Cellcom's write down follows closely on Bezeq's write down of Pelephone, reflecting deep problems in the mobile phone market.
Discount Investment Corporation (TASE: DISI) has announced that it is reducing its valuation of telecom company Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) by NIS 600 million in its second quarter financial statement. This follows a similar move earlier this week by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), which is writing down its mobile unit Pelephone Communications Ltd. by up to NIS 1.1 billion.
Discount Investment Corp. said that due to the rising yields on Cellcom's bonds in the second quarter of 2019, it has been re-examining the fall in the telecom company's reputation and brand. Cellcom itself is not expected to record a reduced value in its second quarter results.
The step taken by both Discount Investment and Bezeq reflects the deep crisis in the mobile phone market and the problems the operators are having in recovering from the sharp fall in revenue.
Since February 2017, Cellcom's share price has fallen 75%.
Published by Globes, Israel business news - en.globes.co.il - on August 1, 2019
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