Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) reported lower revenue and profit for the third quarter of 2016. Revenue in the third quarter of 2016 was NIS 2.51 billion, down 3.5% from NIS 2.60 billion in the corresponding quarter of 2015. The decrease was due to lower revenues in all of the group segments and primarily at Pelephone.
Net profit attributable to Bezeq shareholders in the third quarter of 2016 was NIS 394 million, down 3.2% from NIS 407 million in the corresponding quarter of 2015. EBITDA in the third quarter of 2016 was NIS 1.04 billion (EBITDA margin of 41.5%) compared with NIS 1.11 billion (EBITDA margin of 42.6%) in the same quarter of 2015, a decrease of 6.1%.
Bezeq CEO Stella Handler said, “Our Internet operations continued their rapid growth, with Bezeq crossing the 1.5 million Internet subscribers mark. Of these, 350,000 customers subscribed through the wholesale market, validating the success of the broadband Internet reform. I have no doubt that the massive subscriber recruitment seen in our Internet operations is directly due to our investment in state-of-the-art telecom infrastructure and the development of innovative services. The Ministry of Communications must meet its obligation toward Bezeq, based on the policies set forth by the former Minister of Communications, Moshe Kahlon, which is to repeal the structural separation parallel to the roll-out of the wholesale market reform. Bezeq is the only telecom company in the entire world that is subject to structural separation and is prohibited from offering a bundle of services. Removal of this separation will greatly benefit local consumers by introducing another triple-bundle offer, increase healthy competition and reduce unnecessary operating overhead.”
Bezeq's mobile phone unit Pelephone Communications Ltd. saw revenue fall 11% in the third quarter of 2016 to NIS 649 million while profit fell 41.8% to NIS 32 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2016
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