Shaul Elovitch-controlled Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD) swung to profit on record revenue in the fourth quarter.
Internet Gold posted NIS 324 million ($86 million) revenue for the fourth quarter, 3.7% more than the NIS 312.4 million for the corresponding quarter of 2008. The company posted a net profit of NIS 42 million, or $11 million, (NIS 2.32 or $0.61 per share) compared with a net loss of NIS 8.4 million for the corresponding quarter. The company attributed the growth to the record results by subsidiary 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC).
Internet Gold's operating profit rose 104.7% to NIS 56.7 million for the fourth quarter from with NIS 27.7 million for the corresponding quarter.
For the year as a whole, Internet Gold's revenue rose 6.6% to NIS 1.24 billion ($329.5 million) from NIS 1.17 billion in 2008. Net profit was NIS 101 million or $26.7 million, (NIS 5.50 of $1.46 per share) in 2009, compared with a net loss or NIS 24 million in 2008.
Internet Gold CEO Eli Holtzman said, "For the past decade, we have been constantly pursuing growth, organically and through M&A activity. Our strategy was to become the leader of our telecommunications market and I am satisfied that we have achieved this goal with our group's pending acquisition of the controlling stake in Bezeq, the Israel telecommunication incumbent. We are fully committed to this transaction and are focused on obtaining the remaining required regulatory approvals. We feel very comfortable with the progress and foresee completion of the acquisition on time as planned."
Eurocom Group subsidiary Internet Gold is the parent company of Smile, through with Elovitch is acquiring the controlling stake in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ).
Internet Gold's share closed at $24.99 on Nasdaq yesterday, giving a market cap of NIS 451 million. The share price rose 0.5% by early afternoon on the TASE today to NIS 95.81.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2010
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