Correspondents in Sydney | August 13, 2008
PAY-TV provider Foxtel has lifted its full year earnings after steady growth in subscriber numbers and an increased take-up of additional services by existing subscribers.
Foxtel, which is 50 per cent owned by Telstra and 25 per cent owned each by Consolidated Media Holdings and News Corp, posted a 17 per cent lift in revenue to $1.7 billion in 2007/08.Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 48 per cent to $351 million in the year to June, 2008.
Foxtel said it expected solid consumer demand to continue for its products as a result of the launch of its high definition service (HD+) in June and its planned launch of a new standard iQ - which allowed people to watch selected shows and movies at any time they they wanted.
Foxtel chief executive Kim Williams said investment in new products helped Foxtel to grow across all its key businesses in the past 12 months despite challenging market conditions.
"Because of our continued investment in product innovation for consumers, Foxtel's story is one of continued growth across all key metrics in the face of challenges to consumer confidence in the current economic environment," Mr Williams said.
Foxtel's total subscriber base was 1.54 million as of the end of June.
Its direct subscribers increased by 8.6 per cent over the previous year, while wholesale subscribers fell by 2 per cent.
Mr Williams said sales of the HD+ service had been strong, with nearly 40,000 subscribers signing on since its launch this year.
Average revenue per user (ARPU) increased to nearly $85 a month as a result of a higher take-up of additional services such as Foxtel iQ, as well as a continuing high penetration of Platinum, its highest pay TV package offering.
Mr Williams said this financial year Foxtel would continue to grow its HD+ service, launch a new standard iQ and new channels, commission more programs and continue to enhance Foxtel by mobile.
He said it would examine new distribution platforms such as Foxtel over broadband.
In June, Foxtel signed an agreement with BBC Worldwide to deliver two new channels on the Foxtel platform in 2009 - documentary channel BBC Knowledge and educational children's channel CBeebies.
The channels are in addition to the BBC World News and BBC HD and will take BBC Worldwide's offering on Foxtel to five channels, including UKTV.
AAP