Cellcom Israel logs Q4 beats despite tough competition

|About: Cellcom Israel, Ltd. (CEL)|By:, SA News Editor

Cellcom Israel (NYSE:CEL) beat revenue expectations in its Q4 report despite a falloff of 8% overall.

Service revenues declined 9.3%, mitigated slightly by equipment sales. EBITDA, though, dropped more than 20% to NIS 225M (about $58M) but beat an expected NIS 222M.

Revenue breakout: Cellcom service, NIS 592M; Netvision service, NIS 205M; Cellcom equipment, NIS 232M; Netvision equipment, 57M.

It added about 3,000 net cellular subscribers for the quarter, but amid intense competition, cellular subs fell about 4.4% Y/Y to 2.835M.

Cellular churn rate was 11.1%, down from the previous 11.5%. Average revenue per user was NIS 63 (about $16), down from the previous NIS 67.8 (about $17.40). The full-year monthly ARPU was NIS 65, down from a previous NIS 72.

Updated 9:33 a.m.: Shares have come out of the open up 1.7%.

Conference call to come at 10 a.m. ET.

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