Cellcom Israel Q4 Profit Down - Quick Facts

(RTTNews) - Cellcom Israel Ltd. (CEL) said that net income for the fourth quarter 2013 decreased 9.7% to NIS 102 million or $29 million from NIS 113 million or $33 million in the fourth quarter of 2012. Basic earnings per share for the fourth quarter 2013 totaled NIS 1.02 or $0.29, compared to NIS 1.14 or $0.33 in the fourth quarter of last year.

The churn rate for the fourth quarter 2013 totaled to 9.9%, compared to 8.7% in the fourth quarter last year. The quarterly churn rates were primarily affected by the intensified competition in the cellular market.

Revenues for the fourth quarter of 2013 decreased 14.1% totaling NIS 1.209 billion or $348 million, compared to NIS 1.407 billion or $405 million in the fourth quarter of last year. The decrease in revenues is attributed mainly to an 8.3% decrease in service revenues, which totaled NIS 977 million ($281 million) in the fourth quarter 2013 as compared to NIS 1.066 billion or $307 million in the fourth quarter of 2012.

The decrease in revenues also resulted from a 32% decrease in equipment revenues, which totaled NIS 232 million or $67 million in the fourth quarter of 2013 as compared to NIS 341 million or $98 million in the fourth quarter last year.

The company stated that its board decided not to distribute a dividend for the fourth quarter of 2013, given the intensified competition and its adverse effect on the Company's results and in order to further strengthen the Company's balance sheet.