12 Aug 2020

Sky TV sells its outside broadcast subsidiary to NEP

10:43 am on 12 August 2020

Sky TV has sold its outside broadcast subsidiary for an undisclosed sum to US-based firm NEP.

Sky TV generic

Photo: Supplied / Richard Parsonson

The assets purchased, which are used to film live sport include six broadcasting trucks, two warehouses and all ancillary equipment.

Sky chief executive Martin Stewart said as part of the transaction, NEP would be Sky's technical production partner in New Zealand for the next 10 years.

"Sky Sport's focus continues to be delivering quality sport that New Zealanders love, from grassroots to high performance and professional competitions. It's what Sky Sport lives and breathes - that won't change.

"We'll be focused on developing creative content and great storytelling, with NEP New Zealand as our outsourced technical production partner."

Stewart said the sale would allow quality broadcasting to continue without the cost falling to Sky.

"The rate of technological change in the [outside broadcast] space is significant, and the advantage of this transaction is Sky Sport will continue to have access to the best advancements... without Sky having to make substantial investments to own equipment."

The majority of OSB staff and some Sky broadcast specialists would move to NEP.

The transaction is subject to approval from the Overseas Investment Office and the Commerce Commission.

Sky today has also reaffirmed its earnings guidance for the year ended June, it expected earnings to come in the range of $155 million to $175m, and a net profit before one-off costs such as write-offs of between $20m to $25m.

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