SKY Network Television Limited (SKT) Earnings Call Transcript & Summary

Good morning, and thank you for joining us. I'm Sophie Moloney, your Chief Executive. And with me is our Interim Chief Financial Officer, Andrew Hirst. As you'll know, earlier this morning, we informed the market that we have upgraded our guidance for FY '22, following a rigorous cost review and the acceleration of the transformation of our business. It delivers a significant improvement in our forecast for EBITDA and NPAT, and I'm very pleased with our progress. Andrew and I welcome the opportunity to take you through the guidance and our cost-out programs and to answer any questions you have. But before we step into the detail, a quick reminder of our strategy. We have 4 strategic priority areas, all designed to achieve our purpose of connecting our customers to the great sports and entertainment they love and ways that work for them right across the country. I'm not going to speak through these pillars of the strategy today. It's hopefully, you've heard me discuss it a number of times now. But suffice to say that we're making substantial progress across each of the priority areas and staying firmly focused on execution. I look forward to going into more detail when we report the interim results in February. Today's focus is on the financial pillar, growing revenues and reducing operating costs. particularly against the backdrop of the [ step-up ] and rights cost of our key content in this current cycle. It's also about the bedrock of our strategy, being an efficient, adaptive and profitable business which is something you'll certainly see coming through the information that we're sharing today. So let's get on to it. I see at the annual results and subsequently at the Annual Shareholder Meeting that our target of $5 million to $10 million of non-programming OpEx savings in FY '22 was an absolute minimum. I'm delighted that following our robust review of Sky's cost base with every line item being scrutinized, we have identified substantial savings in FY '22, delivering an immediate boost to EBITDA and impact forecast for this financial year. Our revised guidance represents a 27% increase in the midpoint of previous EBITDA and a 96% increase in the NPAT forecast. Importantly, of the $35 million of additional operating cost savings in FY '22, $26 million are recurring cost reductions, whereby delivering $40 million to $45 million of annualized savings. And as pleasing as those savings are, this is just the first phase. We are targeting further permanent savings for FY '23 and beyond as we accelerate the transformation of our business. The cost review, combined with the forecast growth in revenue, will deliver significant levels of free cash flow, but more on capital management a bit later. Since I addressed you at the ASM, I've also made key appointments to my executive leadership team. We now have a group of exceptional leaders with the skills and commitment to drive the delivery of the outcomes that we're discussing today. In particular, I look forward to welcoming Tom Gordon as our new Chief Financial Officer next week. I'll hand over shortly to our current highly capable interim CFO, Andrew, but first, a few comments on the cost review. I was very clear when setting the terms for the review with expert guidance from James Marsh, the former Foxtel CFO, that every OpEx and CapEx line was to be carefully considered, bearing in mind that we cannot compromise on our customer value promise in the process. We already had savings and non-programming OpEx costs in our sites for delivery in FY '22, and that work has challenged us to go further, particularly when it comes to third-party spending. We've gone through the same exercise in our programming costs lines, which includes spending on both rights and production. We've taken that from the ground-up review of sports production, along with some of the learnings from COVID about how we can deliver great sport content in different, more cost-effective ways, again, without compromising on our customer experience. When it comes to CapEx, we've simplified our focus to what will make the boat go faster. And having invested in core infrastructure over the recent period, we're continuing to re-weight our spending towards growth. As with any sustainable outcome, this has been a team effort. I've been incredibly impressed by the focus of the commercial finance team and our budget holders across the business for the way the great hold of this opportunity to rethink our spending without trying [indiscernible] of the process. We've also made great news of our increased data and insights capability to ensure that these cost reductions are not revenue impacting. As you'll see, there's minimal cost to achieving these savings, we've put that at approximately $0.5 million. So when we called out the transformational reset across all areas of the business, that's exactly what we are delivering. With FY '22 being the first step and with more to come as we get further into delivering on the transformation initiatives that are on our medium- to longer-term agenda. I'll now pass over to Andrew to take you through the numbers in a bit more detail. Over to you, Andrew.

