Google Israel Ltd. continues to thrive even during a recession. Google Israel's first quarter revenue is estimated at $35 million, compared with $100 million in 2008 as a whole. If the company's revenue pace continues, it could achieve $140 million revenue in 2009, 40% more than last year.
Google Israel has two revenue sources: Israeli advertisers who target the domestic market, and Israeli advertisers who target international markets, such as El Al Israel Airlines Ltd. (TASE: ELAL), Check Point Software Technologies Ltd. (Nasdaq: CHKP) and Babylon Ltd. (TASE:BBYL). Figures obtained by "Globes" a few months ago showed that $50 million was channeled into each of these markets in 2008.
Google Israel has had strong annual growth. It had $20 million revenue in 2006, $50 million in 2007, and $100 million in 2008. It has an estimated 40% of Israel's online market.
According to the TIM survey of websites for April, Google Israel is the country's most popular site, with a weekly exposure rate of 89.6%, compared with 68.6% for second place portal Walla Communications Ltd. (TASE: WALA).
Like Google Israel, Walla! offers Israeli advertisers search-based advertising based on its search engines. Walla! uses Yahoo! technology and databases, and also has its own advertising system, Walla Advantage. However, compared with Google Israel, Walla! posted a net profit of NIS 5.6 million on NIS 30.9 million ($7.7 million) revenue for the first quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2009
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