BSkyB Share Discussion Threads

[pierre oreilly] 06/8/2014 10:15

Sky Deutschland's Second-Quarter Net Loss Widens

Q loss of $3.3m, against a loss of about $1.4m for q last year

errrm, didn't bskyb buy sky deut off Fox just a few weeks ago for 2.9 billion quid in cash? The problem with directors effectively controlling interest in all companies involved in these deals you never know in which company's interests these deals are in, do you.

Interesting to see if sky Italia has a similar outcome.

[philo124] 05/8/2014 23:29

Quiet here.

[albany30] 28/7/2014 17:21

Strange - can't see that no-mark lightweight Pierre 'Rodney' O'Reilly posting today. Wonder why?Very strong share price performance today tho no surprise to punters here. Didn't end up topping up on Friday alas, but hope others did.Re BT, agree re the pointless comparisons. Both companies worth holding shares in just now.

[zyzzyva] 27/7/2014 14:33

is it true these are going ex-dividend on a Thursday?

The ex-dividend date will be 13 November 2014 and, subject to shareholder approval at the 2014 Annual General Meeting, the final dividend of 20.0 pence will be paid on 5 December 2014 to shareholders appearing on the register at the close of business on 14 November 2014.

[undervaluedassets] 27/7/2014 10:48

Fall friday was due to 10% dilution of the Equity from the placing of 10% more shares in order to aquire Sky Deutschland and Sky Italia.

The business is more less doubling in size at one fell stroke so for the equity to only increase by 10% this looks like a nice deal for investors.

I think that comparisons made with BT and champions league (blah blah blah) are becoming tenuous . They are both good businesses but with different markets and ambitions. There is some competition and crossover but too much has been made of this and it has become a media distraction.

BSY has effectively doubled in size and is looking abroad at opportunties that exist on the continent.

(update) Weekend press overall liked the news of the acquisitions. And Why not - gives the company massive headroom for expansion with the UK expertise/success transferable to Germany and Italy; both of which have low pay tv penetration.

[essentialinvestor] 25/7/2014 14:48

I think BT is beginning to look more interesting,
that is very much IMV only and a longer term view,
short term depends mainly on wider equity markets.

[albany30] 25/7/2014 14:04

BT can't burst 386 / 387 and was at this level 10 months ago. Could drop further - over 1% fall today on no news for example!Has no strategic communication base apparently as the only RNSs since Champs Lge acquisition has been on buy backs (which normally resulted in share price drifting lower).I bought in when it slumped off 420 at 380ish. Then went to sub 360. Flatlining at the moment so probably a decent buy in shout.

[undervaluedassets] 25/7/2014 14:02

interestingly . .

It has become almost a tradition that on results day BSY have great results and the market sells the shares.

It has been a great day to pick up stock on every results day (interims as well )for the last 2 years. I expect this to be no different especially as the company is being doubled on the cheap.

[essentialinvestor] 25/7/2014 13:50

I would like to add BT, hoping to get some cheaper so hopefully some
further falls for BT.

[albany30] 25/7/2014 13:49

uva and essential - great posts. My thoughts exactly.The biggest compliment that can be paid to BT Sport's impetuous Champions League overpayment is that it kicked BSY into life, and they haven't stopped since.Not remotely a contest between BSY and BT Sport just now though. The billions that are flowing in and around BSY just now must make BT very nervous regarding BT Sport.Suppose ultimately the winners will be, as per bloody usual, the football rights holders.

[pierre oreilly] 25/7/2014 13:45

I must have read different results from others here. I think shareholders often have a block when it comes to their own companies - I always try (and it's difficult) to view company results which I hold as an outsider would. It's pontless spinning everything in a positive light, because others won't. Sky are about to place about 10% of their current issue - no comment from anyone on that dilution? Anyone else find the deals with fox (who have various associations) as possibly insular or possibly adding purposeful complexity? The strategy is clear - expand bulk tv. I'm amazed that many seem to think that is an investable strategy, given the availablity of bulk tv delivered via the net. But the main concern I see is - for whatever reason, you harldy have to bother yourself with why - is the increase in subscribers and turnover together with a decrease in profit, a trend which is, imv, almost certain to continue as supply of bulk media content becomes cheaper or free. Plenty of 'subscribers' are buying sky's now tv box for 6 quid's worth of Tesco coupons and getting 3 months of premium tv for free. How many of those will carry on paying for movies (it's over £20pm isn't it?) when their free 3 month subscription ends?

