CELCOM ANNUAL REPORT 2010 PDF

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With us here are Mr. Yaacov Heen, CFO. Shapira will open by providing a summary of the main highlights of the second quarter , followed by Mr. Before I turn the call over to Mr.

Therefore, the company claims the protection of the Safe Harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of and in the Israeli Securities Law, Cellcom Israel assumes no obligation to update these projections in the future as market conditions change. I would now like to hand the call over to Mr. Amos Shapira Thank you, Porat. Good day everyone, and welcome to our second quarter earnings.

Our airtime minutes grew 5. We also continue to expand our 3G subscriber base, reaching 1. These are very positive results, and I believe they are a testament to the success of our strategy of focusing on cellular communications, while being committed to delivering quality customer service.

As you all know, this is a competitive and constantly evolving industry, and we continue to maintain our position as market leader. So we will continue to work according to our strategy and aim to continue maximizing our performance. Again, I think we are showing how our strategy is guiding us to take on very interesting projects with very interesting potential. First, as we reported back in July, Cellcom Israel is entering the financial services market with the intent to launch innovative solutions for conducting everyday financial transactions, using the mobile phone.

We have leading partners in this initiative, Citigroup and Isracard Group to help us realize these plans. We believe that together we will be able to leverage the many untouched opportunities in the cellular business. Moreover, I would like to add the fact that we are the first cellular company to enter the financial services market in Israel.

In addition, we have succeeded to generate additional growth by extending our landline services in the business segment. This is a very exciting development in our landline services, which is one of our growth engines. Finally, I would like to point out the acquisition of Dynamica has been completed and has already been successfully integrated.

Now in the area of MoC regulation, we are waiting on the results of the Ministry of Communications hearing regarding the proposed interconnect tariff reduction, payable to cellular operators for which we filed our formal objection. Depending on the outcome, we may continue our case against these proposed changes.

Concurrently, we are continuing to develop measures to mitigate as much as possible the expected adverse impact of these proposed changes. We will of course continue to keep you updated as this situation develops.

In summary, this has been a good quarter and we have seen some very positive developments. We will continue to focus on our core business by remaining committed to providing the best services to our customers and strong financial results for the benefit of our shareholders. I look forward to talking with you again next quarter. Yaacov Heen, for a detailed review of our financials. Yaacov Heen Thank you, Amos, and good day to all of you.

As Amos noted, this has been a strong quarter for us with year-over-year growth in all key areas. Our revenues for the second quarter of increased by 5. Within these, service revenues accounted for most of this increase, rising by 5.

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