Cellcom’s loss expanded in 2020, and cash flow increased

Photo: Ronen Mendzicki, Gadgeti

Cellcom today published its financial statements for the summary of 2020, in which it presented revenues of about $ 3.7 billion, similar to the figure presented in 2019, a net loss that grew from 107 million in 2019 to NIS 170 million at the end of the corona year ( 2020) and cash flow, which grew by 19% year-on-year and amounted to NIS 250 million.

Following the launch of Bezeq’s fiber network, Cellcom mentions that its fiber network has been in existence for some time, and is currently available (Wednesday) at about 105,000 that are already connected to the company’s fiber infrastructure, available for about 600,000 households.

Cellcom concludes 2020 with 2.204 million subscribers, an increase of 16.8% year-on-year, mostly attributed to Golan Telecom subscribers, whose acquisition was completed during 2020, with the company stating that Golan contributed NIS 20 million to the profit line in the four months after completing its acquisition. Also a change in the way the subscribers count, noting that about 427,000 subscribers of data packages alone are no longer counted as part of the company’s main subscriber base, this is due to the negligible income they generate for the company.

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The average monthly income per mobile subscriber (ARPU) fell to NIS 47.3 at the end of 2020, compared with a figure of NIS 50.7 a year earlier. This is a decrease of 6.7% due, according to the company, to the continued erosion in cellular service tariffs as a result of competition in the cellular market and the decrease in revenue from roaming services that came due to travel restrictions around the world during the “corona year”.

In the field of television, Cellcom TV recorded an annual decline of 6,000 subscribers, while at the end of 2020 the company had 252,000 television subscribers, a decrease of 2.3% year-on-year. Recall that Cellcom changed the TV subscription counting model as early as the end of the first quarter of 2020 (read about it here), then mimics 19,000 subscribers from its records, which also explains the annual decline in the number of subscribers compared to 2019 data.