Sharewatch: BSkyB Hit Hard By Slowing Subscriber Figures

BSkyB saw its share price tumble by 4.97% yesterday as it was put under pressure by investors to be more specific about future strategies. The satellite broadcaster announced lower than expected subscriber figures yesterday, but was upbeat with the announcement of an increase in operating profit of 67% for the nine month period to the 31 March 2004 (see Sky Turns Down Premier Bids As Profits Soar).

The Independent has also caused a stir, announcing it is to cease publication of its broadsheet edition nation-wide from Monday, transforming itself into a tabloid-only newspaper. The company’s share price climbed by 3.35% yesterday to 123źp ahead of the news.

Elsewhere, Cable & Wireless enjoyed a 1.73% boost as JP Morgan upgraded its status to ‘overweight’ expecting dividend payments to resume on the announcement of the company’s full year results.

Advertising heavyweight WPP dipped by 1.27% yesterday, settling at 543p as the company announced a massive $600 million account to provide advertising services to HSBC (see WPP Beats Rivals To Win Global HSBC Media Account).

Concerns over inflation and interest rates were again the cause of preoccupation in the city yesterday, with the Bank of England’s inflation report further stoking trader uncertainty. The FTSE 100 dipped by 0.9% to 4,412.9, while the FTSE 250 fared better, closing 0.5% lower at 5,969.

The closing prices of media company shares on Wednesday were:

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