Cellcom Israel has reported tevenues for the first quarter 2008 totaled NIS 1,595 million ($449 million), up from the NIS 1,438 million in the same quarter a year ago; EBITDA for the first quarter 2008 totaled NIS 593 million ($167 million), compared to NIS 534 million previously and net income for the first quarter 2008 reached NIS 273 million ($77 million).
Commenting on the results, Amos Shapira, Chief Executive Officer said, "I am very pleased with our first quarter 2008 results, especially given the competitive environment and the continuing price erosions.", adding "Our results this quarter continued to be impacted by the increased expenses and payments for the number portability implemented in December 2007, however, I am pleased to note that the majority of these expenses terminated by the end of the first quarter.
At the end of March 2008 the Company had approximately 3.096 million subscribers. During the first quarter of 2008 the Company added approximately 23,000 net new subscribers (increase of approximately 33,000 post-paid subscribers and a decrease of approximately 10,000 pre-paid subscribers).
In the first quarter of 2008, the Company added approximately 104,000 net new 3G subscribers to its 3G subscriber base, reaching approximately 523,000 3G subscribers at the end of March 2008, representing 16.9% of the Company's total subscriber base.
The Churn Rate in the first quarter 2008 was 5.3%, compared to 3.8% in the first quarter last year.
Tal Raz, Chief Financial Officer, commented: "This was a strong quarter in terms of profitability for the Company, resulting mainly from the 9% increase in airtime minutes, higher revenues from content services as well as ongoing cost efficiencies. Our ongoing efficiency measures contributed to a decline in marketing, sales, general and administrative expenses as percentage of revenues from 21.4% in the first quarter last year to 19.4% in the first quarter this year. Our Free Cash Flow for the first quarter totaled NIS 78 million and was impacted mainly by the increase in the Company's expenses for preparation for number portability, which mainly include an increase in payments for handsets procurement and payroll expenses attributed to the increased workforce. The majority of these payments were finalized by the end of the first quarter 2008. At the beginning of the first quarter 2008, we also paid a one time catch up tax payment in the amount of NIS 70 million for 2007 accrued tax liability."
Posted to the site on 14th May 2008
Posted to: www.cellular-news.com/story/31144.php