Foxtel lifts pre-tax profits, subscribers
Foxtel posted an 8% increase in earnings before interest, tax, depreciation and amortization in local currency in the year to June 30, News Corp. reported today.
The number of subscribers improved by 6% to 2.6 million and the churn rate dropped to 12.5% from 14.2% the prior year. Average revenue per subscriber per-month was $96, up 1%, among the highest of any pay-TV platform in the world.
However Foxtel’s results were dragged down by foreign currency fluctuations as revenues in US dollars declined from $3.184 billion in 2013 to $2.897 billion, while EBITDA fell from $932 million to $902 million. In local currency revenues edged up by 2% due to higher subscription revenues.
The bottom line: Foxtel’s operating income after depreciation and amortization was $554 million, up from $491 million.
Overall, News Corp. reported EBITDA of $US770 million, a rise of nearly 12% on the prior year’s $US688 million. Australian newspapers revenues were down 18%, of which 10% was blamed on the weak Australian dollar.
The company took a $US72 million hit in fees and costs related to the hacking investigation and charges in the UK newspapers unit.