BT Group plc (LON:BT) has secured a “good outcome” by retaining access to Premier League broadcast rights without a major increase in costs.
That’s the view of UBS analyst Polo Tang who, in a note, acknowledges that the uncertainty leading into the Premier League’s UK rights auction had represented an “overhang” on the telecommunications and pay-TV group’s share price.
Tang points out that some investors had anticipated between 20% and 30% inflation in total rights cost, when in fact the awards to date see BT’s outlay reduce to £295mln per year compared to the current arrangement which costs £320mln.
“While BT has a slightly weaker set of EPL rights compared to before, BT Sport retains its number two position to Sky Sports and will also show Champions League football as well as Premiership/European rugby,” Tang said.
The analyst added: “With a resolution of pensions due in the coming months and with fibre (FTTH) capex set for the next three years, we think there is growing comfort on BT’s cashflow in the coming years.”
In Wednesday morning’s deals, BT shares were up 3.85p or 1.7% to trade at 229.7p.