New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Sky Network Television / Equity Bottom-Up

<ul><li>Sky TV (SKT) reported a solid 1H26 result, with its Sky Standalone business broadly in line with expectations, but Sky Free (previously Discovery NZ) delivered a better outcome.</li><li>The two key positive surprises from the result were: (1) SKT reported a net cash balance of NZ$100m; and (2) Sky Free is already EBITDA positive.</li><li>With its strong cash position and free cash flow generation, we believe the risk to its current NZ30cps dividend is to the upside over the short to medium term.</li></ul>

Sky TV (SKT) reported a solid 1H26 result, with its Sky Standalone business broadly in line with expectations, but Sky Free (previously Discovery NZ) delivered a better outcome.The two key positive surprises from the result were: (1) SKT reported a net cash balance of NZ$100m; and (2) Sky Free is already EBITDA positive.With its strong cash position and free cash flow generation, we believe the risk to its current NZ30cps dividend is to the upside over the short to medium term.

Sky TV 1H26 Result—Cash Levels Sky High