Sky share price: Company pleased that Openreach separation ‘still on the table’
Sky Plc (LON:SKY) has issued a statement in response to Ofcom’s decision on BT’s infrastructure division, Openreach, saying that it was not “the end of the debate”.
The telecommunications regulator published its verdict on Openreach today, recommending that the unit should be overhauled to ensure that it would remain independent from the main group and allow easier access to BT rivals. The watchdog did not demand a complete separation of the division – a measure that has been frequently requested by Sky and other BT competitors – but said that a split was still an option in the future.
Sky viewed the verdict as recognition by Ofcom that the current model was“not working and that fundamental change is required”. “BT must now be held to account for improving service and enabling delivery of fibre to Britain’s homes and businesses.”
However, the pay TV giant reiterated its position that an Openreach separation was the “most effective way” to “fix the current broken market structure” and added that it was pleased that that option was still on the table.
“We will work with Ofcom to deliver change at Openreach and we look forward to playing a positive role in helping make Britain a digital world leader,”Sky’s statement concluded.
In today’s trading, Sky shares were up 1.3 percent at 1,019.00p, as of 15:09 GMT. The stock has fallen 8.4 percent since the start of the year and the company’s market capitalisation currently stands at £17.5 billion.
The 21 analysts offering 12 month price targets for Sky have a median target of 1,100p, with a high estimate of 1,500p and a low estimate of 750.00p. As of February 20, 2016, the consensus forecast amongst 28 polled investment analysts covering Sky had it that investors should hold their position in the company. The same consensus estimate has been maintained since January 12, 2012, when the sentiment of investment analysts deteriorated from “outperform”.
As of 16:02 GMT, Thursday, 25 February, Sky Plc share price is 1,022.00p.