Thanks, Sophie, and good morning, everyone. Looking firstly at Slide 6, where we've provided a breakdown of the additional savings, and what we expect to realize both during FY '22 as well as on an annualized or run rate basis. It's important to note, as Sophie has mentioned that the savings we're updating you on today are in addition to our previous FY '22 forecast that informs our earlier guidance, and therefore, are in addition to the $5 million to $10 million of non-programming cost savings targets that we referenced in our FY '21 year-end results back in August. So with that in mind, you will see from the table that most of the additional savings are recurring in [ nature ] with $26 million spread across both programming and non-programming costs. This $26 million is after taking into account a $4 million increase in variable costs due to greater-than-expected customer growth, particularly in our streaming businesses, Neon and Sky Sport Now. In addition to the $26 million of recurring cost savings, we also expect to achieve savings of $5 million to $10 million in CapEx taking the total FY '22 recurring cash flow savings to $31 million to $36 million. Furthermore, we expect to achieve one-off programming cost savings in FY '22 of $9 million, with the majority of this being negotiated [ equal ] reductions and rights costs in production cost savings across a number of sporting codes due to COVID-related cancellations and postponements during calendar year 2021. In total, this all flows through to a $35 million savings in operating costs in FY '22 or $40 million to $45 million once you include the impact of the CapEx savings. While some of the recurring savings have fallen over the first half, along with most of the one-offs, these will ramp up in the second half of FY '22. As a result, the recurring operating cost savings equate to an annualized impact of approximately $40 million to $45 million. I would also note that these cost savings should all drop to free cash flow, obviously, on an after-tax basis. And finally, as Sophie said, we expect there to be more savings to come in FY '23, both from the annualized impact of savings in FY '22 as well as other medium- to longer-term transformation initiatives that we continue to work through. Turning to Slide 7, and you'll see how the additional cost savings we are talking about today have significantly accelerated the achievement of our previously communicated cost targets. As I mentioned, our previous non-programming cost saving target of FY '22 was $5 million to $10 million. So with the additional $17 million we have now identified, we are well ahead of this target, with expected FY '22 savings now sitting at $22 million to $27 million. On our programming costs, the impact of the additional savings as well as the uplift in the bottom end of revenue guidance, that Sophie will talk about shortly, result in a programming cost ratio of 46% to 48%. This is the previous 50% to 55% target, although we note that some of this improvement is due to one-off impacts. We've also been able to reduce our FY '22 CapEx spending, meaning CapEx as a percentage of revenue will reduce to a level below our long-run average target of 7% to 9%. I'd note that we've done this without sacrificing our focus on having a higher portion of our CapEx targeted at growth initiatives. On this slide, we've provided some detail on where the savings are coming from. While I don't plan to go into every item, I thought it would be helpful to call out a few examples. On non-programming costs, we're taking the opportunity to rethink our marketing strategy and spend, creating opportunity to rationalize third-party spending, but also deliver improved and more cohesive results. At the same time, we've reviewed the cost effectiveness of our sales activity, resulting in reducing commission-based activities and discounting that will lower our acquisition costs and improve long-time customer value. On programming costs, the recurring savings are split between rights and production costs. And as Sophie has already mentioned, we've been able to apply some of the learnings from COVID and a strategic reset of the way we approach sport production. On the next slide, before I hand back to Sophie, I just wanted to give you a quick update on where we're at with the property sale. While the process has taken a bit longer than we had originally anticipated, in part due to the reset in August to include all of the properties that make up our Wellington site. And then as a result of the Auckland lockdown, the process has been quite complicated as we are dealing with both the sale as well as the long-term leaseback of our main production facilities. But not -- but suffice to say, we are making very good progress and are in the final -- and the negotiations with the third party are in their final stages. We expect to make an announcement shortly on the terms of the sale and the long-term lease back of our Studio 1 building. And with that, I'll hand you back to Sophie to talk about what that all means for our revised guidance.

