Israel financials round-up: Bezeq, Cellcom and Partner all report revenue growth in 2Q22

11 Aug 2022

Israel’s major telecommunications providers Bezeq, Cellcom and Partner Communications have each published their financial results for the quarter ended 30 June 2022.

Firstly, fixed line incumbent Bezeq has reported a total turnover of ILS2.23 billion (USD677 million) for the second quarter of 2022, up 1.1% year-on-year, with adjusted EBITDA for the three months under review standing at ILS924 million, down 2.1%, and adjusted net profit up 2.0% at ILS310 million. CAPEX for 2Q22 totalled ILS427 million (2Q21: ILS418 million). In terms of operational highlights, Bezeq reported a 1.1% decline in fixed broadband subscriptions to 1.512 million at 30 June 2022, with retail subscriptions accounting for the bulk of that figure – 1.022 million – down marginally from 1.024 million at mid-2021. Notably, the company highlighted what it called a ‘rapid increase’ in fibre-based subscriptions, which increased to 161,000 at mid-2022, up from just 16,000 a year earlier, while noting that fibre-to-the-premises (FTTP) technology had been deployed to a total of 1.308 million premises as of 30 June 2022, up from 597,000 premises a year earlier. In the mobile sector, meanwhile, the company’s Pelephone unit had a total of 2.636 million subscriptions at mid-2022, up from 2.521 million twelve months previously, of which 702,000 were said to have signed up to a 5G-capable tariff.

Bezeq rival Cellcom, meanwhile, recorded a total turnover of ILS1.069 billion in 2Q22, up from ILS1.003 billion in the corresponding quarter of 2021, with an increase in both service revenues – ILS769 million, up from ILS728 million – and equipment revenues – ILS300 million, up from ILS275 million. Cellcom’s adjusted EBITDA totalled ILS303 million in 2Q22, up from ILS297 million a year earlier, with the company reporting a net profit of ILS39 million for the second quarter of 2022, reversing the net loss of ILS14 million recorded in 2Q21. Cellcom’s mobile subscriptions increased to 3.346 million as of 30 June 2022, up from 3.226 million a year earlier, with monthly ARPU standing at ILS49.0 (1Q21: ILS47.7). ‘Internet infrastructure’ subscriptions were reported at 316,000 at mid-2022, up from 296,000 a year earlier, while the company reported that, of that figure, fibre-based subscriptions accounted for 162,000 (Jun-21: 113,000).

Finally, Partner Communications booked turnover ILS859 million for the quarter ended 30 June 2022, up 2% y-o-y, with service revenues rising by 9% to ILS706 million, more than offsetting a 20% drop in equipment revenues (to ILS153 million). In terms of other key financial indicators, the company reported an adjusted EBITDA of ILS276 million for 2Q22, up 30% against the corresponding period in 2021, while profit for the quarter under review totalled ILS47 million, a notable improvement from the ILS9 million recorded in 2Q21. Operationally, Partner reported a mobile subscription base (excluding packages for the Ministry of Education) totalling 3.015 million as of 30 June 2022, up from 2.893 million a year earlier. Monthly ARPU was also up slightly, at ILS49 in 2Q22, up from ILS48 in 2Q21. In the fixed sector, *it reported a total of 395,000 ‘infrastructure-based’ broadband subscriptions at mid-2022 (Jun-21: 354,000), of which 250,000 (173,000) were fibre-optic based subscriptions.

Israel, Bezeq (Israel Telecommunication Corporation), Cellcom, Partner Communications Company, Pelephone