Cellcom records net loss in 3Q19 despite increased revenue

29 Nov 2019

Israel’s Cellcom has published its financial results for the quarter ended 30 September 2019, reporting a 3.1% year-on-year increase in revenue. With total turnover for the period under review standing at ILS938 million (USD269 million), the operator noted service revenues were up 1.0% in 3Q19 at ILS719 million. Service revenues in the cellular sector continued to decline, by 0.9% to ILS439 million as a result of the ‘ongoing erosion in the prices of these services as a result of the competition in the cellular market’. However, such a decline was more than offset by a 3.5% annualised increase in turnover from fixed line services to ILS321 million and 10.6% rise in equipment revenues, which stood at ILS198 million.

Meanwhile, Cellcom recorded a 20% year-on-year drop in operating income for the third quarter of 2019, with this falling to ILS32 million, though adjusted EBITDA in the three-month period totalled ILS271 million, representing an almost 42% increase from the ILS191 million reported for 3Q18; the latter increase was attributed to the increase in service revenues and a profit of ILS8 million for the sale of the company’s fibre-optic infrastructure in residential areas to Israel Broadband Company (IBC). Rounding out its key financial indicators, Cellcom reported a net loss of ILS2 million for 3Q19, compared to a net profit of ILS1 million in the corresponding period a year earlier.

In operational terms, at the end of September 2019 Cellcom had a mobile subscriber base totalling 2.767 million, down from 2.825 million a year earlier, with ARPU rising from ILS52.5 per month to ILS53.2 per month. Internet infrastructure subscriber numbers continued to rise, reaching 276,000 at the end of the reporting period, up from 259,000 at end-September 2018, while pay-TV accesses increased to 247,000 (September 2018: 206,000).

Israel, Cellcom