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Fiji TV Explains Effect Of SKY Pacific Sale On Bottom Line

Fiji TV Explains Effect Of SKY Pacific Sale On Bottom Line
SKY Pacific was sold to Digicel Fiji for a sum of $5.75 million and the completion of the transaction is subject to regulatory approval.
September 25
10:19 2015

Fiji Television Limited has explained to shareholders that the sale of its SKY Pacific division will mean Fiji TV’s revenue will decline by a minimum 50 per cent.

But despite the decline in revenue, the sale is expected to improve profitability in the future.

This is given that SKY Pacific accounted for 50 per cent of Fiji TV’s revenue and provided negative contribution.

A statement was released by Fiji Television through the South Pacific Stock Exchange yesterday with details of SKY Pacific sale to Digicel (Fiji) Limited.

SKY Pacific was sold to Digicel Fiji for a sum of $5.75 million and the completion of the transaction is subject to regulatory approval.

In addition, Fiji TV has an opportunity to derive additional income up to 30 per cent of the price by providing services as well as content.

This will be subject to the buyers’ requirements.

Proceeds of the sale would be used to reduce outstanding creditors while a portion may be distributed among shareholders subject to board approval.

Fiji TV had received six expressions of interest from potential bidders.

Based on discussions, Fiji TV board made a decision in the best interest of the company to divest SKY Pacific considering the potential future income, value of assets and possible capital investments required for expansion.

At the time of sale, Pacific region other than Fiji, had less than 15 per cent of total subscriber base.

 

Focus now

Fiji Television Limited informed shareholders that the sale of SKY Pacific business was a strategic decision in order to ensure the company focussed on its core business of free-to-air television business.

With the sale, Fiji TV will focus on Fiji One and its in-house production business.

In addition, Fiji TV will continue to provide free-to-air content to media organisations in the Pacific islands.

The statement said team Fiji TV will answer all queries at the upcoming annual general meeting on October 8.

Feedback: rachnal@fijisun.com.fj

 

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