Can the English Premier League Bring Premier Growth For Singapore Telecommunication Limited?

Singapore Telecommunications Limited’s (SGX: Z74) Australian arm, Optus, has just announced that it has won the broadcasting rights to the English Premier League in Australia.

The deal will include three seasons starting from August 2016. According to news reports, the deal is worth more than A$50 million and gives the company “live broadcast coverage and digital rights for broadband and mobile” for all 380 matches over three seasons. Optus won over the exclusive rights from Foxtel, its largest rival in the telecommunication space in Australia.

Popular sports

The English Premier League is one of the most popular sports programmes globally, with more than 930 million viewers in the world.

Currently, there is no plan shared by Optus on how it will be distributing the program. However, possible distribution methods may include additional subscriptions for the exclusive games or cross-distribution with other networks.

While the deal may be a significant win for Optus, given that it is able to win over the rights from its rival, the A$50 million deal can still be considered relatively small in the context of its parent company, Singapore Telecommunication Group. On a trailing twelve months basis, Singapore Telecommunication Group’s revenue and profit stood at about S$17.3 billion and S$3.9 billion respectively.

Foolish Summary

Optus has made a breakthrough by winning the exclusive rights to the English Premier League. The deal may be considered small in the grand scheme of things for Singapore Telecommunications Group but a war is won one small battle at a time. In this case, this is certainly a great win for Optus.

Moving forward, all eyes will be on how it can make a profit from the A$50 million deal.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.