Thank you, Andrew. Turning to Slide 8 and to summarize today's discussion. We have provided significantly improved guidance FY '22, and it's important to note that this doesn't include any impact from the expected property sales that Andrew just referenced. While the focus of this presentation has rightly been on our cost lines, I'm happy to say that we're also seeing solid growth in our core residential subscriber revenues beyond the level of any impact on commercial revenues from recent covered restrictions. As a result, we've lifted the lower end of the revenue guidance range, and I remind you that FY '22 was the first time in many years that revenue is forecast to grow. Clearly, the uplift in our guidance shows that Net of the tax impact, the cost savings will deliver in FY '22 are essentially falling through to the bottom line. And, as we've highlighted, there's more to come. With this latest round of savings tracking to a higher annualized number from FY '22 and with additional savings yet to be fully quantified through transformation initiatives. As a result of the cost savings we've announced today, combined with the work we've done across all of our key strategy areas, Sky is in a substantially stronger position. This sees us navigating the turnaround of the business more rapidly than originally forecast to return Sky to a sustainable and growing earnings path. Ultimately, my team and I are very aware that every dollar of spend must be aligned to our strategy and create sustainable and long-term value for our shareholders. In closing, I'd like to take this opportunity to thank our shareholders for their patience and the beliefs they have demonstrated by holding their position and Sky. If you'll include our TSA at the ASM, the Board has committed to finalizing Sky's capital management strategy. External financial, legal and tax advisers have been appointed to assist the board to determine the most appropriate capital management strategy, including the parameters of the future dividend policy. The outcome of that review will be announced subject to the property sale and of course, Board approval when we report on our half year results on the 24th of February. Thank you all for your time, and now we're happy to take your questions. And on that note, I'll hand back to the operator.

[Operator Instructions] Your first question comes from Arie Dekker from Jarden.

Good morning. Well done on a very strong performance on the cost front. First question, just in terms of permanent programming cost savings, can you just provide a little bit of visibility on how you've sourced those as it been from negotiating down pricing? How much of it's just been sort of variable related to sort of lower Sky Box numbers and the extent to which you've also taken -- have you taken some content out of the schedule?

Thanks, Arie. The permanent cost savings on the programming side that we're looking at are really around using our data and analytic capability and thinking about how much content do we need to procure. So it's really looking ahead and reducing some of those cost lines as opposed to one-off programming case that we talked about this year.

Yes. So essentially rationalizing some of your content deals?

Rationalizing some of the [ features means ] that was previously in the budget and really thinking about is that going to deliver more customer value. As you know, we obviously secured the League and the WarnerMedia HBO deal, and there's a huge amount of content in that latter deal that we're really keen to optimize, looking ahead. And also related to that is also -- sorry, Arie, programming is also how we produce content. And COVID has given us a really good opportunity to look at how we do everything. For example, a commentary team previously would have set them up to the end of year 2. Obviously, COVID impacted that. The team called the game of the screen -- the studio here, and that had no impact on the customer experience for reviewing of that. We had huge numbers on the All Blacks. So that's also kind of a permanent cost savings, looking at how we actually do things without impacting the customer experience.

Okay. Great. And then just looking forward, you had sort of signaled further potential for cost decreases, permanent cost decreases in '23 and beyond. Just on programming and sort of looking the other way, in terms of the savings that you've achieved this year, how much offset will there be in contracted increases associated with some of the recently negotiated deals NRL, HBO and that. Will that kind of offset some of the permanent cost savings that you're sort of signaling for this year?

I mean, look we're very mindful of the rights costs that we've set into, and that's obviously part of the cost review that I wanted to do. But I suppose what I would also say to you, I'm not going to go into the [ ops bit ] at this stage. But what I would also say to you is that we actually want the opportunity to be more considered in our investments. So some of this is also about looking to to save on these other cost lines so that we can continue to be strategic and further content investment. So this is not about stopping investing in content that matters to our customers, that's actually giving us the ability with our data capability to make more considered decisions.

Sorry, I was going to say when we talked at the annual result, we obviously provided some flavor about and bridging out the movements in the current year forecast. And I think you'll recall we talked about sort of savings from one-off events like Olympics, partially being offset by some of the step-up in rights specifically in NRL, that still holds. But I think the size of the savings we're talking about here are significantly higher.

Great. And then just on CapEx, obviously, being able to rationalize there and you're focusing on the CapEx. Presumably, there's little in terms of set-top box inventory in the FY '22 year. Can you just sort of confirm whether there was any set-top box inventory in the budget and whether that sort of moved out in the updated guidance? And then to the extent you can what you sort of think CapEx as a percentage of revenue, how much higher you think that will be in FY '23?

I can safely say that there are -- we're on target for delivery of any box, and so there are CapEx costs associated with the new box in this financial year. And to your point, we are really keen to re-weight around growth. We're not giving guidance at the moment around the percentage of revenue into FY '23, but really confident we won't be going beyond where we are.

There's no reason that we would be outside that range, though in '23, the 7% to 9%.

The 7% to 9%, yes, and there is inventory for set-top boxes in the '22 guidance.

Yes.

