SKY Network Television Limited (NZSE:SKT) On The Verge Of Breaking Even

SKY Network Television Limited (NZSE:SKT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. SKY Network Television Limited, an entertainment company, provides sport and entertainment media services in New Zealand and internationally. The NZ$290m market-cap company announced a latest loss of NZ$157m on 30 June 2020 for its most recent financial year result. The most pressing concern for investors is SKY Network Television's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for SKY Network Television

Consensus from 6 of the New Zealander Media analysts is that SKY Network Television is on the verge of breakeven. They expect the company to post a final loss in 2020, before turning a profit of NZ$25m in 2021. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 105% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving SKY Network Television's growth isn’t the focus of this broad overview, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 27% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of SKY Network Television which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at SKY Network Television, take a look at SKY Network Television's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Valuation: What is SKY Network Television worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether SKY Network Television is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on SKY Network Television’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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