Bezeq warns of possible Pelephone writedown

30 Jul 2019

Israel’s Bezeq has announced that there is a possibility that it may be required to write down the value of its mobile subsidiary Pelephone, by between ILS800 million and ILS1.1 billion (USD227 million-USD312 million). In a statement regarding the matter Bezeq noted that, as part of the preparation of its financial statements for the second quarter of 2019, the Pelephone board had held a meeting ‘regarding indications of a decline in value and the multi-year forecast of [the cellular operator]. As a result, Bezeq said it was making the announcement regarding a possible impairment of Pelephone’s value after considering the cash flow forecast. It did though add that the ILS800 million-ILS1.1 billion figure is an ‘initial internal estimate’, and said that in due course an external valuation will be carried out, ‘as a result of which it is possible that the impairment on the company’s books will be different and even materially different’.

Israel, Bezeq (Israel Telecommunication Corporation), Pelephone