Bezeq revenue dips 10.3 percent to NIS 2.6 billion in Q2

Telecom Lead Middle East: Bezeq Group has reported 10.3
percent drop in revenues to NIS 2.60 billion compared with NIS 2.89 billion in
the corresponding quarter of 2011.


The dip in revenue is due to lower revenues from the sale
of cellular handsets and the erosion of revenues from cellular services.


Net profit of the leading telecom operator in Israel
declined 29.1 percent to NIS 415 million compared with NIS 585 million in the
corresponding quarter of 2011.


Operating profit of the Group in the second quarter of
2012 was NIS 746 million, compared with NIS 935 million in the corresponding
quarter of 2011, a decrease of 20.2 percent.


EBITDA in the second quarter of 2012 was NIS 1.10 billion
(EBITDA margin of 42.5 percent), compared with NIS 1.28 billion (EBITDA margin
of 44.3 percent) in the corresponding quarter of 2011, a decrease of 14.0
percent.


The decrease in operating profit, EBITDA and net profit
is primarily attributable to a decrease in profitability in the cellular
segment.


Capital expenditures (CAPEX) in the second quarter of
2012 decreased 22.8 percent to NIS 382 million compared with NIS 495 million in
the corresponding quarter of 2011. The Group’s Capex to consolidated revenues
ratio in the second quarter of 2012 was 14.7 percent, compared with 17.1
percent in the corresponding quarter of 2011.


Shaul Elovitch, Bezeq’s Chairman, said that in the second
quarter the company experienced comprehensive regulatory changes and
intensifying competition in the various areas of operations, all of which are
reflected in financial results.


Bezeq’s strategy of long-term investment in advanced
infrastructure, innovative services and first class customer service, have made
the mobile operator the leading communications group in Israel, well capable of
dealing with the competition.


For the full year 2012, Bezeq will achieve revenues of
between NIS 10.2 billion and NIS 10.5 billion, net profit between NIS 1.75 billion
and NIS 1.85 billion and EBITDA will be between NIS 4.4 billion and NIS 4.5
billion.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bezeq Group (consolidated)

 

Q2 2012

 

Q2 2011

 

Change

 

 

(NIS millions)

 

 

Revenues

 

2,595

 

 

2,893

 

 

-10.3

 percent

Operating profit

 

746

 

 

935

 

 

-20.2

 percent

EBITDA

 

1,104

 

 

1,283

 

 

-14.0

 percent

EBITDA margin

 

42.5

 percent

 

44.3

 percent

 

 

 

Net profit attributable to Company shareholders

 

415

 

 

585

 

 

-29.1

 percent

Diluted EPS (NIS)

 

0.15

 

 

0.21

 

 

-28.6

 percent

Cash flow from operating activities

 

990

 

 

670

 

 

47.8

 percent

Payments for investments, net

 

360

 

 

406

 

 

-11.3

 percent

Free cash flow

 

630

 

 

264

 

 

138.6

 percent

Net debt/EBITDA (end of period)

 

1.69

 

 

1.33

 

 

 

 

Net debt/shareholders’ equity (end of period)

 

3.06

 

 

2.66

 

 

 

 


editor@telecomlead.com

 

 

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