Australians looking for an entertainment experience at home are turning to subscription TV with Austar United Communications the regional provider of pay TV services reporting that they have lifted subscribers by over 18,000 during the past two months while also lifting both revenue and profits.
The Company said that they lifted third quarter earnings by 14 per cent and are on track despite the economic downturn to meet its calendar 2008 forecasts. Revenues rose to $53 million in the three months ended September, from $46.4 million prior.
Austar has also said that it is on track to grow EBITDA by 20 per cent over the year to the end of December, despite the current difficult economic times. “These are obviously challenging and uncertain times for everyone, in business and at home,” chief executive John Porter said.
“We believe that in this environment Austar remains excellent value for both consumers and shareholders.”Despite the volatility of the times, we confirm that the company is on track for full year EBITDA growth of 20 per cent on 2007.”
The AAP reported that in the third quarter, revenue rose 11 per cent to $160 million while the company’s EBITDA margin increased by 100 basis points to 33.1 per cent. Austar grew the number of its subscribers by 18,585 to 713,658 from the second quarter. Average monthly churn continued to fall and was at 1.21 per cent in the third quarter, compared to a high of 1.53 per cent in the first quarter.
