The challenging conditions of the Israeli telecommunications market continued to weigh on Bezeq in the second quarter, when sales fell and net profit declined by double digits compared to a year earlier.
The largest telecom group in Israel said that it earned 195 million shekels ($ 53 million) in the quarter, a decrease of 46% from 358 million a year earlier. The net was hit by steep profit cuts on its mobile phone and satellite TV units, amid increasing competition and an 80 million shekel provision for an early retirement plan.
Turnover fell by 5.3% to 2.3 billion shekels at all business units, partly in fixed telephony activities in fixed telephony, with decreases.
Bezeq, which has been shaken by an on-going criminal investigation that has created an exodus of its top executives and the loss of its controlling shareholder, was projected to earn 207.5 million shekels on revenue of 2.35 billion, according to a Reuters poll of analysts.
Bezeq said it would pay a share of 318 million shekels or 11 agorot a share for the first half of 2018, representing 70% of net profit.
Despite the difficult situation of the company, the Bezeq share increased by about 10% this week, with a rise of 8% from Thursday to 4.32 shekels. The parent company, B Communications, even made even better profits and decreased by 18.2% to 34.53.
Analysts said the rally, after an extended period of stock decay, reflects the confidence that Bezeq will be able to cut costs as promised by its chairman Shlomo Rodav, including by getting permission from the Ministry of Communications to To end a structural separation between its subsidiaries.
The company reiterated its forecast for 2018 for a net income of 1 billion shekel.