Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) published its financial report for the third quarter of 2006 today. The company posted a net profit of NIS 245 million for the third quarter, 138% more than the NIS 103 million for the corresponding quarter of last year. It posted a net profit of NIS 701 million in January-September, 26% more than the NIS 547 million in the corresponding period.
. The company posted consolidated revenue of NIS 2.88 billion, 1.4% more than the NIS 2.84 billion for the corresponding quarter of 2005. The consolidated revenue includes the results of YES satellite broadcaster, ISP and international calls carrier Bezeq International Ltd., wireless carrier Pele-Phone Communications Ltd. and BezeqCall Ltd. Although the subsidiaries improved their results, Bezeq’s landline activity continues to erode.
Bezeq’s consolidated revenue was NIS 8.53 billion in January-September, compared with NIS 8.34 billion in the corresponding period of last year.
Bezeq’s consolidated operating profit was NIS 451 million for the third quarter, 29% more than the NIS 350 million for the corresponding quarter. Financing expenses fell 34% to NIS 70 million from NIS 107 million for the corresponding quarter.
Bezeq’s consolidated cash flow from current activity totaled NIS 2.3 billion in January-September, 27.8% more than the NIS 1.8 billion in the corresponding period of last year.
Bezeq’s landline business was affected by the June 2005 and July 2006 cut in rates and the steady migration to high-speed Internet surfing.
Bezeq CEO Yacov Gelbard said, “The coming year will be critical for Bezeq as the company, management and union together, prepare for far-reaching changes that will enable it to maintain its strength and ability to deal with the changing market.”
Published by Globes [online], Israel business news - www.globes.co.il - on November 1, 2006
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