The Week Ahead: Future looks good for BSkyB's HD business

Analysts expect to hear of strong demand for BSkyB's HD, or high-definition, products when the satellite television group posts first-quarter results at the end of this week.

HD volumes should sustain the momentum of the group's key performance indicators, according to Citigroup, which said that while the segment is hard to pin down in models, quantitative surveys and an installed base of about 10 million flat screens suggests that the market potential for HD offerings is significant. "At the same time, the backlog of installations from the fourth quarter would suggest [that] the first quarter should be strong," the broker said.

But the expectations may dampen the impact on the share price, with UBS, which is also bullish on HD, saying that investors are already anticipating a reassuring quarter following management comments in recent months. As a result, solid first-quarter numbers may fail act as a short-term catalyst for the shares.

Looking further ahead, and notwithstanding the uncertain macroeconomic picture, Numis is hopeful of "robust" earnings growth over the medium term. "Although we are nervous on the UK economy, we see BSkyB as a business which will hold up well in a downturn (due to the compelling value of its triple play proposition) while offering upside potential when the economy improves (as consumers can upgrade to more expensive products)," the broker said, retaining its "buy" stance ahead of this week's results.

Today: Results/Updates - First Derivatives, Senior and Petropavlovsk.

Tomorrow: Third-quarter results from the software group Autonomy are likely to beat the management's guidance, according to Exane BNP Paribas, which expects the update to boost the market's faith in full-year expectations of $740m in revenues and $1.05 in adjusted earnings per share. "While it was cautious on the split between [the third and fourth quarters], the company was still confident on its pipeline for the full year," the broker said. "We believe a good third quarter will increase investors' confidence in Autonomy's ability to achieve its full-year guidance."

Also tomorrow, publishing group Pearson, which owns the Financial Times, is due to post an update, and Citigroup expects to hear a reiteration of guidance of at least 57.7p in earnings per share for 2009, which the broker said "could lead to consensus upgrades at [the] low end of the range". The broker added: "Schools is seen as an area at risk (given budget pressures), therefore a reiteration of share gains will be important. "At [the first half-stage] Pearson noted that it was taking a 37 per cent share of new adoptions in markets where it competed. Last time we heard from the company, it spoke about a $500m adoption market opportunity for 2009, rising to $900m in 2010."

Results/Updates - Greggs, Rathbone Brothers, Pearson and Autonomy.

Wednesday: Results/Updates - Drax, Elan Corporation, Home Retail Group, Manganese Bronze Holdings and Cadbury.

Thursday: Panmure Gordon expects to hear of a 50 per cent decline in first-half pre-tax profits when Luminar, the nightclub operator, posts interim results this week, with the figure falling to £4.2m. The broker said much hinges on the key Christmas period, which will be "crucial in determining the relative success of the financial year ... with Christmas Day falling on a Friday, the group loses the second-busiest trading night of the week whilst Boxing Day (a big Christmas-period night out) will be on Saturday and any incremental boost to trade will be limited. With New Year's Eve on a Thursday there are also likely to be fewer admissions on the Friday and Saturday nights."

Also on Thursday, don't expect surprises when Petrofac, the oil services group, posts an interim management statement, according to Numis, which is does not anticipate the announcement of any major contracts. "Petrofac is running with a record backlog of $8.4bn after winning $5.8bn of new awards year to date," the broker said. "We see risk to further backlog growth given internal capacity restrictions and expect Petrofac to retain backlog at current levels over 2010."

Results/Updates - Debenhams, Dragon Oil, Petrofac and Luminar.

Friday: Results/Updates - Brit Insurance, Filtrona, Provident Financial and British Sky Broadcasting.

Economics Diary

Monday: London Retail Sales monitor.

Tuesday: CML mortgage lending figures, Bank of England capital issuance and Board Money estimates; Public sector finances for September.

Wednesday: Scottish retail sales monitor; CBI quarterly industrial trends survey; Agents' summary of business conditions; NIESR quarterly review of UK and world economies.

Thursday: Monthly retail sales figures; Bank of England lending trends.

Friday: Third-quarter GDP figures; car production numbers.

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
News
i100

Other places that have held independence referendums
Arts and Entertainment
Jack Huston is the new Ben-Hur
film

It scooped up an unprecedented 11 Academy Awards when it was first remade in 1959

PROMOTED VIDEO
Arts and Entertainment
Pharrell dismissed the controversy surrounding
musicThe singer said 'the last thing I want to do is degrade'
News
news

Arts and Entertainment
Blossoming love: Colin Firth as Stanley and Emma Stone as Sophie, in 'Magic in the Moonlight'
film

Actors star in Woody Allen's 'Magic in the Moonlight'

News
A male driver reverses his Vauxhall Astra from a tow truck
newsThe 'extremely dangerous' attempt to avoid being impounded has been heavily criticised
News
peopleThe Times of India said actress should treat it as a 'compliment'
Arts and Entertainment
Maxine Peake plays Hamlet at Manchester's Royal Exchange
theatreReview: Maxine Peake brings emotional ferocity to Shakespeare's starring part
News
ebooksAn unforgettable anthology of contemporary reportage
News
news

Watch this commuter wage a one-man war against the Circle Line
Property
Home body: Badger stays safe indoors
lifeShould we feel guilty about keeping cats inside?
Life and Style
fashion

Olympic diver has made his modelling debut for Adidas

Travel
travel

...and the perfect time to visit them

Sport
Jonas Gutierrez (r) competes with Yaya Toure (l)
football

Newcastle winger reveals he has testicular cancer - and is losing his trademark long hair as a result

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Recruitment Consultant - Soho - IT, Pharma, Public Sector

£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...

Sales Executive

£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...

Payroll & Accounts Assistant

£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week