Foxtel Subs Climb 12% Revenues Up After Reshaping Of Sports Offerings
Foxtel, Australia’s leading streaming and sports provider, has reported a 12% jump in subscribers, according to the latest News Corp results.
Subscribers are now running at 3.314 million, a major contributor has been a surge in demand for Binge and Kayo. Earlier this week Telstra got out of the NRL and AFL streaming market with Kayo now in a position to capitalise on the move. Telstra has a 35% shareholding in Foxtel.
2.001 million of the totals were residential subscribers who later this year will be offered a brand-new streaming box with the release of the new voice activated iQ5.
As of December 31, 2020, there were 648,000 Kayo subscribers (624,000 paying), compared to 372,000 subscribers (350,000 paying) in the prior year.
Binge, which was launched in May 2020, had 468,000 subscribers (431,000 paying) while Foxtel Now had 265,000 subscribers as of December 31, 2020.
Another big plus for the network that went on a cost cutting exercise last year was that revenues in the quarter increased $10 million, or 2%, compared with the prior year, reflecting a $33 million, or
7%, positive impact from foreign currency fluctuations and higher revenues from OTT products.
The business was impacted by lower commercial subscription revenues resulting from the ongoing restrictions on pubs,
clubs and other commercial venues due to COVID-19.
Segment EBITDA in the quarter increased $54 million, or 77%, compared with the prior year.
The revenue improvement reflects $35 million of lower sports programming rights and production costs, which was primarily driven by the savings from renegotiated sports rights, partially offset by the $20 million negative impact related to the deferral of
costs from the fourth quarter of fiscal 2020.
Segment EBITDA improvement was achieved due to lower entertainment programming costs, lower overhead expenses resulting from cost reduction efforts and an $8.
million positive impact from foreign currency fluctuations.
Adjusted Segment EBITDA increased 66% claimed News Corp.
During the period Foxtel offloaded the poor performing Rugby rights in Australia which have been picked up by Nine Entertainment who are trying to attract sports lovers to Stan.