BSkyB stock hit by bank warning

Goldman Sachs says satcaster may struggle to meet earnings forecasts

LONDON — BSkyB’s stock has fallen following a warning by U.S. investment bank Goldman Sachs that the satcaster may struggle to meet its earnings forecasts.

In a note to investors the bank said: “We are increasingly concerned with Sky’s need to invest to cope with a more competitive environment, and the payback of its broadband investment…

“These worries are accentuated by reports of comments by Rupert Murdoch…that broadband losses could push 2007 operat-ing profits to £650 million ($1.2 billion) versus our £785 million ($1.5 billion) forecast.”

BSkyB’s stock was trading at £5.22 ($5.22) Friday midday (GMT) — the previous day the stock slipped 6 pence (11 cents) to £5.25 ($10.05).

Meanwhile Virgin topper Richard Branson’s verbal attack on Sky shows no sign of abating. Branson is furious because Sky’s purchase of a 17.9% stake in ITV has derailed an ITV merger with NTL, which he part owns. NTL will be rebranded as Virgin Media next year.

He claims Sky’s stake in ITV is “damaging democracy” and that BSkyB and ITV are already holding talks on joint bids for sports and film rights.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More TV News from Variety

Loading