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| Version 0 | Version 1 |
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| BT chief: We don't need Premier League rights | BT chief: We don't need Premier League rights |
| (about 9 hours later) | |
| Gavin Patterson says firm has ‘Plan B’ if price for live football coverage goes beyond top bid | Gavin Patterson says firm has ‘Plan B’ if price for live football coverage goes beyond top bid |
| Mark Sweney | Mark Sweney |
| Fri 2 Feb 2018 12.12 GMT | Fri 2 Feb 2018 12.12 GMT |
| Last modified on Fri 2 Feb 2018 22.00 GMT | |
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| BT does not need exclusive Premier League games and has a “Plan B” if the company misses out in the upcoming £6bn TV rights auction, the chief executive has said. | BT does not need exclusive Premier League games and has a “Plan B” if the company misses out in the upcoming £6bn TV rights auction, the chief executive has said. |
| BT and Sky are due to lodge their bids next week for the three-year cycle of Premier League live TV rights beginning in 2019-20. Analysts expect 15-23% inflation on the £5.14bn paid last time; £960m by BT for 42 live matches a season, and £4.18bn by Sky for 126 games. Digital rivals, such as Amazon or Facebook, could also enter the bidding for one of the less attractive packages of games. | BT and Sky are due to lodge their bids next week for the three-year cycle of Premier League live TV rights beginning in 2019-20. Analysts expect 15-23% inflation on the £5.14bn paid last time; £960m by BT for 42 live matches a season, and £4.18bn by Sky for 126 games. Digital rivals, such as Amazon or Facebook, could also enter the bidding for one of the less attractive packages of games. |
| Asked if BT’s business model could work if it was shut out of the auction, Gavin Patterson said: “Yes, absolutely. I don’t want in any way to diminish the importance of the Premier League of course, and the Premier League’s importance to us. But it is one of a broad set of rights. We will be competitive but ultimately won’t go beyond the price it is worth to us.” | Asked if BT’s business model could work if it was shut out of the auction, Gavin Patterson said: “Yes, absolutely. I don’t want in any way to diminish the importance of the Premier League of course, and the Premier League’s importance to us. But it is one of a broad set of rights. We will be competitive but ultimately won’t go beyond the price it is worth to us.” |
| Patterson pointed to BT’s £1.2bn Champion’s League rights, which helped drive viewing of BT Sport up a record 23% in the last quarter of 2017, as an example of the strength of its sports rights portfolio. | Patterson pointed to BT’s £1.2bn Champion’s League rights, which helped drive viewing of BT Sport up a record 23% in the last quarter of 2017, as an example of the strength of its sports rights portfolio. |
| “We continue to see Premier League content as an important part of BT Sport, but it is only one part,” he said. “It is one we like and it has performed well for us. We know what it is worth to us and we model that and we bid up to, and no further, than the value of it. We always have a ‘Plan B’ if we don’t get what we want.” | “We continue to see Premier League content as an important part of BT Sport, but it is only one part,” he said. “It is one we like and it has performed well for us. We know what it is worth to us and we model that and we bid up to, and no further, than the value of it. We always have a ‘Plan B’ if we don’t get what we want.” |
| In December, BT and Sky struck a content deal which includes allowing customers to access all Premier League matches without having to buy separate subscriptions. | In December, BT and Sky struck a content deal which includes allowing customers to access all Premier League matches without having to buy separate subscriptions. |
| Analysts believe this could reduce the fear of missing out on the best games package in the auction, which has spurred rampant price inflation in recent bidding. Patterson said the content deal would not change its bidding strategy. | Analysts believe this could reduce the fear of missing out on the best games package in the auction, which has spurred rampant price inflation in recent bidding. Patterson said the content deal would not change its bidding strategy. |
| His comments came as BT’s share price hit a five-year low amid investor concerns about “red flags” in its latest quarterly results. Of greatest concern is BT’s consumer division, its core business around broadband and TV operations, where growth has stalled. Revenue growth flatlined in the final quarter last year, at £1.26bn, and profits fell 4% to £250m. | His comments came as BT’s share price hit a five-year low amid investor concerns about “red flags” in its latest quarterly results. Of greatest concern is BT’s consumer division, its core business around broadband and TV operations, where growth has stalled. Revenue growth flatlined in the final quarter last year, at £1.26bn, and profits fell 4% to £250m. |
| BT’s TV operation reported that it lost 5,000 customers in its worst quarterly performance since its launch more than a decade ago. It has 1.8 million customers. | BT’s TV operation reported that it lost 5,000 customers in its worst quarterly performance since its launch more than a decade ago. It has 1.8 million customers. |
| The rate of new broadband subscribers also slowed with 35,000 additions in the final quarter, down from 83,000 in the same period in 2016. | The rate of new broadband subscribers also slowed with 35,000 additions in the final quarter, down from 83,000 in the same period in 2016. |
| Overall, BT reported a 3% fall in revenue to £5.97bn, and 25% increase in pre-tax profits to £660m in the final quarter last year. Revenues fell 1% to £17.7bn and profits fell 9% to £1.74bn in the nine months to the end of December. | Overall, BT reported a 3% fall in revenue to £5.97bn, and 25% increase in pre-tax profits to £660m in the final quarter last year. Revenues fell 1% to £17.7bn and profits fell 9% to £1.74bn in the nine months to the end of December. |
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| Sky plc | Sky plc |
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