Sky provides update on status of satellite supply

19 August 2024

Sky provides update on status of satellite supply

As announced on 24 August 2023, Sky has an agreement in place with Optus that provides Sky with security of supply over satellite services to 2031.

The Optus agreement provides for Sky’s transition from its current D-Series satellite (Optus D2), which reaches end-of-life in 2025, to alternative satellite options, including a new software-enabled satellite (Optus 11) at a future date.

Having recently received updates from Optus, Sky provides the following information on the status of its satellite supply:

• The Optus 11 satellite that was expected to be ready for service in late 2025 has experienced further manufacturing delays, and the earliest Optus expects to offer access to this spacecraft is during 2027. Sky considers that there is a possibility for further delay but does not anticipate any disruption to its satellite supply as a result.

• Optus has notified Sky that, following recent fuel assessments, the end of the commercial operation of the Optus D2 satellite has been brought forward to May 2025. Optus has offered Sky two satellite path options to replace Optus D2 and Sky will now accelerate its migration plans to meet this new deadline.

Sky has previously undertaken successful satellite migrations, and while significant reprioritised effort will be required in FY25, Sky is confident it can achieve migration to an alternative satellite by May 2025. There remains an inherent technology and logistical risk to the successful migration to an alternative satellite, with on-the-ground technology updates also required. Sky will seek to ensure a smooth transition for customers, including by undertaking significant testing and customer communications ahead of any migration steps. Sky’s focus throughout the satellite migration planning has been to ensure the most effective transition strategy that will deliver the best customer experience.

Sky will continue to accelerate its rollout of the new, internet-connected Sky Box and the IP-only Sky Pod which, alongside access to companion app Sky Go for all Sky Box customers, will also serve to derisk any potential disruption.

The acceleration of the migration programme will mean some rephasing of costs from FY26 into FY25. Sky is working through the accelerated migration options and planning with Optus, noting the existing commitment from Optus to provide financial support for Sky to undertake the necessary investment required to ensure a seamless transition across the replacement satellite options.

Sky continues to receive assurance of security of supply from Optus through to 2031 and is focused on ensuring a successful migration with minimal customer impact.

ENDS

Authorised by Kirstin Jones, Company Secretary

Investor queries to:
Amanda West
Investor Relations
[email protected]

Media queries to:
Chris Major
Chief Corporate Affairs Officer
[email protected]

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Announcement PDF