SKY TV Announces 2018 Annual Result

The underlying net profit of $119.3 million, adjusted for the impact of the $360 million goodwill impairment charge is an increase of 2.6% over the $116.3 million net profit reported in the previous year. The net loss after tax for the year ended 30 June 2018 is $240.7 million compared to a net profit after tax of $116.3 million in the previous year. The net loss includes an impairment charge of $360 million. The SKY board is required to assess the fair value of intangible assets at each reporting period and if this is determined to be less than the book value, then the assets are impaired. The impairment charge reduces the net book value of SKY's equity at 30 June 2018 to $1.03 billion ($2.64/share) compared to $1.33 billion ($3.41/share) at 30 June 2017. SKY shares closed at $2.60 per share on 30 June 2018. This goodwill asset arose on the merger of Independent Newspapers Ltd ("INL") and SKY back in June 2005 and reflected the difference between the fair value of SKY's assets at the date of the merger and the price that INL shareholders agreed to exchange their shares in INL for SKY shares. This is a non-cash charge that has no impact on SKY's 2018 cash flows or on any of its bank covenants. Earnings before interest, tax, depreciation and amortisation ("EBITDA") decreased by 2.2% to $285.8 million. Operating expenses decreased by 7.9% due to cost saving initiatives being rolled out throughout the business, as well as higher programming costs in the previous year due to the cost of the Rio Summer Olympics. The SKY Board has declared a fully imputed final dividend of 7.5 cents per share. Attached are the following documents: 1. Appendix 1 2. Chairman's and CEO letter to shareholders 3. Audited Financial Statements 4. Media release 5. Appendix 7 6. Results presentation End CA:00322703 For:SKT Type:FLLYR Time:2018-08-24 08:45:56