Austar profit up

Austar has posted a net profit of $120.1 million for the calendar year 2011, up from $99.65 million in 2010.

The regional Pay TV Provider posted flat revenue growth in the 12 months to December 2011 at $713 million, due to the impact of natural disasters in regional areas.

Austar’s subscriber base fell 8,845 to 755,374 with the company citing growing competition in the market.

But the average spend per user rose, and in the fourth quarter of the 2011 it was up four per cent on the previous corresponding period to $88.64.

The company is also confident a takeover bid by Foxtel will soon be finalised.

“We are confident of bringing the transaction to a successful close,” chief executive officer John Porter told analysts at the company’s first half presentation.

He said MyStar continued maintain strength with the AFL 2012 coverage set to give the service a boost.

“MyStar continues to be a strong differentiator for us, with existing customers opting-in for its control and convenience.”

Austar shareholders are due to meet and vote on Foxtel’s $2.5 billion take-over bid on March 30.

Source: NineMSN, Business Spectator