Cellcom Israel Ltd. announced unaudited consolidated earnings results for the first quarter ended March 31, 2016. For the quarter, the company reported revenues of ILS 1,022 million against ILS 1,062 million a year ago. The decrease in revenues is attributed to a 3.3% decrease in service revenues, and a 5.3% decrease in equipment revenues. Operating profit was ILS 101 million against ILS 55 million a year ago. The increase in the operating income resulted mainly from an approximately ILS 30 million one-time expense in the first quarter of 2015, due to entering a collective employment agreement, as well as an improvement in gross profitability and a decrease in operating expenses mainly as a result of efficiency measures implemented by the Company. EBITDA for the first quarter of 2016 increased by 21.4% totaling ILS 238 million ($63 million) compared to ILS 196 million ($52 million) in the first quarter of 2015. The increase in the EBITDA resulted mainly from an approximately ILS 30 million one-time expense in the first quarter of 2015, due to a collective employment agreement and also from an improvement in gross profitability and efficiency measures in operating expenses. Basic earnings per share for the first quarter of 2016 totaled ILS 0.59 ($0.16), compared to ILS 0.25 ($0.07) in the first quarter last year. Free cash flow for the first quarter of 2016 increased by 17.3% to ILS 149 million ($40 million), compared to ILS 127 million ($34 million) in the first quarter of 2015. The increase in free cash flow was mainly due to a one-time tax refund and a decrease in payments made to suppliers for end user equipment purchase, which was partially offset by a decrease in receipts from customers for services and end user equipment. Net cash from operating activities was ILS 239 million against ILS 169 million a year ago. Acquisition of property, plant, and equipment was ILS 68 million against ILS 76 million a year ago. Acquisition of intangible assets was ILS 22 million against ILS 20 million a year ago. The Group continued this quarter also to work to lower its net debt level to ILS 2.68 billion, compared to ILS 2.93 billion in the same quarter last year.