Cellcom’s share price is currently up strongly, by 3.99%, on the Tel Aviv Stock Exchange.

Cellcom will not distribute a dividend for the fourth quarter. “The company’s board of directors decided not to distribute a dividend for the fourth quarter of 2014, given the continued intensified competition in the market and its adverse effect on the company’s revenues and in order to further strengthen the company’s balance sheet,” Cellcom’s announcement said.

Cellcom CEO Nir Sztern said, “Even in this year of intense competition in the cellular market, Cellcom group continues to present good financial results, demonstrated by a free cash flow of approximately NIS 1.2 billion, net income of NIS 354 million and an increase in revenue from sales of end user equipment. We continue to take cost-efficiency measures in order to adjust our cost structure in response to heightened competition level in the market. The efficiency measures we implemented following the merger with Netvision have led to savings at an annual run rate of approximately NIS 850 million.

“We are pleased with the successful launch of “Cellcom tv” and expect to conclude the first quarter of 2015 with more than 20 thousand customers. During 2014 we prepared to create new growth engines for the group, and we expect 2015 will be marked by growth in the operation in the fixed-line market. The combination of “Cellcom tv” with the opening of the fixed-line market to competition through the wholesale market, presents an opportunity for growth in revenues, among others, through marketing triple packages at attractive prices.

“The aggressive price competition in the cellular market continued to lead to erosion in revenues and to a high costumer turnover. Still, the company managed to recruit a record number of subscribers, so that the company’s cellular subscriber base eroded this year by 4.0% only, alongside an increase in its subscriber base in the fixed-line fields.

“Recently, we successfully completed the negotiations for a collective employment agreement with the employees’ representatives and proved that it is possible to reach understandings, that put the employees’ benefit alongside the company’s benefit”