B Communications Ltd. (NASDAQ Global Market and TASE: BCOM) today
reported its financial results for the third quarter ended September 30,
2014.
Bezeq’s Results: For the third quarter of 2014, the Bezeq Group
reported revenues of NIS 2.2 billion ($604 million) and operating profit
of NIS 671 million ($182 million). Bezeq’s EBITDA for the third quarter
totaled NIS 998 million ($270 million), representing an EBITDA margin of
44.7%. Net income for the period attributable to Bezeq’s shareholders
totaled NIS 428 million ($116 million). Bezeq's cash flow from operating
activities during the period totaled NIS 950 million ($257 million).
Cash Position: As of September 30, 2014, B Communications’
unconsolidated cash and cash equivalents and short term investments
totaled NIS 699 million ($189 million). In addition, a dividend
receivable of NIS 391 million ($106 million) as of September 30, 2014
increased B Communications’ total liquidity balances to NIS 1.1 billion
($295 million). As of September 30, 2014, the outstanding amount,
including accrued interest and unamortized premiums, discounts and debt
issuance costs, of B Communications’ Senior Secured Notes (7⅜%) was NIS
2.85 billion ($771 million) and Series B Debentures was NIS 697 million
($189 million).
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B Communications’ Unconsolidated Balance Sheet Data (in
millions)
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Convenience
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translation into
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U.S. dollars
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(Note A)
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September 30,
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September 30,
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September 30,
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December 31,
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2014
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2013
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NIS
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US$
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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%(1)
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2,851
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771
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-
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-
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Series B Debentures
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697
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189
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694
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706
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Series A Debentures
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-
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-
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191
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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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3,042
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2,502
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Total
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3,548
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960
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3,927
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3,401
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Liquidity balances
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Lockbox account(2)
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293
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79
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1,031
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209
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Unrestricted cash(3)
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406
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110
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328
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455
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Dividend receivable
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391
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106
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-
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-
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Total
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1,090
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295
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1,359
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664
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(1)
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Senior Secured Notes balance is the sum of (a) the NIS amount
equivalent to the $725 million that was hedged on the date that
the Notes were issued amounting to NIS 2,561 million, (b) $75
million multiplied by the representative rate of exchange as of
September 30, 2014 (NIS 3.695 = U.S. Dollar 1.00) and (c) accrued
interest and unamortized debt issuance costs.
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(2)
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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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(3)
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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 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 August 6, 2014, Bezeq's Board of
Directors resolved to recommend to its General Meeting of Shareholders
the distribution of a cash dividend of NIS 1,267 million ($343 million).
On September 3, 2014, Bezeq's shareholders approved the dividend
distribution and on October 2, 2014, B Communications received its share
totaling approximately NIS 391 million ($106 million).
B Communications’ Third Quarter Consolidated Financial Results
B Communications’ consolidated revenues for the third quarter of 2014
totaled NIS 2,232 million ($604 million), a 6.9% decrease compared with
NIS 2,398 million reported in the third 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 third quarter of
2014 totaled NIS 516 million ($140 million), a 1.38% increase compared
with NIS 509 million reported in the third quarter of 2013.
B Communications’ consolidated net income for the third quarter of 2014
totaled NIS 219 million ($59 million), a 19.7% increase compared with
NIS 183 million reported in the third quarter of 2013.
B Communications’ Third Quarter Unconsolidated Financial Results
As of September 30, 2014 B Communications’ held approximately 31% of
Bezeq's outstanding shares. Accordingly, B Communications’ interest in
Bezeq's net income for the third quarter of 2014 totaled NIS 132 million
($36 million), a 5.0% decrease compared with NIS 139 million reported in
the third quarter of 2013.
During the third quarter of 2014, B Communications recorded net
amortization expenses of NIS 34 million ($9 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 September 30, 2014, B Communications has
amortized approximately 65% 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 third
quarter of 2014 totaled NIS 99 million ($27 million) compared to NIS 62
million in the third quarter of 2013. Financial expenses during the
third quarter of 2014 include, NIS 86 million ($23 million) related to
the publicly traded Series B Debentures and the Senior Secured Notes and
NIS 31 million ($9 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 US dollar 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. These expenses were offset in part by financial
income of NIS 29 million ($8 million) generated by short term
investments.
B Communications’ net loss attributable to shareholders for the third
quarter of 2014 was NIS 2 million ($1 million) compared to net income
attributable to shareholders of NIS 12 million reported in the third
quarter of 2013.
