Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH) unit Discount Investment Corporation (TASE: DISI) posted a net profit of NIS 1.43 billion in 2009, 41% more than the NIS 1.01 billion in 2008. Most of the profit came from the investment by subsidiary Koor Industries Ltd. (TASE:KOR) in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ), which yielded a gain of NIS 1.64 billion for Discount Investment in 2009.
These profits were offset by write-offs on investments in Las Vegas by subsidiary Property and Building Ltd. (TASE: PTBL). Property and Building made a NIS 250 million write-off on its share of the Plaza casino and hotel project, which caused Discount Investment a loss of NIS 198 million for the fourth quarter.
Discount Investment president Ami Erel said, "Discount Investment concluded the year with impressive results and profit growth, thanks to handsome profits by Koor from its investment in Credit Suisse, as well as from Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Shufersal Ltd. (TASE:SAE), and other companies. During 2009, Discount Investment distributed NIS 1.67 billion in dividends, giving a dividend yield of more than 26%."
Discount Investment will distribute a dividend of NIS 270 million on April 21.
Discount Investment's assets totaled NIS 35.8 billion at the end of 2008, up from NIS 32.4 billion at the end of 2008 and NIS 27 billion at the end of 2007. The company's cash and cash equivalents rose to NIS 562.4 million at the end of 2009 from NIS 214.9 million a year earlier.
Discount Investment's share price fell 3.4% by mid-afternoon today to NIS 100.40, giving a market cap of NIS 8.85 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2010
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