B Communications Ltd. (NASDAQ Global Market and TASE: BCOM) today
reported its financial results for the second quarter ended June 30,
2013.
Bezeq’s Results: For the second quarter of 2013, the Bezeq Group
reported revenues of NIS 2.4 billion ($ 650 million) and operating
profit of NIS 744 million ($ 206 million). Bezeq’s EBITDA for the second
quarter totaled NIS 1.1 billion ($ 296 million), representing an EBITDA
margin of 46%. Net income for the period attributable to the
shareholders of Bezeq totaled NIS 473 million ($ 131 million). Bezeq's
cash flow from operating activities during the period totaled NIS 1.1
billion ($ 305 million).
Cash Position: As of June 30, 2013, B Communications’
unconsolidated cash and cash equivalents totaled NIS 745 million ($ 206
million), its unconsolidated total debt was NIS 3.8 billion ($ 1.1
billion), and its net debt totaled NIS 3.1 billion ($ 857 million).
B Communications’ Unconsolidated Balance Sheet Data*
|
In millions
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
|
translation into
|
|
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
2012
|
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
NIS
|
|
Short term liabilities
|
|
|
|
560
|
|
155
|
|
431
|
|
587
|
|
Long term liabilities
|
|
|
|
3,284
|
|
908
|
|
3,689
|
|
3,511
|
|
Total liabilities
|
|
|
|
3,844
|
|
1,063
|
|
4,120
|
|
4,098
|
|
Cash and cash equivalents
|
|
|
|
745
|
|
206
|
|
400
|
|
694
|
|
Total net debt
|
|
|
|
3,099
|
|
857
|
|
3,720
|
|
3,404
|
* Does not include the balance sheet of Bezeq.
Dividend from Bezeq: On May 13, 2013, B Communications received
two dividend payments from Bezeq which together totaled NIS 421 million
($ 116 million). These dividend payments included a current dividend of
NIS 266 million ($ 73 million), representing B Communications’ share of
Bezeq’s net profit for the second half of 2012, and a special dividend
of NIS 155 million ($ 43 million), representing B Communications’ share
of the fifth installment of six special dividend payments declared by
Bezeq and approved by its shareholders in 2011.
B Communications’ Second Quarter Financial Results
B Communications’ consolidated revenues for the second quarter of
2013 were NIS 2.4 billion ($ 650 million), a 9.4% decrease compared with
NIS 2.6 billion reported in the second quarter of 2012. For both the
current and the prior-year periods, B Communications’ consolidated
revenues consisted entirely of Bezeq’s revenues.
During the second quarter of 2013, B Communications recorded net
amortization expenses related to its Bezeq purchase price allocation
(“Bezeq PPA”) of NIS 157 million ($ 43 million) in its consolidated
financial statements. From April 14, 2010, the date of the
acquisition of its interest in Bezeq, until June 30, 2013, B
Communications has amortized approximately 55% of the total Bezeq PPA.
The Bezeq PPA amortization expense is a non-cash expense that is subject
to adjustment. If, for any reason, B Communications finds it necessary
or appropriate to make adjustments to amounts already expensed, it may
result in significant changes to its audited financial reports, as well
as to future financial statements.
B Communications’ financial expenses, net: B Communications’
unconsolidated net financial expenses for the second quarter of 2013
totaled NIS 62 million ($ 17 million). These expenses consisted
primarily of NIS 56 million ($ 15 million) of interest and CPI linkage
expenses on the long-term loans incurred to finance the Bezeq
acquisition and expenses of NIS 13 million ($ 4 million) related to its
publicly-traded debentures. These expenses were offset in part by
financial income of NIS 7 million ($ 2 million) generated by short term
investments.
Unconsolidated net financial expenses in the second quarter of 2013
decreased by 42.6% compared with the second quarter of 2012. The
decrease is primarily attributable to lower interest and CPI linkage
expenses due to the reduction in the amount of the outstanding bank debt
that was incurred to purchase the Company’s controlling interest in
Bezeq. In addition, lower inflation levels and floating interest rates
in the second quarter of 2013 compared to the second quarter of 2012
contributed to the decrease in interest and CPI linkage expenses.
