Cellcom denies sale rumours as it publishes preliminary results

31 Jul 2013

Hot on the heels of reports suggesting that it was up for sale, Israeli mobile network operator Cellcom has vehemently denied such claims. In publishing its preliminary financial results for the second quarter of 2013, the operator took the opportunity to go on the record regarding the recent rumours, stating: ‘The Company further announced that its controlling shareholder has notified it that contrary to rumors in the media regarding an offer supposedly made to a third party to purchase the Company, the Company is not up for sale. The Company provides this information at the request of IDB, its controlling shareholder, in connection with certain debt arrangements for IDB.’

While Cellcom expects to publish its full financial performance for the three months ending 30 June 2013 in August, it has revealed that it expects results to reflect an increase in service revenue, average revenue per user (ARPU) and EBITDA when compared with the first quarter of 2013. As such, it has said that total revenues are expected to be between ILS1.22 billion and ILS1.24 billion (USD335 million and USD341 million), while service revenues are forecast at between ILS990 million and ILS1.01 billion. EBITDA for the quarter is expected to be between ILS325 million and ILS340 million, with net income likely to come in at between ILS55 million and ILS65 million.

Israel, Cellcom