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In millions
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Convenience
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translation into
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U.S. dollars
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(Note A)
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Three-month
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Three-month
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Three-month
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period ended
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period ended
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period ended
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Year ended
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September 30,
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September 30,
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September 30,
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December 31,
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2014
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2013
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NIS
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US$
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NIS
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NIS
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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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(99
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(27
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(62
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(211
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Other and income tax
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expenses
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(1
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)
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(1
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)
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(2
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(12
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)
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PPA amortization, net
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(34
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)
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(9
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)
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(63
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)
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(186
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)
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Interest in Bezeq's net
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income
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132
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36
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139
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546
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Net income (loss)
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(2
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)
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(1
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)
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12
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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 third quarter, we continued to make progress in line
with our business plan, leveraging Bezeq's stable platform and unique
strength to achieve our goals. As of today our current liquidity totals
approximately NIS 1.1 billion, which represents a net financial debt of
NIS 2.5 billion, a LTV ratio of less than 45% and a Net Asset Value
(NAV) of more than NIS 3 billion. 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 third quarter ended September 30, 2014. For a full
discussion of Bezeq’s results for the third quarter of 2014, please
refer to its website: http://ir.bezeq.co.il.
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Bezeq Group (consolidated)
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Q3 2014
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Q3 2013
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% change
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(NIS millions)
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Revenues
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2,232
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2,398
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-6.9
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%
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Operating profit
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671
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721
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-6.9
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%
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EBITDA
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998
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1,050
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-5.0
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%
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EBITDA margin
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44.7
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%
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43.8
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%
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Net profit attributable to Bezeq's shareholders
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428
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449
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-4.7
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%
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Diluted EPS (NIS)
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0.16
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0.16
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0.0
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%
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Cash flow from operating activities
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950
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1,143
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-16.9
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%
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Payments for investments
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|
|
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322
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|
320
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0.6
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%
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Free cash flow 1
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700
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876
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-20.1
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%
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Net debt/EBITDA (end of period) 2
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1.40
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1.97
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1 Free cash flow is defined as cash flow from operating
activities less net payments for investments.
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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 third quarter of 2014 amounted
to NIS 2.23 billion ($604 million) compared with NIS 2.40 billion in the
corresponding quarter of 2013, a decrease of 6.9%. The reduction in
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 was mainly influenced by a decrease in fixed call termination
rates.
Salary expenses of the Bezeq Group in the third quarter of 2014
amounted to NIS 437 million ($118 million) compared with NIS 464 million
in the corresponding quarter of 2013, a decrease of 5.8%. The decrease
in salary expenses was primarily due to a reduction in share-based
payments as well as streamlining at Bezeq Fixed Line and Pelephone.
Operating expenses of the Bezeq Group in the third quarter of
2014 amounted to NIS 822 million ($222 million) compared with NIS 890
million in the corresponding quarter of 2013, a decrease of 7.6%. The
decrease in operating expenses was primarily due to a reduction in
equipment and interconnect expenses.
Operating profit of the Bezeq Group in the third quarter of 2014
amounted to NIS 671 million ($182 million) compared with NIS 721 million
in the corresponding quarter of 2013, a decrease of 6.9%.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) of the Bezeq Group in the third quarter of 2014 amounted to
NIS 998 million ($270 million) (EBITDA margin of 44.7%) compared with
NIS 1.05 billion (EBITDA margin of 43.8%) in the corresponding quarter
of 2013, a decrease of 5.0%.
The decrease in operating profit and EBITDA was due to a decrease in the
profitability of Pelephone as a result of increased competition in the
cellular market.
Net profit attributable to Bezeq shareholders in the third
quarter of 2014 amounted to NIS 428 million ($116 million) compared with
NIS 449 million in the corresponding quarter of 2013, a decrease of 4.7%.
Operating cash flow of the Bezeq Group in the third quarter of
2014 amounted to NIS 950 million ($257 million) compared with NIS 1.1
billion in the corresponding quarter of 2013, a decrease of 16.9%. The
decrease in operating cash flow was primarily due to lower profitability
at Pelephone as well as changes in working capital.
Payments for investments (Capex) of the Bezeq Group in the
third quarter of 2014 amounted to NIS 322 million ($87 million) compared
with NIS 320 million in the corresponding quarter of 2013, an increase
of 0.6%.
Free cash flow of the Bezeq Group in the third quarter of 2014
amounted to NIS 700 million ($189 million) compared with NIS 876 million
in the corresponding quarter of 2013, a decrease of 20.1%. The decrease
in free cash flow was primarily due to the decrease in operating cash
flow mentioned above.
Net financial debt of the Bezeq Group amounted to NIS 6.27
billion ($1.7 billion) at September 30, 2014 compared with NIS 8.58
billion as of September 30, 2013. At September 30, 2014, the Group's net
financial debt to EBITDA was 1.40, compared with 1.97 on September 30,
2013.
