NZ shares fall for a third day as Sky subs dwindle, Fletcher sees grim outlook
The S&P/NZX 50 Index declined 55.11 points, or 0.4%, to 12,502.97. Across the main board, 81 stocks fell, 57 rose, and 41 were unchanged. Turnover was $74.9 million, less than the $137m daily average in July, with six companies trading on volumes of more than a million shares.
Company earnings brought investors back to reality as they highlighted the deteriorating economic climate that triggered the Reserve Bank of NZ (RBNZ) to cut the official cash rate (OCR) last week.
Sky TV led the benchmark index lower, falling 4.9% to $2.72 as investors looked through the increases in revenue and earnings to the lost customer numbers and pared back expectations for revenue growth in the future. Still, the lost customers were largely from the Neon entertainment service due in part to the Hollywood writers’ strike, while the more expensive Sky Sport Now boosting its subscribers.
“Effectively, it was an earnings downgrade and a bit below what the market was expecting,” Greg Smith, head of retail at Devon Funds Management, said. “It’s obviously disappointing with the headline subscriber numbers going backwards, but it is understandable with the explanation reasonable.”
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