B Communications’ net income attributable to shareholders for the
second quarter of 2013 totaled NIS 34 million ($ 9 million), compared to
a net loss of NIS 79 million in the second quarter of 2012.
B Communications’ Unconsolidated Financial Results
|
In millions
|
|
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|
|
|
Convenience
|
|
|
|
|
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translation into
|
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|
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|
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|
U.S. dollars
|
|
|
|
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(Note A)
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|
Three-month
|
|
Three-month
|
|
Three-month
|
|
|
|
|
|
|
|
period ended
|
|
period ended
|
|
period ended
|
|
Year ended
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
2013
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
NIS
|
|
Revenues
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Financing expenses, net
|
|
|
|
(62
|
)
|
|
(17
|
)
|
|
(108
|
)
|
|
(239
|
)
|
|
Other and income tax expenses
|
|
|
|
(2
|
)
|
|
(1
|
)
|
|
-
|
|
|
(48
|
)
|
|
PPA amortization, net
|
|
|
|
(49
|
)
|
|
(14
|
)
|
|
(100
|
)
|
|
(234
|
)
|
|
Interest in Bezeq's net income
|
|
|
|
147
|
|
|
41
|
|
|
129
|
|
|
567
|
|
|
Net income (loss)
|
|
|
|
34
|
|
|
9
|
|
|
(79
|
)
|
|
46
|
|
Comments of Management
Commenting on the results, Doron Turgeman, CEO of B Communications'
said, “The first half of 2013 was another stable period for Bezeq and
continued strong operating results. With the continued on-schedule
receipt of dividends from Bezeq, we have continued building our cash
reserves and have recorded a third consecutive quarter of significant
net income. We are currently examining a number of offers for
re-structuring some of our outstanding loans as a key to improving our
financial position while improving our repayment schedule and financial
flexibility.”
Bezeq Group Results (Consolidated)
To provide further insight into its results, the Company is providing
the following summary of the consolidated financial report of the Bezeq
Group for the second quarter ended June 30, 2013. For a full discussion
of Bezeq’s results for the second quarter of 2013, please refer to its
website: http://ir.bezeq.co.il.
|
Bezeq Group (consolidated)
|
|
|
|
Q2 2013
|
|
Q2 2012
|
|
% change
|
|
|
|
|
|
|
(NIS millions)
|
|
|
|
Revenues
|
|
|
|
2,351
|
|
|
2,595
|
|
|
-9.4
|
%
|
|
Operating profit
|
|
|
|
744
|
|
|
746
|
|
|
-0.3
|
%
|
|
EBITDA
|
|
|
|
1,070
|
|
|
1,104
|
|
|
-3.1
|
%
|
|
EBITDA margin
|
|
|
|
45.5
|
%
|
|
42.5
|
%
|
|
|
|
Net profit attributable to Company shareholders
|
|
|
|
473
|
|
|
415
|
|
|
14.0
|
%
|
|
Diluted EPS (NIS)
|
|
|
|
0.17
|
|
|
0.15
|
|
|
13.3
|
%
|
|
Cash flow from operating activities
|
|
|
|
1,102
|
|
|
990
|
|
|
11.3
|
%
|
|
Payments for investments, net
|
|
|
|
178
|
|
|
360
|
|
|
-50.6
|
%
|
|
Free cash flow 1 |
|
|
|
924
|
|
|
630
|
|
|
46.7
|
%
|
|
Net debt/EBITDA (end of period) 2 |
|
|
|
1.83
|
|
|
1.69
|
|
|
|
|
Net debt/shareholders' equity (end of period)
|
|
|
|
3.09
|
|
|
3.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Free cash flow is defined as cash flow from operating
activities less net payments for investments.
|
|
2 EBITDA in this calculation refers to the trailing
twelve months.
|
Revenues of the Bezeq Group in the second quarter of 2013
amounted to NIS 2.35 billion ($ 650 million) compared with NIS 2.60
billion in the corresponding quarter of 2012, a decrease of 9.4%. The
reduction in the Bezeq Group revenues was primarily due to a decrease in
revenues from the cellular segment revenues.
