Sky Network Television has posted a 21 per cent decline in annual profit as content costs increased, and revenue and subscriber numbers fell.
Profit slid to $116 million in the 12 months ended June 30, from $147.1m a year earlier, the Auckland-based company said today.
Revenue dropped 3.7 per cent to $893.5m while operating expenses slipped 0.3 per cent to $601.2m. Some $2.1m of expenses related to the proposed merger with Vodafone, compared with $13.4m of costs a year earlier.
The merger with Vodafone was rejected by the competition watchdog Commerce Commission and Sky TV chief executive John Fellet says appealing the decision would have been "torturous and expensive".
"As time went by it became apparent that we could action many of the opportunities and synergies through commercial agreements without the escalating costs of a merger," he said.
"Some of those are in the market now and you will see further proof points of the closer working relationship in the foreseeable future."
Satellite subscriber numbers were 705,652 at the end of June, down 33,800 over the year.