B Communications Ltd. (NASDAQ Global Market: BCOM)(TASE: BCOM) today
reported its financial results for the second quarter ended June 30,
2014.
Bezeq’s Results: For the second quarter of 2014, the Bezeq Group
reported revenues of NIS 2.3 billion ($654 million) and operating profit
of NIS 1.2 billion ($359 million). Bezeq’s EBITDA for the second quarter
totaled NIS 1.6 billion ($452 million), representing an EBITDA margin of
69.0%. Net income for the period attributable to Bezeq’s shareholders
totaled NIS 810 million ($236 million). Bezeq's cash flow from operating
activities during the period totaled NIS 1.1 billion ($312 million).
Yad2 Transaction: On May 20, 2014, Bezeq concluded the sale of
Coral-Tel Ltd. ("Yad2"), a company fully controlled by Bezeq through its
ownership of Walla! Communications Ltd., that is engaged in the
operation of a second-hand sales web site, for a total consideration of
approximately NIS 805 million ($234 million). As a result, Bezeq
recorded a one-time capital gain of NIS 582 million ($169 million)
before tax that was reported under other operating income.
Cash Position: As of June 30, 2014, B Communications’
unconsolidated cash and cash equivalents and short term investments
totaled NIS 698 million ($203 million). As of June 30, 2014, the
outstanding amount of B Communications’ Senior Secured Notes (7⅜%) was
NIS 2.7 billion ($788 million) and Series B Debentures was NIS 708
million ($206 million), both amounts include accrued interest and
unamortized premiums, discounts and debt issuance costs.
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B Communications’ Unconsolidated Balance Sheet Data (in
millions)
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Convenience
translation into
U.S.
dollars
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(Note A)
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June 30,
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June 30,
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June 30,
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December 31,
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2014
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2013
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NIS
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US$
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NIS
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NIS
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Debentures and loans
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Senior Secured Notes 7⅜%
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2,709
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788
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-
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-
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Series B Debentures
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708
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206
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527
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706
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Series A Debentures
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-
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-
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186
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193
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Bank and institutional loans
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-
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-
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2,978
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2,502
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Total
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3,417
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994
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3,691
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3,401
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Liquidity balances
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Lockbox account(1)
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301
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88
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589
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209
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Unrestricted Cash(2)
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397
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115
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156
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455
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Total
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698
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203
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745
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664
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(1)
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Lockbox Account - one or more accounts designated as a Lockbox
Account and maintained by B Communications (SP-2) Ltd. (or any of
its successors) and pledged as Collateral to the Security Agent for
the benefit of the holders of the Senior Secured Notes. Amounts from
prior periods are shown as comparative data and reflect amounts that
were maintained by B Communications (SP-2) Ltd. but not in a Lockbox
account.
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(2)
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Unrestricted Cash - any funds, property or assets (including any
property or assets acquired with or earned on such Unrestricted
Cash) not expressly required by the terms of the Indenture for the
Senior Secured Notes to be deposited in or allocated to the Lockbox
Account and any other funds with respect to which the Indenture
expressly provides that such funds shall constitute Unrestricted
Cash, including proceeds from indebtedness permitted to be incurred
under the Indenture which are not otherwise expressly required by
the terms of the Indenture to be deposited in or allocated to the
Lockbox Account; provided that no specified shares or collateral
shall constitute Unrestricted Cash.
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B Communications' Cash Management: B Communications manages its
cash balances according to an investment policy that was established by
its Board of Directors. The investment policy seeks to preserve
principal and maintain adequate liquidity while maximizing the income
received from investments without significantly increasing the risk of
loss. According to B Communications' investment policy approximately 80%
of the funds must be invested in investment-grade securities.
Dividend from Bezeq: On March 5, 2014, Bezeq's Board of Directors
resolved to recommend to its General Meeting of Shareholders the
distribution of a cash dividend of NIS 802 million ($233 million). On
March 27, 2014, Bezeq's shareholders approved the dividend distribution
and on April 23, 2014, B Communications received its share totaling
approximately NIS 248 million ($72 million).
On August 6, 2014, the Board of Directors of Bezeq resolved to recommend
to the General Meeting of Shareholders the distribution of 100% of its
profits for the first half of 2014 as a cash dividend to shareholders in
the amount of NIS 1,267 million ($369 million). The record date for the
distribution of the dividend, which is subject to shareholder approval,
will be September 15, 2014 and the payment date will be October 2, 2014.
B Communications’ share of the dividend distribution, if approved, is
expected to be approximately NIS 391 million ($114 million).
