Austar profit drops, outlook brightens
Thursday, 29 July 2010
AUSTAR posted a 42 per cent fall in first-half net profit, reflecting higher financing costs and a loss on derivatives.
The regional subscription television group said net profit for the six months ended June 30 fell to $20.7 million from $35.5m a year earlier.
Total financing costs jumped to $33.3 million, compared to $9.3 million a year ago.
But at the operating level, an increase in subscribers helped operating profit improve to $63.5m from $58.4m as revenue rose 6.3 per cent to $351.9m from $330.9m.
Austar said it added 3389 subscribers in the second quarter to 747,148, which was up 18,429 over the year.
"While subscriber growth was still subdued in the second quarter, we are seeing positive signs that momentum has returned," chief executive John Porter said today.
He added: "The second half of 2010 will be an exciting time for Austar and its customers, with the 2010 Delhi Commonwealth Games showcased in HD over six dedicated channels, and the launch of a range of key programming that has traditionally connected well with subscribers."
Customer churn decreased from 1.40 per cent in the first half of 2009 to 1.36 per cent.
Total average revenue per user (ARPU) increased 5 per cent compared with the previous corresponding half, ending the second quarter at $84.69.
Mr Porter said the digital switchover, which has already occurred in Mildura, will offer an even greater opportunity for Austar as consumers want a quality, multi-channel experience.
"In Mildura, for example, the number of sales and upgrades increased significantly in the months before analogue switch-off," he said.
The company won't pay an interim dividend.
Additional reporting: AAP
--
* Lyndal McFarland
* From: Dow Jones Newswires
* July 29, 2010 9:39AM
http://www.theaustralian.com.au/business/media/austar-profit-drops-outlook-brightens/story-e6frg996-1225898309905
The regional subscription television group said net profit for the six months ended June 30 fell to $20.7 million from $35.5m a year earlier.
Total financing costs jumped to $33.3 million, compared to $9.3 million a year ago.
But at the operating level, an increase in subscribers helped operating profit improve to $63.5m from $58.4m as revenue rose 6.3 per cent to $351.9m from $330.9m.
Austar said it added 3389 subscribers in the second quarter to 747,148, which was up 18,429 over the year.
"While subscriber growth was still subdued in the second quarter, we are seeing positive signs that momentum has returned," chief executive John Porter said today.
He added: "The second half of 2010 will be an exciting time for Austar and its customers, with the 2010 Delhi Commonwealth Games showcased in HD over six dedicated channels, and the launch of a range of key programming that has traditionally connected well with subscribers."
Customer churn decreased from 1.40 per cent in the first half of 2009 to 1.36 per cent.
Total average revenue per user (ARPU) increased 5 per cent compared with the previous corresponding half, ending the second quarter at $84.69.
Mr Porter said the digital switchover, which has already occurred in Mildura, will offer an even greater opportunity for Austar as consumers want a quality, multi-channel experience.
"In Mildura, for example, the number of sales and upgrades increased significantly in the months before analogue switch-off," he said.
The company won't pay an interim dividend.
Additional reporting: AAP
--
* Lyndal McFarland
* From: Dow Jones Newswires
* July 29, 2010 9:39AM
http://www.theaustralian.com.au/business/media/austar-profit-drops-outlook-brightens/story-e6frg996-1225898309905