Internet Gold is an Israeli communications group operating in the fields of Internet Access, e-content/e-advertising,e-commerce, search and VoIP-based telephony. Established in 1996, the Group is controlled by one of Israel's major investment companies, Eurocom Communications . Its shares are traded on the Nasdaq exchange under the symbol IGLD and on the TASE - TA 100.

Another Record Quarter for Internet Gold: Q3 Revenues Above NIS 100 Million, Operating Income Doubles
MONDAY, NOVEMBER 06, 2006 12:00 AM
PETACH TIKVA, Israel, November 6, 2006 /PRNewswire-FirstCall via COMTEX/ -- Internet Gold, (Nasdaq and TASE: IGLD) today reported its financial results for the third quarter and nine months ended September 30, 2006.

Highlights

- Record revenues: Q3 sales crossed the NIS 100 million milestone

- Record operating income: more than doubled compared with Q3 2005

- Strong growth in Smile.Communications: broadband customer base grew by 16,500 new subscribers during the quarter; International Long Distance traffic reached a new high; continued strong demand for business services

- Smile.Media achieved slight growth despite difficult e-Advertising environment: rise in e-Commerce revenues compensated for temporarily reduced e-Advertising budgets during the war period

- Pending merger of 012-Golden Lines with Smile.Communications Ltd. continues to progress on track: the Company is working closely with regulators to finalize process as soon as possible.

Financial Results

Revenues for the third quarter of 2006 reached a new high of NIS 105.3 million (US$ 24.5 million), an increase of 44% compared with NIS 73.3 million in the third quarter of 2005, and 8% compared with the second quarter of 2006.

Operating income for the quarter reached a record of NIS 11.8 million (US$ 2.7 million), an increase of 106% compared to NIS 5.7 million in the third quarter of 2005 and 4% compared to the second quarter of 2006.

Net income for the quarter reached NIS 7.0 million (US $1.6 million), or NIS 0.38 (US$ 0.09) per share, an increase of 327% compared to NIS 1.6 million, or NIS 0.09 per share, for the third quarter of 2005, and 5% compared to the second quarter of 2006.

The Company's net results for the third quarter were significantly impacted by two one-time expenses:

- A provision of NIS 1.5 million (US $0.35 million) taken in respect of a regulatory dispute (currently we plan to appeal) with Israel's Ministry of Communications.

- A one-time expense of NIS 1.3 million (US $0.3 million) reflecting the legal and other costs associated with the Company's reorganization and spin-off of Smile.Media and Smile.Communications.

Comments of Management

Commenting on the results, Eli Holtzman, Internet Gold's CEO, said, "We are extremely pleased to have delivered another quarter of record revenues and operating profits despite the summer's wartime environment, which we feared would negatively impact our business. Although it did reduce our e-Advertising revenues, the rise in revenues generated by our e-Commerce properties and International Telephony businesses more than compensated. In parallel, we continue to benefit from the emergence of the Internet during this challenging period as the most reliable source of up-to-date news and the most convenient 'place' to go for shopping and entertainment. In response, we focused on effective marketing, and were rewarded with one of our strongest-ever quarters of new-user subscriptions.

"The quarter was equally productive from a strategic point of view. We were pleased to have completed the spin-off of our two fully-owned pure-play subsidiaries, and later announced the 012-Golden Lines merger plan. These are the critical first steps of a plan that we believe will build the Company to the next level with a revenue base of more than a billion shekels per year and increasing profitability. As such, we believe we are on a road that will create significant value for our shareholders, customers and employees already in the year ahead and over the long term."

Business Segment Overview

Smile.Communications Ltd.: During the third quarter, the continued growth of all Smile.Communications' activities delivered a 10% increase in revenues compared with the second quarter of 2006, and a 44% increase year-over-year compared with the third quarter of 2005.

