Natixis Bank forecasts the French version of Qatari pay-TV channel, beIN Sport, will accumulate €2.2 billion losses over the 2012-2020 period. Should the group decide to launch an IPO, its stock market capitalisation would be negative at -€2.65 billion.
The bank points out the fragility of beIN Sport’s business model on a long term basis. It also predicts the channel will post a €275 million revenue in 2017 and reach 3 million subscribers across France, compared with the 2 million reached last August.
Natixis underlines the costs of beIN Sport estimating it to €387 million in 2014 and €450 million in 2017 owing to TV rights acquisitions.
The bank’s analysts think breaking even is not realistic as it would require the channel to reach 6 million subscribers, and not 5 million as claimed in the press. And this break-even point would be postponed in the event of new TV rights acquisitions.