Foxtel earnings, subscribers rise in cautious times
CEO Kim Williams says: "While our financial performance for the year was solid, subscriber growth remains testing."
- Published by David Knox
- on
- Filed under Subscription
Foxtel today announced a 15.5% growth in earnings, from $477 million last year to $551 million for the year to 30 June 2011.
Amortisation grew by 15.5% to $551 million, while Profit Before Tax grew at 26% to just over $200 million. Foxtel’s EBIT grew by 21% to just under $250 million.
Customer retention improved with full year churn rate of 12.5%, down from 13.5% last year. Total subscriber households, including wholesale, finished at 1.652m.
Total subscriber households, including wholesales, finished at 1.652 million. Nearly 75% of subscribers now take the Foxtel iQ service with almost one-third of subscribers taking Foxtel’s High Definition services.
Director of policy and corporate affairs Adam Suckling said, “Consumers have become very cautious and this is primarily based on an increase in savings rate. On top of this, we are also competing against Freeview services and new online offerings.”
CEO Kim Williams acknowledged the difficult environment saying: “While our financial performance for the year was solid, subscriber growth remains testing as a result of the ongoing reluctance of consumers to commit to new discretionary spend whilst the increased competition from Freeview and broadband delivered video entertainment services has exacerbated the acquisition challenge.
“Our existing subscribers continue to value our service highly as reflected through increased uptake of our iQ, High definition and multi-room services while churning at a significantly lower rate than in recent years.”
Foxtel indicated last month it had made a non-binding offer to buy Austar, but the deal is currently being examined by the corporate watchdog over competition issues.
6 Responses
If you don’t like it don’t get it!
Threat from Freeview? There’s virtually nothing but rubbish on it!
…..and they wonder why the up take of pay TV in Australia is so low.
In the old days people had Foxtel cause TV reception was poor, that goes now with Digital, so will be interesting to see what happens. Its become too expensive
So Mr William, I presume you’ll be reducing you subscription costs…..that’ll be the day
You know why don’t you. They upped the subscription costs for New channels. Love the spin people.
With all that money and they can’t keep
general hosptial…..