Foxtel recorded strong revenue and paid subscriber growth in the September quarter, but its contribution to News Corp has dipped because of a stronger US dollar.
News Corp September quarter results show an $8 million, or 2%, slide in revenue of $US502 million.
This was mainly due to a $40 million, or 8%, negative impact from foreign currency fluctuations.
Adjusting for the currency moves, revenue was up 6% to $542 million.
Higher revenues from Kayo and BINGE, higher commercial revenues and an increase in advertising revenues were partially offset by the impact from fewer residential broadcast subscribers.
Foxtel Group streaming subscription revenues represented about 25% of total circulation and subscription revenues in the quarter, as compared to 19% in the prior year.
As of September 30, Foxtel’s total closing paid subscribers were nearly 4.5 million, a 16% increase mainly due to the growth in BINGE and Kayo subscribers, partially offset by lower residential broadcast subscribers.
Broadcast subscriber churn in the quarter increased slightly to 14.2% from 14% in the prior year. Broadcast ARPU for the quarter increased 1% year-over-year to A$83.
Segment EBITDA (Earnings before interest, taxes, depreciation, and amortisation) in the quarter decreased $3 million, or 3%, reflecting a $9 million, or 8%, negative impact from foreign currency fluctuations.
The decline also reflects higher sports programming rights costs, driven by the timing of sports events, notably in motorsports, and contractual increases, as well as higher marketing costs at BINGE. Adjusted Segment EBITDA increased 5%.
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