Israel’s Yes TV boosted by IPTV growth and fibre bundling

Bezeq-owned Israeli pay TV service Yes saw its IPTV base rise significantly year-on-year for the first quarter, offsetting a decline in its DTH base and contributing to a rise in revenue for the outfit. Growth was significantly driven by a combination of Yes with Bezeq’s fibre offering.

Yes now has 356,000 IPTV customers, representing 61% of the total TV base. Total Yes customers at the end of Q1 numb ered 580,000, up 1,000 quarter-on-quarter, with IPTV customers growing by 19,000 to 348,000 at the end of the reporting period. The total TV base in Q1 2022 was 564,000, including 253,000 IPTV subs.

Ilan Segal

ARPU at the end of Q1 was NIS185, flat year-on-year, and churn was slightly down year-on-year (but up quarter-on-quarter) at 3.5%.

Yes’s revenues for Q1 were NIS329 million, up 4.1%. Adjusted EBITDA was down 16.7% to NIS50 million.

Bezeq said that the revenue growth was down to the company’s combination offering of TV plus Bezeq fibre along with new agreements with international content providers.

“Pelephone continues to establish itself as a leader of 5G in Israel, and yes is completing its strategic preparedness as it enters the world of fibre. Yes posted higher revenues, free cash flow and operating metrics together with subscriber growth for the tenth consecutive quarter. This is an extraordinary achievement in the Israeli TV market, especially considering the current fierce competition,” said Ilan Segal, CEO of Yes and Bezeq’s mobile telephony arm Pelephone.

“Our entry into the field of fibre and the agreements with international streaming companies had a positive impact, which is reflected in the increase in revenues. Yes continues to lead the IPTV market with 356,000 customers, representing 61% of our customer base today. Pelephone posted record quarterly revenues since 2018, with an increase in equipment revenues and consistent growth in the subscriber base with 5G plans, reaching 860,000 subscribers today. We continue to invest in growth drivers for the companies, which will be reflected in the coming years and will enable Pelephone and Yes to move forward.”