Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) posted NIS 2.92 billion revenue for the third quarter of 2011, 3.8% less than in NIS 3.03 billion for the corresponding quarter of 2010. Net profit fell 6.5% to NIS 550 million (NIS 0.20 per share) from NIS 588 million.
Bezeq said that revenue from its landline and Pelephone Communications Ltd. mobile operations were adversely affected by the mandated reduction in inter-network connectivity fees, which was partly offset by higher equipment sales by Pelephone.
Cash flow from operations fell 24.4% to NIS 882 million for the third quarter from NIS 1.16 billion for the corresponding quarter.
Bezeq said that were it not for the reduction in connectivity fees, and excluding a NIS 281 million expense for early retirement of employees in the first quarter and a NIS 120 million expense of its new employees' options plan, its net profit would have been the same as for the corresponding quarter.
Shaul Elovitch controls Bezeq through Eurocom Group subsidiary B Communications Ltd. (Nasdaq:BCOM; TASE: BCOM). He said, "During the third quarter, Bezeq continued to invest heavily in infrastructure and new technologies in all areas of its business."
Bezeq's share price fell 3.2% today to NIS 7.45, giving a market cap of NIS 20.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2011
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