Notes:
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A.
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Convenience Translation to Dollars: For the convenience of
the reader, certain of the reported NIS figures of September 30,
2014 have been presented in millions of U.S. dollars, translated
at the representative rate of exchange as of September 30, 2014
(NIS 3.695 = U.S. Dollar 1.00). The U.S. dollar ($) 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
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|
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translation into
|
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|
|
|
|
|
|
|
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|
U.S. dollars
|
|
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|
|
|
|
|
|
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|
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(Note A)
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|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
December 31,
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
NIS millions
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
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Cash and cash equivalents
|
|
|
|
1,617
|
|
438
|
|
1,013
|
|
739
|
|
Restricted cash
|
|
|
|
4
|
|
1
|
|
-
|
|
-
|
|
Investments, including derivative financial
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
|
|
3,173
|
|
859
|
|
1,603
|
|
1,667
|
|
Trade receivables, net
|
|
|
|
2,224
|
|
602
|
|
2,791
|
|
2,651
|
|
Other receivables
|
|
|
|
290
|
|
78
|
|
345
|
|
349
|
|
Inventory
|
|
|
|
83
|
|
22
|
|
122
|
|
117
|
|
Assets classified as held-for-sale
|
|
|
|
144
|
|
39
|
|
229
|
|
217
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total current assets
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|
|
|
7,535
|
|
2,039
|
|
6,103
|
|
5,740
|
|
|
|
|
|
|
|
|
|
|
|
|
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Investments, including derivative financial
|
|
|
|
|
|
|
|
|
|
|
|
instruments
|
|
|
|
85
|
|
23
|
|
90
|
|
81
|
|
Long-term trade and other receivables
|
|
|
|
567
|
|
153
|
|
700
|
|
652
|
|
Property, plant and equipment
|
|
|
|
6,491
|
|
1,757
|
|
6,590
|
|
6,541
|
|
Intangible assets
|
|
|
|
6,037
|
|
1,635
|
|
6,759
|
|
6,613
|
|
Deferred and other expenses
|
|
|
|
368
|
|
99
|
|
389
|
|
381
|
|
Investment in equity-accounted investee
|
|
|
|
|
|
|
|
|
|
|
|
(mainly loans)
|
|
|
|
1,043
|
|
282
|
|
1,000
|
|
1,015
|
|
Deferred tax assets
|
|
|
|
6
|
|
2
|
|
93
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
|
14,597
|
|
3,951
|
|
15,621
|
|
15,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
22,132
|
|
5,990
|
|
21,724
|
|
21,083
|
|
|
|
|
|
B Communications Ltd.
|
|
|
|
Consolidated Statements of Financial Position as at (cont’d)
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
|
translation into
|
|
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
September 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
|
|
|
|
1,511
|
|
409
|
|
1,484
|
|
1,451
|
|
Trade payables
|
|
|
|
572
|
|
155
|
|
629
|
|
721
|
|
Other payables, including derivative
|
|
|
|
|
|
|
|
|
|
|
|
financial instruments
|
|
|
|
861
|
|
232
|
|
849
|
|
736
|
|
Dividend payable
|
|
|
|
876
|
|
237
|
|
-
|
|
-
|
|
Current tax liabilities
|
|
|
|
728
|
|
197
|
|
774
|
|
659
|
|
Provisions
|
|
|
|
124
|
|
34
|
|
124
|
|
125
|
|
Employee benefits
|
|
|
|
358
|
|
97
|
|
248
|
|
257
|
|
Total current liabilities
|
|
|
|
5,030
|
|
1,361
|
|
4,108
|
|
3,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debentures
|
|
|
|
9,071
|
|
2,455
|
|
5,555
|
|
6,027
|
|
Bank loans
|
|
|
|
3,402
|
|
921
|
|
6,184
|
|
5,223
|
|
Loans from institutions and others
|
|
|
|
-
|
|
-
|
|
549
|
|
548
|
|
Employee benefits
|
|
|
|
231
|
|
63
|
|
258
|
|
234
|
|
Other liabilities
|
|
|
|
180
|
|
48
|
|
82
|
|
90
|
|
Provisions
|
|
|
|
69
|
|
19
|
|
67
|
|
68
|
|
Deferred tax liabilities
|
|
|
|
865
|
|
234
|
|
1,081
|
|
1,032
|
|
Total non-current liabilities
|
|
|
|
13,818
|
|
3,740
|
|
13,776
|
|
13,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
18,848
|
|
5,101
|
|
17,884
|
|
