Pelephone helps push Bezeq profits up nearly 140%

2 Nov 2006

Israel’s fixed line incumbent Bezeq has posted a 138% leap in its third quarter income, thanks to strong growth outside of its traditional fixed line business. Improved profitability at mobile business Pelephone and international telephony and internet access provider Bezeq International, as well as steady growth from satellite broadcaster YES, helped offset a slowdown in the domestic fixed line telephony market. Group net profit rose to ILS245 million (USD57.3 million) in the three months ended 30 September 2006, up from ILS103 million a year earlier. Revenues in the quarter rose to ILS2.88 billion, up from ILS2.84 billion, and EBITDA reached ILS1.05 billion, up from ILS962.6 million a year earlier. Pelephone posted a net profit of ILS97 million. Pelephone added 43,000 net active mobile subscribers in the period, taking its total customer base to 2.36 million, of which 180,000 took 3G services, up from 115,000 at the end of June. Bezeq International ended September with 867,000 ADSL broadband customers, up from 850,000 three months earlier.