Cellcom Q3 Earnings Down 38%

Cellcom Israel Ltd

reported a 38% drop in its third-quarter earnings. Cellcom's quarterly profit fell to NIS124 million ($31.7 million), or NIS1.25 per share (32 cents), versus NIS825 million, or NIS8.28 per share, in the year-ago period. Its revenue fell 13% to NIS1.45 billion ($370.1 million). However, analysts were expecting earnings of NIS0.97 per share on revenue of NIS1.46 billion. Cellcom's gross margin declined to 41.1% from 47.1%, while service revenue fell 18%. Cellcom shares closed at $8.91 yesterday.