B Communications’ Second Quarter Consolidated Financial Results
B
Communications’ consolidated revenues for the second quarter of 2014
totaled NIS 2,250 million ($654 million), a 4.3% decrease compared with
NIS 2,351 million reported in the second quarter of 2013. For both the
current and the prior-year periods, B Communications’ consolidated
revenues consisted entirely of Bezeq’s revenues.
B Communications’ consolidated operating income for the second quarter
of 2014 totaled NIS 1,040 million ($303 million), an 89.1% increase
compared with NIS 550 million reported in the second quarter of 2013.
The increase was primarily attributed to Bezeq's Yad2 transaction that
resulted in NIS 582 million ($169 million) of other operating income in
the second quarter of 2014.
B Communications’ consolidated net income for the second quarter of 2014
totaled NIS 572 million ($166 million), a 111.1% increase compared with
NIS 271 million reported in the second quarter of 2013. The increase was
primarily attributed to the sale of Yad2 by Bezeq during the second
quarter of 2014.
B Communications’ Second Quarter Unconsolidated Financial Results
As
of June 30, 2014 B Communications’ held approximately 31% of Bezeq's
outstanding shares. Accordingly, B Communications’ interest in Bezeq's
net income for the second quarter of 2014 totaled NIS 250 million ($73
million), a 71.2% increase compared with NIS 146 million reported in the
second quarter of 2013.
During the second quarter of 2014, B Communications recorded net
amortization expenses of NIS 42 million ($12 million) related to its
Bezeq purchase price allocation (“Bezeq PPA”) in its unconsolidated
financial statements. From April 14, 2010, the date of the acquisition
of its interest in Bezeq, until June 30, 2014, B Communications has
amortized approximately 63% 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’ unconsolidated net financial expenses for the second
quarter of 2014 totaled NIS 100 million ($29 million) compared to NIS 62
million in the second quarter of 2013. Financial expenses during the
second quarter of 2014 include, NIS 69 million ($20 million) related to
the publicly traded Series B Debentures and the Senior Secured Notes and
NIS 28 million ($8 million) of non-cash net expenses related to the
revaluation of the cross-currency swap (“CCS”) hedge transactions
related to the Senior Secured Notes. The CCS transactions do not qualify
for hedge accounting. In accordance with IAS 39, derivatives that do not
qualify for hedge accounting are recognized on the statement of
financial position at their fair value, with changes in the fair value
recognized as a component of “financial expenses, net” in the statement
of income. B Communications expects that these non-cash revaluation
expenses will fully offset against the USD denominated Senior Secured
Notes over the term of the hedge transactions. Until then, such
revaluation expenses could have a material adverse effect on B
Communications’ statement of income due to the volatility of the fair
value valuation method. In addition, B Communication recorded NIS 3
million ($1 million) of financial expenses generated by short term
investments.
B Communications’ net income attributable to shareholders for the second
quarter of 2014 was NIS 107 million ($31 million) compared to net income
attributable to shareholders of NIS 40 million reported in the second
quarter of 2013.
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In millions
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Convenience
translation into
U.S.
dollars
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(Note A)
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Three-month
period ended
June 30,
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Three-month
period ended
June 30,
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Three-month
period ended
June 30,
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Year ended
December 31,
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2014
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2013
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NIS
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US$
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NIS
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NIS
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Revenues
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-
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-
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-
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-
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Financing expenses, net
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(100)
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(29)
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(62)
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(211)
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Other and income tax expenses
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(1)
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(1)
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(1)
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(12)
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PPA amortization, net
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(42)
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(12)
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(43)
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(186)
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Interest in Bezeq's net income
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250
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73
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146
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546
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Net income
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107
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31
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40
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137
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Comments of Management
Commenting on the results, Mr. Doron
Turgeman, B Communications’ CEO, stated, “During the second quarter, we
continued to make progress in line with our business plan, leveraging
Bezeq's stable platform and unique strength to achieve our goals. With
full confidence in Bezeq's long term cash generating power, we will
continue our efforts to strengthen our financial stability and liquidity
in order to improve our debt and equity positions.”
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, 2014. For a full discussion of Bezeq’s results
for the second quarter of 2014, please refer to its website: http://ir.bezeq.co.il.
