Wednesday, October 7, 2009

Astro pays Rm800 million for EPL rights

Malaysia's pay-TV operator Astro All Asia Networks said on Wednesday it had won the rights to broadcast the English Premier League (EPL) for the next three years in the Southeast Asian country.

Astro, which won the bid jointly with sports content provider ESPN, did not specify how much it bid for the rights but The Star newspaper cited sources as saying the firm had forked out 800 million ringgit ($233 million).

Analysts say the company, owned by reclusive tycoon Ananda Krishnan, beat Telekom Malaysia after a fierce bidding war.

"Given our belief that Astro probably submitted a fairly aggressive bid this time round (versus a reported $150-200 million in 2006), content cost is expected to balloon," said investment bank OSK in a research note.

"Management had previously guided for content cost to be some 35 percent of pay-TV revenue for FY10. We expect Astro to pass on the higher cost to subscribers with a subscription price hike for its sports package in the interim."

Astro shares were up 0.6 percent at 3.41 ringgit by 0256 GMT in a broader market up 0.4 percent. KLSE ($1=3.433 Malaysian Ringgit).

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