Matav Q2 revenues rise despite shrinking subscriber base

Matav Q2 revenues rise to $27m Matav Cable Systems (Nasdaq:MATV) today reported second-quarter revenues of NIS 128.0 million ($26.8 million), up from NIS 118 million ($24.7 million) for the previous quarter.

While admitting that its subscriber base shrank, the company reported rising sales of tiered service (in which subscribers get to choose packages of channels), pay-per-view and fast Internet services. It also adjusted subscriber fees, it said.

For the first quarter of last year the company reported revenues of NIS 121 million - $25.3 million.

Matav posted an operating loss was NIS 30.5 million for the second quarter of 2002, versus a loss of NIS 27.1 million in the parallel quarter of 2001.

The company registered NIS 300 million financing income for the quarter, after selling 7.7% of its holdings in Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD) to Hutchison Whampoa for $62.4 million.

The sale leaves Matav still holding onto a 7.5% stake in the company, which is Israel's second-largest mobile communications operator.

The financing income boosted Matav to a net profit of NIS 160.6 million ($33.7 million) for the quarter, with Ebitda - earnings before interest, taxes, depreciation and amortization growing to NIS 7.8 million ($1.6 million), from NIS 1.7 million ($0.4 million) in the previous quarter.

Second-quarter selling, marketing and general expenses declined about 16%, Matav said, to NIS 20.5 million ($4.3 million) from NIS 24.5 million ($5.1 million) in the previous quarter. Against the second quarter of last year, these expenses dropped about 30%.

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