The Bezeq Group's focused policy of initiating streamlining and
efficiency measures in all segments, both in salaries and in general
operating expenses moderated the decline in EBITDA. The decrease in
depreciation expenses and the reduction in financing expenses
contributed to the stability of operating profit and the increase in net
profit.
Operating profit of the Bezeq Group in the second quarter of 2013
amounted to NIS 744 million ($ 206 million) compared with NIS 746
million in the corresponding quarter of 2012, a decrease of 0.3%.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) of the Bezeq Group in the second quarter of 2013 amounted
to NIS 1.07 billion ($ 296 million) (EBITDA margin of 45.5%) compared
with NIS 1.10 billion (EBITDA margin of 42.5%) in the corresponding
quarter of 2012, a decrease of 3.1%.
Net profit attributable to Bezeq shareholders amounted to NIS 473
million ($ 131 million) compared with NIS 415 million in the
corresponding quarter of 2012, an increase of 14.0%.
The second quarter results again show record levels of free cash flow. Cash
flow from operating activities of the Bezeq Group in the second
quarter of 2013 amounted to NIS 1.10 billion ($ 305 million) compared
with NIS 990 million in the corresponding quarter of 2012, an increase
of 11.3%. Free cash flow in the second quarter of 2013 amounted
to NIS 924 million ($ 255 million) compared with NIS 630 million in the
corresponding quarter of 2012, an increase of 46.7%. The increase in
free cash flow was due to increased income from the sale of real estate
and copper together with stabilization of lower levels of capital
expenditures compared with the previous five years during which Bezeq
completed the NGN and submarine cable projects.
Net financial debt of the Bezeq Group was NIS 7.93 billion ($ 2.2
billion) at June 30, 2013 compared with NIS 7.90 billion as of June 30,
2012.
Bezeq Group Dividend Announcement
In accordance with the Bezeq Group dividend policy, its Board of
Directors recommended the distribution of 100% of profits for the first
half of 2013 as a cash dividend to shareholders of NIS 969 million ($268
million). Together with the aforementioned semi-annual dividend, the
Bezeq Group will make the sixth and final payment of the special
dividend of NIS 500 million ($138 million). The total dividend to be
distributed will be NIS 1.469 billion ($406 million) (approximately NIS
0.54 per share). The semi-annual dividend, which is subject to
shareholder approval, would be payable together with the special
dividend on September 15, 2013. The ex-dividend date is September 3,
2013.
Notes:
|
A.
|
|
|
|
Convenience Translation to Dollars: For the convenience of
the reader, certain of the reported NIS figures of June 30, 2013
have been presented in millions of U.S. dollars, translated at the
representative rate of exchange as of June 30, 2013 (NIS 3.618 =
U.S. Dollar 1.00). The U.S. dollar ($) amounts presented should
not be construed as representing amounts receivable or payable in
U.S. dollars or convertible into U.S. dollars, unless otherwise
indicated.
|
|
|
|
|
|
|
|
B.
|
|
|
|
Use of non-IFRS Measurements: We and the Bezeq Group’s
management regularly use supplemental non-IFRS financial measures
internally to understand, manage and evaluate our business and
make operating decisions. We believe these non-IFRS financial
measures provide consistent and comparable measures to help
investors understand the Bezeq Group’s current and future
operating cash flow performance.
|
|
|
|
|
|
|
|
|
|
|
|
These non-IFRS financial measures may differ materially from the
non-IFRS financial measures used by other companies.
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA is a non-IFRS financial measure generally defined as earnings
before interest, taxes, depreciation and amortization. The Bezeq
Group defines EBITDA as net income before financial income
(expenses), net, impairment and other charges, expenses recorded for
stock compensation in accordance with IFRS 2, income tax expenses
and depreciation and amortization. We present the Bezeq Group’s
EBITDA as a supplemental performance measure because we believe that
it facilitates operating performance comparisons from period to
period and company to company by backing out potential differences
caused by variations in capital structure, tax positions (such as
the impact of changes in effective tax rates or net operating
losses) and the age of, and depreciation expenses associated with,
fixed assets (affecting relative depreciation expense).
