Bezeq gains from Yes separation

By Julian Clover
November 5, 2009 10.41 UK

The deconsolidation of DTH operation Yes has provided a handsome reward for Bezeq. The Israeli telecoms group recorded a one off gain of NIS1.5 billion (€280 million), well above estimates from both analysts and the company itself.

Bezeq was forced to demerge the satcaster from its day-to-day operations after Israel’s Supreme Court rejected plans for an outright merger.

Yes itself posted a solid performance, growing revenues by 1.4% to NIS380 million year-on-year, as subscribers picked up on new advanced services. However, ARPU slipped back by 0.9% year on year to NIS224 (€42.3) following the end of an internet access agreement with Bezeq fixed line. Operating profit of NIS61 million represented a 15.7% increase on 2008.

Subscriber numbers of 567,000 were up 11,000 on the year and 5,000 on the quarter. A VOD service will launch in 2010.