Israeli telecom operator Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) has reported a steep fall in profit despite higher revenue in the first quarter of 2016. Revenue in the first quarter of 2016 was NIS 2.56 billion, up 17% from NIS 2.17 billion in the corresponding quarter of 2015. The increase was due to the consolidation of satellite TV provider yes revenue of NIS 439 million but this was partially mitigated by lower revenue at mobile operator Pelephone Communications Ltd..
Net profit attributable to Bezeq shareholders in the first quarter of 2016 was NIS 288 million down 37.8% from NIS 463 million in the corresponding quarter of 2015.
In the landline division, revenue in the first quarter of 2016 was NIS 1.11 billion, a moderate decrease compared with the same quarter of 2015. Total revenue was impacted by the decrease in telephony revenue, which was offset by higher revenue from broadband Internet services as well as transmission and data communication services.
Net profit in the landline division in the first quarter of 2016 was NIS 328 million down 5.2% from NIS 346 million in the same quarter of 2015.
Pelephone reported revenue in the first quarter of 2016 of NIS 671 million down 7.7% from NIS 727 million in the same quarter of 2015. Net profit in the first quarter of 2016 was NIS 13 million, compared with NIS 36 million in the same quarter of 2015, a decrease of 63.9%.
Yes reported a net loss of NIS 71 million in the first quarter compared with NIS 3 million in the same quarter of 2015. The increase in net loss was due to an increase in financing expenses primarily the result of changes in the fair value of financial assets, a decrease in financing income from linkage differences as well as an increase in interest expense on shareholder loans. The number of yes subscribers in the first quarter of 2016 decreased by 6,000 to a total of 629,000 subscribers.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2016
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