HOT Telecommunication Systems Ltd. (TASE: HOT) presented mixed first quarter financials today. Alongside growth in its subscriber base, the group's revenue and profitability declined.
Hot reported growth of 14,000 in the number of its fixed-line subscribers, but did not provide details of the type of customers and whether they are ripple subscribers or subscribers to Internet service only. The launch of Hot's 500 mb package presumably contributed to the growth in its subscriber numbers, but, as mentioned, this did not manifest itself in quarterly revenue, which fell by NIS 14 million in comparison with the previous quarter and was flat in comparison with the corresponding quarter of 2019.
In mobile telephony, the company's subscriber base grew by 6,000, or whom 4,000 were post-paid and the rest pre-paid. End-user equipment sales also fell in the quarter, by NIS 4 million.
The group's first quarter revenue totaled NIS 951 million, which compares with NIS 959 million in the corresponding quarter, a drop of 1%.
First quarter EBITDA was almost unchanged in comparison with the corresponding quarter, at NIS 349 million.
In its fixed-line business, Hot reports revenue of NIS 563 million, similar to the previous quarter, while in mobile, revenue grew by NIS 8 million from the previous quarter to NIS 208 million, which compares with NIS 186 million in the corresponding quarter of 2019.
Hot's free cash flow totaled NIS 106 million in the first quarter of this year, which compares with NIS 101 million in the previous quarter and NIS 111 million in the corresponding quarter.
Published by Globes, Israel business news - en.globes.co.il - on May 21, 2020
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