Isracard decreased revenues, but increased profits; Traded at a multiplier lower than 8 – the capital market

0
5



Isracard has relatively good reports for estimates from the “black second quarter”. Despite the corona, the company reports revenues of NIS 477 million and a profit of NIS 64 million. At this rate of profits, the company is trading at a multiplier lower than 8.

Although the company recorded a decrease in revenue and net profit in light of the effects of the corona crisis, the negative effect was offset by an increase in interest income and a reduction in operating expenses. Dr. Ron Wexler, CEO of the company, said at the same time as publishing the results – “The Corona crisis has hit the business sector in Israel hard, especially the small and medium business sector, along with the entertainment, culture and tourism industries. As the largest credit card group in Israel, we have in recent months been involved in assisting small businesses – while continuing to develop the growth engines and while launching for the first time in Israel ANYPAY, a non-contact payment service via smartphone “

In the second quarter, there was a significant decrease in the volume of transactions in many industries, including aviation, tourism, culture and catering. On the other hand, there has been an increase in other sectors such as spending on food consumption.

And for the numbers in the quarter – the aforementioned revenues amounted to NIS 477 million, a decrease of about 13.9% compared to revenues of about NIS 554 million in the corresponding quarter last year. In the first half of 2020, the company recorded revenues of NIS 999 million, a decrease of 9.7% compared to revenues of NIS 1.1 billion recorded in the first half of 2019.

The decrease in revenues was mainly due to the effect of the corona plague, which led to a decrease in transaction turnover in the economy. The company said that with the gradual removal of the closure restrictions, a certain recovery was recorded in some of the industries, which had a positive effect on the results. Also, the first half results of the year include January-February, which were not affected by the corona period. During the quarter and half, there was an increase in the Company’s interest income from private customers due to the increase in the consumer credit portfolio.

Join

To

ad

Advertisement



The turnover of credit card issues issued by the company in the second quarter of 2020 was approximately NIS 35.3 billion, a decrease of approximately 14.5% compared to the corresponding quarter last year. And in the first half stood at about NIS 75 billion, a decrease of about 6.8% compared to the first half of 2019. In light of the deterioration in macroeconomic conditions in the economy in the second quarter of 2020 and the uncertainty following the Corona epidemic, the company increased its credit loss expenses in the second quarter. . In the second quarter of 2020, these expenses amounted to NIS 66 million, compared with NIS 39 million in the second quarter last year.

Along with the decrease in the volume of activity, there was a significant decrease in the volume of operating expensesWage and other expenses, total expenses (excluding expenses for credit losses) amounted to NIS 323 million in the second quarter, compared with NIS 406 million (excluding the severance grant for employees) in the corresponding quarter last year. Total expenses (excluding expenses for credit losses) amounted to NIS 730 million in the first half of 2020, compared with NIS 833 million (excluding the severance grant for employees) in the corresponding half last year.

In the second quarter of 2020, the company recorded a pre-tax profit of NIS 88 million, compared with a pre-tax profit of NIS 109 million (excluding the severance grant for employees) in the corresponding quarter last year and in the first half of 2020 the company recorded a pre-tax profit of NIS 100 million Compared with a profit before tax of NIS 208 million in the corresponding half last year.

In the line of net profit, the company recorded a net profit of NIS 64 million in the second quarter of 2020, compared with a net profit of NIS 78 million (excluding the severance grant for employees) in the corresponding quarter last year. This is a decrease of about 17.9%.

In the first half of 2020, the company recorded a profit of NIS 74 million, compared with a net profit of NIS 152 million in the first half of 2019. This is a decrease of 51.3%.

Comments on the article(0):

Your response has been received and will be published subject to system policies.
Thanks.

For a new response

Your response was not sent due to a communication problem, please try again.

Return to comment

LEAVE A REPLY

Please enter your comment!
Please enter your name here