Cellcom Reports Strong Second Quarter 2023 Results with Continued Revenue Growth

Cellcom, a leading telecommunications company, has announced its financial results for the second quarter of 2023, marking its sixth consecutive quarter of revenue growth. The company's impressive performance showcases its resilience and innovation in a competitive market.

Cellcom reported a remarkable increase in revenues from both mobile and landline services. Revenues from mobile services witnessed a substantial boost, rising by NIS 22 million, while landline services revenue surged by NIS 33 million. This growth demonstrates the company's ability to effectively tap into diverse market segments.

Profitability

The company's profit before interest, taxes, depreciation, and amortization (EBITDA) stood at NIS 321 million for the quarter, a notable increase from NIS 303 million in the same quarter last year. This growth underscores Cellcom's effective financial management and strategic decisions.

Cellcom's stock exhibited a moderate increase of approximately one percent on the trading day following the announcement of its second-quarter results. This positive response from the market reflects investor confidence in the company's continued growth trajectory.

Mobile Services

Revenues from cellular services reached approximately NIS 511 million in the current quarter, showcasing a commendable year-on-year increase of NIS 22 million, equivalent to a growth of around 4.5% compared to the same quarter in 2022. The company also reported a noteworthy increase of NIS 51 million in revenues from cellular services compared to the median from the previous year.

In the stationary sector, revenues from services totaled around NIS 351 million, reflecting a substantial growth of NIS 33 million compared to the corresponding quarter last year. This increase, amounting to approximately 10.4%, highlights the company's success in driving revenue expansion across various service categories. Cellcom also noted a median increase of NIS 41 million in revenues from stationary sector services compared to the median from the previous year.

Cellcom experienced a robust growth in its customer base during the second quarter of 2023. The addition of 15,000 fiber customers and 21,000 mobile customers contributed to an overall subscriber base of approximately 3.48 million subscribers.

Net Profit and Operating Profit

Cellcom reported a net profit of NIS 37 million for the quarter, excluding a one-time provision for lawsuits. This figure represents a slight decrease from the NIS 39 million reported in the same quarter last year. Including the provision, the net profit stands at NIS 5 million. The operating profit, after neutralizing the impact of a one-time provision, remained steady at NIS 92 million, mirroring the performance of the corresponding quarter in the previous year. Including the one-time provision for lawsuits, the operating profit was approximately NIS 50 million.

The company's adjusted EBITDA for the reporting period reached NIS 321 million, an impressive increase of approximately 6% from NIS 303 million in the same quarter last year. Cellcom's free cash flow for the quarter amounted to approximately NIS 52 million, compared to NIS 64 million in the corresponding quarter last year. The cash flow for the first quarter of 2023 also demonstrated growth, totaling NIS 121 million, a rise of NIS 5 million compared to the same quarter in the previous year.

Cellcom's consistent revenue growth, expanding customer base, and sound financial performance underscore its position as a formidable player in the telecommunications sector. The company's ability to navigate challenges and seize opportunities continues to drive its success in a dynamic market landscape.