The September quarter was a tough one for Foxtel. Revenue was down, broadcast subscribers fell, subscriber churn rose and average revenue per user fell 6%, meaning revenue and profits also fell. Rather than the powerhouse News Corp makes the pay TV business out to be, it is something of a stumbling giant at the moment.
As we pointed out earlier this week, Foxtel is a tough business for News Corp now that it owns 65% and includes it in the Murdoch empire’s day-to-day operations, instead of being a 50%-owned, standalone business. The September quarter filing from News, released today, shows that revenues fell US$115 million (AU$159 million) or 17% compared to the September quarter of 2017, because of lower subscriber numbers and the impact of the fall in the value of the Australian dollar.