The Israeli telecom company says it has written off NIS 90 million due to the satellite TV broadcaster’s fall in value and reputation
Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) has issued a profit warning due to the deteriorating results of its satellite TV unit Yes. Bezeq says it has written off NIS 90 million due to Yes’s fall in value and reputation. This is the second such write-off carried out by Bezeq in the past few months
The previous valuation of Bezeq from four months ago spoke of erosion in the company’s value that did not impact operations but now the company is publishing a profit warning that does speak about effecting operations and thus the NIS 90 million write-off
The latest write-off provides more evidence on how tainted the Bezeq-Yes merger was. Bezeq paid NIS 460 million to income tax and a further NIS 500 million to parent company Eurocom for Yes with its bloated valuation and rosy forecasts
Bezeq’s profit forecast was NIS 1.4 billion and there may well be more write-offs in the company’s fourth quarter 2017 report, which will be published next week