Bezeq records revenue, EBITDA and net profit declines in Q3 2017

1 Dec 2017

Israel’s Bezeq had published its financial results for the quarter ended 30 September 2017, revealing a drop in revenues, EBTIDA and net profit. In the three-month period under review Bezeq generated a total turnover of ILS2.42 billion (USD691 million), representing a year-on-year decline of 3.8%, with the company seeing revenues fall in ‘all key group segments’. In the fixed line arena turnover totalled ILS1.06 billion, down from ILS1.09 billion in 3Q17, with higher revenues from broadband internet services (up 3.5% y-o-y to ILS413 million) failing to fully offset lower telephony and transmission revenues (down 6.9% y-o-y at a combined ILS592 million). Total cellular revenues declined to ILS635 million, an annualised drop of 2.2%. Operating profit in the third quarter of 2017 was ILS544 million, down from ILS599 million in the period of 2016, while EBITDA stood at ILS980 million (3Q16: ILS1.04 billion). Net profit in the company’s most recent fiscal quarter was ILS322 million, representing a y-o-y decline of 18.3%, with Bezeq attributing this drop to its lower revenues, as well as an increase in tax expenses.

In operational terms, at the end of September 2017 Bezeq had 2.061 million active fixed voice subscriber lines, down from 2.137 million a year earlier. Broadband accesses fared better though, increasing to 1.608 million (up 4.5% y-o-y), of which 484,000 were wholesale broadband lines (3Q16: 347,000). In the mobile sector, Bezeq subsidiary Pelephone ended September 2017 with 2.475 million subscribers, up from 2.348 million a year earlier.