14 December 2016

Market Information Services Section NZX Limited

PO Box 2959

Wellington

Company Announcements Office ASX Limited

Leve 4, 20 Bridge Street Sydney, NSW

Australia

Trading Update for year ended 30 June 2017 - amended SKY TV

PO Box 9059

Newmarket Auckland 1149 New Zealand

10 Panorama Road Mt Wellington Auckland 1060 New Zealand

T. +64 9 579 9999

sky.co.nz skybusiness.co.nz

SKY Network Television Limited (SKY) advises that it is forecasting its earnings before interest, tax, depreciation and amortisation (EBITDA) to be 5% to 7% below the $296.0 million forecast that was provided in the Notice of Meeting and Explanatory Memorandum (EM) dated 13 June 2016 in relation to the proposed merger of SKY and Vodafone New Zealand Limited (Vodafone NZ).

Based on SKY's trading results to 30 November, forecast revenues are down slightly due to a reduction in subscriber numbers and a change in customer mix.

Sky continues to focus on providing customers with superior content and the decline in forecast EBITDA is also due to increased content costs, including the acquisition of rights to broadcast the 2017 America's Cup, Lions Tour to NZ and PGA golf. These investments are expected to generate incremental revenue opportunities over time but are not sufficient to offset the cost increase in the current financial year.

We also note that SKY updated the market on 20 October 2016 in relation to an error in its depreciation, amortisation and impairment forecast for the year ended 30 June 2017 and that this should be $109.1 million rather than the $101.3 million included in the EM

SKY is waiting on approvals to its proposed merger with Vodafone NZ from the Overseas Investment Office and Commerce Commission. The Commerce Commission recently announced it had extended the decision date on SKY's Clearance application from 21 December 2016 to 23 February 2017.

Ends

For further information please contact:

Jason Hollingworth Chief Financial Officer SKY Network Television

(09) 579 999 mob: 021 312 928

jhollingworth@skytv.co.nz

Sky Network Television Ltd. published this content on 14 December 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 14 December 2016 08:28:07 UTC.

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