Sky Television has written off $670 million in "goodwill", leading to a $608 million loss for the year to June.
However, the company's earnings were better than expected at $97 million.
In a statement, Sky said it won't pay a dividend for the final six months of the financial year to instead focus on investment in the company.
It comes as the company said it will focus on streaming, reporting a 50 per cent increase in customers using the service.
Chief Executive Martin Stewart said the results showed Sky was moving in the right direction.
"The world is changing, and so are we. We are transforming Sky and building a new business," he said.
"We are returning to growth by embracing streaming ... People talk about streaming being the future. Well, the future is happening right now."
Mr Stewart, who has been in his role for six months, addressed the challenges, saying "we live in an uncertain world and we have looked at a range of different scenarios and assumptions for the future".
"For the purposes of accounting we needed to pick a point estimate and we have selected one that no longer includes increases in hybrid and satellite subscribers, and we have taken a more conservative estimate of our future average revenues, reflecting our decisions around where we invest and how we price our future offers to customers."