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012.Smile posts record high revenue and net profit

24 Feb 2010

Israel’s 012.Smile Communications, which is controlled by local businessman Shaul Elovitch, has released its financial results for the twelve months ended 31 December 2009, revealing a new record for full year revenue. For the twelve-month period 012.Smile generated revenues of ILS1.17 billion (USD311 million), up 3% against the same period a year earlier, the highest reported by the company. Likewise, net income reached a new high, with 012Smile posting a more-than-threefold rise to ILS150 million, up from ILS48 million in 2008. Operating profit meanwhile was up 38% year-on-year at ILS177 million.

In addition to revealing its financial figures for the year, the company also announced that it had completed the sale of its legacy telecommunications business to Ampal-American Israel Corporation for ILS1.2 billion, clearing the way for Elovitch to complete the acquisition of a controlling stake in incumbent Bezeq. The sale of 012.Smile’s telecoms operations was a prerequisite set down by the Israeli Ministry of Communications (MoC) for proceeding with the Bezeq purchase. It is understood however that outgoing 012.Smile CEO Stella Handler will continue to manage the company’s old operations, now a wholly-owned Ampal subsidiary. Commenting on the developments and financial results, 012.Smile chairman Elovitch noted: ‘We are very pleased with the progress that we have made towards closing the Bezeq acquisition. We are fully committed to this transaction and currently focused on obtaining the remaining required regulatory approvals. We feel very comfortable with the progress and foresee completion on time as planned.’

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