012 Smile profit doubles ahead of Bezeq deal: Full-year revenue rose 6% to a record NIS 1.17 billion. [Globes, Tel Aviv, Israel]

Feb. 23--Shaul Elovitch-controlled 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC) reported record revenue and profits for the fourth quarter and the year as a whole. The company today published its financial report for the fourth quarter and full year of 2009. Last month, Elovitch completed the sale of Smile's telecommunications businesses to Joseph Maiman-controlled Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL), so that Smile can acquire the controlling interest in Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ).

Smile posted NIS 305 million ($81 million) revenue for the fourth quarter, 3 percent more than the NIS 297 million revenue for the corresponding quarter of 2008. Full-year revenue rose 6 percent NIS 1.17 billion ($311 million) from NIS 1.1 billion in 2008.

Net profit rose 2.4-fold to NIS 60 million ($16 million) (NIS 2.38 or $0.63 per share) for the fourth quarter from NIS 25 million for the corresponding quarter. Net profit tripled to NIS 150 million ($40 million) (NIS 5.93 or $1.57 per share) in 2009 from NIS 48 million in 2009.

Operating profit rose 89 percent to a record NIS 58 million for the fourth quarter from NIS 31 million for the corresponding quarter. Operating profit rose 38 percent to NIS 177 million in 2009 from NIS 128 million in 2008.

Smile also noted that it has completed the sale of its legacy telecommunications business for NIS 1.2 billion, a prerequisite established by Israel's regulators for the acquisition of a controlling interest in Bezeq, and that it signed a NIS 3.9 billion financing agreement with a syndicate led by Bank Hapoalim (TASE: POLI) and also signed financing agreement of up to NIS 500 million with Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL).

Outgoing Smile CEO Stella Handler will continue to manage the company's legacy telecommunications business, now organized as a wholly-owned Ampal subsidiary 012 Smile Telecom Ltd.

Smile chairman Elovitch added, "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."

Elovitch controls smile through Eurocom Group subsidiary Internet Gold Golden Lines Ltd. (Nasdaq: IGLD; TASE:IGLD). Smile's share price fell 1 percent on Nasdaq yesterday to $28.31, giving a market cap of $716 million. The share rose 1.5 percent in early trading on the TASE today to NIS 107.90.

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