Malam Team's net profit jumped 430% to NIS 51.2 million

Malam Team engaged in marketing maintenance and computer services, and software delivery reported a 19% increase in revenue, improved profitability and doubled its net profit in the third quarter of 2019. Adjusted EBITDA grew by 39%. The stock has jumped about 103% since the beginning of the year and the company is now trading at a multiple of 12.6 on its last twelve months net profit.
Group revenues for the third quarter of 2019 amounted to NIS 522.3 million, an increase of 19.4% compared with revenues in the corresponding quarter of 2018, which amounted to NIS 437.3 million. The increase in revenues was due to an increase in the results of all operating segments.
 Malam Team's net profit for the third quarter amounted to NIS 51.2 million, an increase of about 430% compared to net profit of NIS 6.7 million in the corresponding period last year.
At the operating level, the company showed a slight improvement, with an operating expense margin of about 8%, compared with about 9.3 in the corresponding quarter.
Another key factor in the bottom line is a one-time income of NIS 29.6 million, which is attributable to a capital gain of NIS 30.6 million, which was recorded as a result of the sale of 50% of Alta Technology's shares to Elta Systems controlled by Israel Aerospace Industries, a deal signed in late March and completed in August. After the transaction was completed, Malam Thyme remained with 50% of Altel's shares.
EBITDA in the third quarter increased by 101% to NIS 175.1 million, compared with NIS 87.1 million in the corresponding quarter. The company notes that the sharp rise in EBIDTA is due to an increase in gross profit and the first implementation of the IFRS leasing standard. Adjusted EBITDA (excluding the effect of the IFRS16 leasing standard) increased by 38.7% compared to the corresponding quarter last year and amounted to NIS 120.9 million.