Thodey praised for ‘amazing support’ on Foxtel

NEWS Corp executives have credited outgoing Telstra boss David ­Thodey with helping steer Foxtel through a challenging landscape.

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EXECUTIVES at Rupert Murdoch’s News Corp have credited outgoing Telstra boss David ­Thodey with helping steer pay-TV operator Foxtel through a challenging landscape, giving the jointly owned media business room to grow.

Mr Thodey yesterday announced his retirement as chief executive, to be replaced by the telco’s chief financial officer, Andy Penn, in May.

With Telstra and News Corp joint shareholders in Foxtel, News Corp global chief executive Robert Thomson paid tribute to Mr Thodey’s achievements during a six-year period at the helm of the telco.

“David Thodey has not only led Telstra with distinction, but he has fashioned a vision for the future that will echo in Australia for many years to come,” Mr Thomson said.

Analysts said Mr Thodey was leaving Telstra in strong shape, having doubled the telcos value to about $80 billion, and greatly improving relations with customers and the government.

“We are fortunate that this distinguished leader has such an able successor in Andy, whose ability and integrity will enhance the company and country,” Mr Thomson added.

Mr Thodey’s exit coincides with a ramp-up of investment at Foxtel. It also comes at an important time strategically, as the business expands into new areas and seeks to boost subscriber numbers. News Corp Australia chief operator officer Peter Tonagh, a former Foxtel executive, said Mr Thodey’s customer focus and open leadership style made it easier to achieve recent enhancements to subscription packages.

“He has an obsessive focus on making sure the business delivers to customer needs. I think he’s also instilled that with the Foxtel team,” Mr Tonagh said.

Telstra’s 50 per cent shareholding in Foxtel is in the jewel in the crown of its collection of media ­assets. Foxtel’s revenue was up 1.2 per cent to $1.6bn in the half year ended December 31, while subscriber numbers increased 4.7 per cent to 2.7 million, despite operating in a weak consumer ­environment.

As well as providing Telstra with growing revenue from premium pay-TV services, Foxtel’s channels are the linchpin of its digital set-top box, T-Box, which provides another revenue stream.

Because of Telstra’s sometimes difficult position as a shareholder, customer and distributor, there were inevitable conflicts in the partnership with News Corp.

But on Mr Thodey’s watch, Foxtel completed a $2bn takeover of regional pay-TV company ­Austar, despite potential challenges to Telstra’s business.

Foxtel chief executive Richard Freudenstein said Mr Thodey had given “amazing support” to Foxtel.

“David had the vision to encourage the team at Foxtel to take truly bold initiatives in pricing, technology, content and customer service that have set the business up for sustained growth,” he said.