The Golan Telecom CEO says his company is near profitability
and rivals Cellcom and Partner will remain large companies.
“Our new monthly package for the business sector is profitable,”Golan Telecom Ltd. CEO Michael Golan said today, following yesterday’s launch of the mobile carrier’s NIS 25 all included monthly business package, which has rocked an already volatile cellular market.
Golan told “IDF Radio” (Galei Zahal), “Two and a half years after launching operations in Israel, Golan Telecom is close to profitability – we are working strenuously and we are nearly there.”
Golan’s discount offers have shaken up Israel’s communications market and have affected the capital market where Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) and Partner Communications Ltd. (Nasdaq: PTNR; TASE:PTNR) saw their share prices fall 11.7% and 7.6% respectively yesterday, and both carriers have lose half their market cap over the past month, since a renewed price war has broken out, after Cellcom announced that it is entering the TV market.
Despite the extreme reaction of the market, Mochael Golan insists that the veteran companies have nothing “to worry” about. He said, “Cellcom and Partner generate cash flow of billions of shekels annually – and they’ll continue to be large and profitable.”