Foxtel subscriber numbers, revenue up

Pay TV operator Foxtel is betting on the nation's love of sport to help boost subscriber numbers and earnings this year.

Foxtel on Thursday revealed that while it managed to lift subscriber numbers in the first half of its financial year, the growth was subdued at 2.1 per cent.

And pre-tax profit only managed a slight rise amid tough economic conditions, with consumers tightening their purse strings.

Newly appointed chief executive Richard Freudenstein said despite limited subscriber growth, Foxtel was on track this year to beat the $551 million in earnings before interest, tax, depreciation and amortisation for 2010/11.

Foxtel is pinning its earnings hopes on the launch of its 24-hour Fox Footy channel on February 16, made possible through a $600 million deal with the AFL.

Its coverage of the London Olympics, starting in July, is also expected to attract new subscribers and encourage existing ones to take up extras, such as sports packages.

"We've got some very strong plans ahead in terms of what we're doing to add value," Mr Freudenstein told AAP.

"We've got things like Fox Footy channel starting live next week.

"That as well as the Olympics coming up in July add real value to our offer.

"They create a real buzz in the marketplace."

The number of households subscribing to Foxtel rose 2.1 per cent to 1.58 million in the six months to December 31.

The total number of subscribers, including wholesale customers and those waiting for the pay TV service to be installed, rose to 1.66 million from 1.63 million.

Subscriber revenue rose 5.1 to about $945.9 million.

However, much of that rise came from existing customers expanding their usage rather than new subscribers signing up.

Foxtel recorded a first half profit before tax of $107 million, slightly higher than the $102 million for the previous corresponding period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by just under one per cent to $280 million from $278 million for the same period in 2010.

Foxtel's customer churn rate - the proportion of people who ditched their subscriptions - for the first half was 13.4 per cent, up from a record low of 12.5 the previous year.

Mr Freudenstein, who recently took over from Kim Williams, said while existing subscribers were spending more by adding to their TV packages, the economic uncertainty made it hard to win new customers.

The pay TV provider was also fighting off competition from a raft of new free-to-air digital channels.

Meanwhile, Foxtel said it was still in talks with the competition watchdog about its plans to buy rival Austar.

Foxtel said it was confident the deal would not substantially lessen competition.

Foxtel is half owned by Telstra, with Rupert Murdoch's News Corporation and Consolidated Media Holdings each holding a 25 per cent share.