Foxtel Group over 4m subscribers

News Corp has released its second quarter Fiscal 2022 results which puts Foxtel in a strong position

Total Foxtel Group subscribers were 4.08 million (3.94 million paid) as at December 31 2021, up 21% on the prior year.

Total streaming subscribers, including Kayo Sports, Binge and Foxtel Now reached 2.29 million (2.16 million paid), up 66%.

– Streaming subscribers represent 56% of the Foxtel Group’s total subscribers.
– Kayo reached 1.03 million subscribers (1.01 million paid), up 59%.
– Binge reached 1.04 million subscribers (928,000 paid), up 122%.
– Foxtel Now reached 219,000 subscribers (211,000 paid), down 17%.
– Foxtel Residential and Commercial broadcast subscribers were 1.782 million.
– Foxtel Residential Broadcast subscribers declined to 1.56 million.
– ARPU was up 3% to A$82.00 through a continued focus on Foxtel’s premium brand positioning.
– Foxtel Residential Broadcast churn continued to moderate in the first quarter, improving 100 basis points to 13.0% compared to the first quarter FY22, and the lowest since the first quarter of fiscal 2020.

News Corp Chief Executive Robert Thomson said: “Foxtel’s streaming products flourished, with a 66% increase in total customers, and Kayo and Binge both exceeding one million.

“Subscription Video Services benefited from increasing subscriptions and decreasing churn, thanks to the ongoing appeal of our streaming platforms, the high quality of our technology, our increasingly sophisticated understanding of audience data, and the depth and broad appeal of our unparalleled entertainment, sports and news offerings.

“Sports seasonality is always a factor in Australia, but our total streaming subscribers expanded by 66% year over year, with Binge exceeding one million subscribers and Flash, our news aggregation service, in its infancy. In toto, as of December we had almost 2.3 million streaming subs, representing 56% of Foxtel’s total subscriber base, which was 4.1 million. It is worth noting that in addition to the increase in streaming subs, broadcast churn was at a three year low.

“The team, led by Siobhan McKenna and Patrick Delany, is executing successfully on our strategy to scale streaming, having developed world class technology and a compelling user interface. We are increasingly confident in Foxtel’s future and thus actively looking at ways to maximize its value and ensure that we can build on that success.”

Total subscribers, including trialists, were approximately 4.1 million, the highest on record.

The year over year increase was driven by higher Binge and Kayo subscribers, partially offset by the expected decline in residential broadcast subscribers, albeit at a more moderated rate than the first quarter. In aggregate, total streaming subscribers rose 66% from the prior year to almost 2.3 million, of which approximately 2.2 million were paying subscribers. Streaming products in the aggregate reached 56% of Foxtel’s total subscriber base.

“Binge had an outstanding quarter, increasing its total subscribers to over 1 million, similar to Kayo. Paying subscribers more than doubled from the prior year to 928,000. Binge added 126,000 paid subscribers in the quarter, almost double the net adds of the first quarter. Binge’s growth continued to be driven by the depth of its content library and the popularity of new shows, including a Binge Original show, Love Me.

“Kayo subscribers followed seasonal patterns, with total subscribers slightly down from the first quarter, consistent with the prior two years. The Winter codes of AFL and NRL remain key acquisition drivers for Kayo, with Cricket and Motorsports providing essential viewing over the Spring and Summer months to satisfy the year round sports fans. Australia’s winter sports codes will resume in the third quarter with the return of AFL, NRL, Netball, and Supercars.”