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Israel's Bezeq Telecom Q1 profit falls more than expected
May 26, 2016 / 6:31 AM / in 2 years

Israel's Bezeq Telecom Q1 profit falls more than expected

JERUSALEM, May 26 (Reuters) - Bezeq Israel Telecom reported a steeper than expected 38 percent drop in quarterly profit, weighed down by higher salary and other expenses due to the consolidation of its satellite TV unit YES.

Bezeq, Israel’s largest telecoms group, said on Thursday it earned 288 million shekels ($75 million) in the first quarter, down from 463 million a year earlier and below a forecast of 333 million shekels in a Reuters poll of analysts.

The consolidation of YES, though, boosted revenue 18 percent to 2.56 billion, in line with expectations, and offset lower revenue at mobile phone subsidiary Pelephone.

Salary expenses rose 17 percent in the January-March period, while operating expenses grew 27 percent. Net financing expenses jumped 176 percent to 102 million shekels.

Bezeq reiterated its 2016 outlook of 1.4 billion shekels in net profit and earnings before interest, taxes, depreciation and amortisation (EBITDA) of 4.2 billion.

$1 = 3.8428 shekels Reporting by Steven Scheer

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