Bezeq net loss in 2019 again exceeded NIS 1b

Bezeq

Revenue declined in all of the group's main sectors, but increased in cloud and digital services.

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) ended 2019 with NIS 8.93 billion revenue, down 4.2% from NIS 9.32 billion in 2018. Revenue was NIS 2.2 billion in the fourth quarter, down 5.3% from NIS 2.33 billion in the corresponding quarter of 2018. The company said that revenue declined in all of the group's main sectors.

Bezeq's operating profit was NIS 989 million in 2019, compared with a NIS 548 million operating loss in 2018. Operating profit in the fourth quarter was NIS 113 million, compared with a NIS 1.81 billion operating loss in the fourth quarter of 2018.

Bezeq's 2019 net loss was NIS 1.09 billion, compared with NIS 1.07 billion in 2018. The group's net fourth quarter loss amounted to NIS 5 million, compared with NIS 1.76 billion in the fourth quarter of 2018. The main factor in the group's net loss was the write-off of a tax asset for Yes's losses.

Bezeq's landline operating profit was NIS 2.14 billion in 2019, 75% more than its NIS 1.22 billion operating profit from this activity in 2018. Bezeq Fixed-Line's operating profit amounted to NIS 296 million in the fourth quarter of 2019, compared with an NIS 87 million operating loss in the fourth quarter of 2018. Expenses in respect of employees' retirement accounted for most of the difference.

Bezeq's EBITDA rose from NIS 2.07 billion in 2018 to NIS 3 billion in 2019, a 44.8% increase. EBITDA totaled NIS 521 million in the fourth quarter, 300.8% more than its NIS 130 million EBITDA in the fourth quarter of 2018, due to provisions for employees' retirement.

Bezeq landline finished 2019 with NIS 4.07 billion in revenue, down 2.9%, compared with its NIS 4.20 billion revenue in 2018. Its fourth quarter revenue totaled NIS 985 million, down 4% from its NIS 1.03 billion revenue in the fourth quarter of 2018. The company attributed the decline to lower revenue from telephone services, Internet services, and transmission and data communications services, offset by growth in revenue from cloud and digital services and other revenue.

Published by Globes, Israel business news - en.globes.co.il - on March 19, 2020

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

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