(Corrected) Telecommunications company Bezeq made a profit of NIS 541 million in the second quarter, 18% more than in the second quarter of 2008. The results surpass the consensus analysts’ estimate of a profit of NIS 475 million. The growth in net profit was achieved thanks to growth of 5% in revenue, which totaled NIS 3.246 billon. Here too, the company beat the analysts’ estimate, which was for revenue of NIS 3.21 billion. A 21% drop in finance expenses to NIS 155 million also contributed to the growth in the bottom line. EBITDA (earnings before interest, tax, depreciation, and amortization) totaled NIS 1.309 billion.
Encouraged by these results, Bezeq’s management has raised its guidance for 2009. ”On the basis of the financial performance in the first half of 2009, which was substantially better than that of the first half of 2008, and taking into account the improvement in economic visibility, the Bezeq group is raising its guidance for 2009, and expects to achieve revenue, net profit, and cash flow from ordinary activities higher than in 2008,” the company’s report states.
Bezeq will distribute its entire NIS 1.14 billion first half profit as a dividend.
The improvement in Bezeq’s results mainly stemmed from good results from its subsidiaries: mobile carrier Pelephone, Bezeq International, and satellite television company YES. Only Bezeq’s fixed line telecommunications division spoilt the picture. The division’s second quarter revenue fell 2.6% to NIS 1.31 billion, the financial statements released this morning reveal. Operating profit and EBITDA also fell. However, the company estimates that the results for 2009 as a whole will be better than those for 2008.
Operating profit fell 1.8% in the second quarter to NIS 434 million, and EBITDA fell 2.1%, to NIS 639 million. EBITDA as a proportion of revenue was 48.5%, similar to the figure for the corresponding quarter.
The number of active subscriber lines also fell in the second quarter, by 5.3% to 2.54 million. Average monthly revenue per line fell to NIS 81 from NIS 82 in the corresponding quarter. Call minutes fell 10% to 3.014 billion. The number of ADSL subscribers rose to 1.016 million in the second quarter of 2009 from 982 thousand in the corresponding quarter, and average monthly revenue per subscriber rose to NIS 69 from NIS 66.
Published by Globes [online], Israel business news - www.globes.co.il - on August 5, 2009
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