News Corp video segment: 744,000 Kayo & Foxtel Now customers

• As of June 30, 2019, Foxtel’s total closing subscribers were 3.144 million

As part of the News Corp results today, the company has detailed it latest subscription numbers for Foxtel and Kayo:

Subscription Video Services

 Full Year Segment Results

Revenues and segment EBITDA for fiscal 2019 increased US$1.20 billion and $207 million, respectively, compared to the prior year, primarily due to the consolidation of Foxtel’s results for the full year. Adjusted revenues and adjusted segment EBITDA, which exclude the impact of foreign currency fluctuations, acquisitions and divestitures, declined 2% and 19%, respectively.

On a pro forma basis, reflecting the Fox Sports transaction, segment revenues for fiscal 2019 declined $342 million, or 13%, compared with the prior year, of which $181 million, or 7%, was due to the negative impact from foreign currency fluctuations.

The remainder of the revenue decline was driven by the impact from lower broadcast subscribers and changes in the subscriber package mix, partially offset by higher revenues from Foxtel Now and Kayo.

Segment EBITDA for fiscal 2019 decreased $165 million, or 30%, compared with pro forma Segment EBITDA for the prior year, primarily due to the lower revenues discussed above, $95 million of higher sports programming and production costs, mainly related to Cricket Australia and National Rugby League rights, as well as higher marketing costs related to the launch of Kayo. The decline was partially offset by the $150 million positive impact on expenses from foreign currency fluctuations and lower entertainment programming and non-programming costs.

Fourth Quarter Segment Results

Revenues in the quarter decreased $74 million, or 12%, compared to the prior year, of which $44 million, or 7%, was due to the negative impact from foreign currency fluctuations. The remainder of the revenue decline was primarily due to lower broadcast subscribers and changes in the subscriber package mix, partially offset by higher revenues from Foxtel Now and Kayo. Adjusted revenues for the segment decreased 5% compared to the prior year.

Foxtel subscriber numbers

As of June 30, 2019, Foxtel’s total closing subscribers were 3.144 million, which was 12% higher than the prior year, primarily due to the launch of Kayo, subscriber growth at Foxtel Now and the inclusion of commercial subscribers of Fox Sports Australia beginning in the first quarter of fiscal 2019, partially offset by lower broadcast subscribers.

Approximately 2.4 million of the total closing subscribers were broadcast and commercial subscribers, and the remainder consisted of Foxtel Now and Kayo subscribers. Following its launch in November 2018, Kayo grew over 8 months to reach 382,000 subscribers, of which around 331,000 were paying subscribers as of June 30, 2019.

Foxtel Now totalled 460,000 subscribers as of June 30, 2019, of which approximately 446,000 were paying subscribers, up 32% compared to the prior year. Broadcast subscriber churn in the quarter was 14.7% compared to 12.5% in the prior year, reflecting the impact of the price increase implemented in October as well as increased volume of churn from lower-value customers who were on a no-contract basis. Broadcast ARPU for the quarter declined 1% compared to the prior year to more than A$78 (US$55).

Segment EBITDA in the quarter decreased $12 million, or 12%, compared with the prior year, primarily due to the lower revenues discussed above, $20 million of higher sports programming costs, primarily related to Cricket Australia, higher marketing costs related to Kayo and the $8 million negative impact from foreign currency fluctuations.

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