The Sky Tv Analysis

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3.23 dividend

The dividend payout ratio measures the percentage of net income that is distributed to shareholders in the form of dividends during the year (Fridson & Alvarez, 2011). Refer to the data extracted from full report, the ratio steadily grows from 2010 to 2012 and remain same in recent three years (Samuel, 2016). It indicates that the dividend policy is beneficial to shareholders. Even if SKY is facing the intensive challenges in recent years, the company still try their best to create value for the shareholders.

- The future of the telecommunications industry

With the development of technology and increasing demand of consumers, the telecommunication sector will evolve rapidly because mobile devices and related broad connectivity continue to be more and more embedded in the fabric of society today, such as video streaming, and mobile payment (Wigginton, 2016).

Firstly, the data volume will continually increase. The demand of data has intensified in recent years, which driven by the popularity of video streaming services, catch-up services for broadcast television, social media and video content on news website. It predicts that this volume will continue to grow in future (Samuel, 2016).

Secondly, Telecommunications companies may increasingly seek to bundle services in a single package (Samuel, 2016). Because it is competitive to offering combo price of combing some fixed broad band, mobile and pay television.

Thirdly, the cloud services are widely used to externally processing and storage between consumers and business (Samuel, 2016). Such as a photo storage and customer database. The increasing use of cloud services by businesses and consumers drives greater demand for data center space and high speed network connections to those data centers.

Therefore it is reasonable to forecast that there is still increasing demand for flexible access to video content across devices as well as a steady stream of new products, services and technologies.

- Conclusion

Due to the increasing rival completion and weak position without fixed broadband, there is a decline in the numbers of subscriber, which results in flat revenue growth and less earnings in recent years (Sky, 2015). The merge proposal can better solve the issues through enabling consumers to more easily access rival internet-based services, for the combined group it provides an opportunity to lower distribution costs and deliver new products using Sky TV’s content in different ways (Samuel, 2016). Besides, the telecommunication industry is continuously changing and bring more opportunity for SKY to innovation for better performance. Furthermore, the SKY TV constantly try to maximize shareholder’s profit, which are attractive in investment decision.

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- References

Fridson, M. S., & Alvarez, F. (2011). Financial statement analysis: A practitioner's guide, fourth edition. Hoboken, NJ: John Wiley & Sons.

REUTERS. (2015). SKY Network Television Ltd (SKT.NZ) Financials. Retrieved from http://www.reuters.com/finance/stocks/financialHighlights?symbol=SKT.NZ

SAMUEL, G. (2016). Independent Adviser's Full Report. Retrieved from Sky Network Television Limited website: https://skynz.akamaized.net//documents/24003/592182/Full+Report+Final+-+June+10.pdf/3908481f-7c9d-4e14-bed7-6f3c034e1941

Sky Network Television Limited. (2013). Retrieved from 2013 Annual Report website: https://skynz.akamaized.net//documents/24003/40579/2013+Annual+Report.pdf/84e8ba9b-01e9-48e1-88b9-1d3814a79198

Sky Network Television Limited. (2014). 2014 Annual Report. Retrieved from https://skynz.akamaized.net//documents/24003/40843/2014+Annual+Report.pdf/ef04b456-0aaf-46c2-828d-e55be6fb7869

Sky Network Television Limited. (2015). 2015 Annual Report. Retrieved from https://skynz.akamaized.net//documents/24003/60595/2015+Annual+Report.pdf/5cefb7af-8335-4268-964a-9365014d5e48

Wigginton, C. (2016). 2016 Telecommunications Industry Outlook. Retrieved from http://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/telecommunications-industry-outlook.html