Following the publication of financial reports by its three main subsidiaries yesterday, Bezeq (TASE:BZEQ) published its consolidated financial report for the second quarter of 2005 this morning. It did not disappoint, as far as revenue is concerned. However, higher than expected financing costs and taxes, due to the composition of revenue from different sectors, cut Bezeq’s profit to slightly below market expectations. Clal Finance Batucha had predicted a net profit of NIS 200 million for Bezeq.
Bezeq posted NIS 2.73 billion in revenue for the second quarter, compared with NIS 2.01 billion for the corresponding quarter of 2004. It value fell by NIS 583 million. Operating profit was NIS 337 million for the second quarter, compared with NIS 362.7 million for the second quarter of last year, and net profit was NIS 164.3 million, compared with NIS 106.3 million.
Bezeq CEO Amnon Dick said, “2004 and 2005 are showing signs of being very good years for Bezeq, after reduced profits for the two preceding years. The company has posted over NIS 1 billion in profit over 18 months. This is a figure that a lot of companies would be proud of. Nonetheless, Bezeq must undergo a phase of constant change, especially in order to fully utilize its advantages as a telecommunications group.
“The Bezeq of today is a strong and attractive telecommunications group that makes money. But it should be remembered and the new owners know this that Bezeq operates under severe regulatory difficulties that are sometimes illogical.”
Published by Globes [online], Israel business news - www.globes.co.il - on August 3, 2005