reports
- Allan C. Nichols
Sky Reported Another Solid Fiscal-Year Result; Awaiting Final Takeover...
Sky reported another solid fiscal year-end result with revenue growing 4.5% year over year, similar to our 4.7% projection. Despite this strong revenue growth, we think the shares are trading above the company’s fair value estimate as a stand-alone company. Thus our fair value estimate is based on the latest takeover offer. Our fair value estimate deducted the GBX 22 per share final dividend that had been scheduled. However, management announced it would not pay the final dividend, so we expec...
- Allan C. Nichols
U.K. Regulator Approves Fox's Offer for Sky, but Comcast Tops Fox With...
On July 12, Jeremy Wright, the new U.K. culture secretary, approved Twenty-First Century Fox’s offer for Sky, removing the last barrier to taking the bid to a vote. However, Comcast threw a spanner into the works by increasing its bid for Sky to GBX 1,475 per share from GBX 1,250. Comcast reserves the right to reduce its offer by any amount up to the final dividend of roughly GBX 22 per share if the dividend is paid before a deal is closed. We are increasing our fair value estimate for Sky to ...
- Allan C. Nichols
The fight for Sky continues.
With Fox’s original offer for Sky we saw two primary advantages for its bid. First, it already owned 39.1% of Sky’s shares, so only needed another 11% of shareholders to vote for it and second, Comcast needed to clear the regulatory process. With the removal of these advantages by making the Fox deal dependent on 50% of the vote not controlled by Fox and quick regulatory approval of Comcast’s offer, on July 11 Fox increased its bid for Sky to GBX 1400 per share from GBX 1075. This is highe...
- Allan C. Nichols
U.K. Announces Fox’s Offer for Sky Likely To Be Approved on Conditio...
On June 5, the U.K. Secretary of State for Digital, Culture, Media, and Sport stated that 21st Century Fox’s offer to sell Sky News to Disney, if it successfully acquired the 61% of Sky that it doesn’t already own, would likely be sufficient to allow the deal to be approved. Specifically, he said, “I agree with the CMA that divesting Sky News to Disney, as proposed by Fox, or to an alternative suitable buyer, with an agreement to ensure it is funded for at least 10 years, is likely to be t...
- Allan C. Nichols
U.K. Government States It Is Unlikely to Require Comcast’s Bid for S...
On May 21, Matt Hancock, the United Kingdom Secretary of State for Digital, Culture, Media and Sport, wrote a ministerial statement regarding Comcast’s offer to buy Sky: “I am minded not to issue (a European Intervention Notice) on the basis that the proposed merger does not raise concerns in relation to public interest considerations," he said. This means that Comcast’s offer will likely not need to go through the lengthy government review that 21st Century Fox’s offer has been going...
- Allan C. Nichols
Comcast Formally Offers GBX 1,250 per Local Sky Share; Maintaining FVE
On April 25, Comcast formalized its previous intent and offered GBX 1,250 per local share for Sky. With this formal offer, the independent board of Sky removed its previous recommendation that shareholders accept 21st Century Fox’s offer of GBX 1,075 per share. They also removed Fox’s liability of GBP 200 million break fee if the deal wasn’t completed and stated an offer would require 50% of the vote of independent shareholders. This requirement removes Fox’s biggest advantage of alread...
- Allan C. Nichols
Sky Reports Generally In-Line Fiscal Nine-Month Results; We Remain Ske...
Sky reported fiscal nine-month sales that were basically in line with our expectations, and we are maintaining our fair value estimate of GBX 1,240 per local share and narrow moat rating. The firm reported revenue grew 4.5% year over year on a constant-currency basis versus our full-year projection of 4.7%. We continue to be impressed with its turnaround in Italy. Before Sky acquired the Italian business, it had virtually no net revenue growth for several years. However, since Sky took control, ...
- Allan C. Nichols
U.K. Takeover Panel Rules Disney Must Bid for Sky If It Acquires Fox A...
On April 12, the UK Panel on Takeovers and Mergers ruled that Disney must offer to buy the 61% free float of Sky’s shares at GBX 875 per share if it succeeds in its acquisition of the agreed assets it is buying from Fox, and neither has Fox already bought in the shares of Sky it doesn’t already own, nor has Comcast acquired more than 50% of Sky’s shares. We find the ruling a bit strange unless this is a precursor to rejecting Fox’s bid to acquire the Sky shares and stating it won’t req...
- Allan C. Nichols
Sky Reported Solid First Fiscal Half Results; Maintaining FVE, Shares ...
Sky reported solid first fiscal half revenue, and we are maintaining our fair value estimate of GBX 1,050 per local share. Our narrow moat rating is unchanged, and we view shares as fairly valued. The firm reported revenue growth of 4.6%, in line with our projection of 4.7%. Sky’s revenue growth would have been 6% without the euro strengthening against the British pound, hurting revenue from Germany and Italy when translated into the weaker pound. In its core market of the U.K. and Ireland, Sk...
- Allan C. Nichols
Sky agrees to be acquired by Fox for GBX 1,075 per share.
On Jan. 23, the U.K. Competition and Markets Authority provisionally found that 21st Century Fox’s offer to acquire the 61% of Sky it doesn’t already own is not in the public interest. The CMA believes the Murdoch Family Trust, which controls Sky and several newspapers in the United Kingdom, has too much power and will increase it with full control of Sky. The CMA says almost one third of the U.K.’s population receives its news from Murdoch-controlled entities. We disagree that the Murdoch...
