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Investors wait on BSkyB buyback decision

Gideon Spanier
Saturday 20 July 2013 19:57 BST
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BSkyB investors will be eager to see whether the pay-TV giant announces another big share buyback or if it wants to conserve cash for its Premier League football war with BT.

Full-year profit next Friday should be 9 per cent up at £1.32bn and analysts reckon Sky could unveil a further £500m-£750m buyback after similar announcements in the last two years. Deutsche Bank said a £500m buyback would give a 3-4 per cent boost to earnings. But broker Numis Securities said chief executive Jeremy Darroch may want Sky to "keep its powder dry given the competitive situation with BT". Only last week he splashed out on new Football League rights to add to the Premier League.

Sky will be hoping for an image boost from star cyclist Chris Froome later today as Team Sky is set to win the Tour de France for a second year in a row.

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