Tesco to boot Blinkbox this week, say analysts
As the supermarket giant grapples to deal with THAT £263m profit overstatement, the retailer will unveil a “focus on simplification”, suggests Clive Black from Shore Capital.
As the supermarket giant grapples to deal with THAT £263m profit overstatement, the retailer will unveil a “focus on simplification”, suggests Clive Black from Shore Capital.
Troubled Tesco will sell off Blinkbox – its streaming service – following poor growth figures, according to analysts.
Following a 5% drop in like-for-like sales for the three months to the end of November, and a similarly poor 4.3% drop for the period since then, Deutsche Bank analysts predict the streaming service will face the chop to protect the retailers’ ailing margins.
Tesco is also likely to outline the sale of other major assets, it is understood.
As the supermarket giant grapples to deal with THAT £263m profits overstatement, the retailer will unveil a “focus on simplification”, suggests Clive Black, analyst at Shore Capital.
“I would be surprised if there is not a cut in capital expenditure. I don’t see how you can justify spending £2.1bn a year,” he added.
A spokesman for Blinkbox declined to comment on the future of the service, acquired by Tesco in 2011 in a bid to compete with the likes of Netflix and Now TV.
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