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Posted 09/08/2024 11:06am

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News Corp ponders sale,
Foxtel's growth in subscribers,
Streaming revenues hail.

In partnership with
Salesforce

News Corp considers Foxtel sale

News Corp could soon sell Foxtel, after the media conglomerate received an unsolicited offer for the subscription television and streaming business.

The bid was revealed by News Corp chief Robert Thomson in the company's full fiscal year and June quarter results.

"We are evaluating options for the business with our advisors in light of that external interest," said Thomson.

It comes as Foxtel reports a 1 per cent growth to its total subscriber base to 4.776 million (4.690 million paid).

"We believe Foxtel is particularly well-positioned for both subscriber and advertising growth as Kayo and Binge have gained traction given their unique strengths in sports and entertainment programming. Those two services added almost 200,000 paying subscribers in the quarter and digital advertising now represents more than 40 percent of Foxtel's total advertising with Kayo growing 42 percent compared to the prior year and the recently rolled-out ad offering at BINGE growing fourfold. We will keep you updated on the advertising renaissance as the quarters unfold," said Thomson.

"Our launch of the Hubbl service is still in its early days, but, encouragingly, more than 30 percent of Hubbl customers are new to Foxtel, which is significant, given our existing presence and profile in the Australian marketplace. About 75 percent of customers of the Hubbl aggregation service purchase an additional Foxtel product along with their device and subscription. On the broadcast side, ARPU grew 6 percent and churn was a pleasingly low 11.7 percent for the quarter. Foxtel continued to generate strong cash flow as we were able to monetise our long-term sports rights across multiple platforms."

News Corp CFO Susan Panuccio said Foxtel's revenues for the quarter were up 1 per cent year-on year to US$506 million 1%. "Streaming revenues accounted for 32% of circulation and subscription revenues, versus 29% in the prior year. Total closing paid subscribers across the Foxtel Group were nearly 4.7 million at quarter-end, up 1% from the prior year," she said.

"Total paid streaming subscribers reached a record 3.2 million, increasing 5% versus the prior year and accounting for nearly 70% of the total paying subscriber base, with Kayo adding 108,000 subscribers and BINGE adding 76,000 compared to the prior quarter. This speaks to the success of our winter sport codes and strong entertainment content."

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