Supply chain disruptions and computer chip shortages have delayed the rollout of Sky Television's new Sky box.

In a letter to investors, chief executive Sophie Moloney said the challenges meant that there would be a "short delay" getting the new box into customers' homes.

The company originally planned to have the new product ready by the "middle of the year" but that had now been pushed out until "spring of 2022".

"I'm pleased to confirm that, notwithstanding these challenges, technical trials of the new Sky box are already underway with specialist sky crew and wider staff trials start this week."

The company would announce the official launch date once a customer trial was completed, she said.

"The new box will deliver a transformational experience for customers and I look forward to revealing more of the features in the coming weeks."

Moloney also provided shareholders with more information about why it kicked the tyres on MediaWorks and its ultimate decision to walk away from the deal.

The company surprised investors last month when it confirmed media speculation that it was in talks to acquire the radio and outdoor advertising business.

The decision saw the company's share slump, as analysts were left scratching their heads as to what value Sky saw in the company.

Moloney said it was interested in radio and advertising assets because they would have boosted Sky's share of the local advertising market and grown its subscription business.

"Although there were significant potential costs and revenue synergies from a combination of the two companies, the significant change in outlook for the New Zealand economy and rising interest rates, together with feedback from shareholders, led us to the decision not to proceed with the acquisition," Moloney said.

She said the company had shifted its focus back to examining the best way to return capital to investors and accelerating investment within its business.

Copyright © 2022 , Radio New Zealand

The pay TV operator said it was having "exclusive" talks about acquiring the remnants of MediaWorks from US private equity firm Oaktree and Australian media company Quadrant.

Sky Network Television has pulled the plug on potential plans to buy MediaWorks.

Sky TV plans to resume paying dividends to shareholders later this year after reporting revenue growth for the first time in six years.

The pay TV operator had lost the rights in 2018 when it was outbid by Spark's fledgling sports streaming service.

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