Bezeq posts net profit in 1Q20 on reduced financing expenses

22 May 2020

Israel’s Bezeq has reported a net profit of ILS332 million (USD94 million) for the three-month period ended 31 March 2020, up from ILS300 million in the corresponding period a year earlier, saying the improvement was primarily down to lower financing expenses.

Total turnover for the first quarter of 2020 declined by 3.1% year-on-year, however, with the operator noting that the drop was ‘due to lower revenues in all key group segments’. Indeed, Bezeq reported that revenue in the fixed line sector in 1Q20 stood at ILS1.02 billion, down from ILS1.04 billion a year earlier, while in the cellular sector total revenues declined by 0.9%, to ILS573 million. The telco’s adjusted EBITDA for 1Q20 totalled ILS915 million, meanwhile, representing a 3.9% annualised decline, with operating profit in the first quarter of this year standing at ILS466 million (1Q19: ILS511 million).

With regards to operational indicators, Bezeq reported that the total number of fixed broadband lines (retail and wholesale) on its books reached 1.566 million as at 31 March 2020, down from 1.635 million a year earlier. Active fixed voice lines also continued to decline, falling to 1.693 million at the end of the reporting period, from 1.792 million at end-March 2019. Mobile subsidiary Pelephone meanwhile was said to be serving a total of 2.367 million subscribers at 31 March 2020, up from 2.224 million a year earlier, with the lion’s share of those – 1.939 million, up from 1.842 million – being post-paid accesses.