HOT Telecommunication Systems Ltd. (TASE: HOT) swung to a net loss of NIS 49 million for the second quarter of 2010 compared with a net profit of NIS 23 million for the corresponding quarter of 2009. The company attributed the loss to an "update of the provision for copyright."
Revenue rose to NIS 809 million for the second quarter from NIS 775 million for the corresponding quarter. Television revenue rose slightly to NIS 554 million for the second quarter from NIS 547 million for the corresponding quarter, and telephony revenue rose to NIS 255 million from NIS 228 million.
HOT continued to shed cable television subscribers during the second quarter, even as it continued to add Internet access and inland telephony subscribers. The company's cable television subscribers fell to 892,000 at the end of June from 896,000 at the end of March and 913,000 at the end of June 2009.
HOT added a net 8,000 Internet access subscribers during the quarter to 733,000 at the end of June, and compared with 698,000 a year earlier. The company also added a net new 12,000 telephony subscribers during the second quarter to 584,000 at the end of June, and up from 519,000 a year earlier.
The company posted a loss from its television sector of NIS 147 million for the second quarter, compared with a profit of NIS 9 million for the corresponding quarter. Profit from the inland telephony sector rose to NIS 118 million for the second quarter from NIS 70 million for the corresponding quarter.
HOT's share price fell 1% in early trading today to NIS 36, giving a market cap of NIS 2.77 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2010
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