Internet Gold
This presentation is the property of its rightful owner.
Sponsored Links
1 / 26

NASDAQ NM / TASE - symbol: IGLD PowerPoint PPT Presentation


  • 72 Views
  • Uploaded on
  • Presentation posted in: General

Internet Gold Leading Israeli communications and Interactive media Group. NASDAQ NM / TASE - symbol: IGLD. Eli Holtzman, CEO Doron Turgeman, CFO Q3 2006. Forward-Looking Statement.

Download Presentation

NASDAQ NM / TASE - symbol: IGLD

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Nasdaq nm tase symbol igld

Internet Gold

Leading Israeli communications

and Interactive media Group

NASDAQ NM / TASE - symbol: IGLD

Eli Holtzman, CEO

Doron Turgeman, CFO

Q3 2006


Forward looking statement

Forward-Looking Statement

The statements contained herein that are not purely historical are forward-looking statements. These forward-looking statements, and especially those regarding the 012 merger, involve risks and uncertainties and actual results could differ materially from the results discussed in these statements.


Nasdaq nm tase symbol igld

Internet Gold – Golden Lines - About Us…

History

  • Founded in 1996 by Eurocom Communications Ltd. and Eli Holtzman

  • Within about three years became leading ISP in the Israeli market

  • Went public on NASDAQ in August 1999 and TASE on May 2005

    Current business

  • 100% owns two subs: Smile.Communications Ltd. and Smile.Media Ltd.

  • Smile.Communications – specializes in Internet services & Int’l telephony

  • Smile.Media – specializes in e-Advertising, e-Commerce and paid content

  • ~ 720 Full-Time Employees


Committed to growth 2007 crossing the 250 m revenue line

Committed to growth…2007 - crossing the 250 M$ revenue line

Primary drivers:

2006

  • Build-out of InternationalVoIP Telephony services

  • Expansion of InternetAdvertising

  • Expansion of BusinessServices

  • 012 acquisition to be completed and operations to be consolidated - Q4/06

    2007

  • 1st full year of the merged operation

  • Continued growth expected in all lines of business (under both ‘smile’ and ‘012’ brands)

in us $ millions

Organic CAGR = +20%

M&A CAGR = +47%

* post-merger


Israel s telecommunications market

Israel’s telecommunications market

In US$ Billion

2005 total – US$ 5.3 B

Source: Israeli MoC


2006 07 leveraging strong positioning

2006/07: Leveraging Strong Positioning


1 1 3 multiple synergies between the two companies

  • Value Added Services

  • Biz services

    • Hi level integration

    • Hi level data security

  • Dealernetwork

  • e-Media & e-Commerce

  • Global data networks

  • Roaming services

  • Call centers

  • Fixed domestic telephony

  • Pre/post paid cards

  • TDM platform

1 + 1 = 3 Multiple Synergies between the two companies


Rationale for the 012 acquisition

Rationale for the 012 acquisition

communications activities only

In US$ millions

Q4/2005 + Q1-3/2006

*

F/Y - 2007**

Total

SCL

* Based on IGLD estimate

** company’s goals for the 1st full year of merged communications operations

*** Communications’ EBIT / EBITDA goals for 2007 exclude one time expenses relatingto the

merger. These goals assumes full synergy of merger to be achieved Q2/07


Nasdaq nm tase symbol igld

+ = cash generators

ILD – growth driver for the communications industry

International voice traffic from Israel - up 10.3% in 2005 vs. 2004

- up 12% in H1/06 vs. H1/05

International voice revenues for H1 2006 up 3% vs. H1 2005

(Source: Israeli MoC)

Leveraging state of the art telephony infrastructure

To drive further growth

  • Most sophisticated VoIP platform

  • World class TDM platform

  • Auxiliary platforms (anti-fraud / billing / CRM etc.)


Nasdaq nm tase symbol igld

072 / 075 - additional growth driver

Fixed telephony

  • Total fixed telephony market in Israel - US$ 1.2B in 2005

  • 012 currentlyhave only ~ 13k subscribers’ lines

  • Our goal ~ 5% market share of this significant segment within 3-4 years

  • Future marketing to rely on existing customer base of ~ 800 k subscribers

State-of-the-art telephony infrastructure

  • Solid investment in class 5 fixed telephony

  • No further significant investments required

  • Auxiliary platforms (anti-fraud / billing / CRM etc.)


2006 2007 growth of online advertising continues

*

2006/2007: Growth of Online Advertising continues

Israel Internet Advertising CAGR = +38%

Israel’s broadband penetration is among the highest in the world

~70% of Israeli households have Internet access ~ 95% are connected via broadband!

>40% of users are online >10 hours per week. 2.7M users per day!

Israel’s online ad budgets are low compared to exposure –ad budgets always follows rating

Internet Advertising in Israel is currently > 6-7% of overall media spending (~ $900M in 05’) - growing fast

SEARCH - additional growth potential: US search revenues - 40% of total e-Adv. much higher than in Israeli market

in US$ millions

* Q3/06 - Media market affected by war conditions

Source: Market surveys & IGLD estimates

US Internet Advertising CAGR = +21%

in US$ billions

estimated

Source: PWC IAB Internet Advertising Report, Sept. ‘05

& company's estimates


Smile media content portal brands

Smile.Media – Content & Portal Brands


Leading e commerce brands

Leading e-Commerce Brands


Nasdaq nm tase symbol igld

Two pure-play subsidiaries

Quarterly Growth

Revenues

EBIT

US$ in millions

US& in millions


Nasdaq nm tase symbol igld

Two pure-play subsidiaries

Annual Growth

* company’s goals

US in millions

Revenues

EBIT

** Post merger

IGLD’s estimate for 2006/07, excludes one time expenses relating to the merger

** Ebitda goal for 2007 ~ US$ M68 / estimate for finance exp. ~ US$ M10


Nasdaq nm tase symbol igld

Balance sheet overview

in US$ millions


Nasdaq nm tase symbol igld

Comparables

Interesting market opportunity…

KCSA to send new slide


Goal to become israel s leading full suite alternative service provider

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

1996

Goal: to become Israel’s Leading Full Suite Alternative Service Provider

IPTV

IP seamless mobility

VoWi-Fi / Wi-MAX

VoB & business integration

Technology Value added services

e-Commerce & paid content

Portals & e-Advertising

International Long Distance (ILD) & Internet Access


Nasdaq nm tase symbol igld

Strong Shareholders / Dedicated Management

  • Public ~ 31%

  • Eurocom Communications ~ 69%

    • Focused, communications-oriented controlling parent group

    • Leading Israeli private communications group representing exclusively Nokia, Panasonic, GE and more

    • Also holds equity in radio stations, DBS TV service provider, satellite communications, cellular and more

  • Closely-knit, results-oriented management team

    • Most all level of management grows from within

    • Experienced upper level management


Nasdaq nm tase symbol igld

Investment highlights

Thank you!


  • Login