Foxtel tips benefit from new AFL channel

23 Feb 2012, 4:31 pm   -   Source: AAP
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Foxtel says its new dedicated Australian Football League channel has proved a hit with new subscription signings flowing through.

Foxtel says that despite economic headwinds, there has been a better-than-expected pick up in subscriber numbers thanks to the launch of its dedicated Australian Football League channel.

Foxtel chief operating officer Peter Tonagh says a pickup in customer numbers will come through the new AFL channel, the Olympics and other products and services to be launched in 2012.

"We just don't buy the argument that growth has topped out," Mr Tonagh said during Consolidated Media Holdings first half results presentation on Thursday.

ConsMedia reported net profit of $42.1 million for the six months to December 31, 2011, down 7.1 per cent from the prior corresponding period amid what the company said was a very challenging retail environment.

"You look at these businesses around the world, there's always cycles you go through and each time new levels of growth are driven by new initiatives," Mr Tonah said.

He said Foxtel would soon unveil new channel packages and pricing structures, more internet TV options and the ability to watch Foxtel on devices such as iPads.

ConsMedia holds a 25 per cent stake in pay-TV company Foxtel, and half of Premier Media Group, which produces the Fox Sports channels.

It also holds an interest in SEEKAsia, an overseas jobs website business in South-East Asia, alongside Macquarie Capital, Tiger Global and SEEK.

Its two biggest shareholders are James Packer's Consolidated Press Holdings and Kerry Stokes's Seven Group Holdings.

Executive chairman John Alexanders said the trends of 2010 in respect of subdued consumer spending and general negative sentiment were present again in this half.

One bright spot in the results was Premier Media Group advertising revenues, which rose 11 per cent in the half to $35.3 million.

Premier Media chief financial officer Matt Hyland said the improvement was underpinned by higher ratings, the launch of the Fox Footy Channel and the 2011 Rugby World Cup.

"We are very pleased with the advertising result," he said.

"It does buck the trend in the market."

Mr Alexander said ConsMedia did not receive a cash distribution from Foxtel in the first half, but did get a $15 million distribution in January 2012 and he expected more before June 30.

ConsMedia received a $20 million distribution from Premier Media Group, in line with the prior corresponding half.

Its cash distribution from SEEKAsia was $200,000 which, ConsMedia said, was the first distribution from this business.

The company declared an unfranked interim dividend of 10.5 cents per security.

ConsMedia shares fell four cents to $2.75.

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