- Smile.Net - ISP: The Company's customer base grew by approximately 16,500 (net) new broadband subscribers during the third quarter, a reflection of the success of its aggressive marketing efforts. Sales of Value-Added Services (Anti-Virus, Anti-Spam and Safety Net) during the nine month period increased by 38% compared with the first nine months of 2005.

- Smile.015 - International Telephony: Telephony revenues grew significantly during the quarter. This reflected both the wartime environment, which boosted telephone traffic, and the ongoing organic growth of Israel's International Long Distance (ILD) market. In fact, during the first half of 2006, Israel's overall ILD traffic increased by 12% compared to the comparable period in 2005.

- Smile.Biz - Business Services: The Group's business service revenues for the nine-month period were up 23% compared with the parallel period of 2005. This reflected the Company's success in capturing market share for its value-added IT infrastructure deployment and integration services, and the continued strong growth of its sales of corporate communication packages.

Smile.Media Ltd.: Despite the temporary slowdown of Israel's entire Media industry during the war in Lebanon, Smile.Media's third quarter revenues rose by approximately 1% compared with the second quarter of 2006. This reflected the strong growth in e-Commerce revenues, which more than compensated for the decline in e-Advertising revenues. For the nine-month period, Smile.Media's revenues rose by 33% compared with the parallel period in 2005.

- e-Advertising / Content: During the third quarter, revenues from the Group's 12 portal properties declined by less than 5% compared to the second quarter of 2006. This reflected the temporary slowdown in the e-Advertising market during the war period. On a year-over-year basis, the Group's e-Advertising revenues rose by 35%.

- Smile.Shops: Third quarter revenues from the Group's e-Commerce properties rose by 33% compared to the second quarter of 2006, reflecting an increase of all online activities during the war months. For the nine month period, e-Commerce sales were up by 21% compared to the first nine months of 2005.

About Internet Gold

Internet Gold is Israel's leading IP Group with a major presence across all Internet-related sectors. Its Smile.Communications segment offers a variety of Internet access and related value-added services, international telephony and enterprise/IT integration services. Its Smile.Media segment manages a growing portfolio of Internet portals and e-Commerce sites.

Internet Gold has entered into an agreement to acquire 60% of the control and equity in 012 Golden Lines Ltd ("012") based on a valuation of US$ 140 million. 012 is a major Internet Service Provider with revenues of $ 138.8 million in 2005 and is also a leader in Israel's Voice Over Broadband domestic telephony. The agreement is subject to the approval of both boards of directors and the relevant regulatory authorities. According to the agreement, following the acquisition, 012 will merge with IGLD's Smile.Communications activities.

Internet Gold is part of the Eurocom communications group. Its shares trade on the Nasdaq Global Market and on the Tel Aviv Stock Exchange.

For additional information about Internet Gold, please visit its investors' site at www.igld.com.

PETACH TIKVA, Israel, August 13 /PRNewswire-FirstCall/ -- Internet Gold Golden Lines Ltd., (NASDAQ NMS and TASE: IGLD) today reported its financial results for the second quarter ended June 30, 2008.

Highlights

- Strong revenues and adjusted EBITDA despite the negative impact of the
shekel-dollar exchange rate and the decline in wholesale international
traffic (hubbing) revenues

- Strong cash-flow performance: operating cash-flow for the quarter
reached NIS 43 million ($12.8 million)

- 012 Smile.Communications delivers excellent performance in line with
plan for growth: adjusted EBITDA up 11% year-over-year; operating
income (EBIT) up 22% year-over-year; on-track growth of VOB domestic
telephony subscriber base; preparing to enter market for mobile
services

- Smile.Media records a net loss due to MSN-Israel's reduced market
share: after the end of the quarter, an agreement was reached with
Microsoft which will improve the Company's cash position and
profitability

- Additional share buy-back program put into place: after investing NIS
68 million in buying back shares since November 2007, the Board of
Directors has authorized the repurchase of an additional NIS 70 million
of ordinary shares in the open market

- Search underway for accretive M&A candidates