Electra: 16% increase in revenues in 2021 amounted to NIS 8.97 billion

Electra, which is controlled by the Zelkind brothers' Elco, today (Tuesday) reported an increase in revenue and profit in 2021 thanks to its entry into the public transportation sector. The company reported a sharp decline in profitability from the construction and infrastructure sector in Israel.
Electra, managed by CEO Itamar Deutscher, reported a 16% increase in revenues in 2021 to NIS 8.97 billion. Operating profit increased by 9% in 2021 to NIS 395 million. Net profit increased by 25% to NIS 227 million in 2021. Adjusted profit (EBITDA) increased by 29% to NIS 719 million, while the company's share decreased by 0.7%.
Electra operates in five operating segments: projects for buildings and infrastructure in Israel; Projects for buildings and infrastructure abroad; operation, service and maintenance; development and construction of entrepreneurial real estate, and the franchise sector. When the field of public transportation falls under two sectors: the operating, service and construction sector and the franchising sector.
Electra entered the field of public transportation last year after acquiring Afikim and Egged Transport and merging them under one company - Electra-Afikim. As mentioned, this area was the main factor in the increase in the company's revenues and profits.
Revenues from the operating, service and construction sectors increased by 15% in 2021 to NIS 2.24 billion, following the consolidation of Electra-Afikim's transportation operations and the operation of a corona testing laboratory. Operating profit from this segment increased by 18% in 2021 to NIS 205 million.
Revenues from the franchise sector quadrupled in 2021 to NIS 757 million, compared with NIS 177 million in 2020. The franchise segment moved to an operating profit of NIS 86 million in 2021, compared with an operating loss in 2020. In this sector, too, most of the increase in profit was due to the consolidation of public transportation activity. Thus, operating profit from these two sectors accounted for approximately 73% of Electra's total operating profit in 2021.
The construction and infrastructure sectors from which most of Electra's revenues derive have recorded a significant decline in profitability. Revenues from the construction and infrastructure sector in Israel amounted to NIS 4.5 billion, about half of total Electra revenues in 2021. But operating profit fell by 60% in 2021 and amounted to only NIS 60 million. Electra noted that there has been a decline in profitability from a number of areas of activity in the sector.
Revenues from the construction and infrastructure sector abroad amounted to NIS 1.28 billion in 2021, but operating profit fell to only NIS 2 million, compared with NIS 60 million in 2020. The sharp decline in operating profit was due to a decline in the profits of Electra USA subsidiaries and From reducing reputation in a company operating in Nigeria.
Itamar Deutscher, CEO of Electra, stated that "We are currently bidding on a number of very significant tenders that are to be published by the various government ministries. At the same time, we continue the momentum of activity in the field of residential development, as part of Electra, which promotes projects in the amount of thousands of housing units throughout the country.