Cellcom 2016 profit jumped 55% on lower revenue

Nir Sztern Photo: Sivan Faraj

Nir Sztern: Signing the network sharing agreements with Electra Consumer Products and Xfone 018, will ensure revenue while reducing investment.

Israeli mobile operator Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) today reported its fourth quarter and full year 2016 results.

In 2016, revenue was $1.047 billion, down 3.7% from $1.087 billion in the corresponding quarter of 2015. Net profit was $39 million, up 54.6% from $25 million in the corresponding quarter of 2015.

In the fourth quarter, revenue was $256 million down 5.9% from $272 million in 2015. Net profit was $4 million, down 26.3% from $5 million in the corresponding quarter of 2015.

Cellcom CEO Nir Sztern said, "Throughout 2016, we continued to be affected by the intensity of the competition in the cellular market while strengthening our position as a communications group. This is a year in which the Group's strategy of intensifying our activity as a communications group bore significant fruit."

He added, "The Cellcom tv success continues and expands, and there is no doubt that we offer an alternative to the Israeli consumer and generate competition in the market. To date, approximately 122,000 households have subscribed to Cellcom tv services, enjoying an advanced TV experience."

"We continue to work actively in the landline market and to date, more than 180,000 households have subscribed to our internet infrastructure services. This achievement is even more impressive in light of the many challenges posed by the implementation of the reform in this market. We achieved all this alongside continuous successful landline solutions to business customers, offering IPVPN communications solutions, business continuity services, landline transmission services and PRI lines, data security services, fixed-line telephony services, cloud storage solutions and IOT services."

"Signing the network sharing agreements with Electra Consumer Products and Xfone 018, will ensure revenues while reducing investment to the Group over the coming decade, with an ability to offer advanced high quality cellular services thanks to the amount of frequencies the shared network shall have. We are happy to have received the requisite approval from the Antitrust Commissioner and are awaiting the Ministry of Communications' approval and the completion of the transactions in order to move forward."

Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Nir Sztern Photo: Sivan Faraj
Nir Sztern Photo: Sivan Faraj
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