Half Year ReportHalf Year Report

December 2002December 2002

19 February 200319 February 2003

Half Year ReportHalf Year Report

December 2002December 2002

19 February 200319 February 2003

Subscriber CountSubscriber Count

0

100,000

200,000

300,000

400,000

500,000

Jun

-91

Jun

-92

Jun

-93

Jun

-94

Jun

-95

Jun

-96

Jun

-97

Jun

-98

Jun

-99

Jun

-00

Jun

-01

Jun

-02

UHF Satellite Wholesale

Total RevenueTotal Revenue

$188

$236 $263$300

$167$186

$0

$50

$100

$150

$200

$250

$300

$350

NZ

$ in

mil

lion

s

1998 1999 2000 2001 2002 2003Year End 30 June

CAGR 16%

CAGR 16%

$345$345

Pay Television PenetrationPay Television Penetration

AustraliaAustralia 22%22%

FranceFrance 32%32%

New ZealandNew Zealand 37%37%

United KingdomUnited Kingdom 41%41%

FinlandFinland 45%45%

GermanyGermany 70%70%

Switzerland Switzerland 83%83%

United StatesUnited States 85%85%

BeNeLuxBeNeLux 95%95%

Moving Annual Moving Annual Gross ChurnGross Churn

10%12%14%16%18%20%22%24%26%28%30%32%

Jun-98

Sep-98

Dec-98

Mar-99

Jun-99

Sep-99

Dec-99

Mar-00

Jun-00

Sep-00

Dec-00

Mar-01

Jun-01

Sep-01

Dec-01

Mar-02

Jun-02

Sep-02

Dec-02

Subscriber ChurnSubscriber Churn

1.00%

1.50%

2.00%

2.50%

2001 2002 Actual

Average Revenue per Unit (ARPU)Average Revenue per Unit (ARPU)

$56.62$59.06

$42.67

$40.45

$46.74$36.42

$5.00

$15.00

$25.00

$35.00

$45.00

$55.00

NZ$

Satellite UHF Wholesale

2001 2002

Average Revenue per Unit (ARPU)Average Revenue per Unit (ARPU)

$51.08

$50.85

$50.20

$50.70

$51.20

NZ$

Total

2001 2002

SkyBetSkyBet

SKY BetSKY Bet

Advertising RevenueAdvertising Revenue

$8.6

$10.7 $11.6$12.6

$7.3 $8.6

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

NZ

$ in

mil

lion

s

1998 1999 2000 2001 2002 2003Year End 30 June

CAGR 22%

CAGR 22%

$16.5$16.5

The Effect of RugbyThe Effect of Rugby

SKY’s Top Ten Rating Programmes in SKY Homes (%)SKY’s Top Ten Rating Programmes in SKY Homes (%)

Source: AC Neilson McNair

Source: AC Neilson McNair

20012001

Tri Nations Rugby LiveTri Nations Rugby Live Tri Nations Rugby LiveTri Nations Rugby Live Inter Rugby LiveInter Rugby Live Tri Nations LiveTri Nations Live Inter Rugby LiveInter Rugby Live Super 12 Final LiveSuper 12 Final Live Inter Rugby LiveInter Rugby Live Super 12 Rugby LiveSuper 12 Rugby Live Super 12 Rugby LiveSuper 12 Rugby Live Inter Rugby LiveInter Rugby Live

20022002

Tri Nations Rugby LiveTri Nations Rugby Live NRL Pre FinalNRL Pre Final NRL Final Live LiveNRL Final Live Live Tri Nations LiveTri Nations Live Tri Nations LiveTri Nations Live Inter Rugby LiveInter Rugby Live Inter Rugby LiveInter Rugby Live NPC Final LiveNPC Final Live Super 12 Final LiveSuper 12 Final Live Inter Rugby LiveInter Rugby Live

20002000

Tri Nations Rugby LiveTri Nations Rugby Live Tri Nations Rugby LiveTri Nations Rugby Live NPC Rugby LiveNPC Rugby Live Bledisloe Cup LiveBledisloe Cup Live Super 12 LiveSuper 12 Live NPC Rugby LiveNPC Rugby Live International Rubgy LiveInternational Rubgy Live NPC Rugby LiveNPC Rugby Live Tri Nations LiveTri Nations Live NPC Rugby LiveNPC Rugby Live

Programming CostsProgramming Costsas a percentage of revenueas a percentage of revenue

46%

43%

49%50%

48%

42%

36%

38%

40%

42%

44%

46%

48%

50%

52%

% o

f Pro

gram

min

g

1998 1999 2000 2001 2002 2003

Year End 30 June

49%49%

0.3800

0.4300

0.4800

0.5300

0.5800

0.6300

0.6800

0.730031

.12.

