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

Hills Holdings has re-signed a four-year contract to supply Foxtel with satellite dishes, renewing their supplier relationship for pay television equipment.

Hills' electronic communications arm accounted for about 30% of the company's revenue last financial year, helped by government contracts to install digital television in regional areas.

Hills' managing director said the satellite dishes are made in Adelaide, and the new Foxtel contract demonstrates that local manufacturing can compete with imports.

According to Hills' managing director Graham Twartz, Foxtel's proposed purchase of Austar would not affect Hills' satellite dish manufacturing contract.

No—Hills does not install Foxtel's satellite dishes. However, Hills does hold an installation contract with regional pay-television provider Austar.

The contract value depends on how many new customers Foxtel signs up, since most Foxtel customers receive pay television by satellite.

The four-year Foxtel supply deal and a significant electronic communications division (around 30% of revenue) are material company developments to watch. The article also notes Hills will enter the S&P/ASX 200 index following a recent rebalance—an item many investors track.

Hills' managing director said he hoped Foxtel would keep Hills' installation contract in country and rural areas. The company currently performs installation work through its Austar contract in regional markets.