Israeli Software Company Perion Rallies on Partnership With Snapchat

Business in Brief | Spuntech brings back old CEO after profits fall to near zero ■ Sarona Market partners are still struggling to stem exodus of tenants ■ Tel Aviv shares and dollar end the day lower

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The logo of messaging app Snapchat
The logo of messaging app SnapchatCredit: LUCY NICHOLSON/REUTERS

Spuntech brings back old CEO after profits fall to near zero

Spuntech Industries shares shot up on Monday after the company said CEO Shlomo Liran was stepping down and would be replaced by Gideon Krasny, who led the company during its years of spectacular growth, from 2003 to 2016. Liran quit less than a week after the maker of nonwoven fabrics used in baby wipes and other products reported near-zero profits in the first quarter, down from 16.4 million shekels ($4.6 million) a year earlier, even as sales volume rose 25%. Liran predecessor Michel Ben-Waiss also stepped down after a brief term as CEO and poor profits in the second quarter of 2016. The company’s problem is its new U.S. production line, which is operating at less than half its capacity, raising costs and leaving it with too much raw material in stock. Shares of Spuntech, which had lost 40% of their value over the last 12 months, closed up 5.4% at 9.99 shekels. (Guy Erez)

Sarona Market partners are still struggling to stem exodus of tenants

The partners in Sarona Market, the trendy complex of shops and restaurants in Tel Aviv on the site of a 19th-century Templer colony, are still struggling to stem an exodus of tenants and falling rents. Figures released on Monday for the first quarter show revenues were down 20% year-on-year, as occupancy rates fell to 85% from 99% in 2015. Sarona’s problems are due to high rents and a 2016 terror attack at the site. The complex, most of which consists of over 30 two- and-three-story homes, was also poorly designed, and many stores and cafes are not easily accessible to visitors. Plans are under way to convert much of the least-accessible space, about 15% of the total, into offices. “People who need to shop don’t come to Sarona, but to real malls,” said one source in Israel’s mall sector. Sarona’s partners include publicly traded Mydas and REIT 1. (Eran Azran)

Perion rallies on partnership with Snapchat

Shares of Perion Network rallied after the company said on Monday that its MakeMeReach unit had been named a Snapchat Partner, enabling it to expand its social media offerings. “Being named a Snapchat Partner enhances Perion’s offering, adding to our long term organic growth strategy, taking us to the next level with a more expanded one-stop ad solution for our Fortune 500 clients worldwide,” said CEO Doron Gerstel. “The partnership adds to those Perion has with Facebook, Twitter and Instagram, creating a stronger synergy among Perion’s business divisions in the process,” said Pierre- Francois Chiron, co-founder of Perion’s MakeMeReach division. Founded in 2009 by Chiron and Pierre Lou Dominjon and acquired by Perion in 2015, MakeMeReach is a social ad-tech company that enables ad agencies like Dentsu-Aegis and OMD and advertisers such as Flydubai and Iberia run campaigns on social media platforms. Perion shares finished 4.2% higher at 6.79 shekels ($1.91). (Shelly Appelberg)

Tel Aviv shares and dollar end the day lower

Tel Aviv shares ended moderately lower in quiet trading on Monday as the dollar resumed its decline against the shekel. The blue chip TA-35 index edged down 0.03% to 1,427.49 points, while the TA-125 lost 0.2% to 1,2898.55, as 1.38 billion shekels ($390 million) in shares changed hands. Generic-drug maker Perrigo closed down 3.7% to 248 shekels after the stock was downgraded from sector perform to underperform at RBC Capital. Other big losers were Mazor Robotics, which fell 3.5% to 69.68, Cerragon, which lost 3% to 9.97, and Isramco, which lost 1.8% to 72 agorot. Gainers included Bank Hapoalim, which rose 1.4% to 23.89 in heavy trading, and Bezeq, which also posted a 1.4% advance, to 6.17. Nova rose sharply for the third straight session, adding 2.3% to end at 96.87. In foreign currency trading, the dollar turned lower, weakening nearly 0.3% to a Bank of Israel rate of 3.5480 shekels. The euro lost 0.16% to 3.9870 shekels. (Guy Erez)