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA should not be considered in isolation or as a substitute for
net income or other statement of operations or cash flow data
prepared in accordance with IFRS as a measure of profitability or
liquidity. EBITDA does not take into account our debt service
requirements and other commitments, including capital expenditures,
and, accordingly, is not necessarily indicative of amounts that may
be available for discretionary uses. In addition, EBITDA, as
presented in this press release, may not be comparable to similarly
titled measures reported by other companies due to differences in
the way that these measures are calculated.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between the Bezeq Group’s results on an IFRS and
non-IFRS basis is provided in a table immediately following the
Company's consolidated results. Non-IFRS financial measures consist
of IFRS financial measures adjusted to exclude amortization of
acquired intangible assets, as well as certain business combination
accounting entries. The purpose of such adjustments is to give an
indication of the Bezeq Group’s performance exclusive of non-cash
charges and other items that are considered by management to be
outside of its core operating results. The Bezeq Group’s non-IFRS
financial measures are not meant to be considered in isolation or as
a substitute for comparable IFRS measures, and should be read only
in conjunction with its consolidated financial statements prepared
in accordance with IFRS.
|
About B Communications Ltd.
B Communications is a telecommunications-oriented holding company and
its primary holding is its controlling interest in Bezeq, The Israel
Telecommunication Corp., Israel’s largest telecommunications provider
(TASE: BZEQ). B Communications shares are traded on NASDAQ and the TASE
under the symbol BCOM. For more information please visit the following
Internet sites:
www.bcommunications.co.il
www.ir.bezeq.co.il
www.eurocom.co.il
www.igld.com
Forward-Looking Statements
This press release contains forward-looking statements that are subject
to risks and uncertainties. Factors that could cause actual results to
differ materially from these forward-looking statements include, but are
not limited to, general business conditions in the industry, changes in
the regulatory and legal compliance environments, the failure to manage
growth and other risks detailed from time to time in B Communications'
filings with the Securities Exchange Commission. These documents contain
and identify other important factors that could cause actual results to
differ materially from those contained in our projections or
forward-looking statements. Stockholders and other readers are cautioned
not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. We undertake no
obligation to update publicly or revise any forward-looking statement.
|
|
|
B Communications Ltd.
|
|
Condensed Consolidated Statements of Financial Position as at
|
|
(In millions)
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
|
translation into
|
|
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
|
|
June 30
|
|
June 30
|
|
June 30
|
|
December 31
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
2012
|
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
NIS
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
646
|
|
179
|
|
634
|
|
757
|
|
Investments, including derivative financial instruments
|
|
|
|
2,105
|
|
582
|
|
996
|
|
1,484
|
|
Trade receivables, net
|
|
|
|
2,863
|
|
791
|
|
3,115
|
|
2,927
|
|
Other receivables
|
|
|
|
339
|
|
94
|
|
347
|
|
330
|
|
Inventory
|
|
|
|
142
|
|
39
|
|
206
|
|
123
|
|
Assets classified as held-for-sale
|
|
|
|
241
|
|
67
|
|
163
|
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
6,336
|
|
1,752
|
|
5,461
|
|
5,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments, including derivative financial instruments
|
|
|
|
89
|
|
25
|
|
95
|
|
90
|
|
Long-term trade and other receivables
|
|
|
|
817
|
|
226
|
|
1,324
|
|
1,074
|
|
Property, plant and equipment
|
|
|
|
6,626
|
|
1,831
|
|
6,966
|
|
6,911
|
|
Intangible assets
|
|
|
|
6,937
|
|
1,917
|
|
7,487
|
|
7,252
|
|
Deferred and other expenses
|
|
|
|
394
|
|
108
|
|
409
|
|
384
|
|
Investment in equity-accounted investee (mainly loans)
|
|
|
|
1,015
|
|
281
|
|
1,019
|
|
1,005
|
|
Deferred tax assets
|
|
|
|
66
|
|
18
|
|
*172
|
|
*128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
15,944
|
|
4,406
|
|
17,472
|
|
16,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
22,280
|
|
6,158
|
|
22,933
|
|
22,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Restated following the retrospective application of the
amendment to IAS 19, Employee Benefits.
