HomeBroadcastKayo : One of Foxtel’s Biggest Revenue Contributor

Kayo : One of Foxtel’s Biggest Revenue Contributor

Kayo : One of Foxtel’s Biggest Revenue Contributor

ews Corp’s latest financial results show Foxtel streaming services pulled in USD$114 million (AUD $154 million) in the third fiscal quarter.

This is up 46% to last year, with Kayo and Binge being the largest contributors.

News Corp chief executive, Robert Thomson, said: “For the second consecutive quarter, growth in Kayo and Binge revenues clearly offset the not-unexpected modest decline in retail broadcast revenues.”

The improvement in Kayo’s financial contribution was driven by the USD$34 million  (AUD$46 million) decrease in sporting costs throughout the US.

Kayo alone reached 1.08 million subscribers, up 59%, while Binge reached 885,000 subscribers, up 176% to the previous year.

Yet Foxtel’s residential and commercial broadcast subscribers slumped by USD$177 million (AUD$241 million), a 5.7% decrease to last year.

According to News Corp chief financial officer, Susan Panuccio, Foxtel pulled in USD$510 million (AUD $696 million) in total revenue this last quarter, a 3% increase to this time last year.

To compare to last quarter’s figures, where News Corp’s Streaming Revenue Grew 10% , see Ministry of Sport’s article.

“The increase was driven by continued growth in paid streaming subscribers partially offset by a decline in broadcast subscribers and commercial subscriptions, which were exacerbated by the impact of the lockdowns in Australia.” Panuccio said.

While Kayo fluctuates with the sporting seasons, the upcoming Ashes and Cricket World Cup are expected to bring even more revenue in the upcoming quarter.

“Costs are expected to be higher in the second quarter, most notably for entertainment and sports rights, as well as some higher marketing to support the launch of Flash, the new streaming offering,” Panuccio said.

Yet despite the uncertainty of the future, Panuccio said Foxtel’s revenue will continue to remain steady.

“Overall, we continue to expect costs for the full year to be relatively stable in local currency,” she said.

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