Sky TV boost leads rise in share prices

Promise of rugby deal pushes up broadcaster by 19%

New Zealand shares rose, led by a strong recovery in Sky Network Television after the pay-TV operator all-but secured rugby broadcasting rights in a deal that will also bring NZ Rugby on as a substantial shareholder.

The S&P/NZX 50 Index increased 102.89 points, or 0.9 per cent, to 11,026.60. Within the index, 29 stocks rose, 14 fell, and seven were unchanged. Turnover was $115.3 million, of which Sky accounted for $14.6m.

Sky Network Television jumped 19 per cent to $1.06, unwinding much of last week’s savaging, after saying it secured the rights to broadcast domestic and international rugby in New Zealand from 2021 to 2025.

The contract will need shareholder ratification at this week’s annual meeting and includes a part payment in equity, with NZ Rugby getting 5 per cent of Sky’s stock.

“They had to win rugby, but I think no one can really get their heads around where this business model goes. It looks like it will increasingly be around rugby and rugby delivery,” said Brad Gordon, an investment adviser at Hobson Wealth Partners.

Trading in Sky was heavy with 13.7 million shares changing hands, compared with its 90-day average of 855,000. That was almost half the NZX50’s 29.5 million volume.

Zealand, which outbid Sky for NZ Cricket rights and is currently livestreaming the Rugby World Cup, rose 1.1 per cent to $4.51, with just 977,000 shares traded, less than a third of its 3.1m average.

Fisher & Paykel Healthcare hit a record $18.38, and ended the day at $18.32, up 7.7 per cent on a volume of 1.4 million shares, more than twice its 533,000 average.

The company raised earnings and revenue guidance after saying it got early US regulatory approval for its Vitera breathing mask. “Growth is getting rewarded in the low interest rate environment and the fact that they’re delivering potential growth early is very positive,” Gordon said.

Of other stocks trading on more than a million shares, Goodman

increased 0.2 per cent to $2.225 and Ryman Healthcare rose 2.5 per cent to $13.30.

Stocks across Asia were broadly stronger, with Hong Kong’s Hang Seng up 1 per cent in afternoon trading and Australia’s S&P/ASX 200 Index rising 0.8 per cent. The mini-trade deal between the United States and China helped quell investor fears over the strained relationship.

Companies with global operations were among the day’s gainers. Ebos Group, which holds its annual meeting today, was up 1.7 per cent at $24.91, Mainfreight increased 1.4 per cent to $38.95, and Gentrack Group increased 1.1 per cent to $5.31.

Utilities were among stocks to fall yesterday as investors were attracted to the allure of growth companies.

Meridian Energy fell 1.6 per cent to $5.225, Mercury NZ was down 1.4 per cent at $5.50, Contact Energy slid 1.2 per cent to $8.85 and Genesis Energy declined 1.1 per cent to $3.48.

Restaurant Brands New Zealand posted the day’s biggest fall, down 3.7 per cent at $11.36, with 25,000 shares traded, less than its 40,000 average.

Listed investment vehicle Kingfish, which is managed by Fisher Funds, said it sold its residual shares in Restaurant Brands after this year’s partial takeover.