Morningstar recommends in favour of Sky Network Television's capital return

Sky Network Television

23/10/2022 22:34

** Brokerage Morningstar says it recommends shareholders of
New Zealand's Sky Network Television  SKT.NZ  vote in favour of
its capital return to shareholders on the company's AGM on
November 2
    ** SKT will propose at the AGM to return NZ$70 million
($40.25 million) via pro rata share cancellation  urn:newsml:reuters.com:*:nNZW9dXNn1 
    ** Morningstar says it supports SKT's decision to liberate
capital from the "lazy" balance sheet 
    ** Says the capital return is better than the management's
prior aspirations of acquiring businesses in the advertising
space
    ** The advertising sector is "notoriously volatile",
Morningstar says, and will distract management from the job
still at hand of stabilising Sky's core Sky Box pay-TV unit
    ** Out of five analysts, two rate SKT 'buy', two 'hold' and
one 'sell'; median PT is NZ$2.75 
    ** SKT closed at NZ$2.19 on Friday, is down 18.9% YTD
($1 = 1.7391 New Zealand dollars)
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))