Apple Distributor Icon Group Reports Record Profits in Israel
Translated & summarized from Ice by baba
Icon Group, Israel's Apple distributor, reported record third-quarter profits, with net profit rising 52.5% to NIS 13.1 million and revenues increasing 13.2% to NIS 433.2 million. Growth was driven by expanded distribution and increased demand for AI-capable computers. The company's board approved a NIS 10 million dividend. Meanwhile, Cellcom is reportedly in early talks to acquire a controlling stake in Icon Group from the Sky fund.
The story in 5 lines · by baba
- Icon Group's net profit surged 52.5% to NIS 13.1 million in Q3 2026, a five-year record.
- Group revenues increased 13.2% to NIS 433.2 million, boosted by AI-driven computer demand.
- The company's board approved a NIS 10 million dividend payment.
- Cellcom is in preliminary talks to acquire a controlling stake in Icon Group.
- The Sky fund is seeking approximately NIS 500 million for Icon Group, exceeding its market value.
Icon Group, the Israeli distributor of Apple products and owner of the iDigital retail chain, announced its third-quarter 2026 financial results, showcasing a significant surge in profitability and revenue. The company reported a net profit of approximately NIS 13.1 million, a 52.5% increase from NIS 8.6 million in the same period last year. This marks the highest third-quarter profit for the company in the past five years. Group revenues reached approximately NIS 433.2 million, up 13.2% from NIS 382.8 million in the prior year's quarter. This growth was primarily driven by expanded distribution activities, including sales of computers, servers, and peripherals from leading manufacturers like Apple, Lenovo, Asus, HPE, and Check Point.
The company attributed part of its growth to increased demand for advanced computers, fueled by the expanding use of artificial intelligence (AI) applications that require higher processing capabilities, prompting consumers and businesses to upgrade their systems. Icon Group noted that the strengthening Israeli shekel against the US dollar negatively impacted reported revenues, reducing them by an estimated NIS 35.8 million. The iDigital retail chain also saw improved profitability, with operating profit in the retail sector rising by 37.9% to approximately NIS 8.6 million, partly due to increased sales of accessories under its private brand, iConic. However, retail sector revenues remained largely unchanged at around NIS 116.1 million.
Across the group, operating profit jumped 58.7% to approximately NIS 23 million, and gross profit increased by 34.7% to about NIS 54 million. For the first nine months of the year, group revenues totaled NIS 1.29 billion, with net profit soaring 68% to NIS 35.4 million. The company's board approved a dividend distribution of NIS 10 million, bringing the total dividend payout for the year to NIS 30 million.
These strong results come amidst potential negotiations for a controlling stake in Icon Group. Reports indicate that Cellcom is in preliminary discussions to acquire control of Icon Group from the Sky fund. The fund is reportedly seeking a company valuation of approximately NIS 500 million, while its market value at the time of the report was around NIS 370 million. Such an acquisition could significantly expand Cellcom's retail and electronics distribution operations, complementing its existing Dynamica chain. However, these talks are in their early stages, with no terms finalized, and any potential deal would require approval from the Competition Authority. Doron Sela, CEO of Icon Group, stated that the company continues to see strong demand for its products and solutions and is focused on expanding its operations and developing new growth engines.