BT's Champions League glory relies on strong direct execution, says RBC

9th Jun 2015 12:44

Analysts at RBC estimated that BT could add over £100m to its earnings next year, after its broadcasting division ensured exclusive rights to cover the UEFA Champions League for the next three seasons.On Tuesday, BT Sport launched its Champions League and Europa League coverage and confirmed both competitions will be free to customers who take BT TV, while those watching on their Sky service, via the BT Sport App or on BT Mobile will be able to add the BT Sport Pack for £5 a month.RBC said strong direct sales to pubs, clubs and sports customers was crucial to cover the annual costs of the UEFA rights, which amount to approximately £390m."This is the first time the UEFA rights have been virtually completely behind a pay-TV wall," RBC analysts said in a note."Assuming successful execution, we estimate BT could generate upwards of £100m incremental in earnings from upselling triple-play and TV services given BT has one of the lowest TV/Triple-play market shares of amongst European incumbent peers."BT shares were up 0.59% to 441.40p at 14:21 on Tuesday.