Foxtel is on a massive roll with Kayo and Binge delivering impressive growth in the last quarter, Kayo subscription growth is up 18% while Binge has recorded 64% growth, Foxtel subscriptions grew by 34% despite inflation pressures in Australia.

The impressive numbers for the 3 months period ending September 30, were released as part of News Corps first quarter Fiscal 2023 results, they come days after Foxtel won the streaming rights to AFL and after securing the rights to NBC Universal content, the big loser was Stan.

Commenting on the Foxtel Group at News Corp’s Q1 FY23 Investor Briefing this morning, News Corp Chief Executive Robert Thomson said: “At Subscription Video Services, Foxtel had another strong quarter. Streaming subscriber penetration continues to expand, and costs have been thoughtfully controlled”
He added “Foxtel has recently renewed or signed valuable long‐term sports rights and content agreements, including the AFL, WWE and NBCUniversal. We have obvious optionality at Foxtel, where the conversation is no longer about how much capital we plan to invest – but the potential for capital return”.

Subscription Video Services Segment Highlights

Adjusted1 First Quarter Revenues for the Subscription Video Services segment grew 6%
continuing the growth experienced in Q4 FY2022 (4%) with higher streaming and advertising
revenue more than offsetting lower residential broadcast revenue.

Adjusted Segment EBITDA in Q1 rose 5%.

Key Foxtel Group Subscriber Metrics

– Total Foxtel Group subscribers increased to 4.605 million (4.465 million paid), a record high,
up 16% on the prior year.
– Total streaming subscribers, including Kayo Sports, BINGE, Foxtel Now and Flash reached
2.947 million (2.807 million paid), up 34%.
– Streaming subscribers represented 64% of the Foxtel Group’s total subscriber (55% in Q1
FY22).
– Kayo Sports reached 1.270 million subscribers (1.259 million paid), up 18%.
– BINGE reached 1.451 million subscribers (1.342 million paid), up 64%.
– Foxtel Now reached 197,000 subscribers (191,000 paid), down 18%.
– Flash, launched in October 2021, reached 29,000 subscribers (15,000 paid).
– Foxtel residential and commercial broadcast subscribers were 1.658 million, down 6%.
– Foxtel Residential subscribers declined to 1.439 million.

– ARPU was A$83 through a continued focus on Foxtel’s premium brand positioning.

– Residential churn was 14.2%, rising 40 basis points compared to the fourth quarter, and
20 basis points higher than the first quarter FY22.

“Foxtel’s streaming services attained 2.8 million paying subscribers as of the end of September, surging 34% versus the prior year and accounting for 63% of the total paying subscriber base.