Foxtel sees rise in subscribers, but sporting costs drain the coffers
Foxtel enjoyed a modest revenue increase over the final three months of 2023, with Kayo and BINGE both adding an impressive number of new subscribers – however the ever-leaping cost of sporting rights has seen the company take a 14% earnings hit.
Foxtel boasted over 4.3 million overall subscribers at the end of 2023, remaining relatively flat compared to the end of the previous year, due to shedding residential broadcast subscribers while gaining Kayo and BINGE customers.
Kayo had 1.183 million subscribers (1.173m paid) at the end of 2023, up from 1.136 million (1.126 paid) at the end of 2022. BINGE passed 1.5 million subscribers (1.471m paid), while Foxtel Now dropped from 177,000 payers to 150,000 – no doubt due to the migration to BINGE – which offers similar programming.
Revenue for the final quarter of 2023 was $470 million, a modest 2% increase, due to pricing increases, and “despite a more difficult summer sports season and inflationary pressures, partially offset by the impact from fewer residential broadcast subscribers and a $6 million negative impact from foreign currency fluctuations.”
Streaming subscriptions now make up 29% of Foxtel’s revenue, up from 26% at the same period the prior year.
Earnings of $77 million for the three months were down 14%, “primarily due to higher sports programming rights costs drivenmainly by contractual increases across AFL and NRL and $10 million of costs related to the upcoming launch of Hubbl, partially offset by higher revenues and lower technology and marketing costs.”
Overall, News Corp saw a modest 3% revenue leap compared to the final three months of 2022, but enjoyed a 16% earnings increase, up from $409 million to $473, due to higher over revenues, lower costs in the book publishing division, and savings due to the 5% “headcount reduction initiative” (firings).
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Nathan Jolly is the Deputy Editor of Mumbrella. He joined the team in July, 2023.
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