Climb continues for Xero

TOM PULLAR-STRECKER
Last updated 12:05 05/07/2013
XRO 25.650 -0.18 -0.70%
XRO

Click for a detailed chart

SKT 3.440 0.07 2.08%
SKT

Click for a detailed chart

Relevant offers

Industries

Visible cartons allowed in alcohol area Rob Campbell to replace retiring SkyCity chairman Failure to build Waimea Dam would put 75 jobs 'in jeopardy' Chart of the day: The cost of renting in Invercargill The $50 billion Maori economy is poised to get bigger European Union fines Google a record $3.55 billion for antitrust breaches Mainfreight founder turns eye to social and environmental issues Toss the carpark vistas, designer urges Hamilton ANZ $32 million out of pocket from Pumpkin Patch collapse Hosting the America's Cup would bring profile and visitors to New Zealand

Xero is now worth more than Sky Television after Xero shares jumped another 2.9 per cent to $18 in morning trading on the NZX.

That price values Xero at more than $2.1 billion, $62 million more than Sky, whose shares dropped 1.7 per cent to $5.26.

In most other respects the company's financials are worlds apart. Sky reported a net profit of $123m on sales of $843m in its last financial year, while Xero last reported an annual net loss of $14.4m on sales of $39m.

Analyst Morningstar raised its "fair value" estimate of Sky shares by 50 cents to $6 but warned at the same time that it now saw the internet as a "viable option for distributing content to subscribers".

It also said there was a lot of uncertainty over the value of Sky because of "the increased risk of regulation".

The Commerce Commission is expected to wrap up a Commerce Act investigation into Sky within the next few weeks.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content