Eurocom revenue from Nokia phones estimated at NIS 1.4b: Operating profit on sales of the handsets by Shaul Elovitch's company is put at NIS 250 million.

Fri. November 06, 2009; Posted: 12:33 AM

Nov 05, 2009 (Globes - McClatchy-Tribune Information Services via COMTEX) -- SMLC | Quote | Chart | News | PowerRating -- Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) today published a comprehensive report on its agreements with Shaul Elovitch's Eurocom Group subsidiary 012 Smile.Communications Ltd. (Nasdaq:SMLC; TASE: SMLC). The report aims at improving transparency and providing due disclosure of the companies' relationship, in view of the sale of the 30.6 percent controlling interest in Bezeq by Ap-Sab-Ar Holdings Ltd. (the Apax Partners-Saban Capital Group Inc.-Arkin consortium) to Elovitch for NIS 6.5 billion.

The report states that sales of Nokia mobile handsets to Bezeq subsidiary Pelephone Communications Ltd. total NIS 470 million a year. Eurocom Cellular Communications Ltd. is the sole distributor and official representative of Nokia (NYSE; LSE; HEX: NOK) in Israel. An analysis by "Globes" estimates Eurocom's annual revenue from sales of Nokia mobile telephones to Israel's three cellular operators at NIS 1.4 billion. "Globes" estimates Eurocom's gross profit from these sales at NIS 300 million a year, and the operating profit at NIS 250 million.

The analysis is based on a comparison of sales by Suny Electronics Ltd. (TASE: SUNY), controlled by chairman Ilan Ben-Dov, which is the importer of Samsung mobile telephones. The analysis is also based on a financial report published by Eurocom several years, even though it is a private company.

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