Internet revenues bolster Bezeq’s full year results

8 Mar 2011

Israeli fixed line incumbent Bezeq has released its financial results for the year ended 31 December 2010, revealing that revenues in the twelve month period climbed 4.1% to ILS11.987 billion (USD3.33 billion), representing the company’s highest ever full year turnover. Revenues from traditional fixed line voice services continued to decline, falling 5.2% year-on-year to ILS3.19 billion, although this was offset by revenues from internet services which rose to ILS977 million from ILS863 million in 2009. Revenues from the company’s mobile subsidiary, Pelephone, were up 6.6% at ILS5.73 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile were up 15.6% y-o-y at ILS5.15 billion. Net profit attributable to Bezeq shareholders from continuing operations in 2010 amounted to ILS2.4 billion in 2010, up 13.3% against FY2009, when excluding a one-time gain of ILS1.5 billion related to the deconsolidation of multi-channel pay-TV business ‘yes’ in the third quarter of 2009.

In operational terms, at end-December 2010 Bezeq reported a total mobile subscriber base of 2.857 million, up from 2.766 million at the same date a year earlier. Of that total the company noted that the number of 3G subscribers had risen to 1.325 million, almost double the 676,000 it reported at end-2009. Fixed line voice accesses were down to 2.365 million at 31 December 2010, from 2.489 million a year earlier, while broadband customer numbers stood at 1.066 million, up from 1.035 million a year earlier.