Bezeq cites increased competition across all sectors as revenue declines in 2017

29 Mar 2018

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.

Israel, Bezeq (Israel Telecommunication Corporation)