Pay TV provider Austar United Communications Ltd
(ASX:AUN) has reported a 22% jump in profit for the March quarter on an increase in revenue and fall in operating costs.
For the three months to March 31, 2010 the company posted earnings of $34.42 million, up from $28.32 million recorded for the March quarter of last year.
Revenue rose 7% to $174.29 million while operating costs decreased 2% to $34.8 million.
The amount of new subscribers increased during the period, although only slightly, up 3% to 743,759.
The churn rate, or rate of subscribers who cancel their service, fell to 1.39% from 1.52% in the quarter.
CEO John Porter says the results demonstrate that Austar has a unique ability to increase profitability in periods of moderate subscriber growth.
Mr Porter says 2010 will be an exciting year for the company and its customers, as it launches new channels and new ways for subscribers to access Austar content with its online and on-demand products.
In 2009 Austar recorded profit of $58.78 million.