- Allan C. Nichols
Sky agrees to be acquired by Fox for GBX 1075 per share.
Sky started off its new fiscal year with solid results. On a like-for-like basis, its revenue increased 5% year over year versus our full-year projection of 4.4%. However, reported revenue growth was slightly less because of currency movements. We are increasing our fair value estimate to GBX 1,050 from GBX 1,010 for the local shares, and to $55 from $52 for the ADRs, which also benefit from the strengthening of the British pound versus the dollar. Our narrow-moat rating remains unchanged. We co...
- Allan C. Nichols
Sky Reported Solid Fiscal 1Q Results; Raising Our FVE; Shares Slightly...
Sky started off its new fiscal year with solid results. On a like-for-like basis, its revenue increased 5% year over year versus our full-year projection of 4.4%. However, reported revenue growth was slightly less because of currency movements. We are increasing our fair value estimate to GBX 1,050 from GBX 1,010 for the local shares, and to $55 from $52 for the ADRs, which also benefit from the strengthening of the British pound versus the dollar. Our narrow-moat rating remains unchanged. We co...
- Allan C. Nichols
U.K. Culture Secretary Refers Fox’s Bid for Sky to Competition Regul...
On Sept. 12, Karen Bradley, the U.K. Culture Secretary, referred 21st Century Fox’s bid for the 61% of Sky that it doesn’t already own to competition regulators. We are not surprised with her decision and have actually been expecting it for quite some time. The concerns relate to whether the Murdoch family will have too much control over the U.K.’s broadcasting industry. In our view, there is minimal difference between the family’s influence with 100% control and its influence with 39% ...
- Allan C. Nichols
Sky agrees to be acquired by Fox for GBX 1075 per share.
Sky reported mixed fiscal-year end results with better revenue, but weaker EBITDA margins. We are maintaining our GBX 1,010 fair value estimate and narrow-moat rating. We continue to believe the biggest factor with Sky’s stock price is Fox’s pending takeover. While the offer has been referred to the U.K. secretary of state for digital, culture, media and sport for review, we ultimately expect the deal will be approved. The firm reported revenue growth of 8% versus our projection of 6.5%. The...
- Allan C. Nichols
Sky Reported Mixed Fiscal-Year End Results; We Continue to Expect Deal...
Sky reported mixed fiscal-year end results with better revenue, but weaker EBITDA margins. We are maintaining our GBX 1,010 fair value estimate and narrow-moat rating. We continue to believe the biggest factor with Sky’s stock price is Fox’s pending takeover. While the offer has been referred to the U.K. secretary of state for digital, culture, media and sport for review, we ultimately expect the deal will be approved. The firm reported revenue growth of 8% versus our projection of 6.5%. The...
- Allan C. Nichols
Sky agrees to be acquired by Fox for GBX 1075 per share.
Sky reported solid nine-month results in line with our expectations, and we don’t expect to make any significant changes to our fair value estimate. Our narrow moat rating remains intact. Reported revenue grew 11% due to the strength of the euro versus the British pound. Underlying revenue grew 5%, versus our full year projection of 6.2%. While subscriber growth slowed in the fiscal third quarter in the U.K. to 40,000 net new customers, this is historically its slowest quarter. In Italy, the f...
- Allan C. Nichols
Sky Reported In-Line Nine-Month Results; Shares Fairly Valued
Sky reported solid nine-month results in line with our expectations, and we don’t expect to make any significant changes to our fair value estimate. Our narrow moat rating remains intact. Reported revenue grew 11% due to the strength of the euro versus the British pound. Underlying revenue grew 5%, versus our full year projection of 6.2%. While subscriber growth slowed in the fiscal third quarter in the U.K. to 40,000 net new customers, this is historically its slowest quarter. In Italy, the f...
- Allan C. Nichols
Sky Reported Solid Fiscal First-Half Results That Further Benefited Fr...
Sky reported solid fiscal first-half results that were further enhanced by the weak British pound. However, for now we are maintaining our fair value estimate and narrow moat rating. We still believe 21st Century Fox's offer will likely be approved, which caps the potential value of Sky's stock at GBX 1075 per share. Considering the time value of money and some risk that the deal might not be completed, we are comfortable with our GBX 1010 fair value estimate and believe the shares are fairly va...
- Allan C. Nichols
Sky agrees to be acquired by Fox for GBX 1075 per share.
Fox agreed on Dec. 9 to acquire the 61% of narrow-moat Sky it doesn't already own at GBP 10.75 per share. We believe the offer is a fair price as it is slightly about our fair value estimate of GBP 10.10. We are not surprised with the offer as Sky's stock had fallen below the level at which Fox previously attempted to buy the company in 2011. That attempt was dropped, however, due to a phone hacking scandal at Fox's News of the World newspaper and the following political uproar. Five years later...
- Allan C. Nichols
The Sky Italia and Sky Deutschland acquisitions are growing on us.
Sky reported strong fiscal year-end results, and we expect to increase our fair value estimate. Our narrow moat rating remains unchanged. The firm reported revenue increased 20% year over year versus our projection of an 18.3% gain, including a full year's results for both Sky Deutschland and Sky Italia. On an organic basis, its revenue improved 7%, but benefited from a 53rd week in the year. The large U.K. operation continues to perform well, with 7% revenue growth driven by a 3.7% gain in its ...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.