Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2013-01-21/sky-deutschland-slumps-on-operating-loss-report-frankfurt-mover

Bloomberg News

Sky Deutschland Slumps on Operating Loss Report: Frankfurt Mover

January 21, 2013

Sky Deutschland AG (SKYD), the German pay- TV provider controlled by Rupert Murdoch’s News Corp., fell the most in six months after saying its full-year loss narrowed less than most analysts estimated and setting the price on its share offering.

The 2012 loss before interest, taxes, depreciation and amortization probably was between 48 million euros ($64 million) and 58 million euros, Munich-based Sky said in a statement today. Analysts on average predicted a loss of 48.3 million euros, data compiled by Bloomberg show.

“Consensus was a bit more optimistic than that,” said Sarah Simon, an analyst at Berenberg Bank in London who recommends investors buy Sky Deutschland stock. “People are generally looking for the company to beat rather than meet expectations.”

The shares fell as much as 5.8 percent to 4.48 euros, the biggest intraday drop since July 23, and were down 4.4 percent as of 1:13 p.m. in Frankfurt. Volume was 70 percent higher than the shares’ three-month daily average.

News Corp. (NWSA:US) increased its stake to 54.5 percent last week from 49.9 percent by buying new shares as part of a financing round. Sky, whose shares almost tripled last year as the number of subscribers grew, was seeking additional funding to roll out more high-definition channels and to pay for licenses to show matches of Germany’s Bundesliga soccer league.

Sky said it was offering 20.4 million new shares to existing investors at 4.46 euros per share. Sky shareholders have the right to acquire one new share per 42 existing shares, the company said. The rights issue implies News Corp. may not buy out minority shareholders in the near future, analysts at Nomura said in a note to clients today.

To contact the reporter on this story: Cornelius Rahn in Berlin at crahn2@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus