Sky soars on NZ Rugby deal; Market up overall
The S&P/NZX 50 Index increased 102.89 points, or 0.9 percent, to 11,026.60. Within the index, 29 stocks rose, 14 fell, and seven were unchanged. Turnover was $115.3 million, of which Sky accounted for $14.6 million.
Sky jumped 19 percent to $1.06, unwinding much of last week's savaging, after saying it secured the rights to broadcast domestic and international rugby in New Zealand from 2021 to 2025. The contract will need shareholder ratification at this week's annual meeting and includes a part payment in equity, with NZ Rugby getting 5 percent of Sky's stock.
"They had to win rugby, but I think no one can really get their heads around where this business model goes. It looks like it will increasingly be around rugby and rugby delivery," said Brad Gordon, an investment advisor at Hobson Wealth Partners.
Trading in Sky was heavy with 13.7 million shares changing hands, compared to its 90-day average of 855,000. That was almost half the NZX50's 29.5 million volume.
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