Shares in True Corporation Pcl dropped 0.41 percent to 4.80 baht as brokers expect the company to lose subscriptions after it lost a bid for the English Premier League (EPL) broadcasting rights.
Thailand’s only fully-integrated telecoms firm lost to Cable Thai Holding (CTH), the newly established cable television operator, as the sole pay-TV operator to broadcast the EPL for the next three seasons, from 2013-14 to 2015-16.
Several brokers expressed concerns that the loss may hit the company’s ratings and viewer’s subscription as the EPL is considered one of TrueVision‘s, the company’s cable business, strongest attractions with the highest viewing rate.
Krungsri Securities rated the stock a ‘sell’ with a target price of 3.80 baht, saying the loss due to a delayed 3G operating licence may further hit the company’s earnings in 2013.
“We expect the company to continue to post losses in 2013’s earnings after losing its stronghold in failing to secure the licence to air the premier league, and thus is likely to lose its customer base to its rival,” Krungsri said.
“On top of this, in the short-term, there is still uncertainty over its delayed 3G operating licence, which is still pending on the administrative court’s ruling.”
The broader Thai index was up 0.08 percent.
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Reporting by Sinsiri Tiwutanond in Bangkok; Editing by Subhranshu Sahu; firstname.lastname@example.org