Foxtel Reports 62% Year On Year Surge In Subscribers
News Corp has registered record revenues for the third quarter with management also reporting record growth in Foxtel subscribers.
The news comes after 35% shareholder in the News Corp controlled streaming business purchased 51% of Fetch TV a competitor to Foxtel, in an effort to generate revenue from content apps.
Foxtel delivered a 62 per cent year-on-year spike in the number of its paid subscribers, with both BINGE and Kayo boasting a combined subscriber base of nearly 2.6 million paying customers.
News Corp CEO Robert Thomson announced plans to implement a price increase for Kayo which is proving popular with sports lovers. He said that Kayo “benefits from its scaled platform and high-quality production, which is driving record ratings at the start of the season for both the NRL and the AFL.”
The surge in subscription numbers is seen as issue for the AFL for are currently talking to US network Paramount Global who have small subscription numbers in Australia for their Paramount + service.
The News Corp CEO said the outlook for Foxtel was positive, despite a planned float being delayed due to a range of domestic and international factors that have altered the media landscape in recent months.
“We remain pleased with Foxtel’s turnaround, and harbour great optimism about its near and long-term future. We are continuing to explore all options for Foxtel to maximise its value, while watching closely all relevant developments in the financial markets,” Mr Thomson said.
Thomson said: “News Corp revenues and profitability set new records for the third quarter, building on the momentum of preceding record quarters. We have now achieved more in profitability through the first three quarters of fiscal 2022 — at over $US1.3bn and rising 27 per cent compared to the prior year — than in any entire fiscal year since our rebirth in 2013.
Key Foxtel Group Subscriber Metrics
- Total Foxtel Group subscribers were 4.54 million (4.34 million paid) as of March 31, up 20% on the prior year.
- Total streaming subscribers, including Kayo Sports, BINGE and Foxtel Now reached 2.78 million (2.54 million paid), up 52% YoY and 21% on the prior quarter.
– Streaming subscribers represent 61% of the Foxtel Group’s total subscribers.
– Kayo Sports reached 1.21 million subscribers (1.15 million paid), up 32% YoY and 17% higher than the prior quarter.
– BINGE reached 1.31 million subscribers (1.21 million paid), up 92% YoY and 26% on the prior quarter.
– Foxtel Now reached 215,000 subscribers (206,000 paid), down 10% YoY.
- Foxtel Residential and Commercial broadcast subscribers were 1.762 million.
– Foxtel Residential Broadcast subscribers declined to 1.52 million, down 11% YoY.
– ARPU was up 1.8% YoY to A$81.70 through a continued focus on Foxtel’s premium brand positioning.
– Foxtel Residential Broadcast churn improved 580 basis points to 14.3% compared to the prior year.
More to follow.