Foxtel to face questions on potential IPO plans

Foxtel CEO Patrick Delany. Picture: John Feder

Foxtel is likely to face questions at its September 30 strategy day about its potential initial public offering plans.

DataRoom understands that any listing is likely to be some time off but owners News Corp, publisher of The Australian, and Telstra emphasised that Foxtel’s return to growth had created options in the future.

Should it head to the boards, the cable television and streaming service provider will likely call on the services of Bank of America and is also known to have close ties with investment bank Citi.

Streaming service providers have experienced surging demand on the back of lockdowns to stem the spread of Covid-19.

Foxtel recently reported it has 2.1 million streaming customers, up 130 per cent over the past year.

An IPO was considered for Foxtel in 2016 to enable a partial exit for shareholders, but did not proceed.

A float has been a point of discussion in the market in the past two years.

At the strategy day, chief executive Patrick Delany and newly appointed chief financial officer Stuart Hutton will brief fund managers and analysts in Australia and the United States.

The event is being held on behalf of Foxtel’s shareholders News Corp and Telstra, which owns 35 per cent, and it’s understood that News Corp chief executive Robert Thomson and Telstra boss Andy Penn will introduce the day.

The strategy day comes on the back of a major turnaround at Foxtel, driven by growth in its streaming business following launch of streaming services Kayo Sports in late 2018 and Binge in 2020.

The company is also pushing hard into streaming in its traditional business, with the launch of its iQ5 set top streaming box earlier this month.

Shareholders are hoping for a re-rating of Foxtel, with Mr Delany telling a business conference in June that based on its streaming growth, there was a strong argument for the market to take a fresh look at the value it was creating for its shareholders.