Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) mobile telecommunications subsidiary Pelephone Communications Ltd. posted record revenue and net profits in 2010, driven by increased use of data, content and value-added and roaming services.
Pelephone said that subscribers' switch to the HSPA network and smartphones is generating higher operating and net profit, and free cash flow. The proportion of revenue from data value-added services, and content rose to 23.8% of total revenue in 2010 and to 25% in the fourth quarter. Revenue from data, value-added services, and content (excluding SMS) rose 34% to NIS 725 million in 2010.
Revenue rose 6.6% to NIS 5.73 billion in 2010 from NIS 5.38 billion in 2009. Net profit rose NIS 18.1% to NIS 1.03 billion in 2010 from NIS 875 million in 2009. Fourth quarter revenue rose 5.4% to NIS 1.47 billion from NIS 1.39 billion in the corresponding quarter, and net profit rose 48% to NIS 268 million from NIS 181 million.
Pelephone added 91,000 net new subscribers in 2010 to 2.86 million at the end of the year, 3.3% more than a year earlier. HSPA subscribers totaled 1.32 million, 46.4% of all subscribers.
Average revenue per user (ARPU) rose 2.3% to NIS 135 per month in 2010 from NIS 132 per month in 2009, and average minutes of use (MOU) rose 4.8% to 349 minutes per month in 2010 from 333 minutes in 2009.
Pelephone CEO Gil Sharon said, “The focus on data and strengthening Pelephone's comparative advantage in that area have led to accelerated growth in revenues this year." He added, "In a world of Smartphones, where speed is the name of the game, many customers are choosing to switch to the Pelephone network for the better surfing experience it affords."
Sharon said that Pelephone has signed agreements with a number of virtual operators (MVNOs), such as Free Telecom and Rami Levy, and signed a cooperation agreement with Hamashbir 365. "Cooperation with entities with marketing and distribution abilities will enable us to keep growing in a changing market and to reach more customers, while maximizing the capabilities of Pelephone's advanced network," he says.
Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2011
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