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Bezeq Group (consolidated)
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Q2 2014
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Q2 2013
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% change
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(NIS millions)
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Revenues
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2,250
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2,351
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-4.3%
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Operating profit
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1,234
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744
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65.9%
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EBITDA
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1,553
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1,070
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45.1%
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EBITDA margin
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69.0%
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45.5%
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Net profit attributable to Bezeq's shareholders
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810
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473
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71.2%
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Diluted EPS (NIS)
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0.29
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0.17
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70.6%
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Cash flow from operating activities
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1,064
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1,102
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-3.4%
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Payments for investments
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323
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301
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7.3%
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Free cash flow 1
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787
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924
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-14.8%
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Net debt/EBITDA (end of period) 2
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1.54
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1.83
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1 Free cash flow is defined as cash flow from operating
activities less net payments for investments. The net proceeds from
the sale of "Yad2" (net of tax) are presented as part of cash flow
from investment activities, and the sale therefore had no effect on
the free cash flow of the Group.
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2 EBITDA in this calculation refers to the trailing twelve months.
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Revenues of the Bezeq Group in the second quarter of 2014
amounted to NIS 2.25 billion ($654 million) compared with NIS 2.35
billion in the corresponding quarter of 2013, a decrease of 4.3%. The
reduction in the Bezeq Group revenues was primarily related to a
decrease in revenues from cellular services due to the challenging
competitive environment in the cellular market as well as a reduction in
the revenues of Bezeq Fixed Line which were influenced by a decrease in
fixed call termination rates.
Salary expenses of the Bezeq Group in the second quarter of 2014
amounted to NIS 443 million ($129 million) compared with NIS 468 million
in the corresponding quarter of 2013, a decrease of 5.3%. The decrease
in the Bezeq Group salary expenses was primarily due to streamlining at
Bezeq Fixed Line and Pelephone as well as a reduction in share based
payments.
Operating expenses of the Bezeq Group in the second quarter of
2014 amounted to NIS 822 million ($239 million) compared with NIS 831
million in the corresponding quarter of 2013, a decrease of 1.1%. The
decrease in the Bezeq Group operating expenses was primarily due to a
reduction in equipment and interconnect expenses. The decrease was
partially offset by an increase in building maintenance expenses due to
a one-time reduction in the corresponding quarter of 2013 as a result of
a change in estimates of lease payments for building sites.
Profitability metrics of the Bezeq Group in the second quarter of
2014 were influenced by the one-time NIS 582 million ($169 million) gain
from the sale of Coral Tel Ltd., the operator of the "Yad2" web site.
Operating profit of the Bezeq Group in the second quarter of 2014
amounted to NIS 1.23 billion ($359 million) compared with NIS 744
million in the corresponding quarter of 2013, an increase of 65.9%.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) of the Bezeq Group in the second quarter of 2014 amounted
to NIS 1.55 billion ($452 million) (EBITDA margin of 69.0%) compared
with NIS 1.07 billion (EBITDA margin of 45.5%) in the corresponding
quarter of 2013, an increase of 45.1%.
Net profit attributable to Bezeq's shareholders in the second
quarter of 2014 amounted to NIS 810 million ($236 million) compared with
NIS 473 million in the corresponding quarter of 2013, an increase of
71.2%.
Operating cash flow of the Bezeq Group in the second quarter of
2014 amounted to NIS 1.06 billion ($309 million) compared with NIS 1.10
billion in the corresponding quarter of 2013, a decrease of 3.4%. The
Bezeq Group positive trend of stable and strong cash flows continued in
the second quarter of 2014. Bezeq Group's financial strength and stable
cash flows are primarily a result of the Bezeq Group's leading market
positions as well as the diversification of its operating activities and
revenue sources.
Payments for investments (Capex) of the Bezeq Group in the second
quarter of 2014 amounted to NIS 323 million ($94 million) compared with
NIS 301 million in the corresponding quarter of 2013, an increase of
7.3%. The increase was primarily due to the continued acceleration of
the nationwide roll-out of Bezeq’s fiber optic network.
Free cash flow of the Bezeq Group in the second quarter of 2014
amounted to NIS 787 million ($229 million) compared with NIS 924 million
in the corresponding quarter of 2013, a decrease of 14.8%. The decrease
in the Bezeq Group free cash flow was primarily due to an increase in
investments as well as a decrease in proceeds from the sale of real
estate due to timing differences. It should be noted that the net
proceeds from the sale of "Yad2" (net of tax) are classified as cash
flow from investment activities, and the sale therefore is not included
in the free cash flow of the Group.
Net financial debt of the Bezeq Group amounted to NIS 6.95
billion ($2 Billion) at June 30, 2014 compared with NIS 7.93 billion as
of June 30, 2013. At the end of June 2014, the Bezeq Group net financial
debt to EBITDA was 1.54, compared with 1.83 at the end of June 2013.
