Digital switch-off prospect nullifies Arqiva’s value

Arqiva operates around 1,500 masts used by the UK broadcasters to deliver terrestrial TV and radio networks. However, the prospect of a looming digital switchover as viewers increasingly shift to streaming is a major threat to Arqiva’s business.

Digital 9 Infrastructure investment trust, which is listed on the London Stock Exchange, has a has a 52% stake in Arqiva. In a stock market statement, Digital 9 provided an update on the likely valuation of its Arqiva investment.

Digital 9 said it “expects to recognise a valuation of nil for Arqiva in its 31 December 2025 net asset value.”

The UK government and public service broadcasters, including the BBC, ITV, and Channel 4, are in discussions about when to switch off digital terrestrial television.

Under current legislation, digital terrestrial TV delivered by Freeview is guaranteed until at least 2034. However, broadcasters are keen to push ahead with a digital switch-off, citing the cost of maintaining terrestrial TV as audiences increasingly adopt streaming.

Ministers this week kicked off a separate review into whether FM radio signals should also be switched off in the 2030s.

In its statement, Digital 9 said: “Arqiva remains exposed to several binary events, including government policy and regulatory decisions, capital-structure optimisation, and broader market developments, any of which may materially influence medium-term equity value.”

Macquarie Asset Management recently agreed to the sale of its 26.5% stake in broadcast infrastructure firm Arqiva for £16.5m. Discover more here.