Climb continues for Xero

Last updated 12:05 05/07/2013
XRO 16.000 -0.50 -3.03%

Click for a detailed chart

SKT 4.960 0.09 1.85%

Click for a detailed chart

Relevant offers


Blue cod changes a 'satisfactory compromise' House sales, looming inflation spur Kiwi spend-up on their homes Organic Initiative on mission for hygiene revolution Labour's Annette King denies internal rift over TPPA deal Second SPG director pleads guilty to charges brought by watchdog Little Island signs deal for Samoan coconut supply A2 Milk whips up $40m capital raising, oversubscribed Spark says virtual shareholder meeting a New Zealand first Sanford worker who fell into freezing hold on boat in Bluff out of hospital Restaurateurs gather in Nelson for hospitality conference

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


Special offers

Featured Promotions

Sponsored Content