1 / 26

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.

ulric
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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


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

  2. 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.

  3. 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

  4. Committed to growth…2007 - crossing the 1B NIS 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 NIS millions Organic CAGR = +20% M&A CAGR = +47%

  5. Israel’s telecommunications market 2005 – NIS 23.2 B Source: Israeli MoC

  6. 2006/07: Leveraging Strong Positioning

  7. 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

  8. Rationale for the 012 acquisition communications activities only In NIS 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

  9. + = 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.)

  10. 072 / 075 - additional growth driver Fixed telephony • Total fixed telephony market in Israel - NIS 5.3B 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.)

  11. * 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

  12. Smile.Media – Content & Portal Brands

  13. Leading e-Commerce Brands

  14. Two pure-play subsidiaries Quarterly Growth Revenues EBIT NIS in millions NIS in millions

  15. Two pure-play subsidiaries Annual Growth * company’s goals NIS in millions Revenues EBIT ** Post merger IGLD’s estimate for 2006/07, excludes one time expenses relating to the merger ** Ebitda goal for 2007 ~ 300 / estimate for finance exp. ~ 45

  16. Balance sheet overview in NIS millions

  17. Comparables Interesting market opportunity… KCSA to send new slide

  18. 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

  19. 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

  20. Investment highlights Thank you!

More Related