Austar has lost subscribers despite posting a healthy profit hike in its full year results, blaming the tough competition in the market.
Austar lost around 9,000 subscribers for the year ended December 2011, to reach 755,374.
Net profit after tax increased 21% to $120m.
"Revenue remained stable despite consumer conditions and losing the $7m in contributions from Austar's mobile business, which it sold to M2 Telecommunications," the company said.
Total revenue per user increased 4% to $88.64.
"Growing competition in the market, in particular from the free-to-air multi-channels, continues to impact consideration and churn, where churn was up 22 basis points to 1.52% on the previous year," said CEO John Porter (pictured).
"However, MyStar continues to gain momentum with net additions of 14,500 customers in the final quarter of 2011. Overall 43% of Austar's residential customers now choose MyStar for their homes. The MyStar phenomenon, along with other prodyct and service enhancements, meant ARPU continued to grow, ending the fourth quarter at $88.64, up 4% or $3.56 on the previous corresponding period."
The Foxtel bid for the regional operator is still in play, with Austar shareholders scheduled to meet to decide on it in late March.