Nov 19 Bezeq Israel Telecom reported a wider-than-expected 4.9 percent decline in quarterly profit, weighed down by a steep drop in profit at mobile phone unit Pelephone that has been hard hit by fierce competition.
Bezeq, Israel's largest telecoms group, said on Thursday it earned 407 million shekels ($105 million) in the third quarter, down from 428 million a year earlier and below a forecast of 418 million in a Reuters poll of analysts.
It said cost cutting measures helped to offset the decline in profit.
Boosted by the consolidation of satellite TV unit YES, revenue rose 16.6 percent to 2.6 billion shekels, in line with expectations.
Pelephone, the country's third-largest mobile phone operator, posted a 45 percent fall in quarterly profit, while revenue slipped 11.5 percent to 729 million.
Similarly, market leader Cellcom had reported a 62 percent dive in profit, while rival Partner Communications moved to a loss in the quarter as the sector has struggled since the market was opened to competition in 2012.
The number of subscribers at Pelephone slipped to 2.569 million from 2.6 million a year earlier.
($1 = 3.8869 shekels) (Reporting by Steven Scheer)