Sky NZ bolsters bottom line with Discovery acquisition as it refocuses content

Season two of Foxtel/Binge original High Country: What Lies Beneath

Sky New Zealand’s acquisition of Discovery NZ last year for NZ$1 (US$0.60) has bolstered its fortunes, reporting a big increase in profit for the six months ended December 31, 2025.

In the first financial reporting period since acquiring rival Discovery NZ, including channels Three and Three Now, CEO Sophie Moloney said the results reflected the benefits of the acquisition and Sky’s long term strategy implementation.

“It’s not often you get to acquire an asset for $1 and significantly strengthen the balance sheet at the same time,” she said.

The integrated group reported a net profit of NZ $52.4m (US$31.39m) versus a NZ$1.7m (US$1.02m) loss in the previous corresponding period. The former Discovery assets have also now been assessed and valued to be worth NZ$34.4m (US$20.61m).

“The first half of full year 2026 marks an important step forward for Sky. The combined business is already demonstrating the increased reach and revenue diversification we sought, while also maintaining strong cost control,” Moloney added.

Moloney said that programming costs had been shaved by 48.8% due to “disciplined negotiations” for content including non-renewals, combined with timing of one-off events. Over the last few weeks the broadcaster announced revamped deals with content suppliers Sony, Paramount and ESPN.

The broadcaster also revealed its slate for the coming year stating that it was “deepening content engagement” with programming decisions that “controlled our content destiny.”

“We have a deep understanding of what audiences value and we’ve moved to secure it in a way that makes sense for shareholders.”

Highlighted new local scripted commissions include the Kevin & Co original eight-part series, and The Sanctuary, starring US lead Adam Pally as an expat US billionaire on the run.

From producers Luminous Beast is Good Bones, starring comedian Josh Thomson as a chronic procrastinator attempting to renovate a rundown house to save his marriage. These are in addition to the previously announced season two of Secrets of Red Rocks.

In scripted international content acquisition highlights, Sky has acquired Foxtel/Binge original High Country: What Lies Beneath season two, produced by Curio Pictures and distributed by Sony, and picked up ITV’s A Cruel Love: The Ruth Ellis Story in addition to BBC comedy Amandaland and period crime series Boookish season two.