Reuters: Global Markets: BSKYB, BT shares slide on pricey UK soccer TV deal

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BSKYB, BT shares slide on pricey UK soccer TV deal Jun 14th 2012, 07:28 LONDON | Thu Jun 14, 2012 3:28am EDT LONDON (Reuters) - Shares in broadcaster BSkyB (BSY.L) and telecoms company BT (BT.L) fell on Thursday after the companies agreed to fork out 3 billion pounds ($4.7 billion) to se cure live domestic broadcasting rights to English Premier League soccer. The price of the three-year contract, which cements the Premier League's position as the most valuable domestic soccer competition in the world, represents a 70 percent increase. Shares in BSkyB were down 6.5 percent at 650 pence by 0713 GMT and trading at their lowest point since April. Shares in BT were down 3.5 percent. Numis analysts Paul Richards and Gareth Davies said BSkyB would be paying about 140 million pounds a year more for the rights than the market had anticipated. They said that overall they retained a positive stance on the stock but trimmed their rating to "Add" from "Buy" and cut their share price target to 815 pence from 825 pence. "Although the price increase was higher than our forecast, we are pleased that the uncertainty over PL (Premier League) rights has been resolved," they wrote in a note to clients, adding that they did not expect consensus forecasts for 2014 and 2015 earnings to change.

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