Austar lost nearly 9000 pay TV subscribers last year with its average monthly churn rising to 1.52%, according to its results for the 2011 calender year.
Austar's subscriber total slid to 755,374, with the pay TV player attributing the drop to growing competition in the market “in particular from the free-to-air multi-channels”, with churn up 22 basis points to 1.52% on the previous year.
The company's operating cash flow increased 5% to $258 million, while its profit after tax increased 21% to $120 million and its revenue was flat at $713 million after selling its mobile business.
The penetration of Austar's digital video recorder service MyStar has increased with 43% of its customers having the service. Austar CEO John Porter said MyStar “continues to be a strong differentiator for us, with existing customers opting-in for its control and convenience”.
Porter said in the last half of 2011 Austar focused on controlling its expenditure.
“We did this very successfully, meaning we were able to deliver a pleasing financial result," he said. "However, we did continue to invest in our customers and we are already seeing returns, with our AFL offering in particular resonating in our markets.”
The ACCC is currently reviewing Foxtel's proposed acquisition of Austar.
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