TEL AVIV, May 20 (Reuters) - Bezeq Israel Telecom raised its 2014 profit forecast on Tuesday following the sale of its Yad2 classified ads web site to Axel Springer Digital Classifieds.
Israel’s largest telecoms group now sees net profit of 2 billion shekels ($579.2 million) and earnings before interest, tax, depreciation and amortisation (EBITDA) of 4.5 billion. The new forecast also includes a 116.5 million shekel charge for early retirement of 101 workers.
In March it forecast 2014 net profit of 1.6-1.7 billion shekels versus 1.77 billion in 2013 and EBITDA of 4 billion shekels. Bezeq expects free cash flow in 2014 of about 2.5 billion shekels.
Bezeq subsidiary Walla Communications on Tuesday completed the sale of Yad2 for 805 million shekels. Axel Springer Digital Classifieds is a joint venture 70 percent owned by German media company Axel Springer and 30 percent by the General Atlantic fund. ($1 = 3.4532 Israeli Shekels) (Reporting by Tova Cohen)