News Corp reporting shows Foxtel profits dropped 19% in FY18/19
Embattled subscription television provider Foxtel dropped 19% in earnings for financial year 2018/19, with a rise in broadcast subscriber churn, but also an increase in both Kayo and Foxtel Now subscribers.
However, parent company News Corp itself reported a 12% increase in revenue, with US$10.07bn compared to $9.02bn the year prior, driven again by strength in the real estate division.
News Corp segment review (click to enlarge)
The reporting is the first since the consolidation of Foxtel and Fox Sports, which has also impacted the results, removing the Fox Sports channel distribution write-off of $317m the year prior.
Revenues at News Corp Australia are reported as dropping 6%, with circulation and subscription revenues for print products dropping across the company, offset slightly by lower print volumes in Australia and the UK. But in digital subscribers, News Corp Australia reported 517,300 paying readers compared to 415,600 the year prior.
Regarding the declines at Foxtel, the reporting blamed costs associated with cricket and rugby rights, as well as marketing costs for the newly-launched Kayo. Foxtel’s overall subscriber figure rose 12% from the year prior, ending on 3.144m, but that includes Kayo, Foxtel Now and the inclusion of commercial subscribers of Fox Sports. 2.4m of that figure are broadcast and commercial subscribers.
Foxtel equity losses (click to enlarge)
Kayo reported 331,000 paying subscribers, following its November 2018 launch, while Foxtel Now reported 446,000 paying subscribers, up 32% from the year prior.
Foxtel broadcast subscriber churn was reported at 14.7% compared to 12.5%, with the October 2018 price increase blamed for the rise, as well as a drop in ‘lower-value’ consumers who were on no-contract plans.
Full-year losses of US$17m were posted, with News Corp recognising a $957m non-cash write-down of the investment in fiscal 2018. The year prior a $1,006m loss was posted. The Australian Financial Review reported earlier this week the bailout figure from News Corp to Foxtel had risen to AU$500m.
Article should read “News Corp creative accounting shows Foxtel profits dropped 19% in FY18/19”
Pay your tax Rupert you bloody parasite.
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Foxtel is the modern day equivalent of the specials bin at the front of the old video stores. Its where old decrepit shows go to die and get shown on endless repeat.
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lolololololol
FOX SPORTS is literally the best group of channels in Australia bar none
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Yep but have to use Kayo because Foxtel on demand is terrible. Streaming is the future, IQ recording is the past.
Services
Foxtel sport, drama, IQ box
Foxtel Go on stick PC
Chromecast
(Same tv)
Stan
Netflix
Kayo
Stick PC playing movies from the Foxtel websites blocked by the federal court (thank you Foxtel for the free movies)
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Yes Chris. All those old shows like Game of Thrones S8, Big Little Lies, Chernobyl and a world leading Sport offering….you are so right! Death, taxes and people putting the boot into a bloody good product!
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Did you read Chris Percival’s post? This is where it is in the world. It is not exactly as reported, but this is the perception of many, perhaps too many.
There is a business fate worse than bankruptcy for anyone or any company of people who think that theatre can be corporatized, sectioned and packaged, and sent out in consignments at a pre-set rate.
There must be an old fashioned and irritatingly vexing exercise called programming, there must be a love of the craft and a desire to do entertainment better than your competitors. nothing else will cut the mustard. Some have found the duty so vexing and so difficult that they have given way to so-called reality shows, I thought we were scraping the barrel with It’s A Knockout, Get Me Out of Here, and some of the soap operas, but oh god, “Bachelor,” and “Cooking” programs are the absolute dregs.
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And where is your news about a c-suite exec being chopped? Exec leadership has once again changed with revenue chief exiting? Another goat named scape? Should have stayed with Kim Williams and his team, at least they all had some business smarts about them
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How much of Foxtel’s churn can be attributed to the discontent of viewers who don’t like their programs being chopped almost in mid sentence for Foxtel’s six minute ad breaks (including the same house ads you saw ten minutes earlier, and ten minutes earlier than that, ad nauseum) – after viewers paid a not inconsiderable amount for the service in the first place. Second, how many advertisers would despair at their message being flashed through at 60x as most Foxtel viewers record programs to watch later without ads.
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Rosco – do you have Foxtel or are you just regurgitating something that you have heard? There’s no ad breaks in program across any major programming….no ads in GOT, no ads in program across any tentpole programming….no ads in live sport….Foxtel actively taking steps to reduce ad loads and are already significantly lower than FTA. Also – eyeballs are promised to clients based on live viewing…so even if your theory about people flicking through recorded programming was correct (it’s not FYI), those advertisers might appreciate some level of added value from that split second they’re on the screen. Again, if this was a sizeable portion of the audience (it’s not), the client still wouldn’t be paying for it.
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