We'll do the dishes: Hills re-signs its deal with Foxtel

HILLS Holdings has re-signed a four-year deal to supply Foxtel with satellite dishes.

Hills' electronic communications arm earned 30 per cent of the company's revenue last financial year, boosted by government contracts to install digital television in regional areas. Hills is well known for its hoist clothesline.

Managing director Graham Twartz said the satellite dishes were made in Adelaide, and the new contract proved that local manufacturing could compete against imports. The contract value depends on how many new customers Foxtel signs up. Most Foxtel customers receive pay television by satellite.

Mr Twartz said Hills did not install satellite dishes for Foxtel, but did have an installation contract with the regional pay television provider Austar. He said Foxtel's proposed Austar purchase would not affect the dish manufacturing contract. He hoped Foxtel would keep Hills' installation contract in country rural areas. Hills Holdings will enter the S&P/ASX 200 index on Friday following a recent rebalance.