Cellcom maintains EBITDA of approximately NIS 920 million – the capital market

The cellular company

Cellcom
-2.22%

Base:1,261

opening:1,242

High:1,259

low:1,227

change:2,366,656

Page Quote News Graphs Company Profile Recommendations


More articles on the subject:




In good reports for 2020, given the corona plague. Revenues amounted to NIS 3,676 million, compared with NIS 3,708 million in 2019. The company lost NIS 170 million, but managed to generate a cash flow of NIS 250 million, compared to NIS 210 million. Adjusted EBITDA amounted to NIS 918 million, an erosion of only 2.3% compared to 2019.

The number of cellular subscribers was 3,204,000 (without 427,000 data subscribers). After deleting 19,000 Cellcom TV subscribers the number of subscribers stands at 252 thousand subscribers. Currently, about 105,000 customers are connected to the fiber infrastructure, out of about 600,000 households in buildings connected to the IBC infrastructure – doubling compared to 2019.

The extensive streamlining measures reduced the Company’s expenses (without depreciation and without the effect of the merger with Golan) by NIS 110 million compared to 2019. Golan Telecom’s contribution in the four months of 2020 to net profit amounted to NIS 20 million.

Against the background of the reports, Avi Gabay, CEO of Cellcom, said: “We were able to implement an extensive efficiency plan and strategic moves, including the acquisition of Golan Telecom, the introduction of Hot as a partner in IBC and more. These transactions are expected to contribute significantly to the Group’s profitability and its free cash flow and to significantly expand the scope of Cellcom’s fiber optic deployment.

“In 2021, Cellcom’s focus will be on extensive investments that will improve the level of connectivity in fiber and cellular, including Generation 5.”

Shai Amsalem, the company’s CFO, said: “The fierce competition in the cellular industry continued to negatively affect the mobile sector and led to an erosion in ARPU and a decrease in revenue from services. Simultaneously with a significant decrease in the Company’s revenues from roaming services In light of the corona crisis. At the same time, in light of the acquisition of Golan and the consolidation of the results of its activities in the company’s reports as of the end of August 2020, revenues from services in the mobile sector in 2020 compared to 2019 decreased by only 1.1% and amounted to NIS 1,660 million. On the other hand, revenues from services in the fixed segment grew by 3.8% compared to 2019 and amounted to NIS 1,306 million in light of the continued recruitment of new Internet and television customers.

“Revenue from end equipment in 2020 decreased by 5.8% compared to 2019 and amounted to NIS 878 million, mainly due to a decrease in revenue from end equipment in the fixed sector (among other things, in light of the corona crisis, which affected the volume of transactions in the business sector).”