Sky TV is recording a 3.7 percent drop in net after-tax profit, with its customer base at the lowest level in five years.

The provider says it's dealing with challenging market conditions - and had to slow down marketing while it sorted out technical issues with its Sky Box.

Chief executive Sophie Moloney says they've lost a 'disappointing' number of subscribers.

"I want New Zealanders to keep enjoying their Sky Sport and Sky entertainment content - so we're working hard to get them back."

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