Cellcom switches to profit

Avi Gabbay / Photo: Cadya Levy, Globes

Cellcom posted a net profit for the third quarter of NIS 13 million, and reports improved cash flow.

Cellcom reports revenue of NIS 994 million in the third quarter of 2021, 4% more than in the third quarter of 2020. The improvement in revenue stems from the restoration of flights from Israel, and hence the restoration of revenue from roaming services. Cellcom posted a net profit for the quarter of NIS 13 million, which compares with a loss of NIS 37 million in the third quarter of 2020 and of NIS 14 million in the previous quarter.

The company also reports an improvement in cash flow, partly stemming from the results of Golan Telecom, which totaled NIS 110 million, up 150% from NIS 44 million in the corresponding quarter of 2020.

Cellcom's subscriber base for its television service did not grow during the quarter, and it remains at about 250,000. The company added 20,000 mobile telephony subscribers, and its churn rate fell from 8.6% in the previous quarter to 7.2% in the current quarter.

Although Cellcom reports 10,000 additional subscribers to its fiber-optic internet service, bringing the total to 123,000, revenue from the service fell 4.6% from NIS 365 million in the corresponding quarter to NIS 348 million in the current quarter, an indication of the strong competition in this segment and low profitability in the wholesale market.

Cellcom's revenue from mobile telephony improved somewhat, rising to NIS 474 million from NIS 461 million in the previous quarter and NIS 414 million in the corresponding quarter of 2020, the gap being mainly explicable by the effects of the coronavirus pandemic last year.

Revenue from end-user equipment (i.e. telephones) fell to NIS 211 million from NIS 223 million in the previous quarter, mainly because of the global chip shortage leading to a shortage of devices, and because of the late launch of the iPhone 13.

Cellcom CEO Avi Gabbay said, "The results of the quarter, and of the year as a whole, demonstrate that the actions we have taken have led to a dramatic improvement in the company's situation on all measures, both on the customer front and in the financial results, and particularly in cash flow. We have given top priority to fairness and service to customers and improvement in infrastructure, the results can already be seen on the ground, and we shall continue to invest in these areas the future."

Published by Globes, Israel business news - en.globes.co.il - on November 16, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.

Avi Gabbay / Photo: Cadya Levy, Globes
Avi Gabbay / Photo: Cadya Levy, Globes
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