SKY Network Television : 21.08.17 - Appendix 4E - ASX Release August 2017

Appendix 4E Release to ASX under rule 4.3A Full Year Information for Sky Network Television Limited for the year ended 30 June 2017 CONTENTS

Results for announcement to the market

Results commentary

Consolidated financial statements

Independent audit opinion

Directors declaration

Other information

Results for announcement to market Sky Network Television Limited Year ended on 30 June 2017 (In NZD)

Total operating revenues of $893,485,000 have decreased $34,715,000 from the previous year, which is a 3.7% decrease.

Net profit of $116,344,000 has decreased $30,779,000 from the previous year, which is a 20.9% decrease.

Net profit after tax attributable to equity holders of $116,026,000 has decreased $30,692,000 from the previous year, which is a 20.9% decrease.

The results include one off costs of $2,145,000 incurred in relation to the planned acquisition of Vodafone NZ.

Dividends	Amount per security	Franked amount per Security
Final Dividend (payable September 2017) Interim Dividend (paid March 2017)	12.5 cents 15.0 cents	N/A N/A
Final Dividend (paid September 2016)	15.0 cents	N/A
Previous corresponding period - Interim Dividend (paid March 2016)	15.0 cents	N/A
Previous corresponding period - Final Dividend (paid September 2015)	15.0 cents	N/A
Record date for determining entitlements to the Final Dividend	5 September 2017

Brief explanation of any figures reported above, refer attached results commentary.

FINANCIAL STATEMENTS JUNE 2017

SKY NETWORK TELEVISION LIMITED

02

CHIEF EXECUTIVE'S LETTER

Dear Shareholders,

It is my pleasure to present to you my 16th annual shareholders' letter. The financial statements, as always, will present a financial snapshot of the business. My goal with this letter is to give you an insight into your company and the industry it operates in. I will attempt to do this in a form that will suit the needs of the individual investor as well the institutional one.

Because of competitive tensions I cannot always go into as much detail as I would like, but rest assured identifying the problem is only the first step for your management team.

We are firm believers that when the winds of change blow, you need to build windmills not shelters.

CoMMERCE CoMMISSIoN ANd VodAFoNE

What a difference a year makes. A year ago my letter covered the pending merger with Vodafone New Zealand.

I will not waste time lamenting over what I think was a flawed decision by the Commerce Commission. It was the original desire of both companies to legally appeal the decision, despite the torturous and expensive appeal process, which would still require another shareholder vote after another negotiation round over changing valuations of the two companies.

However, as time went by it became apparent that we could action many of the opportunities and synergies through commercial agreements without the escalating costs of a merger. Some of these are in the market now, and you will see further proof points of the closer working relationship in the foreseeable future.

EXpLoSIoN oF CoNTENT oFFERINgS ANd THE RISE oF "pRESTIgE dRAMA"

Our team knows of every scripted series produced in English across the world. In 2012, 266 series were produced. This year the figure reached 455 series. If every series in planning as I write this letter actually gets made, the figure should jump to 534 series next year. The bulk of this increase has been in dramas, and particularly a "new species" of content called Prestige Drama.

It is hard to define Prestige Drama but you know it when you see it. There are dramas you can watch while you sit on the couch with a laptop answering