IGLD...revenue up 63%...Monday August 23, 6:59 am Eastern Time
Company Press Release
SOURCE: Internet Gold
Internet Gold Reports 2Q99 Earnings Rise 63 Percent
ROSH HAAIN, Israel, Aug. 23 /PRNewswire/ -- Internet Gold (Nasdaq: IGLD - news) today reported second quarter revenues of NIS 24.4 million ($6.0 million), an increase of 63 percent compared with NIS 15.0 million ($3.7 million) for the same quarter last year. Gross profit increased 61 percent to NIS 11.1 million ($2.7 million) versus NIS 6.8 million ($1.7 million).
Selling and marketing expenses and general and administrative expenses increased 63 percent and 33 percent, respectively, compared to the second quarter of 1998. The Company achieved positive EBITDA in the second quarter of 1999. EBITDA for the second quarter was NIS 108,000 ($26,600), compared to NIS (36,000) ($9,000) for the second quarter of 1998. Internet Gold's net loss was NIS (2.6 million) ($0.6 million), or NIS (0.19) ($0.05) per share for the three months ended June 30 compared with NIS (1.9 million) ($0.5 million), or NIS (0.14) ($0.03) for the year-ago second quarter.
Revenues for the six months ended June 30, 1999 increased 65 percent to NIS 46.0 million ($11.3 million), compared with NIS 27.9 million ($6.9 million) for the same period the previous year. Gross profit increased 63 percent to NIS 20.5 million ($5.0 million) versus NIS 12.6 million ($3.1 million) for the same period last year.
First half selling and marketing expenses as well as general and administrative expenses increased 74 percent and 49 percent, respectively, against the same period last year. EBITDA for the six months ended June 30, 1999 was NIS (1.3 million) ($0.3 million), compared to NIS (0.1 million) ($31,000) for first half of 1998. First half net loss was NIS (6.6 million) ($1.6 million) or NIS (0.47) ($0.12) per share compared with NIS (4.2 million) ($1.0 million), or NIS (0.30) ($0.07) per share, for first half of 1998.
As of June 30, 1999, the Company had 127,431 subscribers, including 1,031 business subscribers. This represented a 17 percent increase over the 108,801 subscribers (including 901 business subscribers) as of March 31, 1999. As of August 20, 1999, the Company had 149,252 subscribers, including 1,152 business subscribers.
Commenting on Internet Gold's results for the second quarter and first half, CEO Eli Holtzman said, ''We are extremely pleased with the second quarter's results.''
''On August 5, 1999, the company successfully completed its initial public offering on the Nasdaq National Market of 4.5 million shares at $12.00 per share, raising $54 million. The company intends to use the proceeds to repay outstanding debt, invest in its e-commerce joint venture, increase its sales and marketing activities, expand its network, and consummate its strategic acquisitions.''
Internet Gold is the leading Internet service provider in Israel based on the number of its subscribers and recent surveys. The company provides a wide array of Internet services tailored to meet the needs of the residential and business subscribers, including Internet access and related value-added services, as well as content through the company's portals. The company intends to become the leading portal in Israel and, through its e-commerce joint venture, the leading e-commerce provider in Israel. The company provides access through a nationwide network with 14 points of presence, allowing approximately 95% of the Israeli population to access the Internet with a local telephone call.
Certain statements made herein that use the words ''estimate,'' ''project,'' ''intend,'' ''expect,'' ''believe'' and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company's services, inability to timely develop and introduce new technologies, services and applications and loss of market share and pressure on prices resulting from competition. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's Registration Statement on Form F-1 filed with the Securities and Exchange Commission and its reports filed from time to time with the Securities and Exchange Commission.
Statement of Operations
Adjusted to NIS of June 1999 (in thousands)
Convenience
translation Three
months ended
Three months ended June 30 June 30
1999 1998 1999
Unaudited Unaudited Unaudited
NIS NIS US$
thousands thousands thousands
Revenues 24,447 15,005 5,998
Cost of revenues 13,375 8,165 3,281
Gross Profit 11,072 6,840 2,717
Selling and marketing
expenses 8,788 5,402 2,156
General and administrative
expenses 4,236 3,178 1,039
Loss from operations (1,952) (1,740) (478)
Financing expenses, net (628) (171) (154)
Other expenses net (3) (14) (1)
Net Loss (2,583) (1,925) (633)
Net loss per share (0.19) (0.14) (0.05)
Weighted average number of
shares outstanding
(in thousands) 13,932 13,932 13,932
Convenience
translation Six
months ended
Six months ended June 30 June 30
1999 1998 1999
Unaudited Unaudited Unaudited
NIS NIS US$
thousands thousands thousands
Revenues 45,974 27,909 11,279
Cost of revenues 25,459 15,291 6,246
Gross Profit 20,515 12,618 5,033
Selling and marketing
expenses 17,436 10,026 4,278
General and administrative
expenses 8,668 5,803 2,127
Loss from operations (5,589) (3,211) (1,372)
Financing expenses, net (950) (984) (233)
Other expenses, net (16) (14) (4)
Net Loss (6,555) (4,209) (1,609)
Net loss per share (0.47) (0.30) (0.12)
Weighted average number of
shares outstanding
(in thousands) 13,932 13,932 13,932
Balance Sheet
Adjusted to NIS of June 1999 (in thousands)
Convenience
translation
30-Jun-99 31-Dec-98 30-Jun-99
Unaudited Audited Unaudited
NIS NIS US$
thousands thousands thousands
Current Assets
Trade receivables, net 15,075 13,570 3,698
Other receivables 5,758 4,652 1,413
Total current assets 20,833 18,222 5,111
Long term loans 822 -- 202
Property and equipment, net 21,691 17,980 5,322
Deferred charges 2,859 -- 701
Total Assets 46,205 36,202 11,336
Current liabilities
Short term bank loans 40,692 32,813 9,983
Accounts payable 15,486 13,729 3,799
Other payables 8,560 4,060 2,100
Total current liabilities 64,738 50,602 15,882
Long-term liabilities
Long term loans 2,786 1,156 684
Liability for termination of
employer-employee relations,
net 1,705 913 418
Total long-term liabilities 4,491 2,069 1,102
Shareholders' deficit
Ordinary shares
Accumulated deficit (23,024) (16,469) (5,648)
Total shareholders' deficit (23,024) (16,469) (5,648)
Total liabilities and
shareholders' deficit 46,205 36,202 11,336
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