Mr. Eilon: Bezeq is the leading telecommunications provider in Israel. We are involved in the full spectrum of communications - domestic, international, cellular, Internet, data, and multi-channel tv. Bezeq was established in 1984 as a 100% Government owned company. The privatization process began in 1990 with an IPO on the Tel Aviv Stock Exchange. Today, Bezeq is controlled by the State of Israel, which owns 54.6% of the company. Bezeq is a technologically advanced company with a full range of value-added services, ATM network and a high capacity fiber optic backbone. We employ the latest technologies, including a full ADSL infrastructure. Bezeq is an efficient operator by international standards. Our headcount was recently reduced by 30%, and we have a benchmark of a 2.7 employees per 1,000 lines, which is quite efficient in the telecom industry. In addition, we are planning to continue our cost cutting programs including an additional headcount reduction of over 20% by 2006. In terms of our financial position, we have a strong cash flow position which has been used to gradually reduce outstanding debt over the last few years. In 2002, the company’s EBITDA margin was 43%, its current ratio was 1.3, and it had cash balances of approximately 2.1 billion shekels.
TWST: What is your credit rating?
Mr. Eilon: Bezeq has excellent credit ratings especially when compared to other telecom operators: Moody's, A3 and Standard & Poor's, A-.
Tickers included in this excerpt: BEZQ.TA
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.