UBS argues that BT Group (LON:BT.A) has secured ‘a good outcome’ in the Premier League auction, Proactive Investors reports. The comments come after it emerged yesterday that the former telecoms monopoly and peer Sky will pay less for the matches, having snapped up the rights to the majority of live games for £4.46 billion.
BT’s share price has been steady in London in today’s session, having added 0.41 percent to 226.48p as of 10:34 GMT. The stock, however, is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.54 percent higher at 7,253.17 points. The telco’s shares have lost just under 27 percent of their value over the past year, as compared with less than a one-percent dip in the Footsie.
UBS weighs in on auction outcome
Proactive Investors quoted UBS analyst Polo Tang as noting yesterday that the telco had secured a “good outcome” by retaining access to Premier League broadcast rights without a major increase in costs. The former telecoms monopoly disclosed yesterday that its rights will cost £295 million per season for 32 games. Rival Sky meanwhile will remain the dominant broadcaster, having secured four packs of rights.
“While BT has a slightly weaker set of EPL rights compared to before, BT Sport retains its number two position to Sky Sports and will also show Champions League football as well as Premiership/European rugby,” the analyst explained, adding that “with a resolution of pensions due in the coming months and with fibre (FTTH) capex set for the next three years, we think there is growing comfort on BT’s cashflow in the coming years”.
Other analysts on BT Group
Morgan Stanley reiterated its ‘equal weight’ stance on the former telecoms monopoly yesterday, valuing the shares at 290p. According to MarketBeat, BT currently has a consensus ‘hold’ rating and an average price target of 323.71p.