Yarden Investment (TASE:YRDN) today reported netting NIS 1.7 million for the second quarter of 2002, and losing NIS 12.8 million for the first half of the year.

In the parallel six months of 2001, Yarden netted NIS 7.5 million.

The company did not write down the value of its holding in The Israel Corporation (TASE:ILCO) in the second quarter, despite having set aside NIS 12.6 million or 4.4% of its investment for its ILCO holdings in the first quarter of the year.

Yarden holds 24% of ILCO's shareholders equity, which it has booked at NIS 273.3 million, compared with the stake's current market value of NIS 90 million.

Yarden's revenues for the second quarter were NIS 2.6 million, compared with NIS 0.27 million in the parallel quarter of 2001.

Most of its revenue derived from financing income, of NIS 2 million in the second quarter.

In the first quarter Gibor Sport sold all its holdings in ILCO to Yarden for NIS 241.8 million. Yarden subsequently bought another 3% stake in ILCO.

During the last six months the value of ILCO stock has plunged, opening a wide NIS 183 million gap between the value of the shares in Yarden's books, and its market cap. The company claims the investment in ILCO is strategic and long-term.