Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) today reported a 14.5% drop in its revenue to NIS 2.49 billion for the third quarter of 2012 from NIS 2.92 billion for the corresponding quarter of 2011. Net profit fell 38% from NIS 550 million to NIS 342 million .
The "Globes"-Psagot Investment House Ltd. analysts' consensus was for earnings per share of NIS 0.17 on NIS 2.05 billion revenue. Bezeq's second quarter profit fell to NIS 2.6 billion and its net profit fell to NIS 415 million (NIS 0.15 per share).
Bezeq said that the drop in its profit was mainly due to lower profits from its mobile business and to capital gains differences from real estate and copper wire compared with the corresponding quarter. Most of the reduction in revenue was due to lower revenue from its mobile business due to lower sales of end-user mobile equipment and lower mobile services income.
Bezeq's operating profit fell 29.3% to NIS 667 million for the third quarter from NIS 944 million for the corresponding quarter.
Bezeq reiterated its full-year guidance for 2012 of NIS 10.2-10.5 billion revenue and a net profit of NIS 1.75-1.85 billion.
The number of Internet subscribers grew 4.8% to 1.15 million at the end of September, and the average access speed was 50% higher than in the corresponding quarter.
Bezeq's mobile subsidiary Pelephone Communications Ltd. posted NIS 1.05 billion revenue for the third quarter, down from NIS 1.42 billion for the corresponding quarter, due to lower equipment sales and lower tariffs.
Pelephone lost a net 20,000 subscribers to give a total of 2,839,000 subscribers at the end September. It had 2,842,000 subscribers a year earlier.
Bezeq's satellite television subsidiary DBS Satellite Services (1998) Ltd. (YES) had 581,000 subscribers at the end of September, compared with 582,000 at the end of June and 585,000 at the end of September 2011.
Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2012
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