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.
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Bezeq Group (consolidated) |
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Q2 2012 |
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Q2 2011 |
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Change |
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(NIS millions) |
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Revenues |
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2,595 |
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2,893 |
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-10.3 |
percent |
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Operating profit |
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746 |
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935 |
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-20.2 |
percent |
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EBITDA |
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1,104 |
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1,283 |
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-14.0 |
percent |
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EBITDA margin |
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42.5 |
percent |
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44.3 |
percent |
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Net profit attributable to Company shareholders |
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415 |
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585 |
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-29.1 |
percent |
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Diluted EPS (NIS) |
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0.15 |
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0.21 |
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-28.6 |
percent |
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Cash flow from operating activities |
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990 |
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670 |
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47.8 |
percent |
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Payments for investments, net |
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360 |
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406 |
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-11.3 |
percent |
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Free cash flow |
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630 |
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264 |
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138.6 |
percent |
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Net debt/EBITDA (end of period) |
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1.69 |
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1.33 |
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Net debt/shareholders’ equity (end of period) |
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3.06 |
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2.66 |
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