Bezeq operating and net profits up 37% and 81% respectively; reiterates full-year targets

25 Nov 2008

Israeli telco Bezeq has reported its financial results for the three months ended 30 September 2008, revealing a 37.9% rise year-on-year in operating profit to ILS822 million (USD205.8 million), whilst net profit for the period surged 81.2% year-on-year ILS426 million. Revenues for the operator remained flat over the period, climbing just 0.6% against last year to ILS3.16 billion. Bezeq attributed the strong profit performance to the impact of streamlining and efficiency efforts in the fixed line sector, and the increased 3G uptake of Pelephone, the company’s mobile arm. Earnings before interest, tax, depreciation and amortisation (EBITDA) were ILS1.25 billion, up from ILS1.04 billion at end-September 2007.

Commenting on the results Shlomo Rodav, Bezeq chairman, said, ‘Our record third-quarter group financial results reflect our successful execution across operating segments and reaffirm Bezeq’s position as Israel’s leading communications provider…Our streamlining and cost efficiency measures implemented in our fixed line business continued to yield measurable improvements in our cost structure, helping drive record group operating profit, net profit and EBITDA results.’ The operator has reiterated its full-year targets, claiming that it has not been affected by the global economic issues.

Israel, Bezeq (Israel Telecommunication Corporation)