Sharewatch: BSkyB Leads Downturn In Dismal Week’s Trading

Week on week analysis of the UK’s media stocks shows BSkyB‘s poor mid-week performance hampering the company, leaving it unable to repair damage caused by shareholder disappointment over less than impressive subscriber statistics.

The company’s failure to meet its own targets angered investors on Wednesday, and despite posting a staggering 65% increase in profits, the broadcaster’s stock price was left down 18.53% at 492˝p week on week (see Sky Profits Rocket Despite Slowing Subscriber Rates).

The poor performance by BSkyB was seen as a catalyst to doubt in media markets last week, with the aftershocks being felt by almost all the major players. The UK’s largest commercial broadcaster, ITV, was hit badly by traders’ shaken confidence, suffering a 7.42% dip in the same week that the company announced its new digital channel for older viewers, ITV3, will launch in November as a free-to-air offering (see ITV3 To Launch As Free-To-Air Offering In November).

Only three media heavyweights remained unshaken by investor revolt last week, with consumer magazine publisher Highbury House Communications among the best performers. In a difficult week the company managed a 1.75% rise in share price after announcing recently that it expects pre-tax profits for the first half of 2004 to be up 27% year-on-year. The company cites improvements in advertising revenue for its success (see Highbury House Profits Expected To Rise By 27%).

The closing prices of media company shares on Friday were: