AUSTAR delivers record subscribers and profits

For the 6 months ended 30 June 2007 (compared to the same period in 2006)
“¢ Revenue increased 14% to $275 million;
“¢ Gross margin increased 13% to $148 million;
“¢ EBITDA* increased 17% to $79 million;
“¢ Total television subscribers increased by 38,002 to 639,128.
“¢ H107 residential net gain outperformed H106 by 45%; and
“¢ Cashflow from operating activities (before capex) increased 17% to $62 million.

For the 3 months ended 30 June 2007 (compared to the same period in 2006)
“¢ Revenue increased 13% to $141 million;
“¢ Gross margin increased 12% to $76 million;
“¢ EBITDA* increased 16% to $41 million;
“¢ Net gain of 19,768 subscribers
“¢ Residential net gain outperformed Q206 by 14%;
“¢ Total residential television ARPU up by 2.9% to $76.36; and
“¢ Quarterly churn stands at 1.23%, down 0.05.

Austar United Communications (“AUSTAR”, ASX: AUN) today released its unaudited results for the first half ended 30 June 2007.

The Company continues to experience strong subscriber growth, ending the first half of 2007 with a total of 639,128 subscribers. Total television subscribers increased by 38,002 for the half, whilst the second quarter delivered 19,768 subscribers. This growth has been driven by significant increases in residential subscribers in both periods. Other operational highlights include a Q2 ARPU of $76.36, whilst churn continues to track downwards, ending the quarter on 1.23%.