(Reuters) - New Zealand's Sky Network Television <SKT.NZ> on Wednesday posted a 12 percent rise in half-year net profit, as lower operational costs resulting from a dwindling subscriber base came to its rescue.
The subscription television provider attributed its shrinking customer base to the spike in popularity of digital media platforms, such as Netflix <NFLX.O> and Amazon.com Inc <AMZN.O>, which have eaten away at the market share of traditional pay television providers.
The company on also said on Wednesday it would restructure its monthly subscription to a cheaper NZ$24.91 a month package with the option to add premium channels at an additional NZ$25, effectively providing a more affordable entry point to its services.
The earlier basic package was priced at NZ$49.91.
"Our total subscriber count declined because we didn't attract enough new customers who find the new On Demand
models appealing," Chief Executive John Fellet said in a statement.
Revenue fell 5.5 percent during the half-year to NZ$433.1 million.
Operating costs declined 8 percent to NZ$330.8 million.
Sky's satellite subscription revenue, the largest contributor to its top line, shed 5.5 percent, while advertising revenue dipped 10 percent to NZ$31.5 million.
The subscription television provider posted an interim net profit of NZ$66.6 million ($48.24 million) in the six months to Dec. 31, compared with NZ$59.3 million last year.
The company cut its interim dividend to NZ$0.075, from the NZ$0.15 payout in the previous year to reduce debt, it said in a statement.
(Reporting by Devika Syamnath in Bengaluru, editing by David Evans)
