Foxtel has announced record high growth for the year ended 30 June 2007, up 40 percent on last financial year largely due to subscriber growth and retention. It posted a record $76 million profit up from last year’s maiden $4 million gain.
The results announcement comes soon after the Federal Court dismissed Seven Network’s legal action against Foxtel, and just days after Seven became the only commercial network not signed with Foxtel after Ten agreed to retransmit the Ten network signal.

The pay tv provider now has 1,292,000 direct subscribers, up 13.1 percent since 30 June 2006. Its total subscriber base, including wholesale customers, grew to 1,443,000 an increase of 12.4% over the 12 month period.  Subscriber revenue grew 13 percent  to $1.23b, while total revenues reached $1.42b.

Foxtel’s average revenue per user continued to improve on the back of high consumptionof its iQ digital offering and further penetration of its premium Platinum package. Over 16 percent of subscribers have taken up the digital recording offering, and more than a third of all new subscribers are opting for this package.

Platinum subscribers account for around 40 percent of the total, with less than 5% of all subscribers electing to take the $36.95 entry price package.

For the year to 30 June 2007, subscription television achieved a 58.8 percent overall share of viewing in subscription TV homes, compared with a 56.1 percent share in the corresponding period last year. Strong ratings performance continues with a further lift in subscription viewing to a 60.2% share for the first 26 weeks to 30 June 2007.

Foxtel pointed out that in the nation’s largest region of Sydney, subscription TV continued to be the most watched service with a 24.8 percent viewing share, greater than any of the commercial or national broadcasters.

The strength of the content offering, combined with the consumer benefits of the iQ has resulted in continued low churn rates with total churn remaining below 12% for the financial year.

FOXTEL Chief Executive, Kim Williams said it will continue its investment in content, continuing the extension into new delivery mechanisms like broadband and mobile, “while retaining our strong focus on delivering improved business performance”.