17,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to equity holders
|
|
|
|
|
|
|
|
|
|
|
|
of the Company
|
|
|
|
885
|
|
240
|
|
1,067
|
|
995
|
|
Non-controlling interests
|
|
|
|
2,399
|
|
649
|
|
2,773
|
|
2,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
3,284
|
|
889
|
|
3,840
|
|
3,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
|
|
22,132
|
|
5,990
|
|
21,724
|
|
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
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
December 31,
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
|
|
into
|
|
|
|
|
|
into
|
|
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
|
NIS
|
|
US$
|
|
NIS
|
|
NIS
|
|
US$
|
|
NIS
|
|
NIS
|
|
Revenues
|
|
|
|
6,793
|
|
|
1,838
|
|
|
7,154
|
|
|
2,232
|
|
|
604
|
|
|
2,398
|
|
|
9,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
1,422
|
|
|
385
|
|
|
1,514
|
|
|
481
|
|
|
130
|
|
|
533
|
|
|
2,014
|
|
Salaries
|
|
|
|
1,328
|
|
|
359
|
|
|
1,436
|
|
|
437
|
|
|
118
|
|
|
467
|
|
|
1,873
|
|
General and operating expenses
|
|
|
|
2,516
|
|
|
681
|
|
|
2,610
|
|
|
823
|
|
|
223
|
|
|
890
|
|
|
3,584
|
|
Other operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(income), net
|
|
|
|
(561
|
)
|
|
(152
|
)
|
|
(30
|
)
|
|
(25
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,705
|
|
|
1,273
|
|
|
5,530
|
|
|
1,716
|
|
|
464
|
|
|
1,889
|
|
|
7,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
2,088
|
|
|
565
|
|
|
1,624
|
|
|
516
|
|
|
140
|
|
|
509
|
|
|
2,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing expenses, net
|
|
|
|
602
|
|
|
163
|
|
|
241
|
|
|
131
|
|
|
36
|
|
|
97
|
|
|
320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses, net
|
|
|
|
1,486
|
|
|
402
|
|
|
1,383
|
|
|
385
|
|
|
104
|
|
|
412
|
|
|
1,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of losses in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity-accounted investee
|
|
|
|
132
|
|
|
36
|
|
|
195
|
|
|
34
|
|
|
9
|
|
|
88
|
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
|
|
|
|
1,354
|
|
|
366
|
|
|
1,188
|
|
|
351
|
|
|
95
|
|
|
324
|
|
|
1,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
|
|
526
|
|
|
142
|
|
|
427
|
|
|
132
|
|
|
36
|
|
|
141
|
|
|
524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period
|
|
|
|
828
|
|
|
224
|
|
|
761
|
|
|
219
|
|
|
59
|
|
|
183
|
|
|
939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the company
|
|
|
|
(98
|
)
|
|
(27
|
)
|
|
113
|
|
|
(2
|
)
|
|
(1
|
)
|
|
12
|
|
|
137
|
|
Non-controlling interests
|
|
|
|
926
|
|
|
251
|
|
|
648
|
|
|
221
|
|
|
60
|
|
|
171
|
|
|
802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period
|
|
|
|
828
|
|
|
224
|
|
|
761
|
|
|
219
|
|
|
59
|
|
|
183
|
|
|
939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share
|
|
|
|
(3.29
|
)
|
|
(0.89
|
)
|
|
3.79
|
|
|
(0.06
|
)
|
|
(0.02
|
)
|
|
0.42
|
|
|
4.56
|
|
Diluted income (loss) per share
|
|
|
|
(3.38
|
)
|
|
(0.92
|
)
|
|
3.75
|
|
|
(0.08
|
)
|
|
(0.02
|
)
|
|
0.40
|
|
|
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 September 30,
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
into
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
671
|
|
182
|
|
721
|
|
Depreciation and amortization
|
|
|
|
327
|
|
88
|
|
329
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
998
|
|
270
|
|
1,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
|
|
|
|
The following table shows the calculation of the Bezeq Group’s
free cash flow:
|
|
|
|
|
|
|
|
Three months period ended September 30,
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
|
into
|
|
|
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
|
|
|
|
|
(Note A)
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
|
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities
|
|
|
|
950
|
|
257
|
|
1,143
|
|
Purchase of property, plant and equipment
|
|
|
|
(272)
|
|
(74)
|
|
(270)
|
|
Investment in intangible assets and deferred expenses
|
|
|
|
(50)
|
|
(13)
|
|
(50)
|
|
Proceeds from the sale of property, plant and equipment
|
|
|
|
72
|
|
19
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
700
|
|
189
|
|
876
|
Copyright Business Wire 2014