Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) reported its fourth quarter and full year 2014 results today. Revenue shrank 5.3% in 2014 to NIS 9.05 billion from NIS 9.56 billion in 2013 but net profit rose 19.2% to NIS 2.11 billion from NIS 1.77 billion in 2013. Bezeq's profit was boosted by the acquisition of second-hand sale site Yad2 by Axel Springer but revenue was hit by increased competition in mobile telephony and reduced landline connectivity rates.
In the fourth quarter of 2014, net profit in the fourth quarter of 2014 was NIS 416 million up 18.2% from NIS 352 million in the corresponding quarter of 2013. The increase in profitability was primarily due to a decrease in operating expenses as well as in other operating expenses as mentioned above.
Bezeq CEO Stella Handler said, “In 2014 we reached over one million households passed on our fiber optic network and registered an 80% increase in average Internet speeds based on our existing infrastructure. We are pleased to report that we gained over 100,000 new Internet subscribers in 2014. At the same time, operational streamlining efforts generated more than NIS 200 million in savings."
Handler's salary cost was NIS 4.4 million in 2014 and Pelephone Communications Ltd. CEO Gil Sharon's salary cost was NIS 6.2 million.
In the mobile phone market, Pelephone's net profit in 2014 was NIS 373 million down 28.4% from 2013. Cash flow from operating activities was NIS 1.21 billion, down 23.8% compared with 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on March 26, 2015
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