Cellcom net profit halves on reduced revenue in 2Q12

Israel’s largest mobile network operator by subscribers, Cellcom, has revealed that net profit for the three months ended 30 June 2012 more than halved on the back of a drop in revenue. For the operator’s second quarter of 2012 it posted a net income of ILS121 million (USD31 million), down from ILS244 million in the corresponding period of 2011, noting that alongside the revenue decline, financing expenses had risen from ILS75 million to ILS117 million; this rise was primarily the result of an increase in Consumer Price Index (CPI) linkage expenses and interest expense, Cellcom said. In terms of consolidated revenues, in Q2 2012 Cellcom generated total turnover of ILS1.49 billion, down 5.7% against sales in the same quarter a year earlier, with a 31% drop in revenue from equipment cited as one of the main contributory factors.

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OVETEL Cellcom net profit halves on reduced revenue in 2Q12