A report by Enders Analysis predicts BSkyB earnings will double over the next five years. It says EBITDA will balloon from 2010’s £845 million (€953m) to £1.7 billion in 2015 from revenues up from £5.7 billion to £8.1 billion in the same period.
Veteran analyst Toby Syfret believes the earnings will flow as a period of high investment comes to an end and growth continues. He also points out the importance of Sky to News Corp in that a full takeover would add no less than 25 per cent to the group’s turnover and 30 per cent to its income.
The analysis, reported in the FT, will further encourage the Board and other shareholders to hold out at the higher end of their price indications.
Jeremy Hunt, the culture secretary, is expected this week to announce a final seven-day consultation on amendments to the bid conditions.
News Corp oringinally bid £7 a share but this was rejected and an £8 price called for. At close on Friday Sky traded at £8.35 giving a value of £14.6 billion.
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