Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD) subsidiary Golden Lines International Communications Services Ltd. has published its financial report for 2006, ahead of the finalization of its merger with Internet Gold subsidiary Smile Communications Ltd..
2006 was a record year for Golden Lines, with the increase seen primarily in its core activity - Internet access and international call services. Company revenue rose 12% to NIS 715 million from NIS 639 million in 2005. Operating profit rose 23% to NIS 83 million, from NIS 68 million in 2005. Earnings before interest, taxation, depreciation and amortization totaled NIS 147 million, 13% higher than in 2005.
Golden Lines posted a net profit of NIS 41 million, up 51.8% on 2005. The net profit includes the effect of a one-time charge of NIS 6 million relating to Golden Lines' uncompleted IPO.
Golden Lines currently holds a 16% share of the broadband Internet market and 30% of the international call services market. Following the completion of the merger with Internet Gold, the new company will control one third of the Internet and international call services market.
Golden Lines CEO Stella Handler said, " As we move into 2007, our goal is to continue building each of our businesses while simultaneously merging with Smile Communications. In parallel, we intend to immediately begin taking advantage of our new VOB license with the roll-out of a variety of services, to make VOB one of our strongest growth drivers during the next several years."
Published by Globes [online], Israel business news - www.globes.co.il - on March 4, 2007
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