Yes. So that's part of the CapEx change is not related to the boxes, no.

Yes. And then I guess the other thing, it comes to sort of revenue composition and that and sort of linked into this CapEx guidance. So when you sort of say that the FY '23 CapEx guidance, no reason why it will be outside 7% to 9%. Is that on a revenue -- on a total revenue base including your growing broadband revenues? Is that the right way to sort of, I guess, think about both programming costs and CapEx going forward as being as a percentage of total revenues, including broadband?

Yes, that's right, Arie.

It does include it obviously because there's CapEx associated with the broadband as well if you've got [indiscernible] whatnot, so we do include it on all revenue, yes.

Yes. I mean probably that comment is more relevant to the programming costs. Okay, so that envelope will be inclusive of broadband revenues. And then just on the revenue, you talked about residential revenue growth. Is that across Sky Box and streaming? Are you saying that in terms of the outlook for FY '22, the combination of Sky Box and streaming revenue should be higher in '22 than they were in FY '21.

Yes, that's what we're saying. It's really pleasing growth in Sky Sport Now and Neon and also the bumper amount of content in the second half. And on the box side, just more impressive churn. Obviously, acquisition was impacted during the Auckland lockdown, but we're really comfortable with where we're sitting across both those -- across all of those revenue lines.

Your next question comes from Aaron Ibbotson from Forsyth Barr.

Congratulations as well on what seems to have been significant progress. Arie's comprehensive questioning covered off most things. I just wanted to clarify, Sophie, I believe you used the word residential when you talked about revenue upgrade and growth. So I just wanted to clarify, Arie's last point, you talked about box plus streaming being positive. And I'm obviously very curious to know how the broadband, if it's tracking in line with your expectation, if you've included that in residential and -- or whether it's sort of doing slightly better or less well than you had anticipated at the full year?

Thanks, Aaron. I mentioned residential, just to distinguish it from our Sky business, our commercial customers. That was the only reason for doing that. And I was really talking about our core revenue, as you say. So box and the streaming services. But to give you and our investors comfort here, we're really happy with the progress on broadband, and it is tracking in line.

Okay. Fantastic. And then you sort of mentioned cash flow a couple of times and the CapEx need, et cetera. So I appreciate, this is part of the next update. But if I sort of frame the question slightly differently. When it comes to sort of medium-term capital needs or cash needs, and if you look at the capital structure of Sky TV today, is there any obvious needs that you need to build up reserves for? Or should we think about your free cash flow as generally speaking, available to shareholders?

So we are super comfortable with the CapEx profile that we have, we have what we need to deliver on our strategy. So...

And importantly, that includes the box. So all the boxes that we need for the new set-top box are included in the envelope. So I think latter point is right. I look at it as a fit to be free cash available for, I guess, shareholders or other things, but we don't have any immediate need for any of that.

And look, that's obviously for the Board to discern with the advice that we've communicated that we're getting. And I know, as I said, our shareholders have been very patient. So February is the right update time on that front.

And then you have provided some color on the cost savings. But primarily to satisfy my curiosity, I just wonder if you could expand a little bit because Sky TV has been sort of restructuring to some degree for a few years. You're looking at cutting over 10% of OpEx, and I didn't fully understand what the split was between programming rights costs and operations. But if I look at the non-rights, it still looks like you're talking to a significant saving there as well. And I appreciate a couple of business class tickets to an -- All Blacks game, but it seems to be more fundamental than that. So could you add some color? I mean, why was there still so much fat in there? And how can you -- and in particular, how can you do that at such a low sort of cost, $0.5 million? So clearly, it doesn't sound like you're firing a lot of middle management, which is normally how people are saving costs.

Yes. So look, I appreciate the question. And what I would say to you is that this is right across the business, looking at everything that we're doing. And I gave the example on the production coverage. But if you kind of magnify that out across how much content that we cover throughout the year, it's all incremental gains that add up to a bigger total. We are looking at all of our use of external resources. So to your point, this is not focused on our people, this is about third-party spend, removing the reliance on consultants as we have in the past, being very clear about the strategic use of agencies. And yes, we do think some of the discretionary buckets that may have been held in different parts of the business. And again, looking at all of our vendors, particularly in the broadcasting infrastructure space to make sure that we've got the right approach and there are also some rebates that we're looking to secure. So to your point, Aaron, it's not a one-hit wonder, it's right across the business. And I mentioned the word sustainable because, yes, whilst we've had support from James Marsh and his guidance, these numbers have come from the business. They've come from the executive leadership team. And so they're all on the hook to deliver them, and we're very confident of doing so. The key thing I will just reiterate, though, is that this is whilst we're changing, for example, some of our marketing spend, again, it's not going to have an impact on our revenue. That's why we're confident and the revenue guidance and bringing that lower range up.

