HOT Telecommunication Systems Ltd. (TASE: HOT), controlled by Patrick Drahi, today reported strong profit growth, but a plunge in net profit, for the first quarter of 2012.
Revenue rose 25% to NIS 1.03 billion for the first quarter from NIS 822 million for the corresponding quarter, but net profit fell 26% to NIS 59 million from NIS 80 million. HOT attributes the drop in profit to a higher tax expense of NIS 22 million for the first quarter compared with NIS 10 million for the corresponding quarter. Operating profit fell 4% to NIS 146 million for the first quarter from NIS 156 million.
HOT's first quarter consolidated results include mobile carrier Mirs Communications Ltd., which now operates as HOT Mobile Ltd.
HOT chairwoman Stella Handler said, "We are building a group with a long-term perspective, based on technology innovation and fair value propositions for consumers."
HOT CEO Herzel Ozer said, "The group continue to present improving business results in all areas of its business."
HOT added a net 2,000 cable TV subscribers during the first quarter to reach 893,000 subscribers at the end of March. It also added a net 5,000 internet subscribers to reach 773,000 subscribers, and a net 19,000 telephony subscribers to reach 654,000. Mirs had 437,000 subscribers, even before the launch of HOT Mobile earlier this month.
Cable TV revenue rose to NIS 578 million for the first quarter from NIS 571 million for the corresponding quarter, telephony revenue rose 4% to NIS 260 million from NIS 251 million, and mobile revenue was NIS 188 million. Average revenue per user (ARPU) was NIS 216 per month during the first quarter.
HOT's share price fell 3.8% in morning trading to NIS 30.46, giving a market cap of NIS 2.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on May 23, 2012
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