Foxtel now has 4.6 million paid subscribers an increase of 4% over the prior year according to News Corps latest financials with the global services business set to invest extensively in AI, as digital revenue now accounts for over 50% of overall revenues.

As of June 30, 2023, Foxtel’s total closing paid subscribers were over 4.6 million, a 5% increase compared to the prior year.

This was primarily due to the growth in streaming subscribers driven by BINGE and Kayo, residential broadcast subscriber fell in the period as consumers migrated to apps.

Broadcast subscriber churn in the quarter improved to 11.1%, the lowest level since Fiscal 2016 despite recession fears among consumers.

This was down 13.8% compared to the prior year.

Revenues for the last quarter was $501 million down 4% or $23M.

This was due to a $37 million, negative impact from foreign currency fluctuations.

Adjusted Revenues of $538 million increased 3% compared to the prior year.

Higher revenues from Kayo and BINGE, driven by increases in both volume and pricing, were partially offset by the impact from fewer residential broadcast subscribers.

Foxtel Group streaming subscription revenues represented approximately 29% of total circulation and subscription revenues in the quarter, as compared to 23% in the prior year.

News Corp who owns 63% of Foxtel claim that for the first time, digital accounted for over 50% of News Corp’s revenues for the full year, marking a profound transformation during the past decade.

Commenting on the Foxtel Group at News Corp’s FY23 Q4 and Full Year Earnings Investor Briefing this morning, News Corp Chief Executive Robert Thomson said: “Subscription Video Services revenues increased from 6 percent of News Corp’s total to 20 percent, bolstered by the consolidation and control of Foxtel, a business renewed. And Foxtel’s imminent completion of a refinancing is expected to facilitate repayments of our outstanding shareholder loans beginning this fiscal year.”

He added “That momentum is surely gathering pace in the age of generative AI, which we believe presents a remarkable opportunity to create a new stream of revenues, while allowing us to reduce costs across the business. We are already in active negotiations to establish a value for our unique content sets and IP that will play a crucial role in the future of AI.

Thomson added “News Corp’s Fiscal 2023 results highlighted the durability and depth of our revenue streams and the impact of stringent cost controls as we navigated challenging macro conditions, supply chain pressures and currency headwinds”.

“We achieved full year Fiscal 2023 revenues of $9.9 billion and profits of over $1.4 billion – the second highest profitability ever recorded by the Company”.

Our results showed marked improvement in the second half, so with inflation abating, interest rates plateauing and incipient signs of stability in the housing market, we have sound reasons for optimism about the coming quarters.

For the first time, digital accounted for over 50% of News Corp’s revenues for the full year, marking a profound transformation during the past decade. That momentum is surely gathering pace in the age of generative AI, which we believe presents a remarkable opportunity to create a new stream of revenues, while allowing us to reduce costs across the business. We are already in active negotiations to establish a value for our unique content sets and IP that will play a crucial role in the future of AI.