Presto closure sees Foxtel losses

prestoFoxtel’s decision to close down Presto has resulted in a quarterly loss of $21 million (AU$27 million), News Corp has announced.

“Foxtel’s net income in the three months ended September 30, 2016 included a $21 million loss resulting from Foxtel management’s decision to cease Presto operations in January 2017,” News Corp said in its financial results report.

“Foxtel’s net income of $16 million decreased from $42 million in the prior year period,” News Corp added.

“Presto had approximately 130,000 paying subscribers as of September 30, 2016, who will be invited to transition to the new Foxtel Play packages.”

Mumbrella reports Foxtel is shown in the results as having an US$11m loss for the quarter, which includes write-downs by News in the value of “finite-lived tangible assets” of the company. However, that number applies only to News’ half of the business, which it co-owns with Telstra.

Overall, Foxtel’s net income increased 1% on the year before “due to higher subscribers”, with the company claiming 2.9m subscribers as of September 30. However, it does not state whether that includes the 130,000 named Presto subscribers.

Source: ZDNet

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