements for the six months ended 31 December 2020, which are available at https://www.sky.co.nz/investor-relations/results-and-reports.

The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. The presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any security and may not be relied upon in connection with the purchase or sale of any security. Nothing in this presentation constitutes legal, financial, tax or other advice.

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SKY NETWORK TELEVISION LIMITED. — Interim / Quarterly Report 2021

65806_rns_2021-02-22_6d55ac03-7d2c-4ef2-bb5d-169f0aa7953b.pdf

Appendix 4D Release to ASX under rule 4.2A

Half Year Information for Sky Network Television Limited for the six months to 31 December 2020

CONTENTS

Sky delivers strong first half result; Sky Box customer base stabilising; firm focus on execution of key initiatives

Key results 1

Customers

Content

Financial

Outlook

For investor enquiries, please contact: For media enquiries, please contact:

Results for announcement to market

What matters most.

What matters most is our customers

FINANCIAL

Our performance has been good, but we need to do better

The first half highlights

What's coming next?

THE IMMEDIATE FOCUS FOR SKY IS:

1. Stabilising revenue by:

All successful businesses have a unique advantage; something their customers and partners value over others.

Consolidated Interim Statement of Comprehensive Income

For the six months ended 31 December 2020 (unaudited)

Consolidated Interim Balance Sheet

Consolidated Interim Statement of Changes in Equity

Consolidated Interim Statement of Cash Flows

For the six months ended 31 December 2020 (unaudited)

Notes to the Consolidated Interim Financial Statements

1. General Information

2. Basis of Preparation

Group structure

3. Significant Accounting Policies and Critical Judgements and Estimations

Group performance review

Impact of COVID-19

Capital structure

4. Segment and Revenue Information

5. Related Party Transactions

6. Interest Bearing Loans and Borrowings

Bank loans

Bonds

7. Capital Expenditure

8. Programme Rights Inventory

9. Assets and Liabilities Held for Sale

Outside Broadcasting Limited (OSB)

10. Fair Value Measurement of Financial Instruments

Classification of financial instruments

11. Contracts for Future Programme Commitments

12. Earnings Per Share

Basic and diluted earnings/(loss) per share

13. Contingent Liabilities

14. Subsequent Events

Independent auditor's review report

Report on the consolidated interim financial statements

Our conclusion

Basis for conclusion

Directors' responsibility for the financial statements

Auditor's responsibility for the review of the financial statements

Who we report to

Directory

Registrars

New Zealand Ordinary Share Registrar

Computershare Investor Services Limited

Mailing address:

Australian Branch Register

Computershare Investor Services Pty Limited

Bondholder Trustee

The New Zealand Guardian Trust Company Limited Level 6, 191 Queen Street Auckland 1010, New Zealand

Mailing address:

Directors

Officers

New Zealand Registered Office

Australian Registered Office

c/- Allens Arthur Robinson Corporate Pty Limited

Auditors to Sky

PricewaterhouseCoopers

Solicitors to Sky

Chapman Tripp

Other Information

SKY NETWORK TELEVISION LIMITED. Interim / Quarterly Report 2021

Key results ¹