Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Internet Gold Sinks Most Since 2008 on Telecom Industry Losses

Aug. 13 (Bloomberg) -- Israeli holding company Internet Gold-Golden Lines Ltd. plunged the most in almost four years amid growing concern that competition in the telecommunications industry is hurting profitability.

Shares of Petach-Tikva, Israel-based Internet Gold lost 17 percent to $2.02 by 12:06 p.m. in New York, the most since October 2008. The Tel Aviv shares have fallen 19 percent in the past two days to 7.89 shekels, or $1.94.

Citigroup Inc. and Bank Leumi cut their price target last week on Bezeq Israeli Telecommunication Corp., Israel’s largest fixed-line phone company, which is controlled by Internet Gold. The Tel Aviv-based company reported Aug. 2 that second-quarter sales were $679 million, a 10 percent decline from the same period last year.

“Internet Gold shares are almost like options on Bezeq,” Ori Licht, the head of research at Israel Brokerage & Investments Ltd., said by phone from Tel Aviv. “Bezeq is going down because of all the changes in the telecom sector.”

Hot Telecommunication System Ltd. and Golan Telecom Ltd. began offering unlimited mobile-phone services in May, adding to competition in the industry. Bezeq shares have lost 39 percent in Tel Aviv this year. Bezeq, Cellcom Israel Ltd. and Partner Communications Co., are the three worst-performing stocks on Israel’s benchmark TA-25 Index in 2012.

Editors:

To contact the reporter on this story: Sridhar Natarajan in New York at snatarajan15@bloomberg.net

To contact the editor responsible for this story: Tal Barak Harif at tbarak@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.