Shares in broadcaster BSkyB have fallen as much as 8% after the company secured a pricey deal for live domestic broadcasting rights for English Premier League football.
BSkyB and BT will pay a combined £3bn for the rights over a three-year contract, a 70% increase on the value of the existing deal. BSkyB shares are currently down 6.1% at 653.4p, having previously fallen as much as 8%, as analysts at Numis said the contract was more expensive than had been anticipated. BT shares stood down 3.3% at 202.2p. Numis cut its rating on the stock from Add to Buy, saying BSkyB had paid around £140m a year more than estimates. The broker trimmed its target price from 825p to 815p but said it did not expect to change its earnings forecasts for 2014 and 2015. ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
