Cellcom expects revenue slide but higher profit
Cellcom today reported that it expects lower revenue, but a higher net profit for the fourth quarter of 2012.
Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) today reported that it expects lower revenue, but a higher net profit for the fourth quarter of 2012, and that it expects lower results for the first quarter of 2013. Cellcom expects to post a net profit of NIS 100-115 million on NIS 1.37-1.39 billion revenue for the fourth quarter of 2012. It expects services revenue to be NIS 1.04-1.05 billion.
The results for the corresponding quarter of 2011 were a net profit of NIS 76 million on NIS 1.67 billion revenue.
Cellcom, the mobile carrier unit of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, said, “The expected results reflect the previously reported trends, including the heightened competition and material price erosion, as well as the company’s efficiency measures. These trends are expected to further adversely affect the company’s results of operations in the first quarter of 2013 compared with the fourth quarter of 2012.
It added, “The company will continue to implement efficiency measures in an effort to mitigate such effects.”
Published by Globes [online], Israel business news – www.globes-online.com – on February 7, 2013