Bezeq records 3.5% y-o-y drop in turnover in Q3 2016

23 Nov 2016

Israeli multi-service operator Bezeq has published its financial results for the quarter ended 30 September 2016, revealing a 3.5% year-on-year decline in turnover. Bezeq’s mobile arm Pelephone recorded an 11.0% y-o-y drop in total revenue in Q3 2016 to ILS649 million, while cellular service revenues were ILS468 million in the quarter, down 10.2% from ILS521 million twelve months earlier. The declines were attributable to lower tariffs which had been introduced in response to increased competition in the mobile market. By comparison, fixed line revenues in Q3 2016 totalled ILS1.09 billion, down marginally from ILS1.10 billion a year earlier, with increased turnover from broadband services (up 3.6% y-o-y to ILS399 million) failing to fully offset a 5.1% drop in fixed voice turnover, which fell to ILS375 million.

Operating profit in the third quarter of 2016 stood at ILS599 million compared to ILS652 million in the corresponding quarter of 2015, while EBITDA was ILS1.04 billion (3Q15 – ILS1.11 billion). Net profit attributable to Bezeq shareholders in the latest quarter was ILS394 million, representing a 3.2% drop from the ILS407 million recorded in Q3 2015. Meanwhile, capital expenditures totalled ILS349 million in 3Q16, down by more than 18% against the ILS427 million reported for the same period of 2015.

In operational terms, at the end of September 2016 Bezeq had 2.348 million wireless subscribers, down from 2.569 million a year earlier, with wireless ARPU standing at ILS68 per month, unchanged against Q3 2015. Total broadband lines meanwhile increased to 1.539 million, up from 1.448 million, of which 347,000 were wholesale (3Q15 – 177,000). Fixed voice lines continued to decline, however, falling to 2.137 million at the end of the reporting period, from 2.193 million at 30 September 2015.