Investment bank Leader DS doesn't expect the prevalent trend in communications firms will change in the near future.
The bank expects that state-owned phone company Bezeq will lose NIS 150 million in the first quarter this year on holdings in satellite TV firm YES, and mobile provider Pele-Phone Communications.
Chief analyst Yuval Ben Zeev estimates YES will generate Bezeq NIS 110 million loss, and Pele-Phone NIS 40 million loss.
Leader DS believes Pele-Phone will continue making big provisions for subscriber acquisition costs, but losses are expected to be moderated by deferred tax booking.
The analyst expects further erosion in the operating results of cellular provider Cellcom. The company's main challenge, according to Ben Zeev, is launching its global system for mobile communications service, presently delayed, and how it will run itself in the future.