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Israel's Cellcom Sees Revenues Fall by Another 10 Percent

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Israel's Cellcom has reported another quarter of declining revenues as the intense competition in the local market continues to hurt the entire industry.

First quarter revenues fell by 10.2 percent to NIS 366 million ($105 million), although net profit soared by 70 percent to NIS 114 million ($33 million).

Net profit was boosted by an improvement in the underlying EBITDA margin of 30.1%, up from 25% a year ago, and cost savings, and a reduction in the cost of its financing.

The company also lost around 43,000 subscribers in the period, taking its total customer base down to 3.049 million.

Shlomi Fruhling, Chief Financial Officer, commented: "The continued efficiency measures and cost reduction implemented by the Group led to an improvement in the business results this quarter as compared with the corresponding quarter last year, despite the ongoing price erosion in the communications market and the decrease in the Group's revenues, which is expected to continue in the coming quarters and to adversely affect the Group's results."

The company decided not to distribute a dividend for the first quarter of 2014, given the continued intensified competition in the market and its adverse effect on the Company's revenues and in order to further strengthen the Company's balance sheet.

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Tags: cellcom  Israel