UPDATE: Cellcom Posts Higher Q2 Profit

Cellcom

reported an 18% gain in its Q2 net profit. The Netanya, Israel-based company posted a quarterly net profit of 79 million shekels ($22.8 million), versus analysts' estimates of 76 million shekels. Basic earnings per share rose to NIS 0.79 ($0.23) in the quarter, up from 0.67 ($0.19). The company recorded 39 million shekels in one-time expense from a voluntary retirement plan, in which approximately 380 employees retired. Its revenue declined 6.3% to 1.158 billion shekels, versus expectations of 1.12 billion shekels. Its service revenue fell 8.6% to NIS 923 million ($268 million), while equipment revenue rose 4% to NIS 235 million ($68 million). Cellcom's EBITDA slipped 7.4% to NIS 314 million ($91 million), while EBITDA excluding one-time effects dropped 2.4% to NIS 331 million ($96 million). Cellcom's subscriber base dropped by 20,000 to 3.03 million in the quarter. Free cash flow rose 4.6% to NIS 361 million ($105 million) in the quarter. Selling, marketing, general and administrative expenses dropped 9.9% to NIS 290 million ($85 million), from NIS 322 million ($94 million). Nir Sztern, the Company's Chief Executive Officer said, "The Company continues to present good results, reflected in maintaining an EBITDA similar to the previous quarter after eliminating one-time effects.” Cellcom shares gained 0.84% to close at $12.06 on Friday.