JERUSALEM May 8 Bezeq Israel Telecom
will likely pay a dividend of around 1.3 billion shekels ($377.5
million) for the first half of 2014 as a result of the sale of
its Yad2 classified ads website, a source close to Bezeq said on
Bezeq subsidiary Walla Communications earlier this week
agreed to sell Yad2 to Germany's Axel Springer Digital
Classifieds for 788 million shekels in a deal that could reach
Bezeq, Israel's largest telecoms group, will reap a 560
million shekel pre-tax profit and analysts believe the post-tax
gain will be about 420 million shekels, a figure dependent on
the tax rate.
Walla has already indicated most of the profit will given to
Bezeq in the form of a dividend, while some of the funds will be
invested in expanding its video and news content.
Bezeq is expected to post net income in 2014 of some 1.7
billion shekels. Since it has a policy of distributing 100
percent of its annual profit in two stages, dividends of 850
million shekels were expected after first-half results in
September and early in 2015 following second-half earnings.
Adding a post-tax gain of 420 million shekels would result
in a first-half dividend of close to 1.3 billion shekels.
Bezeq declined to comment and the company's board has yet to
decide but a source close to Bezeq said such a figure was
probable, depending on how much Walla opts to keep.
"Walla has to decide what to do with the profit," the source
said. "But we can assume most of the profit will go to Bezeq as
Citi analyst Michael Klahr said that in per share terms, the
Yad2 deal will boost Bezeq's dividend by 0.15 shekel a share to
0.75 shekel a share for the full financial year.
Axel Springer Digital Classifieds is a joint venture 70
percent owned by German media company Axel Springer
and 30 percent by the General Atlantic fund.
($1 = 3.4434 Israeli Shekels)
(Reporting by Steven Scheer; Editing by Crispian Balmer and