Your next question comes from Brian Han from Morningstar.

Sophie or Andrew, can you please clarify the programming costs and CapEx to revenue targets on Slide 7. Are they just your F '22 targets and not your long-term sustainable targets, right?

Yes, that's correct. They're just what, basically what -- we're just comparing what we provided in August at year-end around what we were thinking the target would be for FY '22. We're effectively just updating you on this year only. So for example, the programming costs revenue number, we're acknowledging it is a combination of both the recurring and the one-off savings we're achieving in FY '22.

Okay. Fantastic. And while you're there, Andrew. So given what you said, we shouldn't be expecting much in the way of nonrecurring items in the P&L this year apart from asset sales, proceeds from asset sales?

Yes. So I think we've talked about the fact that it's a one-off savings in the programming area, but I guess arguably, they're not recurring. And obviously, the property sale, when we do announce its effect will be arguably a one-off or will be a one-off as well. But at this stage, the only one-off we're calling out is that $9 million in programming.

Okay. And my final question is -- these are quite sizable numbers that you've given out today. I'm just wondering, has there been an upgrade in the information systems or data analytics for Sky to be able to suddenly do this? Or has the data always been there and you've just become better at extracting and acting on them.

Thanks, Brian. Look, a bit of both, to be honest. And I think what we've done is really brought a focus given our data analytic insight into what matters to our customers. It has really enabled us to have a really good look at things. So yes, I acknowledge that. But as we say, and we've been through this with our Board, obviously, late yesterday, to announce it to the market. It's right across the business. And when you -- when everyone has a look and think differently about what they can do, all of those incremental gains add up to significant numbers that we're sharing today.

[Operator Instructions] Your next question comes from Phil Campbell from UBS.

Just a few questions from me. Just kind of trying to focus a little bit on FY '23 kind of following up from Arie's question. So on the presentation pack, it does talk about annualized cost savings of, I think, $40 million to $45 million. I'm assuming that's excluding the one-off of [ $9 million ]. So for FY '23, can we kind of assume that costs will be going down by that amount? And then obviously, you talked about some other cost savings in FY '23. I suppose I'd just be without stealing the thunder in February, just interested in kind of what areas those potentially might be in. That was my first question.

Yes. So just to clarify, yes, the $40 million to $45 million is basically the annualization of the $26 million recurring savings we're achieving in FY '22. So I think we're just calling out that, that will flow through a slightly bigger number in the $26 million in FY '23. The other savings are on top of these, and that's the other transformation initiatives that we're still working through. So these are savings we've identified and are actioning now. But we would hope that by the time we get to '23, the number would be bigger than that.

And I suppose to get to...

And would that lead to...

Yes, sorry. So I was just going to say to give a bit of context to know, we're having a look at how we procure across all of our vendors, for example. That's one of the transformation initiatives in the medium term, but we haven't had the ability to go and quantify that as yet. But you're right, to the extent that we've got there, we'll be able to talk more about that in February.

And I suppose just back at the Investor Day, you kind of gave some guidance for FY '24. And obviously, from some of those numbers, we could kind of calculate certain estimates of revenues and EBITDA. Like would this -- today's announcement and possibly when you do the more work on the FY '23 numbers, will we get an update on what you're thinking in FY '24? Or is that for another time?

Well, obviously, we're not at the point where we're giving guidance to '23 at this stage, and we wouldn't be doing that in February either. We've been doing that at year-end. But a fact we just now demonstrate that at least $40 million to $45 million annualized flowing through to '23. But again people hold the business to account for a higher number. We'll be targeting more.

Yes, awesome. I think the next question I had was just whether or not with James coming in and having a look through the business, obviously, with the kind of Foxtel pair of glasses. Can you make any comments around kind of what his impressions were where Sky is at the moment compared to where Foxtel is in terms of some sort of time frame or position in the market?

