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Sky’s cost discipline in Italy close to being vindicated - Venture Insights

Report Overview

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Sky’s cost discipline in Italy close to being vindicated

PublisherEnders Analysis.
Publish Date October 9, 2015
Sector Broadcast TV, Media, Non-UK Media, Sports, TV.
Company Sky Italia.

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In Italy, pay coverage of the Champions League shifted from Sky to Mediaset Premium this season. Alongside a new Serie A contract, this adds an extra €300 million to Mediaset Premium’s cost base.

The first results indicate that Mediaset is unlikely to meet its subscriber growth target. On current trends we expect cumulative EBIT losses of over €400 million by 2018.

Mounting losses may force Mediaset to close or sell Premium, but fear of Sky may slow decision-making. Sky was probably right not to overbid for the Champions League and the savings should more than offset minor subscriber losses.