Football Marketing Could Hit Sky

Merrill Lynch has reduced its pre-tax profit forecast for BSkyB in 1998/99 from £375 million to £360m, due to the likelihood of a major marketing blitz after the World Cup in June/July. The City firm believes that some of this will be one-off promotions to “piggy back” on the interest generated by the tournament. A £300m pre-tax profit forecast for 1997/98 is maintained.

Merrill Lynch also believes that it is unlikely that there will be an increase in the cost of a Sky subscription, as it will wish to “reduce the perception that it is expensive over a delicate digital launch phase.”

Merrill Lynch: 0171 772 1000