[essentialinvestor] 25/7/2014 13:20

Not sure why the debate is so all or nothing here, plenty of PI's
hold both BT and BSY.

Today's deal may increase BSY's risk profile, however I would not be against
this management team.

Although BT sells on a lower multiple you need to factor in the pension deficit.

Good prospects for both is my view, BSY may provide a better buying opportunity
if we get some cautious comment, just IMV.

Today just reverses the very sharp run up in the BSY share price over the past couple of weeks.

[undervaluedassets] 25/7/2014 13:15

The mistake that investors are making is that they are paying too much attention to The Champions League.

Running a diversified pay tv company is about a lot more than football. Of course football is important but consider this..

Sky just paid a minute amount (a few 10's of millions) for the company that make The Great British Bake Off.

9.1 milllion people in the UK watched the 2014 Great British Bake Off final.
4.9 million people in the UK watched the 2014 Champions league final.

Point to consider - for only 5 times what BT paid for The Champions league BSY have effectively doubled the size of their business by buying SKY italia and Sky Deutschland.

BSY know how to spend their money intelligently .But this is not surprising as they have been in this game for near 2 decades now. Media is what they do.

[albany30] 25/7/2014 13:03

Supercity - no knowledgeable football fan will join BT just for Champions League football, a cup format which only becomes a big deal from February. BT have nothing else to offer on top of that bar whatever premier league games BSY allow BT show.BSY will screen Barcelona, Real Madrid, Atletico, PSG etc every weekend via their European football channel. Only Pierre 'Rodney' O'Reilly would swap BSY for BT for the football.So imagine if BSY then shut BT out the Premier League rights bidding? Then BT Sport is dead as a dodo, and the Champions League football is a £900m white elephant. Very nervous times for BT Sport as they watch Sky snap up more sports rights and expand it's pay TV and internet businesses.Should add, I own BT shares!

[supercity] 25/7/2014 12:54

I wouldn't be buying just yet - don't under estimate how much the loss of champions league football will hurt them after this year, I know lots of people who will downgrade their subscription or cancel altogether once that goes

[albany30] 25/7/2014 12:37

Absolutely top up time. Markets always sweat the share price over an acquisition but these are different - not an 'inside job' quite but a very informed expansion!BT is no competition to BSY. Paddling away in the shallow end for 9 months now while BSY ploughs on. The comparison in both companies since the Champs Lge is startling.

[pierre oreilly] 25/7/2014 12:36

Experienced investors with a modicum of analytical ability will be saying bye bye, even at -40p. That is very difficult to do, because most look back at what the price has been recently and dwell on why they didn't sell then, whereas other only look forward. It's what sorts out successful investors from the rest imv. Inexperienced investors with no undertstanding of companies will say buy buy.

[undervaluedassets] 25/7/2014 12:30

Yeah it is a very good news day.

Short termers have focussed on the profit number which is down slightly (bound to be given competition from BT) along with that the price has fallen.

However short term margin sacrifice has resulted in increased sales.

And the new pan European behemoth is going to be a media Giant.

Good results/prospects + Share price down = bargain.

Time for a crafty top up.

[ukgeorge] 25/7/2014 12:29

Bskyb Baa1 rating placed on review by Moodys for downgrade

closed my short on these a few days ago, quite a costly decision.

[albany30] 25/7/2014 12:23

Yeah, certainly a buy at these prices. Market always responds in these over reacting ways at such ambitious announcements - future is very bright.In the next six months, we all know BSY will have evolved more and these foundations put it in a very strong position. Rise of past few days was overdone so overdone drop no big deal.

[essentialinvestor] 25/7/2014 11:30

Given the placing and suspension of buy backs 5% down is a mild reaction,
so far.
May buy a few is the share price reacts more negatively.

[pierre oreilly] 25/7/2014 11:12

Turnover up, profits down, a cause for concern imv, as posted previously. Eps the same due to buybacks, now going to place loads of shares, then have another buyback program. Complexity of deals with related Fox, cash, shares changing hands, shares issued, shares bought back, payment with other holdings .... anyone who can see through the numbers and deals for the underlying performance is a genius. Looks like the City aren't impressed.

[undervaluedassets] 25/7/2014 06:36

Lots to look forward to today. Margins will be down a touch.

But the business is expanding on all fronts.

Sky will remain the pay tv king.