Israel’s Bezeq has published its financial results for the year ended 31 December 2017, recording consolidated turnover of ILS9.79 billion (USD2.80 billion), representing a year-on-year decline of 2.9% due to increasing competition in all group segments. Mobile revenue fell 3.2% to ILS2.63 billion, with mobile service revenues and equipment revenues declining to ILS1.82 billon (down 2.0% y-o-y) and ILS812 million (down 5.9% y-o-y), respectively. In the fixed line arena, annualised increases in broadband service revenues and cloud and digital service revenues failed to offset reduced telephony and transmission and data revenues; total fixed turnover in FY 2017 was ILS4.24 billion, down 3.2% from ILS4.38 billion in 2016.
In terms of other key financial metrics, Bezeq reported EBITDA of ILS3.83 billion for 2017, down 5.8% y-o-y, with operating profit declining by 9.1% to ILS2.11 billion. Net profit for the twelve-month period totalled ILS1.24 billion, broadly unchanged year-on-year. CAPEX in 2017 was ILS1.53 billion, compared to ILS1.42 billion a year earlier, with the increase in investment primarily attributed to the early adoption of accounting standard IFRS 15.
At the end of 2017 Bezeq had a mobile subscriber base of 2.525 million, up from 2.402 million a year earlier, though monthly ARPU was down, from ILS62 in the last quarter of 2016 to ILS58 in the corresponding period of 2017. Fixed broadband lines were also up: 1.635 million at end-2017, compared to 1.558 million a year earlier, of which 532,000 were wholesale broadband lines, up from 377,000 at end-2016. Active fixed voice subscriber lines continued to decline, however, falling by 4.7% y-o-y to 1.916 million.