Climb continues for Xero

TOM PULLAR-STRECKER
Last updated 12:05 05/07/2013
XRO 19.790 0.21 1.07%
XRO

Click for a detailed chart

SKT 4.890 -0.02 -0.41%
SKT

Click for a detailed chart

Relevant offers

Industries

Star spangled shoot 'em ups bringing big bucks to Kiwi countryside Travel firms urged to boycott 'tiger tourism' Views of Mt Victoria in Devonport threatened by Unitary Plan Customs 'disappointed' it will have to wait for whizzy crime-fighting software Air New Zealand sets new benchmark for wine industry Wellington's Felix Cafe property put on the market TVNZ heads to Rio but criticises Sky TV demands Petone building offers CBD perks without the cost or chaos Miner found dead after front-end loader rolls in Waihi goldmine Legal profession is about to be ''uber-ised'': online lawyer John Shingleton

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