Internet Gold 2Q income up 43%

18 Aug 2006

Israeli communications group Internet Gold has posted a 43% year-on-year rise in income for the second quarter, up to ILS11.4 million (USD2.6 million), on the back of a 29% increase in revenues, up to ILS97.2 million. Internet Gold offers international telephony, ADSL and cable broadband internet access, and ISDN, dial-up and 64kbps leased lines services. The company said its broadband subscriber base increased by 6.5% in the three months ended 30 June 2006, without providing figures. Additionally, Internet Gold says that Israel’s war with Lebanon has spiked demand for services since the end of the quarter.

Last month Internet Gold agreed to acquire a 60% stake in rival telephony and internet access provider 012 Golden Lines, as part of plans to become a multiple service operator. The deal, which values 012 Golden Lines at around USD140 million, will pave the way for the merger of two of Israel’s five largest internet service providers, and further consolidation is a very real possibility if the newly enlarged telco wants to compete as a full service provider. Internet Gold is currently seeking approval for the deal from the relevant regulatory authorities.

Israel, 012 Smile Telecom