Cellcom reports improved revenue, net profit in 3Q21

17 Nov 2021

Israeli communications provider Cellcom has published its financial results for the quarter ended 30 September 2021, noting that actions it took last year, including the adjusting of its expense structure and its acquisition of Golan Telecom, continue to manifest themselves as it posted increases in revenue and net profit.

In the three-month period under review Cellcom generated a total turnover of ILS994 million (USD320 million), up from ILS956 million in Q3 2020, while the consolidation of Golan Telecom helped drive service revenues up 6.3% year-on-year, to ILS739 million. Equipment revenues were down marginally, however, falling to ILS255 million in 3Q21, from ILS261 million in the corresponding quarter a year earlier. Meanwhile, adjusted EBITDA reached ILS277 million in the third quarter of 2021, up from ILS231 million a year earlier, with net profit totalling ILS13 million, compared to a net loss of ILS37 million in 3Q20.

With regards to operational indicators, Cellcom reported having a total of 3.246 million mobile subscriptions as of 30 September 2021, down from 3.641 million a year earlier; it noted that the decline resulted in part from its exclusion of around 427,000 data subscribers from the total that were generating ‘negligible revenue’ from the start of 4Q20. Mobile ARPU was reported as ILS48.6 per month for 3Q21, comparing favourably to the ILS45.7 reported for the corresponding quarter of 2020, while churn stood at 7.2% (3Q20: 8.7%). In the fixed broadband sector, Cellcom reported having 300,000 ‘internet infrastructure’ subscriptions as of end-September 2021, up from 289,000 a year earlier, while pay-TV subscriptions totalled 250,000 (Sep-20: 251,000).

Israel, Cellcom, Golan Telecom