News Corp has unveiled its Q1 FY25 results, spotlighting the performance of Foxtel Group and its streaming growth in what continues to be a difficult market for the Australian media industry.

In the first quarter of this financial year, the group's revenue and subscriber base continue to grow year-on-year, with streaming platforms Kayo Sports and BINGE contributing significantly to this growth. Total Foxtel Group subscribers sat at 4.658 million, up 1% year-on-year, while total streaming subscribers including Kayo Sports, BINGE and Foxtel Now were up 4% to 3.182 million. In all, streaming subscribers represent 69% of total subscribers, up 2% year-on-year. Kayo was the best of the batch, up 7% to 1.499 million paid subscribers, against a 4% lift on BINGE.

Foxtel residential and commercial broadcast subscribers were sitting at 1.422 million in Q1 FY25. This includes Foxtel Residential subscribers (1.185 million). Broadcast ARPU rose 4% year-on year to A$89 against broadcast churn for the quarter of 11%.

News Corp Chief Executive, Robert Thomson, stated that “our streaming revenues are more than offsetting declines in linear revenues".

"This shows solid progress against our strategy to grow through the transformation from a subscription TV company to a high growth diversified media company with a majority of assets in digital. Streaming subscriptions, subscription revenue and advertising revenue have all grown year-on-year," he continued. "Our Foxtel churn also remains low, hitting its lowest level since 2015 – we are well maintaining this premium subscriber base."

The Q1 FY25 earnings include a 3% increase in Subscription Video Services revenue. Foxtel Group's streaming subscription revenues represented 34% of total segment circulation and subscription revenues in the quarter.

"Growth in streaming more than offset declines in linear revenues," said Thomson. "While the quarter was impacted by Hubbl costs as is normal with any product launch, those costs have come down sequentially, and we expect them to continue to fall.”

News Corp CFO, Susan Panuccio, reported revenues for the quarter were US$501m, up 3% compared to the prior year. On an adjusted basis, revenues rose 1% versus the prior year. Segment EBITDA in the quarter was $92m, down $1m versus last year despite the inclusion of $11m of costs related to Hubbl for devices and marketing. Excluding the Hubbl investment, Foxtel’s profitability would have been higher for the quarter, she said.

Panuccio concluded, “At Subscription Video Services, the strategy remains to scale streaming products while retaining high value broadcast customers through improved ARPU and churn measures and we continue to anticipate the rate of investment at Hubbl to be lower during the remainder of Fiscal 2025.”