Notes:
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A.
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Convenience Translation to Dollars: For the convenience of
the reader, certain of the reported NIS figures of June 30, 2014
have been presented in millions of U.S. dollars, translated at the
representative rate of exchange as of June 30, 2014 (NIS 3.438 =
U.S. Dollar 1.00). The U.S. dollar ($) 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.
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B.
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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.
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These non-IFRS financial measures may differ materially from the
non-IFRS financial measures used by other companies.
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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).
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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.
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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.
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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: BEZQ). 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.
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B Communications Ltd.
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Consolidated Statements of Financial Position as at
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Convenience
translation into
U.S.
dollars
|
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|
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|
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(Note A)
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|
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June 30,
|
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June 30,
|
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June 30,
|
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December 31,
|
|
|
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|
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2014
|
|
2014
|
|
2013
|
|
2013
|
|
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NIS millions
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US$ millions
|
|
NIS millions
|
|
NIS millions
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
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Cash and cash equivalents
|
|
|
703
|
|
204
|
|
646
|
|
739
|
|
|
Restricted cash
|
|
|
73
|
|
21
|
|
-
|
|
-
|
|
|
Investments, including derivative financial instruments
|
|
|
2,319
|
|
675
|
|
2,106
|
|
1,667
|
|
|
Trade receivables, net
|
|
|
2,335
|
|
679
|
|
2,863
|
|
2,651
|
|
|
Other receivables
|
|
|
329
|
|
96
|
|
339
|
|
349
|
|
|
Inventory
|
|
|
89
|
|
26
|
|
142
|
|
117
|
|
|
Assets classified as held-for-sale
|
|
|
135
|
|
39
|
|
238
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
5,983
|
|
1,740
|
|
6,334
|
|
5,740
|
|
|
|
|
|
|
|
|
|
|
|
|
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Investments, including derivative financial instruments
|
|
|
80
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|
23
|
|
89
|
|
81
|
|
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Long-term trade and other receivables
|
|
|
587
|
|
171
|
|
817
|
|
652
|
|
|
Property, plant and equipment
|
|
|
6,542
|
|
1,903
|
|
6,626
|
|
6,541
|
|
|
Intangible assets
|
|
|
6,175
|
|
1,796
|
|
6,966
|
|
6,613
|
|
|
Deferred and other expenses
|
|
|
370
|
|
108
|
|
394
|
|
381
|
|
|
Investment in equity-accounted investee (mainly loans)
|
|
|
1,014
|
|
295
|
|
1,015
|
|
1,015
|
|
|
Deferred tax assets
|
|
|
35
|
|
10
|
|
66
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
14,803
|
|
4,306
|
|
15,973
|
|
15,343
|
|
|
|
|
|
|
|
|
|
|
|
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Total assets
|
|
|
20,786
|
|
6,046
|
|
22,307
|
|
21,083
|
|
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|
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|
|
|
|
|
|
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B Communications Ltd.
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Consolidated Statements of Financial Position as at (cont’d)
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|
Convenience
translation into
U.S.
dollars
|
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
NIS millions
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Short-term bank credit, current maturities of long-term
liabilities and debentures
|
|
1,554
|
|
452
|
|
1,497
|
|
1,451
|
|
|
Trade payables
|
|
639
|
|
186
|
|
686
|
|
721
|
|
|
Other payables, including derivative financial instruments
|
|
680
|
|
198
|
|
669
|
|
736
|
|
|
Dividend payable
|
|
-
|
|
-
|
|
338
|
|
-
|
|
|
Current tax liabilities
|
|
727
|
|
211
|
|
732
|
|
659
|
|
|
Provisions
|
|
133
|
|
39
|
|
124
|
|
125
|
|
|
Employee benefits
|
|
378
|
|
110
|
|
273
|
|
257
|
|
|
Total current liabilities
|
|
4,111
|
|
1,196
|
|
4,319
|
|
3,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures
|
|
7,765
|
|
2,259
|
|
5,420
|
|
6,027
|
|
|
Bank loans
|
|
3,453
|
|
1,004
|
|
6,227
|
|
5,223
|
|
|
Loans from institutions and others
|
|
-
|
|
-
|
|
542
|
|
548
|
|
|
Employee benefits
|
|
229
|
|
67
|
|
256
|
|
234
|
|
|
Other liabilities
|
|
299
|
|
87
|
|
86
|
|
90
|
|
|
Provisions
|
|
68
|
|
20
|
|
67
|
|
68
|
|
|
Deferred tax liabilities
|
|
899
|
|
261
|
|
1,063
|
|
1,032
|
|
|
Total non-current liabilities
|
|
12,713
|
|
3,698
|
|
13,661
|
|
13,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
16,824
|
|
4,894
|
|
17,980
|
|
17,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to equity holders of the Company
|
|
894
|
|
260
|
|
1,058
|
|
995
|
|
|
Non-controlling interests
|
|
3,068
|
|
892
|
|
3,269
|
|
2,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
3,962
|
|
1,152
|
|
4,327
|
|
3,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
20,786
|
|
6,046
|
|
22,307
|
|
21,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B Communications Ltd.