What I can basically say is that James has given some expert guidance, but the work has been done by the team, particularly our commercial finance team. What do you see is that our content slate is incredibly impressive. I think that's the thing that he's looked at. He thinks our data capability with some of the work that we're doing now. The data is there, back to Brian's comment, it's now about how we actually extract all the value out of it. So from his perspective, he sees a very positive path for us. We have different market conditions to Foxtel. So those comparisons, I don't think are that helpful other than the fact that we both have box customers that we care about deeply, and we're obviously going after new audiences in streaming, what he thinks our strategy is spot on. So I hope that helps.

Just one on the satellite business. Obviously, it's pretty early days, but obviously just launched the loyalty program. I don't know if you can make any comments around kind of what reaction you've had from that? Or is it too early?

Well, I can say that we -- as always, we keep asking for feedback. And broadly, it's been really positive. Some might say it's not enough. And my comment back to our loyal customers is that -- this is just the start, just like the cost savings that we're talking about today is just a start. And actually, to your point around Foxtel, I'd just pick sides, that would be nice of Foxtel [ Rewards ] and it's a very similar principle of looking to try and deploy money can't buy experiences as well as unlocking content, which is within our guests to do so, which is actually surprising and delighting their customers, and we hope to continue in that vein here.

Okay. Awesome. And then just the last one for me was just the CapEx savings for this year, what -- can you just provide some examples of what's happening there?

Part of the work we've been doing is actually prioritizing our efforts and as often happens with CapEx, particularly in and around technology is at the end of the financial year that teams have been a fair amount of spending and all we've done areas have a good look at that and actually say to our teams, you know what, it's more important that we deliver really well and less is more in this context. So again, it's not one single item. It's across a number of projects that were potentially planned have actually been really focused on what we need to deliver. We didn't need to incur those costs for the financial year.

Your next question comes from Arie Dekker from Jarden.

Just one follow-up was just in relation to any update on the corporate partnership. At the Investor Day, you mentioned that you've received a lot of approaches that you're going to sort of engage in that. Is that -- what's the sort of status of that? Is that kind of you've worked through it and it's done now? Or is that still live, I guess?

All I'd say is, yes, there's still some interest in us. But we just keep very focused on what we need to do to deliver on the strategy for our shareholders day.

Your next question comes from Wade Gardiner from Craigs Investment Partners.

Just a couple of things to follow up on a couple of questions that Phil had. So at the Investor Day, you talked about FY '24 targets and achieving sort of cost savings of non-programming cost savings of $15 million to $16 million per year, which gets you to sort of, call it, $40 million, $50 million, $60 million. So should we view what you have announced today the annualized numbers as being in addition to that? Or is this just bringing forward a whole lot of those savings in the later years, we might not see those sort of $10 million or $15 million?

I think the $10 million to $15 million was what we were hoping to achieve on an annualized [indiscernible] by FY '24.

As a minimum.

As a minimum. What we're saying now is that number you can substitute for a much bigger figure because [indiscernible].

So this is anything in addition? What's that, sorry?

So obviously, we were talking $5 million to $10 million in FY '22 and $10 million to $15 million by FY '24. We've now got $40 million to $45 million annualized, I suppose you could call that a '23 number, although as you said, we're hoping to achieve more. But you could almost substitute the '24 target we provided earlier for at least as much, if not more.

Okay. So we view this -- sorry, to clarify the way we view this in addition to you rather than just bringing forward those savings.

I think you're certainly bringing them forward, but it's a definite addition to a year [indiscernible] providing guidance for '23 or '24, it's hard to give you a number. What we're saying is around [indiscernible] '24, we're now saying in '22, annualized, we're already at $40 million to $45 million.

The -- what you were saying just a second ago about prior to CapEx savings and prioritizing efforts. So okay, we're not talking a big number here, but the CapEx savings you've made this year might mean that next year is a little bit higher. In other words, it's just a timing thing rather than a permanent saving.

No, I realized we now did that before. It sounded like we were [indiscernible] or not. We're just saying -- we just revisited everything that was on the list. And we've now got [indiscernible] our customer growth and product hit. And as a result of that, we're really clear on what needs to be delivered in other items, but it's not required. And for those of you on the call are watching the webcast, thank you for your time this morning. As I said earlier, Sky will report -- will be reporting first half results on 24th of February, and I look forward to addressing you again to report on our continued progress. For now, just to say thank you again to all of our shareholders for your continued support.