Walla! reports higher revenue and profits

Portal operator Walla Communications Ltd. (TASE: WALA) today published its financial report for the fourth quarter and full year of 2008. The company saw its orders backlog for its portal operations reach NIS 25.5 million at the end of 2008, 77% more than a year earlier and 48% more than at the end of September. Most of the increase was for advertising orders, the revenue from which the company will recognize later.

Walla! posted NIS 29.2 million revenue for the fourth quarter, 7.3% more than the NIS 27.2 million for the corresponding quarter of 2007. Net profit fell 32.6% to NIS 5.2 million from the corresponding quarter. The company attributed the lower profit to a NIS 2.8 million tax event on temporary provisions.

For the year as a whole, Walla! posted NIS 111.8 million revenue, 12.6% more than the NIS 99.4 million in 2007. Net profit rose 10% to NIS 17.4 million in 2008 from NIS 15.8 million in 2007.

Walla's cash flow rose 121% to NIS 39.6 million in 2008 from NIS 17.9 million in 2007. The fourth quarter cash flow rose 89% to NIS 15.9 million from the NIS 8.2 million for the preceding quarter and 12% more than the NIS 14.2 million for the corresponding quarter.

Walla! predicts that its e-commerce business will increase in 2009, which will boost revenue. The company predicts that a growing number of people will make online transactions, and that the range of products and services offered online will increase.

The Haaretz Group owns 32.6% of Walla! and Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) subsidiary Bezeq International Ltd. owns 34.2%. Walla's share rose 1.6% today to NIS 3.14, giving a market cap of NIS 142.7 million.

Published by Globes [online], Israel business news - www.globes-online.com - on March 8, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009