|
|
|
|
|
|
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
translation
into
U.S.
dollars
|
|
|
|
|
|
Convenience
translation
into
U.S.
dollars
|
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
NIS
|
|
US$
|
|
NIS
|
|
NIS
|
|
|
Revenues
|
|
4,561
|
|
1,327
|
|
4,756
|
|
2,250
|
|
654
|
|
2,351
|
|
9,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
941
|
|
274
|
|
981
|
|
472
|
|
137
|
|
489
|
|
2,014
|
|
|
Salaries
|
|
891
|
|
259
|
|
969
|
|
443
|
|
129
|
|
469
|
|
1,873
|
|
|
General and operating expenses
|
|
1,693
|
|
492
|
|
1,720
|
|
823
|
|
239
|
|
831
|
|
3,584
|
|
|
Other operating expenses (income), net
|
|
(536)
|
|
(156)
|
|
(29)
|
|
(528)
|
|
(154)
|
|
12
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,989
|
|
869
|
|
3,641
|
|
1,210
|
|
351
|
|
1,801
|
|
7,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
1,572
|
|
458
|
|
1,115
|
|
1,040
|
|
303
|
|
550
|
|
2,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing expenses, net
|
|
471
|
|
137
|
|
144
|
|
126
|
|
37
|
|
79
|
|
320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after financing expenses, net
|
|
1,101
|
|
321
|
|
971
|
|
914
|
|
266
|
|
471
|
|
1,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of losses in equity-accounted investee
|
|
98
|
|
29
|
|
107
|
|
79
|
|
23
|
|
67
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
|
|
1,003
|
|
292
|
|
864
|
|
835
|
|
243
|
|
404
|
|
1,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
394
|
|
115
|
|
286
|
|
263
|
|
77
|
|
133
|
|
524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period
|
|
609
|
|
177
|
|
578
|
|
572
|
|
166
|
|
271
|
|
939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the company
|
|
(96)
|
|
(28)
|
|
101
|
|
107
|
|
31
|
|
40
|
|
137
|
|
|
Non-controlling interests
|
|
705
|
|
205
|
|
477
|
|
465
|
|
135
|
|
231
|
|
802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period
|
|
609
|
|
177
|
|
578
|
|
572
|
|
166
|
|
271
|
|
939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share
|
|
(3.23)
|
|
(0.94)
|
|
3.37
|
|
3.57
|
|
1.04
|
|
1.33
|
|
4.56
|
|
|
Diluted income (loss) per share
|
|
(3.30)
|
|
(0.96)
|
|
3.37
|
|
3.52
|
|
1.02
|
|
1.32
|
|
4.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B Communications Ltd.
|
|
|
Reconciliation for NON-IFRS Measures
|
|
|
|
|
|
EBITDA
|
|
|
|
|
|
The following is a reconciliation of the Bezeq Group’s operating
income to EBITDA:
|
|
|
|
|
|
|
|
|
|
Three months period ended
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
Convenience
translation
into
U.S.
dollars
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
1,234
|
|
359
|
|
744
|
|
|
Depreciation and amortization
|
|
319
|
|
93
|
|
326
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
1,553
|
|
452
|
|
1,070
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
The following table shows the calculation of the Bezeq Group’s
free cash flow:
|
|
|
|
|
|
|
|
Three months period ended
|
|
|
|
June 30,
|
|
|
|
|
|
Convenience
translation
into
U.S.
dollars
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities
|
|
1,064
|
|
310
|
|
1,102
|
|
Purchase of property, plant and equipment
|
|
(281)
|
|
(82)
|
|
(252)
|
|
Investment in intangible assets and deferred expenses
|
|
(42)
|
|
(12)
|
|
(49)
|
|
Proceeds from the sale of property, plant and equipment
|
|
46
|
|
13
|
|
123
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
787
|
|
229
|
|
924
|
|
|
|
|
|
|
|
|
Copyright Business Wire 2014