Business in Brief: Wall Street Pressures Tel Aviv Shares Lower

Matomy bondholders weighing suit for immediate repayment ■ Two top fashion chains post quarterly losses ■ Delek profit doubled in third quarter

FILE PHOTO: A stock market ticker in the  Tel Aviv Stock Exchange, Thursday, August 4, 2016.
Bloomberg

Matomy bondholders weighing suit for immediate repayment

Bondholders of Matomy Media Group are weighing turning to the courts for immediate repayment of the 103 million shekels ($27.8 million) in debt unless the digital-advertising firm raises new equity capital. “If a fundraising is completing over the next month, we will drop our demand for immediate repayment,” one bondholder, speaking on condition of anonymity, told TheMarker. The company’s board, however, has not yet discussed raising capital. Shareholders have said they don’t expect it to exceed $15 million, half of what bondholders are demanding. Bondholders who spoke to TheMarker after a company presentation Wednesday said they were angry and confused over management’s plans. Bondholder concerns arose after Matomy said last Friday it wanted to revise the terms of the debt and to delay an agreement to buy out minority shareholders in its Team Internet unit by November 30. Matomy shares ended 7.4% lower at 30 agorot. (Shelly Appelberg)

Two top fashion chains post quarterly losses

Red was the color this season for two of Israel’s biggest fashion retailers, sending their shares tumbling. The Castro group turned in a 74 million shekel ($19.9 million) loss for the third quarter, most of it due to a one-time charge of 60 million shekels related to its purchase of the Hoodies group. Even without that, Castro posted a 13.7 million operating loss on weak sales and store closings. Castro shares ended down 2.6% at 91.19 shekels. Meanwhile, Golf reported a 2 million shekel loss for the quarter, widening from 1.4 million a year earlier. Its Adika and Golf & Company units were both profitable, but its core apparel business lost money. Thanks to Adika, sales for Golf were up about 5% to 223.7 million. Sales for its core clothing business were virtually unchanged at 80.5 million. Golf shares finished down 6.8% at 3.49 shekels. (Eran Azran)

Delek profit doubled in third quarter

Delek Group said Thursday it more than doubled third-quarter profit, boosted by record sales of natural gas. Delek earned 323 million shekels ($87 million), up from 151 million shekels a year earlier, which excluded the sale of part of its stake in the Tamar offshore gas field. Last year, subsidiary Delek Drilling recorded a one-time profit of $567 million from the sale of a 9.25% stake in Tamar, Israel’s main source of natural gas. Including that one-off gain, Delek’s profit in the third quarter of 2017 was 1.02 billion shekels. Delek said it hoped to sell its remaining 22% stake in Tamar next year by selling the shares on a foreign stock exchange. Revenue rose to 2.3 billion shekels from 1.8 billion, lifted by higher sales at Tamar and at its North Sea unit. Tamar’s gas sales hit a new quarterly record of 2.8 billion cubic meters in the quarter. Delek shares ended up 0.9% at 658.60 shekels. (Reuters)

Wall Street pressures Tel Aviv shares lower

Tel Aviv shares ended three days of gains as a lower Wall Street pressured prices lower. The benchmark TA-35 index dropped 0.4% to close at 1,629.94  points, while the TA-125 fell 0.3% to 1,468.56, on heavy turnover of 2.1 billion shekels ($570 million). The day was characterized by a raft of earnings reports. Ham-Let fell 7.7% to 78.88 shekels after it said its third-quarter net dropped 20% to $3.2 million. Property developer Summit gained 3.1% to 32.99 on a 15% increase in net operating income to 84 million shekels. Insurer Phoenix edged 0.2% higher to 22.45 after it boosted profit to 308 million from 187 million a year earlier. Kenon Holdings rose 1% to 62.90 after it declared a dividend of $1.86 a share, or a combined $100 million. Among blue chips, Israel Chemicals dropped 2.8% to 21.74.  In foreign currency trading, the dollar resumed its decline, weakening more than 0.6% to a representative rate of 3.71 shekels. (TheMarker Staff)