Revenues at Foxtel topped the
billion dollars for the first time in the year to June, according to figures
released in the News Corp accounts in New York today. They
jumped 22% to more than a billion bucks: $1.064 million to be exact, as
subscriber numbers passed the million mark, also for
the first time.

But
unlike semi-rival Austar, no sign of the black stuff – real profits – flowing, but it’s close. Earnings before interest, tax,
depreciation and amortisation were positive in the
second half of 2005. News
said its share (25%) of the losses at Foxtel for the
year was $20 million, compared to $19 million in 2004. That difference was due
to exchange rate changes.

In the
June quarter Foxtel’s financial position improved
sharply, with the News Corp share falling to a net $3 million from $4 million
loss in the last quarter of 2004. Subscriber numbers totalled
1.18 million, including 157,000 “wholesale subscribers” who are customers of
Optus. That number fell 39,000 in the year, which probably explains why Optus
decided to sell the Foxtel digital offer earlier in
2005. That sales campaign will start next month.

That
gave a net increase in Foxtel subscribers of 119,000
for the year, or about 13%. Churn fell to below 12%, which is low for Foxtel, but nowhere near Austar’s
less than 2% figure reported earlier in the week. Revenue
in the final quarter rose from $234 million in 2004 to $295 million in 2005.

Foxtel’s operating loss was $11
million in the final quarter, down from the $32 million in 2004’s last quarter.
The net loss for the last quarter of 2005 fell to $5 million from $26 million in
2004.

The
operating loss for all of 2005 improved to $128 million from $149 million, with
the net loss put at $109 million, the same as the year before, according to News
Corp.