Babylon revenue dips, profit climbs

Revenue fell 14% because of the termination of its contract with Google.

Online translation company Babylon Ltd. (TASE:BBYL) today reported lower revenue, but higher profits for 2013, because of the termination of its contract with Google Inc. (Nasdaq: GOOG) late last year. Revenue fell 14% to NIS 591.4 million in 2013 from NIS 685 million in 2012, but net profit rose to NIS 148.4 million from NIS 103.1 million.

The company boosted its net profit by slashing advertising, sales and marketing expenses from NIS 513.8 million in 2012 to NIS 351.4 million in 2013. Fourth quarter expenses on this item were NIS 31.4 million in the fourth quarter, 72% less than in the corresponding quarter of 2012.

"Fourth quarter expenses were materially affected by the drop in investment in acquiring new users, following the changes with our key search engine partners, and we're now gradually renewing investment in this area, while developing additional growth engines for the company," said Babylon CEO Shanit Pe'er-Tsfoni.

Published by Globes [online], Israel business news - - on March 23, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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