News Corporation is considering the sale of its majority interest in the Foxtel Group, following a nine-month strategic review. Foxtel operates the pay-television service of that name in Australia, and the online services Kayo Sports and BINGE, as well as a recently launched online service Hubbl, modelled on the Sky Glass and Sky Stream service that is ultimately owned by Comcast. Foxtel is 35% owned by Australian telco Telstra.
Commenting on annual results, the News Corporation chief executive Robert Thomson said: “We are confident in the Company’s long-term prospects and are continuing to review our portfolio with a focus on maximizing returns for shareholders. That review has coincided recently with third-party interest in a potential transaction involving the Foxtel Group, which has been positively transformed in recent years. We are evaluating options for the business with our advisors in light of that external interest.”
He told analysts: “We had no imminent intent to sell Foxtel but are reviewing potential strategic and financial options for the business with their advisers and engaging with third parties in light of that external interest.”
Foxtel reported that it had a total of 4.69 million paid video subscribers, up from 4.65 million the year before. That included 1.55 million to Kayo, 1.53 million to BINGE, and 142,000 to Foxtel Now. It had 1.21 million residential broadcast subscribers, down from 1.34 million the previous year and around 2 million at the start of 2020.
Annual revenue for subscription video services was $1.92 billion, down from 1.94 billion the previous year. Online video subscriptions represented 30% of total circulation and subscription revenues, compared to 27% in the prior year.
Australian telco Telstra owns 35% of Foxtel. A representative said: “Consistent with the statements made by News Corp, there is no assurance regarding the timing of any action or transaction, nor that the strategic review will result in a transaction or other strategic change.”
Foxtel was originally established in 1995 as a venture between News Corporation and Telstra. The ownership structure has constrained the video ambitions of Telstra, which is closing its Telstra TV service and now promotes Fetch TV, in which it acquired a controlling stake.
Foxtel launched its Hubbl brand in February 2024, based on the Sky Glass and Sky Stream products pioneered in the United Kingdom. Sky is owned by Comcast, which also owns NBCUniversal that operates the online service Peacock.