Mobile competition cuts into Bezeq revenue

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) today published its financial report for the first quarter of 2013, the first financials signed by new CEO Stella Handler. Bezeq’s revenue fell 12% to NIS 2.41 billion for the first quarter from NIS 2.74 billion for the corresponding quarter of 2012.Bezeq attributed the drop in revenue to lower revenue in the mobile segment ( Pelephone Communications Ltd.), due to lower handset sales and mobile services revenue, as a result of increased competition.

Bezeq’s fixed-line revenue fell to NIS 1.13 billion for the first quarter from NIS 1.2 billion for the corresponding quarter, and Pelephone’s revenue fell 22% to NIS 964 million from NIS 1.24 billion. Bezeq International Ltd. reported a slight increase in revenue to NIS 346 million for the first quarter, and DBS Satellite Services (1998) Ltd. (YES) reported a slight drop in revenue to NIS 404 million.

Bezeq’s net profit fell 16% to NIS 497 million for the first quarter from NIS 591 million for the corresponding quarter.

Pelephone had 2.74 million subscribers at the end of March, down from 2.88 million subscribers a year earlier. Average minutes of use per subscriber rose 7.2% to 440 minutes a month in the first quarter from 399 minutes in the corresponding quarter, but average revenue per user (ARPU) fell 3.9% to NIS 86 per month from NIS 97 per month in the corresponding quarter.

Published by Globes [online], Israel business news – www.globes-online.com – on May 13, 2013

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