Sky TV stems losses

Sky Network Television appears to have stemmed much of its bleeding, posting an interim loss of $4.37 million after tax.

That compared with a $13.2 million loss in the previous six months to December 31.

The company did not declare a dividend.

Shares in Sky TV, which is two-thirds owned by publisher INL, rose 3c to $3.63 in late morning trade.

INL incorporated its Sky shareholding into its own half year results today, announcing a net after tax profit of $38.8 million, a 43 per cent rise on the corresponding period in 2001.

INL chairman Ken Cowley said Sky had continued to grow its subscriber base and reduce losses. Its earnings before interest, tax, depreciation and amortisation (ebitda) rose 33 per cent to $71.6 million, outpacing INL Publishing's ebitda rise of 7.8 per cent.

Operating revenue for Sky rose 14.6 per cent to $162.3 million from $141.5 million the year before.

Sky's costs have previously been impacted by the cost of outlaying technology for new subscribers and of programming, which is primarily bought in US dollars.

But in January the company said its hedging policy mean it would not immediately benefit from the New Zealand dollar's recent huge rise against the greenback.

In June last year, Sky announced it had reached a subscriber base of more than 500,000 or 37 per cent of all New Zealand households.

- NZPA