Foxtel Group outlines streaming-led growth strategy
The Foxtel Group, with the support of its shareholders News Corp and Telstra, today held a Strategy Day to update the investment community on its growth and transformation and to outline a series of aspirations as Australia’s most dynamic streaming-led media company.
The update confirmed that the future growth of the Foxtel Group will be driven by streaming, currently through its fast-growing streaming services, Kayo Sports and BINGE, and the opportunity for further growth through its recently announced live news aggregation streaming service, Flash.
The Foxtel Group also revealed a transition to a streaming-led future for Foxtel Retail following the recent launch of the iQ5 plug and play IP set top box. This transition, designed to strengthen Foxtel’s subscriber base and revenue, includes a future as a streaming aggregator of Foxtel’s content along with integrating a broad range of local and global streaming apps. This transition will be boosted later this year with a software update that will allow its popular iQ4 set top box to be IP-only, without the need for satellite.
The successful implementation of the Foxtel Group strategy has enabled the company to articulate new three-year ambitions, including reaching:
5 million plus subscribers, having reached four million total subscribers in FY-21, one million higher in the past 12 months.
Approximately $3 billion in revenue with continued opportunities for margin expansion, supported by streaming revenue growth, continuing to slow the decline in residential broadcast revenue and ongoing cost transformation through digital growth and operational efficiencies.
A capex to revenue ratio of 4%, having fallen from 14% in FY-19 to 7% in FY-21, to help underpin the Group’s continued strong cash performance of $274 million in FY-21 (EBITDA less capex).
Foxtel Group Chief Executive Officer, Patrick Delany, said: “Our strategy briefing highlights today’s Foxtel Group is a very different company to the one-product Foxtel of three or four years ago.
“The business has been repositioned as a technology-led streaming company with multiple sources of revenue growth from streaming, a strengthened Foxtel Retail offering and growth in digital advertising.”
The Foxtel Group Strategy Day presentation is available on the Foxtel Group website, and a replay of the Australian and US Livestreams will be available on the website approximately 3 hours following the conclusion of each session and for at least ten business days thereafter.