Foxtel continues to attract streaming customers, with Kayo, Binge, and Foxtel Now subscribers jumping by 25 per cent over the past year.

Overall adjusted revenues for its subscription video services jumped 3 per cent year-on-year for the December quarter, with adjusted earnings up 16 per cent.

Total Foxtel subscribers now sit at 4.41 million, with 4.33 million of these paid subscribers, a jump of 10 per cent year-on-year.

Streaming subscribers hit 2.76 million (2.68 million paid), now representing 62 per cent of Foxtel’s total subscriber base, up from 56 per cent for the same quarter in 2021.

Binge leads the way, with 1.439 million subscribers (1.375 million paid), up 48 per cent. Kayo Sports subs were up 11 per cent, reaching 1.136 million subscribers (1.126 million paid).

Foxtel Now has a more modest 183,000 subscribers (177,000 paid), which fell 16 per cent. Considering this service comes with the residential subscriber service, this fall is an indication of users migrating to the similar Binge service.

Binge will also be introducing an ad-supported tier before the end of June, which News Corp CEO Robert Thomson said will “maximise the Foxtel Group’s revenue potential.”

 

Foxtel residential and commercial broadcast subscribers (pay-per-view) were 1.631 million, down 8 per cent, with pure residential subs dropping to 1.4 million, down 10 per cent.

Residential churn was down 12.9 per cent, however, suggesting the company is nearing its base level of residential subscribers who don’t plan to flee the old model just yet.

“We are very encouraged by the year-to-date performance and continue to expect the Foxtel
Group’s profitability in local currency for the full year to be relatively stable,” News Corp CFO Susan Panuccio said of the result.

Panuccio warned of a drop in profitability in the current quarter, due to “contractual escalators”, however expanded content from the AFL and NRL will see profitability “skewed to the fourth quarter.”

“Our sports programming portfolio has been enhanced with the renewal of Australian cricket
rights to 2031,” Thompson told investors.

“We are now on the cusp of the peak selling season for Kayo as the Australian football and rugby league seasons which will start imminently, and we solidified our entertainment offerings, with an expanded, multi-year content deal with NBCU.

“Overall, Foxtel’s continuing success and positive trajectory have certainly increased our
optionality for that business.”