|
|
|
|
B Communications Ltd.
|
|
Condensed Consolidated Statements of Financial Position as at
(cont’d)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
|
translation into
|
|
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
|
|
June 30
|
|
June 30
|
|
June 30
|
|
December 31
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
2012
|
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
NIS
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank credit, current maturities
|
|
|
|
|
|
|
|
|
|
|
|
of long-term liabilities and debentures
|
|
|
|
1,497
|
|
414
|
|
1,060
|
|
1,582
|
|
Trade payables
|
|
|
|
686
|
|
190
|
|
901
|
|
792
|
|
Other payables, including derivative
|
|
|
|
|
|
|
|
|
|
|
|
financial instruments
|
|
|
|
669
|
|
185
|
|
719
|
|
734
|
|
Dividend payable
|
|
|
|
338
|
|
93
|
|
669
|
|
669
|
|
Current tax liabilities
|
|
|
|
732
|
|
202
|
|
572
|
|
588
|
|
Provisions
|
|
|
|
124
|
|
34
|
|
174
|
|
145
|
|
Employee benefits
|
|
|
|
273
|
|
75
|
|
*318
|
|
*251
|
|
Total current liabilities
|
|
|
|
4,319
|
|
1,193
|
|
4,413
|
|
4,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures
|
|
|
|
5,420
|
|
1,498
|
|
5,105
|
|
5,018
|
|
Bank loans
|
|
|
|
6,227
|
|
1,721
|
|
6,515
|
|
6,422
|
|
Loans from institutions and others
|
|
|
|
542
|
|
150
|
|
545
|
|
540
|
|
Dividend payable
|
|
|
|
-
|
|
-
|
|
322
|
|
-
|
|
Employee benefits
|
|
|
|
256
|
|
71
|
|
*246
|
|
*260
|
|
Other liabilities
|
|
|
|
86
|
|
24
|
|
83
|
|
67
|
|
Provisions
|
|
|
|
67
|
|
19
|
|
70
|
|
66
|
|
Deferred tax liabilities
|
|
|
|
1,056
|
|
292
|
|
1,210
|
|
1,159
|
|
Total non-current liabilities
|
|
|
|
13,654
|
|
3,775
|
|
14,096
|
|
13,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
17,973
|
|
4,968
|
|
18,509
|
|
18,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to equity holders
|
|
|
|
|
|
|
|
|
|
|
|
of the Company
|
|
|
|
1,052
|
|
290
|
|
*886
|
|
*960
|
|
Non-controlling interests
|
|
|
|
3,255
|
|
900
|
|
*3,538
|
|
*3,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
4,307
|
|
1,190
|
|
4,424
|
|
4,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
|
22,280
|
|
6,158
|
|
22,933
|
|
22,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Restated following the retrospective application of the
amendment to IAS 19, Employee Benefits.
|
|
|
|
B Communications Ltd.
