Barak ITC 3Q operating profit up 62%

22 Nov 2006

Israeli alternative operator Barak International Telecommunications Services Corp (Barak ITC) has posted a 62% year-on-year rise in third quarter operating profit, according to local daily Globes. In the three months ended 30 September Barak ITC reported a 4% rise in revenues to ILS179 million (USD41.4 million) and operating profit of ILS29 million; EBITDA was up 43% at ILS39 million. Net profit reached ILS153 million, compared with ILS2 million a year earlier, due to the ‘early discharge of dollar bonds and from financing revenue resulting from the continued fall in the dollar exchange rate’.

According to TeleGeography’s GlobalComms database, last month Israel’s antitrust authority approved the operational merger of Barak ITC and fellow alternative fixed line operator NetVision, as well as corporate services provider GlobCall Communications. The transaction remains subject to it obtaining other approvals, however, and there is no assurance that the transactions will be consummated. Under the terms of the deal, NetVision will purchase 100% of Barak in exchange for 46.5% its shares. Upon completion, NetVision will acquire all of GlobCall in exchange for 7% of the share capital of the merged NetVision-Barak company. The deals value NetVision at between USD122 million and USD142 million, Barak at between USD105 million and USD121 million, and GlobCall at between USD15 million and USD21 million.

Israel