(Adds CEO comment, background details)
WELLINGTON Feb 22 New Zealand's Sky Network
Television on Wednesday announced half-year profits had
fallen 31.9 percent as increased competition from online viewing
services ate at its revenues.
The subscription television provider posted net profits of
NZ$59.4 million ($42.5 million) in the six months to Dec. 31.
Subscriptions and advertising fell as international digital
viewing services recently launched in New Zealand, such as
Netflix and Amazon Prime, reduced Sky's market
"Digital disruption has also brought a massive increase in
the supply of additional viewing options for consumers and
spending options for advertisers. Yet without much increase in
overall demand," said CEO John Fellet in a statement.
Sky TV confirmed its December guidance that earnings before
interest, tax, depreciation and amortisation would be 5 to 7
percent below the NZ$296 million forecast for full-year 2017.
The company announced an interim dividend of NZ$0.15, in
line with its previous half-year dividend.
The company is waiting this week to hear whether the New
Zealand competition regulator will allow it to acquire
Vodafone's New Zealand unit, a deal telecommunications
company Spark is opposing in court.
A court hearing is scheduled for Wednesday on whether Spark
can seek a temporary 36-hour halt if the Commerce Commission
rules the transaction can go ahead on Thursday.
($1 = 1.3966 New Zealand dollars)
(Reporting by Charlotte Greenfield; Editing by Robin Pomeroy)