Space Communications, operator of a loaded satellite, continues to show improvement in its areas of activity. The company's revenues in the second quarter of 2006 climbed by about 14% to NIS 403 million. Its operating profit jumped by 30% to NIS 17.8 million. The financing income section once again shakes the company and this time in its favor, when it moves it to a profit of NIS 24.1 million, compared to a loss of NIS 8.8 million. The increase in revenues is mainly due to service to new customers and an increase in the company's share of revenues from the Amos 1 and the Amos 2 satellite.
The company generated financing income of NIS 13.3 million in the second quarter, compared to financing expenses of NIS 25.5 million in the corresponding quarter. The expense is non-current and results from exchange rate differences. Halal reports its financial results in shekels, even though its activities and obligations are done in dollars. The company's total liabilities reach almost 600 million shekels, most of them in dollars. As a result, the company generates income or financing expenses that do not involve cash flow and result from changes in the exchange rate of the shekel against the dollar. Since in the previous quarter the dollar strengthened and financing expenses increased, this transferred it to a net loss. In the second quarter, the dollar weakened against the shekel, so the company generated financing income. The company has already announced in the past that it asked the Securities and Exchange Commission to switch to dollar reporting, which would prevent it from being affected.
The company's cash flow from current operations was strong and amounted to NIS 23 million, similar to the corresponding quarter of the year.
