Foxtel has seen its churn rate for the six months to December 2011 increase to 13.4%, up from 12.5% in the prior period, due to a challenging consumer environment.
Foxtel chief executive Richard Freudenstein said more consumers were cancelling their subscription because of the wider economic environment.
However, the pay TV operator still grew its subscriber base by 2.1% to 1.58 million households.
The company's earnings before interest, tax, depreciation and amortisation increased a minimal 0.7% to $280 million. The company's profit was $107 million.
Freudenstein said the company has been affected by “extreme consumer caution” and “Uncertainty in the global economy”, as well as increased competition such as the digital multi-channels and the ever increasing range of content providers.
Foxtel is 50% owned by Telstra, while News Limited and Consolidated Media Holdings own 25% each.
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