Climb continues for Xero
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.