Israeli cableco HOT Telecommunication Systems has unveiled its financial results for the 2011 financial year, posting a 321% year-on-year rise in net profit, Globes Online reports. The operator recorded a net income of ILS341 million (USD91 million) in the year ending 31 December 2011, up from ILS106 million in the previous twelve-month period, with the improvement attributed in the main to lower provisions for copyrights.
Turnover in the year stood at ILS3.37 billion, up by 3.7% when compared with the ILS3.25 billion generated in 2010, with revenues from telecoms services (both fixed line voice and broadband) rising by 4.6% to account for ILS1.08 billion of the total. HOT noted that telecoms revenues had been driven by higher turnover from internet services resulting from increased subscriber numbers, while adding that the gains had been partly offset by mandated reductions in interconnection fees. Cable TV revenues, meanwhile, stood at ILS2.30 billion in FY2011, up from ILS2.22 billion a year earlier.
In operational terms, at the end of 2011 HOT’s fixed voice accesses totalled 635,000, up from 610,000 at end-2010, while internet subscriber numbers climbed to 768,000, up from 752,000 a year earlier. Having acquired and merged with local iDEN operator MIRS Communications at the tail end of 2011, HOT also reported that the cellular unit’s customer base stood at 444,000 at the end of the financial period.
Commenting on the company’s performance, HOT chairwoman Stella Handler noted: ‘HOT’s business results reflect the long road the company has taken in strengthening its core activity … The company is continuing its massive outlay in upgrading its telephony infrastructures, the establishment of a fibre optic network, and deploying a new mobile network.’