Cellcom Israel revenue down 5.7% at NIS 1.49 billion for Q2 FY12

Telecom Lead Middle East: Cellcom Israel has posted
revenue of NIS 1.49 billion ($382 million) for the second quarter 2012, down
5.7 percent, as compared to NIS 1.58 billion ($405 million) for the same
quarter a year earlier.


The company attributed the revenue decrease to a 31
percent decline in equipment revenues, which totaled NIS 316 million ($81
million) in the second quarter 2012. However, the decline in equipment revenue
was partially offset by a 4.5 percent increase in service revenues, which
totaled NIS 1,182 million ($301 million) in the second quarter 2012.


During the quarter, the company completed the merger of
Netvision and Cellcom Israel while maintaining similar levels of Netvision’s
profitability compared with the parallel period before the merger, despite the
increased competition in the ISP market.


Netvision’s contribution to total revenues for the second
quarter of 2012 totaled NIS 259 million ($66 million) excluding inter-company
revenues.


The company’s operating profit plunged 29 percent at NIS
282 million ($71 million), against NIS 397 million ($101.2 million) for the
second quarter 2011.


Cellcom posted net income of NIS 121 million ($30.8
million), down 50.4 percent, against NIS 244 million ($62.2 million) for a year
earlier period.


EBITDA for the second quarter 2012 totaled NIS 474
million ($121 million), or 31.6 percent of total revenues.


Commenting on the results, Nir Sztern, Chief Executive
Officer, said in our second quarter 2012 results, the company experienced the
successful continued implementation of the Company’s strategy, including the
Netvision merger, operational excellence and the transition into a
communications group.


At the end of June 2012, the company had around 3.333
million cellular subscribers. During the second quarter of 2012, the Company’s
cellular subscriber base decreased by approximately 29,000 net subscribers.


The company also added around 42,000 net new 3G cellular
subscribers to its 3G subscriber base, reaching approximately 1.430 million 3G
subscribers at the end of June 2012, representing 42.9 percent of total
cellular subscriber base.


The company also launched unique marketing plans such as
“Cellcom Total” that combines an unlimited package for three cellular
subscribers, internet and landline services.


In the coming quarters, the company said that it will
continue to implement efficiency measures in order to achieve additional
significant savings, and act to retain its customer base while recruiting new
customers, including approximately 60,000 subscribers of the Israeli Defense
Forces (IDF).


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