Bezeq 1Q profits down despite revenue rise

24 May 2006

Israel’s fixed line incumbent Bezeq has posted a 19.3% decline in its first quarter income, due to a drop in profitability at its traditional fixed line business and lower capital gains. Improved profitability at its mobile business Pelephone and international telephony provider Bezeq International, and steady growth from satellite broadcaster YES helped offset a slowdown in the domestic fixed line telephony market. Group net profit fell to ILS226 million (USD50.1 million) in the three months ended 31 March 2006, down from ILS280 million a year earlier. Revenues in the quarter rose to ILS2.82 billion, up from ILS2.77 billion. Bezeq said it posted a one time gain of ILS9 million in the period, compared with ILS88 million in 1Q2005.