FOXTEL Delivers Subscriber, Profit and TV Viewing Share Growth

Some key FOXTEL highlights for 07/08:
“¢ FOXTEL launched FOXTEL HD+ which provides a wide array of HD channels, block buster HD movies and FOXTEL iQ2 – a disk drive set top unit with a life time warranty against manufacturing defects on the unit.
“¢ FOXTEL made enhancements to its on-line FOXTEL Guide to allow subscribers to use their mobile phone to set up the recording of shows on their FOXTEL IQ via a new REMOTE RECORD function.
“¢ FOXTEL has over 1.5 million connected subscriber homes, a reach of more than 5.5 million Australian viewers.

FOXTEL today announced steady growth in subscribers, improved profitability and solid revenue increases in the year ended 30 June 2008.

FOXTEL’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose 48% to $351m from $237m last financial year. FOXTEL posted a profit of $157m (before tax and after depreciation and interest and including joint ventures) more than double the $76m result for the previous year.

As at 30 June 2008, FOXTEL had a total of 1.54m direct and wholesale subscribers (including installation queue). FOXTEL managed subscribers increased 8.6% over the previous year whilst wholesale subscribers fell by 2%. More than 30% of homes in FOXTEL areas now subscribe to FOXTEL with over 40% of viewers in the key Sydney market having access to FOXTEL in their homes.

FOXTEL’s revenue for the twelve months to 30 June 2008, grew by 17% to $1.7b which was driven by growth in both subscribers and average revenue per user (ARPU). ARPU increased to nearly $85 per month as a result of higher take-up of additional services such as FOXTEL IQ and Multi-Room services as well as ongoing high penetration of FOXTEL’s Platinum package.

FOXTEL IQ (PVR) penetration increased by nearly 50% on last year with almost one-quarter of the base taking a FOXTEL iQ.

Despite tightening economic conditions, churn reduced in the second half to 13.3% to produce full year churn of 13.4%. FOXTEL’s churn rate remains low in comparison with most international counterparts.

In June, FOXTEL launched the FOXTEL HD+ service which includes five dedicated 24/7 HD channels, on-demand HD premiere block buster movies and the FOXTEL iQ2, a new high definition personal digital recorder. The take up of FOXTEL HD+ has been strong with nearly 40,000 subscribers already electing to take up this service. FOXTEL’s mobile offering to Telstra mobile subscribers also continues to grow well.

FOXTEL continued to record very high viewer share numbers in FOXTEL homes. Across the first 26 weeks of 2008 FOXTEL was the most watched network across all households with 22.8% share of viewing, up from 22.1% in the same period last year. In subscription television households FOXTEL achieved a 59.9% share of viewing, which is broadly consistent with the 60.2% share in the corresponding period in 2007.

FOXTEL’s Chief Executive Officer and Managing Director, Kim Williams AM said, “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. More consumers are subscribing to our service, more people are watching it and more people are enjoying the benefits of our exclusive and compelling content. The successful launch of FOXTEL’s HD+ and rapid growth in iQ penetration shows FOXTEL continues to be the most innovative media company in Australia.”

“FOXTEL is committed to creativity and innovation that delivers for the consumer. Next year FOXTEL will: continue to build on the success of FOXTEL HD+, launch a new improved standard definition IQ, launch new channels (following the launch of a new satellite in May 2009), commission more programs, continue to enhance FOXTEL by Mobile and look at new distribution platforms such as FOXTEL over broadband”, Mr Williams said.

More: Press Release