Online translation dictionary company Babylon Ltd. (TASE:BBYL) reported strong revenue and profit growth for the third quarter of 2010. Revenue rose 62% to NIS 33.2 million for the third quarter from NIS 20.5 million for the corresponding quarter of 2009.
Net profit rose to NIS 5.1 million (NIS 0.12 per share) for the third quarter from NIS 3.4 million for the corresponding quarter.
Babylon reported tax expense of NIS 453,000 in the third quarter, compared with tax income of NIS 3 million in the corresponding quarter, due to the creation of a deferred tax asset. The company does not yet pay taxes on its profits, as it is offsetting accumulated losses.
Babylon's board of directors approved a NIS 17 million dividend to be paid from the company's profits for the preceding 15 months. The company will distribute NIS 47 million in dividends in 2010 as a whole.
Babylon CEO Alon Carmeli said, "We met our targets. On the basis of our strategy, the company continues to diversify its sources of revenue, thereby improving revenue and profits. We invest a substantial part of our revenue in marketing in order to increase our market share. Babylon is currently working with a number of partners in the online search and advertising sectors, including Google, Microsoft's Bing, and Ask.com. The global internet market is developing rapidly and long-term success in it requires the ability to quickly adapt and respond to developments and changes."
Bablyon's share price rose 3.9% in morning trading to NIS 5.48, giving a market cap of NIS 230 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 10, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010