Hot Telecommunication Systems Ltd. (TASE:
HOT.B1) subsidiary
Hot Mobile Ltd.had 514,000 subscribers at the end of June 2013. Hot Telecommunication states in its financial report for the second quarter, which consolidates its mobile and television business for the first time, that it reflects the company’s focus on triple play.Hot Telecom’s revenue rose 2% to NIS 1.06 billion for the second quarter of 2013 from NIS 1.03 billion for the corresponding quarter of 2012. Net profit rose 640% to NIS 32 million from NIS 5 million. Cable television revenue was unchanged at NIS 843 million for the second quarter, and the operating profit rose to NIS 191 million from NIS 132 million. Hot Mobile’s revenue rose to NIS 185 million for the second quarter from NIS 152 million for the corresponding quarter, but its operating loss doubled to NIS 85 million from NIS 40 million.Hot Mobile increased the number of subscribers to 514,000 at the end of June from 142,000 a year earlier and 441,000 at the end of 2012. Hot Telecom’s average revenue per user (ARPU) rose to NIS 227 per month in the second quarter from NIS 219 in the corresponding quarter, but Hot Mobile’s ARPU fell to NIS 82 per month from NIS 107, as subscribers switched to all inclusive plans. Hot Mobile’s churn rate doubled to 43% during the second quarter from 21% during the corresponding quarter.
Hot Telecom lost a net 52,000 subscribers during the 12 months through June to 1.18 million subscribers. Sole cable television subscribers fell to 321,000 at the end of June from 353,000 a year earlier, soles Internet subscribers fell to 158,000 from 181,000, and sole telephony subscribers fell 57,000 from 66,000. However triple play subscribers rose to 447,000 from 391,000.
“The company faces fierce competition in every one of its areas of business, and in every sector we compete and challenge the market while meticulously improving value offers for our customers,” said Hot Telecom chairman and CEO Herzel Ozer. “The company’s core businesses are important anchors, and I believe that they are a solid base for Hot’s continued growth in the face of these challenges.”
Published by Globes [online], Israel business news – www.globes-online.com – on August 13, 2013
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