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Foxtel Revenue Drops After Presto Closure

Foxtel Revenue Drops After Presto Closure

Foxtel, which is believed to be trialing the use of virtual reality technology as exclusively reported by ChannelNews, has reported a downturn in revenue and nil income in the third quarter.

News Corp attributed the nil income, which was down from US$32 million a year earlier, to losses from the closure of Presto in January valued at US$21 million, as well as a US$14 million loss in value for Foxtel’s stake in the Ten Network.

Subscribers were also reported to be lower compared to a year ago, down by 1% for a total of 2.8 million as of March 31.

Revenue for Foxtel fell by 3% in local currency, but increased on a US GAAP basis by 2% to US$591 million. EBITDA decreased by 9% to US$131 million during the period (or 13% in local currency) due to “lower revenues and planned increases in programming costs, specifically investments in sports” according to News Corp.

Overall, News Corp reported US$1.98 billion in revenue for the quarter, up by 5% year-on-year.

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