Bezeq’s third quarter revenues bolstered by consolidation of yes

19 Nov 2015

Israeli fixed line incumbent Bezeq generated a total turnover of ILS2.602 billion (USD674 million) in the quarter ended 30 September 2015, representing a 16.6% increase on the corresponding period a year earlier. This increase was due to the consolidation of ILS446 million revenues from satellite pay-TV provider yes in the third quarter of 2015, as well as an increase in the revenues from the Bezeq Fixed-Line and Bezeq International units. In the wireless arena the company fared less well, with mobile subsidiary Pelephone recording a 11.5% drop in revenues between 3Q14 and 3Q15, reporting ILS729 million in the latter period.

Operating profit in the three month period under review totalled ILS652 million compared with ILS671 million in 3Q14, while EBITDA stood at ILS1.11 billion, up from ILS998 million. Net profit in the third quarter of 2015 meanwhile was ILS407 million, down 4.9% y-o-y from ILS428 million.

As at end-September 2015 Pelephone’s mobile subscriber base totalled 2.569 million, down from 2.600 million a year earlier, though up slightly from the 2.566 million reported at end-June 2015. Monthly average revenue per user (ARPU) was ILS68 in 3Q15, compared to ILS65 in the previous quarter, and ILS78 million in the year ago period. In the fixed line arena, Bezeq reported a total of 2.193 million active subscriber lines, up from 2.205 million one year earlier, though the number of broadband accesses on the company’s books continued to climb, reaching 1.448 million at the end of the latest reporting period, up from 1.335 million a year earlier.

Commenting on the company’s performance, David Mizrahi, Bezeq’s Chief Financial Officer and Deputy CEO of Bezeq, said: ‘We continue to post strong results despite increasing competition, thanks to our ongoing focus on streamlining efforts and the reduction in operating costs.’