PR Newswire
NETANYA, Israel, Nov. 14, 2016
NETANYA, Israel, Nov. 14, 2016 /PRNewswire/ --
Third Quarter 2016 Highlights (compared to third quarter of 2015):
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[1] Please see "Use of Non-IFRS financial measures" section in this press release.
Nir Sztern, the Company's Chief Executive Officer, referred to the results of the third quarter:
"The third quarter was characterized by continued growth in the fixed-line segment in an environment of aggressive competition. The results of the quarter were affected, among others, by a decrease in revenues recognized in relation to national roaming services, due to Golan not paying the full agreed monthly consideration. Other than this adverse effect, the Company's results in this quarter, both in the financial parameters and in the operational parameters, were good, similar to the previous quarter.
The efforts invested in strengthening our position as a telecommunications group bear fruit afresh in each quarter. Cellcom tv is a success. Over 100 thousand customers chose quality and advanced TV, rich and diverse content, dozens of channels and all for the best price in Israel."
Shlomi Fruhling, Chief Financial Officer, said:
"The third quarter of 2016 was characterized by continued growth in the fixed-line segment and the continuous competition in the cellular field, which was reflected in a mild erosion of service revenues compared to the previous quarter. In October 2016, Golan Telecom did not pay the full agreed consideration for national roaming services already rendered and due and as a result in this quarter the Company recorded a decrease of revenues in an amount of NIS 40 million. Following this effect, EBITDA in this quarter totaled to approximately NIS 209 million. If Golan's payments continue to be partial, the Company's results will be adversely affected by a decrease in revenues from national roaming services.
In the fixed-line segment we continue the growth trend due to the continued recruitment of customers to Cellcom tv, landline wholesale market and triple-play services. The Company recorded an increase in revenues from the Internet and TV fields, which was partially offset by a decrease in revenues from long distance calls.
The Group continues to act to decrease its operating expenses. In the first nine months of 2016, the selling, marketing, general and administrative expenses of the Group decreased by approximately 8.0% compared to the same period last year. In September 2016, the Company completed a debt raising through the issuance of two new series of debentures in Israel in a total amount of approximately NIS 400 million. This successful issuance represents a continued vote of confidence by investors in the Company.
The free cash flow for the third quarter of 2016 totaled NIS 81 million, a 36.2% decrease compared to NIS 127 million in the third quarter of 2015. The decrease in free cash flow was mainly due to a decrease in receipts from customers for services and end user equipment. The Company's Board of Directors decided not to distribute a dividend for the third quarter of 2016, given the continued intensified competition in the market and its effect on the Company's operating results and in order to further strengthen the Company's balance sheet. The Board of Directors will re-evaluate its decision as market conditions develop, and taking into consideration the Company's needs."
Cellcom Israel Ltd. (NYSE: CEL; TASE: CEL) ("Cellcom Israel" or the "Company" or the "Group"), announced today its financial results for the third quarter of 2016. Revenues for the third quarter of 2016 totaled NIS 992 million ($264 million). EBITDA for the third quarter of 2016 totaled NIS 209 million ($55 million), reflecting a margin of 21.1% of total revenues. Net income for the third quarter of 2016 totaled NIS 33 million ($9 million). Basic earnings per share for the third quarter of 2016 totaled NIS 0.33 ($0.09).
Main Consolidated Financial Results:
| Q3/2016 | Q3/2015 | Change% | Q3/2016 | Q3/2015 |
| NIS million | US$ million | |||
Total revenues | 992 | 1,032 | (3.9%) | 264 | 275 |
Operating Income | 73 | 96 | (24.0%) | 19 | 26 |
Net Income | 33 | 40 | (17.5%) | 9 | 11 |
Free cash flow | 81 | 127 | (36.2%) | 22 | 34 |
EBITDA | 209 | 235 | (11.1%) | 55 | 63 |
EBITDA, as percent of total revenues | 21.1% | 22.8% | (7.5%) | | |
Main Financial Data by Operating Segments:
Starting from the first quarter of 2016, the Company presents its operations in two segments, "Cellular" segment and "Fixed-line" segment. These segments are managed separately for allocating resources and assessing performance purposes. The Company adjusted its operating segments reporting for prior periods on a retroactive basis, therefore the segment reporting for those periods reflect the new reporting format.
| Cellular (*) | Fixed-line (**) | Consolidation adjustments (***) | Consolidated results | |||||||
NIS million | Q3'16 | Q3'15 | Change % | Q3'16 | Q3'15 | Change % | Q3'16 | Q3'15 | Q3'16 | Q3'15 | Change % |
Total revenues | 729 | 787 | (7.4%) | 315 | 295 | 6.8% | (52) | (50) | 992 | 1,032 | (3.9%) |
Service revenues | 534 | 572 | (6.6%) | 276 | 267 | 3.4% | (52) Werbung Mehr Nachrichten zur Cellcom Israel Aktie kostenlos abonnieren
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