Cellcom Q3 profit down 40% on lower revenue

The net profit for the third quarter of 2011of mobile carrier Cellcom Israel Ltd. fell by over a third on lower revenue, even through the results include the results of 013 NetVision Ltd. following their merger at the end of August. The company will nevertheless distribute 95 percent of its net profit - NIS 189 million.
Cellcom's revenue fell 3% to NIS 1.67 billion ($449 million) for the third quarter from NIS 1.73 billion for the corresponding quarter. Net profit fell 40% to NIS 199 million ($54 million) (NIS 2.00 or $0.54 per share) from NIS 332 million. The company missed the analysts' consensus of NIS 2.48 earnings per share, but beat the revenue consensus of NIS 1.62 billion.
Cellcom CEO Amos Shapira said, "I believe that our entry into the land line market through the acquisition of Netvision will only further strengthen our position. The changes expected in the coming year are not the first challenges to our market and I believe that just as we emerged stronger from previous challenges (such as number portability in 2008 and the significant regulatory changes at the beginning of 2011)."
Cellcom's share price fell 2.3% in New York Monday to $20.87, giving a market cap of $2.1 billion, and fell 0.6% in early trading on the TASE today to NIS 76.84.
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