Mobile carrier Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) reported a jump in profit in the first quarter after cutting financial costs. Cellcom, which is owned by IDB Holding Corp. Ltd. (TASE:IDBH), recently saw its ownership transferred from Nochi Dankner to Eduardo Elsztain and Moti Ben-Moshe.

Revenue for the first quarter of 2014 was NIS 1.13 billion, down 10.2% from the corresponding quarter while profit was NIS 114 million ($0.33 per share), up 70% from the corresponding quarter. As with rival mobile carrier Partner Communications Ltd. (Nasdaq:PTNR; TASE: PTNR), the rise in profit was primarily due to cutting and streamlining financing costs, which fell 41.3% from the corresponding quarter to NIS 27 million.

Cellcom CEO Nir Sztern said, “The efficiency measures we implemented in the Group since the merger with Netvision led to savings at an annual run rate of approximately NIS 820 million. In the first quarter this year we presented actual savings of NIS 52 million in selling, marketing, general and administrative expenses compared with the first quarter of last year.”

He added, “Alongside the achievements in the efficiency arena, the Group continues to expand its customer base that consumes a package of communications services, and by that is succeeding in mitigating the erosion in revenues despite the intensified competition in the market. Even in a quarter of aggressive competition, and due to the offering of communications services packages, the Company increased its post-paid subscriber base alongside a seasonal increase of pre-paid subscribers churn.”

“In the first quarter this year we took several steps focusing on providing value to the customer and innovation, including transition to a digital invoice by SMS, attractive equipment offers and activities to reinforce excellence in service.”

“Furthermore, we have begun a fast deployment of the Company’s advanced 4G network supporting LTE Advanced technology, which will allow the Company to be among the first operators in the world to launch such advanced technology and provide its customers with the fastest network with a wide and high quality coverage, all subject to the regulator’s approvals and availability of spectrum.”