Internet Gold 3Q income up 44%

6 Nov 2006

Israeli communications group Internet Gold has posted a 44% year-on-year rise in income for the three months ended 30 September 2006, up to ILS6.96 million (USD1.6 million), on the back of a 43.7% increase in revenues, up to ILS105.3 million. Internet Gold offers international telephony, ADSL and cable broadband internet access, and ISDN, dial-up and 64kbps leased lines services. The company said it added 16,500 net new broadband subscribers in the third quarter, whilst international long-distance (ILD) telephony minutes rose 12% year-on-year; it did not provide additional statistics.

According to TeleGeography’s GlobalComms database, Internet Gold agreed to acquire a 60% stake in rival telephony and internet access provider 012 Golden Lines in July 2006, 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 and says it ‘is working closely with regulators to finalise [the] process as soon as possible’.

Israel, 012 Smile Telecom