Foxtel subscribers stalled on 1.6m, but profits rise
Foxtel’s stuttering customer growth has continued with its total number of susbcribers stuck at just over 1.6m for the third year running, numbers released to the market have today revealed.
The company blamed it on factors including negative consumer confidence and the rise of Freeview.
According to Foxtel: “Despite the challenging consumer environment total Foxtel managed subscribers grew by 2.5% with total subscribers reaching over 1.65m.”
Last year’s numbers put total subscribers at 1.632m. The increase of total subscribers of just 30,000 represents growth of just 1.8%.
The company’s total subscriber numbers come from a mixture of those customers catered for directly, and wholesale susbcribers who are sold on Foxtel’s behalf by other organisations including the likes of Optus.
Foxtel total subscribers:
- 2011 – 1.65m
- 2010 – 1.632m
- 2009 – 1.63m
- 2008 – 1.54m
- 2007 – 1.443m
The company said: “The difficult consumer environment continued throughout the 2010/11 year with subscriber growth impacted by negative consumer confidence, increased savings rates and the ongoing impact of competition from the Freeview services and new online offerings.”
Foxtel CEO Kim Williams said: ““We are very confident that our groundbreaking AFL deal, our continued innovation in content and technology and our unwavering focus on our service to customers will lead to refreshed growth in the year ahead.”
Today’s announcement from Foxtel said that the company’s EBITDA (earnings before interest, taxation, depreciation and amortisation) profits for the last year had risen by 15% to $551m. Revenue was up 6%.
Foxtel is owned by Telstra (50%), News Corp (25%) and James Packer’s Consolidated Media Holdings (25%).
This nmay be the last year where a direct comparison is possible, as Foxtel is currently trying to complete a deal to buy regional susbcription TV service Austar which would give it access to a new group of customers.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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1.65m – 1.635m = 18,000, or 1.1% by my count.
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You’re right, Nick. Thanks for that.
Cheers – Tim
Maybe Foxtel has just become to expensive.
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u think?
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As Nick mentions, the figures in the article are incorrect.
AAP (presuming you sourced the story from them) have fallen for Foxtels selective use of figures.
The foxtel release says “..FOXTEL managed subscribers grew by 2.5% with total subscribers reaching over 1.65m…” but the AAP reports have morphed it into “..Subscriber numbers grew 2.5 per cent during the year to more than 1.65 million..” which is similar, but crucially different.
One quote ‘managed subscribers’ and the other ‘total subscribers’ given the way Foxtel worded the release, one presumes they were trying to draw attention away from the fact that overall growth was just over 1%
The actual media releases:
2010 – https://www.foxtel.com.au/about-foxtel/communications/foxtel-continues-eernings-momentum-84876.htm
report “.. Total subscriber households, including wholesale, finished at 1.632m…”
2011 – https://www.foxtel.com.au/about-foxtel/communications/foxtel-announces-solid-growth-despite-difficult-consumer-env-140568.htm “..Total subscriber households, including wholesale, finished at 1.652m…”
so 20 000 overall customer growth, or 1.2%.
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