Foxtel’s streaming subscriber base up 31% in Group Q4 and full-year fiscal 2022 results
News Corp today released its fiscal Q4 results and full year earnings, including Foxtel financials highlighting growth in the subscription video services segment.
News Corp’s results released today account for the period of the 12 months ending June 30, 2022.
Foxtel Group reported several wins, including record high subscriber growth of 13% on the previous year. Total Foxtel Group subscriber count increased to 4.529 million (4.413 million paid).
Total streaming subscribers, including Kayo Sports, BINGE, Foxtel Now and Flash reached 2.806 million (2.690 million paid), up 31%.
News Corp CEO Robert Thomson noted that “currency fluctuations” led to revenues being “down slightly for the year”, although “both revenue and profitability were markedly higher on an adjusted basis.”
Adjusted full year revenues for the subscription video services segment grew 1% with annual adjusted revenues growing for the first time in five years as higher streaming and advertising revenue more than offset lower residential broadcast revenue.
News Corp CFO Susan Panuccio said: “Revenues for the quarter were US$524 million, sequentially higher than the third quarter, and down approximately 3% compared to the prior year on a reported
basis due to foreign currency headwinds. Importantly, on an adjusted basis, revenues rose 4%, accelerating from the prior quarter rate of 1%.
“Streaming revenues accounted for 23% of circulation and subscription revenues (Q4), versus 16% in the prior year and more than offset broadcast revenue declines this quarter. We believe this is a key inflection point for the business and has helped underpin the recent stability in Foxtel Group’s revenue.”
Foxtel residential and commercial broadcast subscribers were 1.723 million, down 9%. Foxtel Residential subscribers declined to 1.481 million.
Adjusted segment revenue in Q4 rose 4%, accelerating from the prior quarter rate of 1%. Adjusted full year segment EBITDA increased 3%, with Q4 Adjusted segment EBITDA up 32%.
Streaming subscribers represent 62% of the Foxtel Group’s total subscribers.
Total closing paid subscribers across the Foxtel Group reached over 4.4 million at quarter end, up 13% year‐over‐year. Total subscribers, including trialists, reached over 4.5 million.
Total paid streaming subscribers reached 2.7 million, increasing 34% versus the prior year and adding 114,000 sequentially, with streaming subscribers now representing 61% of Foxtel’s total paid subscriber base.
Streaming numbers by segment
- Kayo Sports reached 1.312 million subscribers (1.293 million paid), up 22% (benefitting from strong winter sports content and very high retention from the initial re‐pricing of the legacy Live Pass customers)
- BINGE reached 1.263 million subscribers (1.192 million paid), up 53%.
- Foxtel Now reached 201,000 subscribers (195,000 paid), down 12%.
- Flash, launched in October 2021, reached 29,000 subscribers (11,000 paid).
- Foxtel residential and commercial broadcast subscribers were 1.723 million, down 9%.
- Foxtel Residential subscribers declined to 1.481 million.
Commenting on the Foxtel Group in News Corp’s FY22 Earnings announcement, News Corp CEO Robert Thomson said: “Foxtel’s renaissance continued, as streaming revenues from Kayo and BINGE
offset broadcast declines during the year.”
At News Corp’s FY22 Investor Briefing this morning, Thomson added: “At Subscription Video Services, the Foxtel Group’s renaissance continued, with adjusted revenues, which excludes currency impact, rising 4 percent in the fourth quarter, while Adjusted Segment EBITDA rose 32 percent in the fourth quarter. And importantly, excluding currency, full year revenues for the segment rose for the first time in five years.”
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