Israeli mobile operator Cellcom has posted a 7% rise in second quarter net income, boosted by higher revenues and despite a sharp rise in financing costs. Net income rose to ILS138 million (USD31.33 million), up from ILS129 million in the same quarter a year ago. Revenues rose 13% to ILS1.39 billion, boosted by an 11% rise in minutes of use and a 29% increase in handsets sold. Financing costs totalled ILS55 million, up from ILS12 million a year ago, related to a loan Cellcom received from Citigroup in the first quarter and a bond offering made in late in 2005. The company said that it had 2.678 million subscribers at the end of the quarter, making it Israel’s largest cellco ahead of Partner Communication with 2.585 million.