Kayo, Binge and Foxtel Now paid subscribers cross three million mark

Paid subscribers of Foxtel Group’s streaming services (Kayo Sports, Binge and Foxtel Now) have crossed the three million mark, according to its full-year financial results.

Released as a part of News Corp’s results this morning, Foxtel Group said there are now 4.723 million (4.650 million paid) total group subscribers, up 4% on the prior corresponding period.

The total streaming subscribers accounted for 66% of the group’s total subscribers, compared to 62% in the fourth quarter of 2022. There were 3.129 million (3.058 million paid) subscribers, up 13% year-on-year (YoY).

However, residential and commercial broadcast subscribers continued to decline 9% YoY to 1.574 million. Residential churn is said to have improved YoY to 12.7%, down from 13.8%.

Revenues for the quarter were $501 million, down 4% compared to the prior year on a reported basis. News Corp CFO Susan Panuccio attributed this to “foreign currency headwinds”.

“On a constant currency basis, revenues rose 3% versus the prior year, the sixth consecutive quarter of growth in constant currency,” she said.

“Segment EBITDA in the quarter of $78 million was down 4% versus the prior year but was up 4% on an adjusted basis despite higher programming costs, mostly related to contractual escalators across key sports rights.”

News Corp chief executive Robert Thomson said: “Subscription Video Services revenues increased from 6% of News Corp’s total to 20%, bolstered by the consolidation and control of Foxtel, a business renewed.

He expressed confidence in Foxtel Group’s future and News Corp’s optionality after the “imminent completion of a refinancing”.

“We were asked frequently in the past how much more capital we would need to commit to Foxtel, but the question now is how much cash we will receive in coming years.”

Key figures breakdown

  • Kayo Sports reached 1.411 million subscribers (1.401 million paid), up 8%
  • BINGE reached 1.541 million subscribers (1.487 million paid), up 22%
  • Foxtel Now reached 177,000 subscribers (170,000 paid), down 12%
  • Foxtel Residential subscribers declined 9% to 1.341 million
  • Broadcast ARPU rose 2% to A$84 (for the fiscal year ended 30 June 2023, year-on-year), through a continued focus on Foxtel’s premium brand positioning

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