NZ shares fall; Sky routed on lost cricket rights
The S&P/NZX 50 Index declined 54.13 points, or 0.5 percent, to 10,886.73. Within the index, 27 stocks fell, 19 rose, and four were unchanged. Turnover was $145.3 million.
Sky sank 20.7 percent to 88 cents on a volume of 3.3 million shares, more than four times its 90-day average of 814,000. The pay-TV operator lost the rights to broadcast cricket played domestically after being outbid by rival Spark New Zealand at a time when Sky's market value of $365 million hinders its ability to make big offers without having to ask shareholders for permission.
"They may have to increase what they pay for other content to hang on to it and it does create a real question mark for the business," said Shane Solly, a portfolio manager at Harbour Asset Management. Sky will ask shareholders for greater freedom when bidding to retain the SAANZAR rugby rights, which end late 2020, at next week's annual meeting.
Spark fell 2.9 percent to $4.48 on a volume of 2.5 million shares, less than its 3.1 million average. The telecommunications company's gambit for cricket comes at a time when its ability to live-stream sports has been questioned by unhappy customers of its Rugby World Cup coverage. It has attracted 186,000 subscribers.
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