Foxtel may be put up for sale by owner News Corp (NASDAQ:NWSA).
The media giant revealed the move during an investor call to highlight its quarterly results.
In explaining the decision to move Foxtel to a new owner, News Corp (NASDAQ:NWSA)’s global chief executive Robert Thomson said, “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 with record numbers of streaming subscribers, low broadcast churn, and rising broadcast and streaming RPU [revenue per user].
“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.”
The sale comes with Foxtel-owned Kayo and Binge. News Corp owns 65% of the company, with Telstra owning the remaining 35%.
Thomson said external interest is a clear vote of confidence in the Foxtel team. However, wouldn’t elaborate any further.
Foxtel boss Patrick Delany also declined to comment further but did say, “We’re used to speculation about us. In the early days, 2017-18 it was that we weren’t going to make it. Then there was the flotation stuff, and then this. I think, the management team and all of the great team at the Foxtel Group, we just keep our heads down and continue on.”
Delaney said the matter would be in the hands of shareholders and that any sale would have now impact on activities which includes new NRL broadcast rights.
News Corp revenues grow
News Corp reported a 6% increase in revenue for the quarter, reaching US$2.58 billion. The company's EBITDA rose by 11% compared to the same quarter last year, amounting to US$380 million. This growth was primarily driven by the performance of its Harper Collins and REA Group businesses, which helped offset significant declines in the news media segment.
The company's sports streaming service, Kayo, added 108,000 new paying subscribers during the quarter, likely due to the popularity of its AFL and NRL offerings. Additionally, the entertainment service Binge saw an increase of 76,000 new paying subscribers.
In Australia, News Corp's news mastheads, including The Australian, The Daily Telegraph, and The Herald Sun, experienced a slight growth in paying subscribers, reaching 968,000, an increase of 2,000 from the previous quarter. However, revenue in Australia decreased by 5%, which the company attributed to lower circulation and subscription revenues.