Bezeq 3Q net profit rockets 350% following YES deconsolidation

5 Nov 2009

Israeli fixed line incumbent Bezeq has released its financial results for the three months ended September 2009, posting a massive 351% year-on-year increase in net profit in the back of a one-off gain following the deconsolidation of its satellite TV unit YES. Net profit for the telco for the three-month period was ILS2.09 billion (USD546 million), which included a ILS1.5 billion gain from the YES deconsolidation. Excluding the gain, Bezeq posted a 15.1% y-o-y rise in net profit to ILS586 million. Revenue meanwhile rose 1.8% against the same period a year earlier to ILS2.92 billion , while earnings before interest, tax, depreciation and amortisation (EBITDA) increased to ILS1.24 billion, up 3.4% against 3Q 2008.

Commenting on the results, Shlomo Rodav, Bezeq’s chairman, said: ‘Bezeq’s impressive third quarter and year-to-date 2009 financial performance reflect our continued ability to deliver on our strategic initiatives, while further streamlining our operations company-wide. We showed solid improvement in consolidated revenue, operating profit and EBITDA. Our recently deployed HSPA cellular network and the ongoing deployment of our NGN infrastructure are returning benefits in terms of enhanced service capabilities, an improved customer experience, as well as margin improvement.’

Israel, Bezeq (Israel Telecommunication Corporation)