Pelephone profit plummets

Bezeq’s mobile subsidiary reported a 34% drop in net profit on 20% lower revenue in 2012

14 March 13 11:10,

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) mobile subsidiary Pelephone Communications Ltd.today reported a 34% drop in net profit on lower revenue in 2012.Full-year revenue fell 20% to NIS 4.47 billion from NIS 5.55 billion in 2011, and net profit fell to NIS 698 million from NIS 1.06 billion.

Services revenue fell 10% to NIS 3.26 billion in 2012 from NIS 3.64 billion in 2011, and revenue from mobile phone sales fell 37% to NIS 1.21 billion from NIS 1.91 billion. Pelephone attributed the drop increased competition, which reduced services rates and prices for phones, which was partially offset by wholesale revenue from new communications operators for hosting on Pelephone’s network.

Fourth quarter revenue fell 17% to NIS 1.03 billion from NIS 1.24 billion for the corresponding quarter of 2011, and net profit fell 34% to NIS 134 million from NIS 204 million.

Pelephone lost a net 47,000 subscribers during the year to 2.8 million at the end of 2012. Average revenue per user (ARPU) fell to NIS 95 per month in 2012 from NIS 107 per month in 2011, but average monthly minutes of use per customer (MOU) rose to 419 minutes per month from 375 minutes. The increase in MOU was driven by the transition to unlimited calling plans.

Published by Globes [online], Israel business news – www.globes-online.com – on March 14, 2013

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