Bezeq reports higher Q1 profit on lower revenue

Shlomo Rodav Photo: PR
Shlomo Rodav Photo: PR

Bezeq chairman: Pelephone saw continued subscriber growth and Yes swung to profit.

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) ended the first quarter of 2020 with revenue of NIS 2.26 billion, down 3.1% from NIS 2.26 billion in the corresponding quarter of 2019. Operating profit for the first quarter of 2020 was NIS 466 million, down 8.8% from NIS 511 million in the first quarter of 2019. Net profit in the first quarter of 2020 was NIS 332 million, up 10.7% from NIS 300 million in the first quarter of 2019.

Bezeq landlines division saw revenue of NIS 1.02 billion in the first quarter down 2.4% compared with NIS 1.04 billion in the first quarter of 2019.

Bezeq invested NIS 200 million in the first quarter of 2020, 4.8% less than the NIS 210 million invested in the first quarter of 2019. Bezeq's investment has been falling over the years, reflecting the major problems in Israel's telecom sector.

Bezeq lost 9,000 Internet line subscribers in the first quarter compared with the preceding quarter and 69,000 Internet line subscribers (including wholesale line sales) compared with the corresponding quarter of 2019.

Bezeq chairman Shlomo Rodav said, "Bezeq landlines sees a stabilizing of the number of Internet subscribers and a rise in telephony use, while providing new and advanced communications services adapted to remote work and learning. Pelephone saw continued growth in the first quarter in the number of subscribers and Bezeq International saw during the coronavirus period a rise in demand from both private customers and international telecommunications companies. Yes demonstrates continued improvement in operational criteria with the number of subscribers growing in the first quarter for the first time since 2018, swinging to profit, while implementing a program of switching to IP transmissions.

Published by Globes, Israel business news - en.globes.co.il - on May 21, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Shlomo Rodav Photo: PR
Shlomo Rodav Photo: PR
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