(RTTNews) - Israeli telecommunications service provider 012 Smile.Communications (SMLC: News ) reported Wednesday a 19% increase in profit for the third-quarter ended September 30, 2009, reflecting higher revenues on continued progress in operating segments as well as lower tax expenses.

012 Smile.Communications offers broadband and traditional voice services in Israel. Internet Gold Golden Lines Ltd. (IGLD: News ) owns 012 Smile and Smile.Media. Internet Gold and 012 Smile are part of the Eurocom Communications Group.

The group reported 19% higher quarterly net earnings of NIS 14.85 million or NIS 0.59 per share versus NIS 12.52 million or NIS 0.49 per share last year. Quarterly pre-tax profit declined slightly to NIS 15.60 million from NIS 15.82 million. Income tax for the quarter of NIS 753 thousand was lower than NIS 3.30 million in 2008.

During the recent third quarter, total revenues grew 4% to NIS 293.70 million from NIS 281.80 million a year ago. Quarterly revenues from broadband services rose 6% to NIS 148 million from NIS 140 million, while traditional voice services revenues were NIS 146 million, higher than NIS 142 million for the same period in 2008. At the end of third-quarter local telephony lines totaled 136,000.

In the quarter under review, operating income was NIS 37 million, 11% higher than NIS 34 million in the third quarter of 2008. Total operating expenses increased to NIS 156.35 million from NIS 148.01 million.
In U.S. dollar terms, quarterly net income totaled US$4 million or US$0.16 per share on revenues of US$78 million.

On a year-to-date basis, net income surged to NIS 89.86 million or NIS 3.55 per share from NIS 23.76 or NIS 0.94 per share last year. Revenues for the first nine-month period were NIS 869 million, higher than NIS 808.76 million. The company also noted that strengthening of the shekel against the U.S. dollar led to significant increase in its financing expenses, during the period.

SMLC finished Tuesday's trading at US$16.60, on the Nasdaq.

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by RTT Staff Writer

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