Bezeq maintained its level of revenue in the quarter – the capital market

The communication group

flash
+ 0.89%

Base:337.1

opening:340.4

High:344

low:340.1

change:11,398,278

Page Quote News Graphs Company Profile Recommendations


More articles on the subject:




Reports revenues of NIS 2.2 billion in the fourth quarter of 2020, similar to the corresponding period, and an operating profit of NIS 296 million, compared to NIS 8 million. Other net operating expenses decreased in the period to NIS 103 million, compared with NIS 169 million in the corresponding quarter, due in part to a decrease in the provision for the retirement of Bezeq Kavi employees and the registration of a provision for the retirement of Pelephone in the fourth quarter last year. In the bottom line, Bezeq presents a profit of NIS 174 million, compared with a loss of NIS 87 million in the corresponding quarter.

The company also published a forecast for 2021: the adjusted net profit attributed to shareholders is expected to be about NIS 1 billion, the adjusted EBITDA will be about NIS 3.5 billion and the CAPEX (investment in fixed assets and intangible assets) is estimated at NIS 1.7 billion – in both sections The first is a decrease from levels of NIS 1.14 billion and NIS 3.66 billion in 2020, respectively, and the latter is an increase from a level of NIS 1.5 billion.

Throughout the year, Bezeq’s revenues fell slightly (2.3%) to a total of NIS 8.72 billion due to a decrease in the subsidiaries’ revenues (as is well known, Pelephone, like other cellular companies, was affected by the skyrocketing lead to declining revenues from roaming services By an increase in Bezeq Landline activity – and in this context the hearing published by the Ministry of Communications for the application of new, lower tariffs in the sector will be mentioned.

As early as 2020, the company showed a 71.2% improvement in operating profit to NIS 1.46 billion, compared with NIS 850 million in 2019, and here too other net operating expenses decreased – from NIS 221 million in 2019 to NIS 74 million in 2020 . Also throughout the year, Bezeq made a profit – NIS 796 million, compared with a loss of NIS 1.19 billion in 2020. The improvement is due to changes in impairment loss, other operating expenses / income item and tax expenses.

Adjusted net profit (excluding other expenses / operating income, net and losses / non-recurring gains from impairment / increase in value) for 2020 amounted to NIS 1.14 billion, compared with NIS 913 million last year. Bezeq also notes that free cash flow amounted to NIS 1.48 billion, an improvement of NIS 110 million compared to last year, which allowed the net debt to be reduced to NIS 6.84 billion at the end of 2020, compared with NIS 7.96 billion a year earlier. The ratio of net debt to adjusted EBITDA was approximately 2.1, compared with approximately 2.4 in 2019.

“The merger between Bezeq International and Yes, and the splitting of the integration division into a new separate corporation, as well as the launch of the fiber, are part of a strategic plan we are working on in recent months, based on the transition from defense to market initiative and leadership in all areas.” Gil Sharon, Chairman of the Board of Bezeq. “The decision to examine this merger comes against the background of the growing service and business cohesion in the industry, the increasing competition in the subsidiaries’ operating segments, the business and regulatory changes that apply and are expected to apply to Bezeq International and Yes and their activities, and the need to examine the deepening synergy and operational efficiency of subsidiaries. And flood value. ”

He added that “the outline of the change will allow for optimal adjustment of the subsidiaries’ activities to the structure of the industry, and provide a unified response to customer needs, in terms of sales and service, that will contribute to growth. “Expenses amounting to tens of millions of shekels a year. In addition, splitting the integration activity may also flood the company with value.”