Matrix 3rd Q net profit: NIS 31 million - 9% decrease

Matrix published its financial results for the third quarter of the year, showing a 9% decrease in net profit, which amounted to NIS 31 million, compared to NIS 34 million in the corresponding quarter last year, despite the increase in revenues.
Matrix's revenues totaled NIS 757 million, an increase of 4.4% compared to the third quarter of 2017. The increase in revenues is due to an increase in all segments and to the initial consolidation of companies acquired in Israel and the US.
Operating profit fell to NIS 50 million in the third quarter of the year, compared with NIS 52.2 million in the corresponding quarter last year, a decrease of 4.2%. The company recorded an increase of 1.8% in gross profit, which amounted to NIS 107.6 million in the third quarter of the year, compared with NIS 105.7 million in the corresponding quarter of 2017.
The increase in gross profit for the quarter stems from an increase in activity, with some erosion in the profit rate, mainly due to a lower number of workdays in the quarter and in the period compared to last year (seasonality), and in view of the increase in the salaries of software personnel in Israel and the US Seasonality.
Revenues from customers in Israel in the third quarter of 2018 amounted to NIS 649 million, up 2.7% from the third quarter last year.
In the United States, Matrix posted a handsome rise of 18.4% in the third quarter of the year, which totaled NIS 97.2 million. Revenues from customers in the US in the corresponding quarter of 2017 totaled NIS 82 million. Unlike Israel and the US in the European sector, the company posted a 4.5% decline in revenues, which amounted to NIS 757.4 million in the third quarter of the year.