HOT warns of DTT migration
By Julian Clover
August 17, 2009
Israeli cablenet HOT has warned it faces a loss in revenues if subscribers switch to a new DTT service, even though it offers its own subscribers the opportunity to subscribe to the new platform.
Quoted by Globes, the operator writes in its latest financial report that the launch of the service is liable to cause a significant decline in the company’s revenues. “The company believes that comprehensive broadcasting legislation is liable to change the consumer habits of multi-channel television subscribers.”
It is estimated that 250,000 households will take the new DTT service, though initial take-up is said to be low.
HOT meanwhile grew second quarter revenues by 6% to NIS 775 million (€145m). Gross profits fell back to NIS 165m from NIS 178m one year ago, while EBITDA grew by 9% to NIS 282m. Some 2,000 subscribers were lost on the quarter taking the installed based to 913,000.
Earlier this month The Israel Cable and Satellite Television Council gave permission for HOT to migrate its remaining 160,000 analogue subscribers to digital.