Internet portal Walla Communications Ltd. (TASE: WALA) saw its revenue for the first quarter of 2010 rise 34% compared with the corresponding quarter of 2009. Net profit fell by15%, due to higher marketing and advertising costs, according to the company's financial report for the first quarter of 2010, published today.
Revenue rise to NIS 40.4 million for the first quarter from NIS 30.1 million for the corresponding quarter of last year. External sales in the portal and content site sector rose 13% to NIS 28 million, and income from the e-commerce sector rose 135% to NIS 12 million.
Net profit fell to NIS 4.7 million (NIS 0.10 per share) for the first quarter from NIS 5.6 million for the corresponding quarter.
Walla's orders backlog fell 9% to NIS 30.3 million at the end of March from the end of 2009, due to seasonal factors. The orders backlog was 41% higher compared with the end of March 2009.
Walla CEO Ilan Yeshua said, "The company is continuing its impressive growth in its two core businesses: advertising and e-commerce. Heavy investment in products, content, and infrastructures are intended to ensure the company's leadership in the ratings alongside continued growth and higher profits."
Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) owns 34.2% of Walla and Haaretz Group owns 32.5%. Walla's share price rose 0.6% by early afternoon to NIS 5.88, giving a market cap of NIS 265 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 21, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010