Foxtel,which is owned by News Corp (65 per cent) and Telstra (35 per cent),has grown to more than 2 million subscribers across its streaming services,which include Kayo Sports and Binge. Revenue increased by $US188 million due to foreign currency fluctuations and $US89 million in high revenues from Foxtel’s streaming services. Adjusted revenues declined 2 per cent and adjusted earnings were flat compared to the same time the previous year.
As of June 30,Foxtel had 3.9 million subscribers - 1.9 million of which were residential and commercial broadcast subscribers. Kayo Sports has 1.054 million paying subscribers,Binge has 733,000 paid subscribers and Foxtel Now has 219,000. Broadcast average revenue per user (ARPU) for the quarter increased 4 per cent to $81.
The Australian Financial Review reported in July Foxtel was considering an IPO for the second time.News Corp received a US$2 billion offer from a US special purpose acquisition vehicle to buy a part of Foxtel last year, but the offer was rejected.
When asked what specifically Mr Thomson meant by “optionality” for Foxtel,he said:“It’s very clear that what we have with Foxtel are options. We’ve got the key sports rights long into the future,we have an absolutely contemporary customer-friendly streaming platform network,and those systems are another major means of monetising existing rights at no extra costs.
“We have a broadcast experience that is world class and is now the village square for video in Australia and we surely have price elasticity in a market where an ever larger number of people in Australia understand that you pay a premium for premium content. These are auspicious circumstances and their confluence,combined with stage leadership from[CEO Patrick Delany] and[News Corp broadcasting boss Siobhan McKenna] has transformed Foxtel’s fortunes and certainly given us choices.”
Morning star analyst Brian Han said an IPO or any other Foxtel-related transaction would depend on stabilising the traditional business.