Bezeq second quarter revenue declines

David (Dudu) Mizrahi

Revenue fell 3.1%, but Bezeq posted a NIS 270 million profit after a NIS 1.57 billion loss in the corresponding quarter.

Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), headed by CEO David Mizrahi, had revenue of NIS 2.16 billion in the second quarter of this year, down 3.1% in comparison with the figure for the second quarter of 2019. Bezeq says that the decline stems from declines in the revenues of subsidiaries Pelephone, Bezeq International and Yes, partly offset by a rise in landline revenue.

Operating profit in the second quarter of 2020 was NIS 512 million, which compares with an operating loss of NIS 94 million in the corresponding quarter of 2019.

EBITDA in the second quarter of 2020 was NIS 977 million (45.3%), which compares with NIS 384 million (17.3%) in the corresponding quarter, representing a rise of 154.4%.

Net profit in the second quarter of 2020 was NIS 270 million, which compares with a loss of NIS 1.57 million in the corresponding quarter. The difference is largely because of the rise in operating profit and the write-down of the tax asset from losses in Yes in the corresponding quarter.

After five years, Bezeq's landline business has seen a rise in Internet subscribers. The company gained 9,000 customers in the second quarter.

The landline business has also reversed the decline in its revenue. Revenue totalled NIS 1.044 billion in the second quarter of 2020, which compares with NIS 1.020 in the second quarter of 2020 and NIS 1.018 in the previous quarter. Operating profit for the division was NIS 464 million in the second quarter of 2020, which compares with NIS 875 million in the corresponding quarter.

Bezeq published guidance for 2020 as a whole. Adjusted net profit for shareholders is expected to be NIS 950 million; adjusted EBITDA NIS 3.5 billion; and CAPEX NIS 1.5 billion.

Separately, David Granot has announced that he is stepping down as temporary chairman of Bezeq, as far as is known in order to spend more time on his private businesses. Gil Sharon is shortly due to take up the post of Bezeq chairman permanently.

Published by Globes, Israel business news - en.globes.co.il - on August 17, 2020

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

David (Dudu) Mizrahi
David (Dudu) Mizrahi
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