Sky Network Slumps on 2013 Earnings Forecast: Wellington Mover
Sky Network Television Ltd. (SKT), New Zealand’s biggest pay television company, fell the most in three months after saying that profit in this fiscal year will be lower than analysts expect.
Net income will be NZ$120 million ($97 million) to NZ$125 million in the year ending June 30, 2013, from NZ$122.8 million a year earlier, the Auckland-based company said in a statement. The average analyst forecast was NZ$138 million, it said. The stock fell 3.2 percent, headed for its biggest fall since May 16.
The forecast was less than analysts’ “possibly” because of the costs of Olympics coverage and its delayed Igloo service, a cheaper product it’s developing with Television New Zealand, Sky said in a presentation about its full-year results.
Sky shares fell 17 cents to NZ$5.08 as at 12 p.m. in Wellington. Earlier, they fell as low as NZ$5.01.
Sky, 44 percent owned by Rupert Murdoch’s News Corp., said profit rose 2.2 percent in the year ended June 30 after higher expenses incurred during the Rugby World Cup were offset by an increase in customer numbers and revenue.
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