Bezeq reports lower revenues, EBITDA and net profit in 2Q17

25 Aug 2017

Israel’s Bezeq has published its financial results for the quarter ended 30 June 2017, revealing a 1.9% year-on-year decline in revenues, while EBTIDA and net profit were also down when compared to the corresponding period of 2016. In the three months under review Bezeq generated a total turnover of ILS2.46 billion (USD730 million), down from ILS2.51 billion in 2Q16. In the fixed line arena, meanwhile, revenues totalled ILS1.06 billion, down from ILS1.10 billion, with the telco noting that higher turnover from broadband services had failed to fully offset a decline in telephony and transmission revenues. Furthermore, in the mobile sector revenues totalled ILS632 million in 2Q17, down from ILS658 million a year earlier, although Bezeq did highlight quarter-on-quarter revenue growth of 0.6%. Group EBITDA was ILS997 million in the company’s most recent fiscal quarter, representing a 5.6% drop an annualised basis, while net profit for the three-month period totalled ILS358 million, down from ILS377 million in 2Q16.

In operational terms, at the end of June 2017 Bezeq’s mobile subsidiary Pelephone had 2.41 million subscribers on its books, up from 2.26 million at mid-2016, but down from 2.43 million at end-March 2017. Mobile monthly ARPU was ILS61 in the second quarter of 2017, compared to ILS68 in 2Q16. Total broadband lines in service numbered 1.59 million at the end of the reporting period, up from 1.52 million at 30 June 2016. Of that total, 444,000 were wholesale internet connections, representing a y-o-y increase of more than 37%. Active fixed voice subscriber lines continued to decline, meanwhile, standing at 2.08 million at mid-2017, down from 2.15 million a year earlier.