BREAKING NEWS
One driver dead following truck crash on SH27, 7km south of Matamata ... More soon
Close

Climb continues for Xero

TOM PULLAR-STRECKER
Last updated 12:05 05/07/2013
XRO 15.240 -0.25 -1.61%
XRO

Click for a detailed chart

SKT 5.490 -0.06 -1.08%
SKT

Click for a detailed chart

Relevant offers

Industries

Scrap metal prices for Taranaki 'in the doldrums' Spotless Facility Services to pay $15,500 for bullying complaint failures BNZ reports half a billion dollar increase in impaired dairy loans Gym chain Cityfitness launches review to investigate national selfie ban NZ's foreign trust review slammed as 'limited' by Transparency International Huge fee hike approved for Overseas Investment Office Civil and environmental engineering courses come to Waikato John Key says Panama Papers leak a cautionary tale for Kiwi businesses Ford NZ lost in transmission over Australian class action Tesla production, spending rising, 500,000 cars planned in 2018

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