StarHub

StarHub: has acquired the exclusive broadcast rights to UEFA Euro 2012, which will be held form 8 Jun – 2 Jul 2012.
Deutsche notes StarHub’s pay-TV acquisitions and pricing could accelerate ahead of the 2012 broadcast. Recalls back in 3Q08 during the 2008 broadcast, Starhub’s pay-TV net adds jumps to 9k from the avg 3-4k in preceding and subsequent quarters. Also the previous 2008 EUFA Euro package was charged at $21.40 and $53.50 (incl GST) for Starhub’s Sports Group and non-Sports Group customers rptvly.
While specific costs of the 2012 rights were not disclosed, Deutsche believes they were higher than what Starhub paid for in 2008. Starhub itself has said on past occasions that content costs are generally expected to continue to rise.

Of greatest significance is that the UEFA Euro 2012 content will need to be made available for carriage on competitor pay-TV platforms. Deutsche believes SingTel may be in discussions with Starhub, though it remains unclear at present what form the commercial negotiations will take.

The house maintains Buy with TP $3, in view of Starhub’s near term dividend sustainability, but otherwise is cautious on the Spore telco sector given emerging structural challenges.