Twenty-First Century Fox 2013 Annual Report Download - page 62

approximately 90,000 subscribers, which increased Sky Deutschland’s total subscriber base to 3.5 million. The
total churn for fiscal 2013 was approximately 179,000 subscribers on an average subscriber base of 3.4 million,
as compared to churn of approximately 159,000 subscribers on an average subscriber base of 3.1 million in fiscal
2012. Subscriber churn for the period represents the number of subscribers whose service was disconnected
during the period.
SKY Italia’s average revenue per subscriber (“ARPU”) of approximately €42 in the fiscal year ended
June 30, 2013 remained relatively consistent with the corresponding period of fiscal 2012. Sky Deutschland’s
ARPU of approximately €34 in the fiscal year ended June 30, 2013 increased from approximately €32 reported in
fiscal 2012, primarily due to a higher increase in total subscriber-related revenues. ARPU is calculated by
dividing total subscriber-related revenues, such as subscription and pay-per-view revenues, for the period by the
average subscribers for the period and dividing that amount by the number of months in the period. Average
subscribers are calculated for the respective periods by adding the beginning and ending subscribers for the
period and dividing by two.
SKY Italia’s subscriber acquisition costs per subscriber (“SAC”) of approximately €350 in the fiscal year
ended June 30, 2013 decreased from approximately €400 in fiscal 2012, due to lower commissions and
installation costs on a per subscriber basis. The lower commissions were a result of a change in the sales channel
mix and the lower installation costs were a result of fewer customers taking up the full subscription offer. SAC is
calculated by dividing total subscriber acquisition costs for a period by the number of gross subscribers added
during the period. Subscriber acquisition costs include the cost of the commissions paid to retailers and other
distributors, the cost of equipment sold directly to subscribers and the costs related to installation and acquisition
advertising net of any upfront activation fee. SAC excludes the value of equipment capitalized under equipment
lease programs, as well as payments and the value of returned equipment related to disconnected lease program
subscribers from subscriber acquisition costs.
For the fiscal year ended June 30, 2013, Segment OIBDA at the Direct Broadcast Satellite Television
segment decreased $164 million, or 29%, as compared to fiscal 2012, primarily due to higher programming
expenses of approximately $150 million at SKY Italia associated with the broadcast of the Olympics and
expanded UEFA Champions and Europa League, and Formula One coverage. This decrease in Segment OIBDA
was partially offset by the consolidation of Sky Deutschland. During the fiscal year ended June 30, 2013, the
strengthening of the U.S. dollar against the Euro resulted in a Segment OIBDA decrease of approximately $12
million as compared to fiscal 2012.
Other, Corporate and Eliminations ((4)% of the Company’s consolidated revenues in fiscal 2013 and 2012)
The Other, Corporate and Eliminations segment contains the Company’s corporate entities and
intercompany eliminations and other businesses. For the fiscal year ended June 30, 2013, revenues related to
business activities at the Other, Corporate and Eliminations segment decreased as compared to fiscal 2012, due to
the exclusion of revenues from the disposition of the Company’s digital media businesses in the third quarter of
fiscal 2013.
For the fiscal year ended June 30, 2013, Segment OIBDA related to business activities at the Other,
Corporate and Eliminations segment decreased as compared to fiscal 2012, primarily due to higher compensation
expense.
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