Israeli mobile carrier Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) reported its results this morning for the first quarter of 2015. The results showed how important Cellcom's new TV service and triple package including the service are important for the company as intensifying competition bites into its revenue and profit.
Cellcom reported revenue of $267 million for the first quarter of 2015, down 6% from $284 million in the corresponding quarter of 2014. Net profit was $7 million, down 77.2% from $29 million in the corresponding quarter of 2014.
CEO Nir Sztern said, The first quarter of 2015 results reflect the challenges and opportunities for Cellcom Group. In the cellular sector we continue to see an aggressive competition and continued decline in results, and on the other hand we begin to see the influence of the investments in the Group's future growth engines. In this quarter as well, we continued to see an aggressive price competition in the cellular sector and a continued decline in service revenues and a decrease in the subscriber base."
But noting Cellcom's TV service and landline potential he added, "Out of all the companies entering the wholesale market, we are currently the only one that is prepared for immediate competition, with a TV service, a substantial presence in Israeli households enjoying the Group's various services and a service, sales, and installation infrastructure which is among the largest in the country. We already see strong demand from our customers for an integrated solution of Internet connectivity and infrastructure in the wholesale market, and with the transfer to the automated phase of the wholesale market and to the triple-play packages, we expect to see growth in demand for these products."
Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2015
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