The head of Austar United Communications Ltd. (AUN.AU) on Friday said he's still confident the pay-TV company will be bought by Foxtel despite the competition regulator's misgivings.

"I am confident that once the ACCC reviews our submissions there will be a reasonable result," Chief Executive John Porter said in a statement.

In its preliminary view of the A$2.5 billion deal, the Australian Competition and Consumer Commission, or ACCC, last week said it would substantially lessen competition in pay-TV services, TV content and several markets for telecommunications products.

It has asked for further submissions from the companies before it makes a final decision, due Sept. 8.

Austar on Friday also reported a large increase in net profit for the six months to June 30 to A$88.7 million from A$20.7 million a year earlier. The figure, however, includes a A$95.8 million gain on the sale of spectrum licenses to Australia's national high-speed broadband network and mobile sales.

Revenue was flat at A$351.8 million.

"This is due to the impact of natural disasters in regional Australia earlier this year and increased promotions and credits, offset by the continued growth in television subscribers and an increase in average revenue per user," the company said in its half year accounts.

Total subscribers of 764,250 at June 30 were up 8,609 from March 31.

Foxtel is owned jointly by Telstra Corp. (TLS), News Corp. (NWS) and Consolidated Media Holdings Ltd. (CMJ.AU).

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com

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