Discount Investment Corporation (TASE: DISI) subsidiary a target=new href=http://www.cellcom.co.il/>Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) today published its financial report for the fourth quarter of 2007 and the year as a whole. The company announced the distribution of a NIS 700 million dividend, after unveiling record results. Total revenue for the fourth quarter of 2007 totaled $357 million, an 8% increase compared with the corresponding quarter of 2006. Revenue from content and value added services for the quarter (including SMS) increased by 47.8%, representing 9.9% of services revenue. Total revenue (including revenue from end-user equipment) rose 10% to $1.57 billion.
Cellcom posted a net profit of $48 million for the quarter, 31.7% more than in the corresponding quarter in 2006. The company's subscriber base grew by approximately 57,000 over the quarter.
Cellcom's total revenue from services for 2007 increased by 8% to $1.401 billion. Revenue from content and value added services (including SMS) grew 46%, representing 9.1% of service revenue. Total revenue (including revenue from end-user equipment) increased 7.6% to $1.573 billion.
Cellcom posted a net profit of $227 million for 2007, 56.2% higher than in 2006. The company saw its subscriber base grow by approximately 189,000 to around 3.073 million at the end of year. The number of 3G subscribers totaled 419,000.
Cellcom CEO Amos Shapira said, This has been a record year of financial and operational results at Cellcom Israel. Eighteen months after launching our HSDPA 3.5 G services, our 3G subscriber base increased by approximately 138,000 subscribers in the fourth quarter of 2007 and reached 419,000 as of the end of 2007, all of which are post-paid.
"Our HSPA network is the most advanced network, enabling us to provide the fastest mobile broadband services in Israel. Last year we focused on ongoing marketing efforts to drive usage and new product introduction, while steadily reducing expenses and implementing efficiency measures throughout our operations. During 2007, we further enhanced our investment in customer service by, among others, expanding our workforce."
Commenting on the recent introduction in Israel of number portability Shapira added, "In the second half of the 2007 we invested additional resources in order to maintain our commitment to offer high customer service levels, as well as attracting new high-quality subscribers. In 2007 the company continued to lead the Israeli cellular market and retained its market share. Furthermore, in 2007 the company surpassed the 3 million subscriber mark clearly positioning the company as Israeli largest cellular company. Number portability, which was introduced to the market in December 2007, has become an integral part of the company's operation and currently accounts for less than 20% of the company's sale transactions, while the balance continues to be traditional sale transactions."
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2008
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