November 14, 2012 / 6:30 PM / in 5 years

BSkyB sees short-term margin dent from Premier League

BARCELONA, Nov 14 (Reuters) - Britain’s dominant pay-TV group BSkyB expects to see a short-term impact on its margins from the higher than expected cost to buy Premier League soccer rights, its finance officer said.

Andrew Griffith told a conference organised by Morgan Stanley that there would be a “little bit of discontinuity” to its steady improvement in margins but said it expected to recover over time.

”Clearly there is a little bit of discontinuity with the Premier League,“ he said. ”There’s a step uplift next year and then it’s flat amortising for the next few years.

“So I would say don’t look at the gross margin or even the EBIT margin too much on a linear year basis, but let’s try and look at that over the medium term.”

BSkyB and new market entrant BT agreed in June a 3 billion pounds ($4.75 billion) rights deal to show live English Premier League matches for the next three years.

BSkyB will pay 760 million pounds per season to show 116 live games - a 40 percent increase on the cost of its current deal.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below