Public Transportation Activity Has Pushed Electra to Peak Revenues and Profits for the Quarter

The group’s profits soared in the second quarter to 2.6 billion shekels, and net profit surged by 134%. Electra, holding a cluster of projects worth 28 billion shekels, is expected to give a 42 million shekels dividend.

Amir Preger

7AM, August 24th, 2022

The Electra Group of the Salkind brothers’ Elco group (48%) ends the second quarter of the year with peak quarterly revenues of 2.6 billion shekels – an 18% improvement compared to the parallel quarter in 2021. The net profit for the shareholders soared by 134% compared to the parallel period and amounted to 130 million shekels.

The improvement in the outcomes is attributed to the wider scope of operations, the assimilation of Electra Afikim’s outcomes (the company was acquired last year), and an 87 million shekels profit from selling its holdings in the Agira Sheuva project in Gilboa.

The group’s revenues in the sector of projects for buildings and infrastructure in Israel amounted to 1.3 billion shekels, which make up 48% of overall revenues and constitute a 19% improvement compared to the parallel quarter in 2021. The operating profit surged by 80% and is stable at 39 million shekels.

Electra has noted the extended scope of operations as the reason behind the improvement. The sector of operating, providing services, and maintenance has yielded 627 million shekels in profits, an 18% improvement, as a result of an improvement in this sector’s fields of activity. The operating profit in this sector increased by 3% to 48 million shekels.

Electra’s revenues in the sector of projects abroad soared to 414 million shekels – a 29% increase compared to the parallel quarter, mainly due to a rise in the scope of installing electro-mechanical systems in Europe. Nonetheless, the operating profit decreased by 40% to 6 million shekels as a result of the decrease in profits from the activity in the United States after the COVID-19 crisis.

The revenues in the franchising sector amounted to 258 million shekels- a 30% increase compared to the parallel quarter, mainly due to the inclusion of the outcomes of Electra Afikim Transportation, which were not included in the parallel period. The operating profit amounted to 99 million shekels, a 341% improvement, mainly thanks to the 87 million shekels profit from selling holdings in the Agira Sheuva project in Gilboa.

Electra, which is traded by a worth of 8.2 billion shekels, had 99 million shekels profits in the second quarter in the sector of real estate initiatives – a 22% decrease compared to the parallel quarter in 2021. However, the operating profit increased by 21% and remains stable at 18 million shekels. In this context, Electra’s CEO, Itamar Deutscher, noted that “Electra has sold more apartments and for higher costs than in previous times, and so far, did not encounter a price decrease. The revenues in this sector are charted according to the progression of construction and therefore are not fully expressed in the quarterly reports.”

Deutscher also added that “Electra has enjoyed record-breaking outcomes in revenues and profits per quarter as well as growth in all units, and, as the year progresses, it is expected to assimilate Target Market’s activity, which the company acquired at the beginning of the month.” In relation to inflation, he noted that “Electra is not as exposed to the rise in the index because all of its cluster of projects adheres to it; however, it is influenced by the rise in interest as some of the loans it took adhere to the interests. Nonetheless, the rise in prices in the real estate sector and profitability in all sectors rise at a higher rate than that of interests, and in any case, Electra’s high-quality cluster of projects is a safety net that ensures its continued growth.”


The Electra group, which held a cluster of projects at the end of the second quarter worth 28.3 billion shekels, compared to 23.6 at the end of 2021, is expected to distribute a 42 million shekel dividend at the beginning of October after it distributed a 40 million shekel dividend in April.