Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) reported its second quarter results this morning. In this quarter, the results of satellite broadcaster Yes were consolidated with those of Bezeq for the first time, which of course had a substantial impact on the financial statements.
Revenue in the second quarter totaled NIS 2.6 billion, compared with NIS 2.25 billion in the corresponding quarter of 2014, representing growth of 15%. The rise in revenue was, as mentioned, thanks to the consolidation of Yes, which contributed NIS 439 million in addition to a rise in the revenue of Bezeq and Bezeq International, offset by a fall in the revenue of mobile carrier Pelephone.
Operating profit shrank by 35% to NIS 794 million, because of the consolidation of Yes and one-time factors in the corresponding quarter.
On its bottom line, Bezeq reported a 40% drop in net profit to NIS 482 million. The sharp decline was mainly due to the one-time gain from the sale of Coral Tel Ltd. in the corresponding quarter.
In accordance with the company's dividend policy, the Bezeq board has recommended distribution of a cash dividend of NIS 933 million, or NIS 0.34 per share. The dividend is subject to approval of the shareholders' meeting, and is due to be paid on October 26. The record date for the dividend is October 12.
Bezeq chairman Shaul Elovitch said, "In the second quarter of the year we saw increased competition in the telecommunications industry, as the wholesale market reform was fully implemented. Bezeq is leveraging its capabilities, developed over years in the areas of infrastructure and service, in order to cope successfully with the competition. The next stage in the consumer reform should be through abolition of structural separation, so that competition will expand to the basket of services as well."
Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2015
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