HOT increases ARPU, but profit falls
By Julian Clover
Almost half the subscribers to the Israeli cablenet HOT now use its VOD service. Of the 915,000, 400,000 did so in the first quarter.
The success of the on demand platform combined with a fall in the number of less profitable analogue subscribers, which are no longer with the operator, helped increase ARPU. The number of subscribers fell by 22,000 year-on-year, but the company says it has largely arrested its churn problems.
Increases in revenues, principally in the telephony sector where there are 370,000 subscribers, failed to stop a fall in Q1 profits from NIS 74 million (€13.21 million) to NIS 31 million.
The provision against a lawsuit brought against Warner Bros International Distribution, accounted for in the first quarter, has been reduced from NIS 80 million to NIS 20m.