|
|
Condensed Consolidated Statements of Income for the
|
|
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months period ended
|
|
|
Three months period ended
|
|
|
Year ended
|
|
|
|
|
|
June 30
|
|
|
June 30
|
|
|
December 31
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
|
|
|
into
|
|
|
|
|
|
|
into
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
|
2013
|
|
2013
|
|
2012
|
|
|
2012
|
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
|
NIS
|
|
Revenues
|
|
|
|
4,756
|
|
|
1,315
|
|
|
5,335
|
|
|
|
2,351
|
|
650
|
|
2,595
|
|
|
|
10,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
1,008
|
|
|
279
|
|
|
1,510
|
|
|
|
516
|
|
143
|
|
785
|
|
|
|
2,367
|
|
|
Salaries
|
|
|
|
969
|
|
|
268
|
|
|
1,017
|
|
|
|
469
|
|
130
|
|
505
|
|
|
|
*1,978
|
|
|
General and operating expenses
|
|
|
|
1,720
|
|
|
475
|
|
|
2,051
|
|
|
|
831
|
|
230
|
|
969
|
|
|
|
3,995
|
|
|
Other operating (income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses, net
|
|
|
|
(29
|
)
|
|
(8
|
)
|
|
33
|
|
|
|
12
|
|
3
|
|
33
|
|
|
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,668
|
|
|
1,014
|
|
|
4,611
|
|
|
|
1,828
|
|
506
|
|
2,292
|
|
|
|
8,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
1,088
|
|
|
301
|
|
|
724
|
|
|
|
523
|
|
144
|
|
303
|
|
|
|
1,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing expenses, net
|
|
|
|
144
|
|
|
40
|
|
|
180
|
|
|
|
79
|
|
22
|
|
172
|
|
|
|
*355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses, net
|
|
|
|
944
|
|
|
261
|
|
|
544
|
|
|
|
444
|
|
122
|
|
131
|
|
|
|
1,594
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share in losses of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity-accounted investee
|
|
|
|
107
|
|
|
30
|
|
|
141
|
|
|
|
67
|
|
18
|
|
83
|
|
|
|
245
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
|
|
|
|
837
|
|
|
231
|
|
|
403
|
|
|
|
377
|
|
104
|
|
48
|
|
|
|
1,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
|
|
279
|
|
|
77
|
|
|
204
|
|
|
|
126
|
|
35
|
|
67
|
|
|
|
*556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period
|
|
|
|
558
|
|
|
154
|
|
|
199
|
|
|
|
251
|
|
69
|
|
(19
|
)
|
|
|
793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Company
|
|
|
|
95
|
|
|
26
|
|
|
(50
|
)
|
|
|
34
|
|
9
|
|
(79
|
)
|
|
|
*46
|
|
|
Non-controlling interests
|
|
|
|
463
|
|
|
128
|
|
|
249
|
|
|
|
217
|
|
60
|
|
60
|
|
|
|
*747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period
|
|
|
|
558
|
|
|
154
|
|
|
199
|
|
|
|
251
|
|
69
|
|
(19
|
)
|
|
|
793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), basic
|
|
|
|
3.16
|
|
|
0.87
|
|
|
(1.69
|
)
|
|
|
1.12
|
|
0.31
|
|
(2.66
|
)
|
|
|
1.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss), diluted
|
|
|
|
3.16
|
|
|
0.87
|
|
|
(1.70
|
)
|
|
|
1.11
|
|
0.30
|
|
(2.66
|
)
|
|
|
1.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Restated following the retrospective application of the
amendment to IAS 19, Employee Benefits.
|
|
|
|
B Communications Ltd.
|
|
Reconciliation for NON-IFRS Measures
|
|
EBITDA
|
|
The following is a reconciliation of the Bezeq Group’s operating
income to EBITDA:
|
|
In millions
|
|
|
|
|
|
|
|
Three months period ended
|
|
|
|
|
|
June 30
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
into
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
2013
|
|
2013
|
|
2012
|
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
744
|
|
206
|
|
746
|
|
Depreciation and amortization
|
|
|
|
326
|
|
90
|
|
358
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
1,070
|
|
296
|
|
1,104
|
|
|
|
|
|
|
|
|
|
|
|
* Restated following the retrospective application of the
amendment to IAS 19, Employee Benefits.
|
|
|
|
Free Cash Flow
|
|
The following table shows the calculation of the Bezeq Group’s
free cash flow:
|
|
In millions
|
|
|
|
|
|
|
|
Three months period ended
|
|
|
|
|
|
June 30
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
into
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
2013
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities
|
|
|
|
1,102
|
|
|
305
|
|
|
990
|
|
|
Purchase of property, plant and equipment
|
|
|
|
(252
|
)
|
|
(70
|
)
|
|
(315
|
)
|
|
Investment in intangible assets and deferred expenses
|
|
|
|
(49
|
)
|
|
(14
|
)
|
|
(67
|
)
|
|
Proceeds from the sale of property, plant and equipment
|
|
|
|
123
|
|
|
34
|
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
924
|
|
|
255
|
|
|
630
|
|
Copyright Business Wire 2013