IPOs by Cellcom, GVT Boosted IDB Development's Q1 Bottom Line

Cellcom alone contributed NIS 535 million profit to IDB Development in the first quarter

Holding company IDB Development Corporation (TASE: IDBD) today reported strong results for the first quarter of 2007, thanks to public offerings by affiliated companies.

The company, which belongs to Nochi Dankner's gigantic holding company group IDB, said profit rose almost 200% against the same period of 2006 to NIS 972 million.

Most of the increase was based on nonrecurring gains from floating Cellcom on the New York Stock Exchange, Clal Finance on the Tel Aviv Stock Exchange and GVT (Global Village Telecom) in Brazil.

In June, IDB Development will be paying its shareholders NIS 450 million in dividends, it said.

IDB Development has holdings in telecommunications, technology, industry, financial services and real estate.

In communications it operates via GVT, Cellcom, Netvision-Barak-Globcall.

Cellcom contributed NIS 535 million profit to IDB Development in the first quarter, of which NIS 430 million derived from its initial public offering.

GVT contributed NIS 184 million to IDB Development's bottom line, while Netvision-Barak-Globcall added a million shekel.

Moving onto technology, ECI Telecom (Nasdaq: ECIL)  was responsible for adding NIS 14 million in profit. But the other companies mainly dragged down the group. Http://www.elron.com Elron Electronic Industries (Nasdaq, TASE: ELRN)  for one cost IDB Development NIS 14 million for the quarter, and Given Imaging (TASE, Nasdaq: GIVN)  contributed nothing.

The industry sector investments contributed NIS 27 million profit to IDB Development's first-quarter bottom line, down sharply from NIS 38 million the year before.

Cement works brought in NIS 26 million profit in the first quarter of 2007, compared with NIS 10 million the year before.

American Israeli Paper Mills  (TASE, Amex: AIP)  cost NIS 2 million in the quarter, while in the parallel quarter it had added NIS 7 million to IDB Development.

Agrochemicals maker Makhteshim Agan Industries (TASE: MAIN) brought NIS 18 million to IDB Development in the quarter.

Financial services provided a huge NIS 312 million in the first quarter of 2007, compared with NIS 79 million in the corresponding three months of 2006.