The Yes satellite television company is widening its austerity measures. In a board meeting yesterday, its directors decided to cut another 100 to 150 jobs, chiefly among sales and marketing, and to merge more operations, TheMarker has learned.

The company has already cut back 200 jobs, and started the process of uniting its divisions.

The management yesterday presented the board with plans to cut back on costs of content and manpower, as well as satellite time and engineering costs.

A top source at Yes claimed that the company is constantly paring its spending, as are its rivals, the cable TV companies. Most of its efforts are geared toward reducing the cost of content through better deals with the same suppliers. The efforts are bearing fruit, the source said.

Yes's outlay on content took up 78% of its revenues in the first half of 2002. Hence the management inference that spending on content must be reduced in order to break even.

Meanwhile, the cost-cutting has impacted on recruitment. Yes signed up only 10,000 new subscribers a month, net, in the last half year, compared with 20,000 a month beforehand.

The company has changed strategy from expanding its customer base at almost any cost, to maintaining its existing customer base while clamping a lid on spending.

Yes yesterday reported an NIS 142 million loss for the second quarter of 2002, lower than projected. Revenues were NIS 167 million, up from NIS 131 million in the previous quarter and NIS 114 million in the fourth quarter of last year.

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