Sharechat Logo

Sky TV shares drop 4.4% after pay-TV operator says 2012 profit won't meet estimates

Friday 21st October 2011

Text too small?

Sky Network Television shares dropped after New Zealand’s biggest pay-TV company gave guidance for 2012 earnings that lagged behind analyst estimates while capital spending will be higher than expected.

Sky TV shares dropped 4.4 percent to $5.40, the biggest decline on the NZX 50 Index today. The stock has gained 6.7 percent in the past 12 months and is rated ‘outperform’ based on eight recommendations compiled by Reuters.

Profit is likely to be between $120 million to $125 million in the 12 months ending June 30, 2012, the company said in a presentation to shareholders at their annual meeting today. Profit last year was $120 million and analysts had a mean forecast of $347 million for the current year.

Capital expenditure will range from $150 million to $160 million, above the analyst estimate of $123 million. Spending includes the cost of 140,000 MYSKY units and other costs include adding new channels, marketing and transponders.

MYSKY subscribers jumped to 279,875 in 2011 from 189,975 in the previous year. The company said it expected to meet the market’s forecast for 860,000 subscribers this year, up from 829,000 in financial 2011.

Chief executive John Fellet told shareholders at the meeting that viewer numbers for the Rugby World Cup quarter finals and semi finals were 48 percent above budget and he had high hopes for the sell-out final match this weekend between the All Blacks and France.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sky TV let off on alleged past breaches of competition law
Sky TV board adds Snakk's Handley, ex-SAP exec McBride
Sky Network increases profit, dividend as it battles increased rivalry
TVNZ, Sky TV to wait up to 6 years for Igloo to breakeven, state broadcaster says
UPDATE Murdoch's News Ltd to sell Sky TV stake for $815.3M in discounted placement
Murdoch's News Ltd to exits Sky TV stake in sale reported to be at discount
Sky TV lifts 1H profit 9 percent as subscribers spend more, migrate to My Sky
Sky TV makes $124.5 mln special dividend to distribute tax credits
Todd Communications ends 22-year interest in Sky TV, sells stake
Sky TV content agreements need more investigation, regulator concludes