Online translation company Babylon Ltd. (TASE:BBYL), controlled by Noam Lanir, today published preliminary estimated results, one month before it will publish its audited financial report for the fourth quarter and full year of 2010. The company released the results because the exercise period for its Series 2 warrants expires next week.
Babylon expects NIS 115-120 million revenue for 2010 as a whole. The midpoint revenue estimate is 33% more than the revenue in 2009. The company also expects an operating profit of NIS 20-22 million, compared with NIS 13.7 million in 2009.
The exercise date of Babylon's Series 2 Warrants expires on February 17. The adjusted strike price is NIS 6.22 per share, compared with today's opening price of NIS 6.10. If exercised in full, the company will make NIS 35.8 million.
In addition, conversion of the warrants into shares will boost the public's holding in Babylon, which if the current trend in the share price continues, could enable the company to be included on the TASE Tel-Div Index of 20 shares with the highest dividend returns.
Babylon has adopted a policy to distribute a fixed dividend. Companies on the Tel-Div Index can increase the trading volume in their shares. The company is included on Mid-Cap 50 and Tel-Tech indices
Babylon's share price rose 0.6% by mid-afternoon to NIS 6.14, giving a market cap of NIS 265 million. The share price has risen 26% since the beginning of the year.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2011
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