Bezeq announces 2007 results

12 Mar 2008

Israeli telco Bezeq has announced results for the year ended 31 December 2007. Revenue for the twelve month period rose 1.4% to ILS12.4 billion (USD3.5 billion) from ILS12.2 billion recorded in 2006. Operating profits jumped 49.3% to ILS2.3 billion, while EBITDA increased by 19.7% to ILS4.1 billion, with EBITDA margin increasing to 33.1% from 28%. Bezeq’s operating areas had mixed results; wireless subsidiary Pelephone and international services provider Bezeq International saw increases in revenues of 4.6% and 27.7% respectively to ILS4.7 billion and ILS1.3 billion. By contrast Bezeq’s fixed line operations saw revenues slip 1.5% to ILS5.7 billion, falling from ILS5.8 billion the year before. Net profits – not given in the case of the fixed line operations – increased for Bezeq International (up 59.4%) and Pelephone (up 20.4%) to ILS153 million and ILS585 million. Bezeq states that the increases in revenue for 2007 were driven by rising demand for broadband and cellular services, as well as an increase in subscriber numbers following several marketing initiatives, and a focus on operating efficiency.

Operationally; Pelephone’s wireless subscriber base rose 8% to 2.6 million of which 749,000 (28%) were connected to its 3G network. Wireline broadband customers rose by 8% to 963,000, although active fixed lines fell by 1.7% to 2.7 million.