Online translation company Babylon Ltd. (TASE:BBYL) is planning collaborations and acquisitions, after reporting sharply higher profits for the second quarter of 2013. Revenue rose 9% to $45 million for the second quarter from $41 million for the corresponding quarter of 2012. Net profit rose 83% to $11 million from $6 million.
The proportion of Babylon's revenue from Google Inc. (Nasdaq: GOOG) was almost halved to 43% for the second quarter from 84% for the corresponding quarter, while the proportion of revenue from Yahoo! Inc. (Nasdaq: YHOO) tripled to 32% from under 10%.
Deferred revenue exceeded $40 million at the end of June, and the company had $47 million in cash, before the distribution of $22 million dividend in early July.
"In the past quarter we focused on diversifying our income sources and in analyzing the relevant market data. Based on our experience and the analysis of data we conducted in the first six months, we expect a significant increase in user acquisition cost during the second half of the year. We estimate that the global search market in which we operate is heading towards mergers and acquisitions. New players are joining, many of them are Israeli Internet companies," said Babylon CEO Alon Carmeli. "We are continuously examining interesting opportunities for cooperation and acquisitions as we believe that by maximizing potential collaborations, we can further strengthen Babylon's position in the industry."
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2013
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