Sharewatch – W/E 15/8/97

BSkyB’s shares fell 11p to 470p on Thursday ahead of the company’s financial results which were announced on Friday. Despite a 22% increase in profits, there appeared to be a general consensus in the market that the figures were disappointing: the broadcaster’s shares slipped 33 to 437p. There is also the fear that future competition, the departure of Sam Chisholm and the costs of digital television could hit BSkyB hard in the future.

There was also movement in the terrestrial TV market, with Ulster TV increasing 32.5 to 199p on Thursday as a result of Scottish Media buying a 13% stake in the Irish broadcaster. Scottish remained unchanged though Border got caught up in the takeover talk and rose 5p to 370.5p. Monday’s news that the DTI would not be referring the Granada takeover of YTTV to the Monopolies and Mergers Commission benefited both companies, with Granada finishing 3p higher at 817p and YTTV increasing 12.5p to 1145p.

Pearson suffered from some profit-taking after experiencing a recent strong performance on the back of good results and optimistic forecasts from chief executive Scardino. On Thursday the media group slipped 23p to 758.5p and dropped a further 11p on Friday to 747.5p.

United News & Media put in a strong performance, starting the week at 669.5p and finishing at 703.5p. This was in part due to a “buy” recommendation from Panmure Gordon as well as news that the group would not be getting involved in a cable merger.