Internet Gold revenues, net profit rise on back of strong 012 Smile.Com performance

14 Aug 2009

Israeli fixed line and broadband operator Internet Gold has released its financial results for three months ended 30 June 2009, revealing a 10% year-on-year increase in revenue. The company posted revenues of ILS309 million (USD76.1 million) in its second fiscal quarter, compared to ILS281 million a year earlier, while it also reported a 16% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to ILS71 million. Internet Gold also revealed that it had turned around a net loss of ILS8 million in 2Q 2008 to a net profit of ILS23 million in 2Q 2009. Commenting on the results, Eli Holtzman, Internet Gold’s CEO, said: ‘The primary driver of our results remains our communications segment which has achieved superb operating results in all parameters as a leader in the Israeli communications market. 012 Smile.Communications continued to build its core business and expand its base of voice-over-broadband (VoB) domestic telephony subscribers.’

012 Smile .Communications, Internet Gold’s main communications subsidiary, reported a quarterly revenue of ILS291 million, noting that revenue from broadband services had increased 14% compared to the same period a year earlier to ILD150 million; revenue from fixed line voice services was ILS141 million, up from ILS132 million. While the operator noted that it had 120,000 local telephony lines in service at end-June 2009, it did not reveal how many active broadband subscribers it had. However, Stella Handler, 012 Smile.Communications CEO, did note: ‘Strategically, we have achieved the customer acquisition targets that we set for ourselves last year, and continue to seek out the best path for entering Israel’s mobile market.’

Israel, 012 Smile Telecom