Bezeq 3Q net profit falls 18%

16 Nov 2007

Bezeq, Israel’s former incumbent telco, has posted an 18.4% drop in third quarter net profit to NIS255.2 million (USD64.9 million), primarily as a result of higher financing expenses. Revenue for the three months ended 30 September 2007 rose by 1.8% to NIS3.14 billion, up from NIS3.08 billion in the third quarter of 2006. Net financing expenses climbed to NIS133.95 million from NIS89.5 million. Bezeq said fixed line telephony revenues slipped by 2.7% as a result of increased competition from cableco HOT, but that this was balanced by higher revenues from high-speed internet and value-added services. It said it had 942,000 DSL customers at the end of September, up 8.7% on a year earlier. The number of fixed lines dipped 1.6%. Bezeq’s wholly owned wireless arm, Pelephone, posted a 5.1% rise in revenues to NIS1.2 billion, while its net profit jumped 39% to NIS154 million. Pelephone added 47,000 subscribers in the quarter to take its base to 2.56 million, of which 652,000 were connected to its 3G network.

Israel, Bezeq (Israel Telecommunication Corporation)