Austar first-half profit drops 42%

© iStockphoto.com/Lee Torrens

Austar United Communications' first-half profit has dropped 42 per cent.

For the six months to June 30, net profit was $20.69 million compared with $35.5 million for the same period a year earlier.

Austar revenue lifted 6.3 per cent to $351.86 million.

Chief executive John Porter said subscriber growth was still subdued in the second quarter but the company was seeing positive signs that momentum had returned.

"As we work through this difficult consumer environment to regain our growth momentum, we have continued to exercise strong cost control, and this discipline is evident from our financial results," Mr Porter said in a statement on Thursday.

"The second half of 2010 will be an exciting time for Austar and its customers, with the 2010 Delhi Commonwealth Games showcased in HD over six dedicated channels, and the launch of a range of key programming that has traditionally connected well with subscribers."

Total television subscribers grew to 747,148 following a net subscriber gain for the quarter of 3,389, and an 18,429 increase compared with the first half in 2009.

Meanwhile, customer churn decreased from 1.40 per cent in the first half of 2009 to 1.36 per cent.

Total average revenue per user (ARPU) increased five per cent compared with the previous corresponding half, ending the second quarter at $84.69.

Mr Porter said the digital switchover, which has already occurred in Mildura, will offer an even greater opportunity for Austar as consumers want a quality, multi-channel experience.

"In Mildura, for example, the number of sales and upgrades increased significantly in the months before analogue switch-off."

The company won't pay an interim dividend.