84

31.1

2.91

30.1

2.98

Dol

lars

Source: Reuters

Monthly Closes

NZ$/US$ (Dec'84-Dec'02)

Monthly Closes

NZ$/US$ (Dec'84-Dec'02)

EBITDAEBITDA

$48.3

$73.7 $74.1$75.3

$52.1$73.8

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

NZ

$ in

mill

ions

1998 1999 2000 2001 2002 2003

Year End 30 June

CAGR 16%

CAGR 16%

$108.2$108.2

Net Profit/(Loss)Net Profit/(Loss)

-$6.1

$3.2

-$27.1

-$42.3

-$13.1

-$4.3

-$45.0

-$40.0

-$35.0

-$30.0

-$25.0

-$20.0

-$15.0

-$10.0

-$5.0

$0.0

$5.0

NZ

$ in

mill

ions

1998 1999 2000 2001 2002 2003

Year End 30 June

-$30.2

-$30.2

Subscriber GrowthSubscriber Growth

442.8442.8

6.76.7

30.430.4

267.1267.1

138.6138.6

20012001

(12%)(12%)121.6121.6UHF ResidentialUHF Residential

Total SubscribersTotal Subscribers

CommercialCommercial

DBS WholesaleDBS Wholesale

DBS ResidentialDBS Residential

‘‘000000

17%17%516.7516.7

13%13%7.67.6

154%154%77.277.2

16%16%310.3310.3

% Change% Change20022002

Results SummaryResults Summary

$ million$ million 20012001 20022002 % Change% Change

RevenueRevenue 166.8166.8 186.2186.2 11.6%11.6%

Operating ExpensesOperating Expenses 114.7114.7 112.4112.4 (2%)(2%)

EBITDAEBITDA 52.152.1 73.873.8 41.6%41.6%

Depn & AmortDepn & Amort 54.454.4 60.960.9 12%12%

EBITEBIT (2.3)(2.3) 12.912.9 660.9%660.9%

InterestInterest 12.612.6 14.414.4 14.3%14.3%

OtherOther (1.7)(1.7) 2.82.8 263.4%263.4%

Net Loss after TaxNet Loss after Tax (13.2)(13.2) (4.3)(4.3) (67.2%)(67.2%)

Expense AnalysisExpense Analysis

169.1169.1

54.454.4

24.224.2

3.43.4

6.26.2

80.980.9

20012001

(2.5%)(2.5%)78.978.9ProgrammingProgramming

Total Operating ExpensesTotal Operating Expenses

Depreciation & AmortisationDepreciation & Amortisation

Selling, General & AdministrationSelling, General & Administration

TransmissionTransmission

Subscriber ManagementSubscriber Management

$ million$ million

2.5%2.5%173.3173.3

12%12%60.960.9

(1.3%)(1.3%)23.923.9

1.7%1.7%3.53.5

(0.2%)(0.2%)6.16.1

% Change% Change20022002

Free Cash FlowFree Cash Flow

(17.1)(17.1)

(59.6)(59.6)

42.542.5

20012001

(0.2%)(0.2%)(59.5)(59.5)Net Investing Cash FlowsNet Investing Cash Flows

66.4%66.4%70.770.7Net Operating Cash FlowNet Operating Cash Flow

Free Cash FlowFree Cash Flow

$ million$ million

166%166%11.211.2

% Change% Change20022002

Foreign Currency HedgingForeign Currency Hedging

49% hedged for 0-12 months $US exposures @ .435449% hedged for 0-12 months $US exposures @ .4354

21% hedged for 12-24 months $US exposures @ .430321% hedged for 12-24 months $US exposures @ .4303

97% hedged for 0-12 months $A exposures @.850697% hedged for 0-12 months $A exposures @.8506

0% hedged for 12-24 months $A exposures 0% hedged for 12-24 months $A exposures

average payment rate for 6 mths to Dec 02 - 44.5caverage payment rate for 6 mths to Dec 02 - 44.5c

Capital Expenditure Capital Expenditure (excluding Transponders)(excluding Transponders)

$63.8

$114.7$103.3

$153.3

$51.8 $53.8

$0

$20

$40

$60

$80

$100

$120

$140

$160

$NZ

(m

illi

ons)

1998 1999 2000 2001 2002 2003Year End 30 June

$107.9$107.9

Average Direct Install CostsAverage Direct Install Costs

$822

$715

$540

$500

$600

$700

$800

NZ$

Total

2001 2002 Future

Inventory LevelsInventory Levels

25,270

22,190

31,477

10,000

15,000

20,000

25,000

30,000

35,000

NZ$

Total

Dec-01 Jun-02 Dec-02