For 2007: Record Revenues of NIS 1.1 Billion With a 14% Rise in Core
Merger Paying Off: Q4 Gross Margin of 33% & Record 23% EBITDA Margin
PETACH TIKVA, Israel, February 26 /PRNewswire-FirstCall/ -- 012 Smile.Communications (NASDAQ Global Market and TASE: SMLC), a growth-oriented provider of communication services in Israel, today reported its financial results for the fourth quarter and full year ended December 31, 2007.
- Record revenues of NIS 1.1 billion ($287.1 million) in line with merger projections - core broadband revenues grew by 14% for the 12 month period
- Significant margin improvement reflecting synergies of merger and reduced proportion of hubbing revenues- Gross margin reached 31% for 2007 compared with 27% (pro-forma) for 2006; and 33% for the fourth quarter compared to 25% (pro-forma) for Q4 2006. Adjusted EBITDA margin rose to 22% for the year and 23% for Q4, compared to 18% (pro-forma) for the full year of 2006 and 17% for the Q4 2006.
- VOB-based domestic telephony business growing in line with plans - expected to become a major growth engine
- Significant improvement in capital structure due to IPO: Cash and equivalents increased from NIS 38.0 million at the end of 2006 to NIS 229.9 million at the end of 2007 and bank debt decreased from NIS 331.6 million to NIS 4.8 million.
Results for the Twelve Month Period
Revenues for the full year ended December 31, 2007 were NIS 1,102.9
million ($286.7 million), an increase of 221% compared with NIS 343.1
million recorded in 2006. On a pro-forma basis, this represented an
increase of 6.2%. Excluding hubbing (low margin wholesale traffic)
revenues, which declined significantly in 2007 compared to 2006 according
to Management decision to de-emphasize this low margin business, revenues
for the year increased by 13%, reflecting a
|SOURCE 012 Smile.communications Ltd.|
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