SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
F
O R M 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For
the month of August 2015
INTERNET
GOLD-GOLDEN LINES LTD.
(Name
of Registrant)
2
Dov Friedman Street, Ramat Gan 5250301, Israel
(Address
of Principal Executive Office)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form
20-F ☒ Form 40-F ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate
by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
☐ No ☒
If
"Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- __________
Internet
Gold-Golden Lines Ltd.
EXPLANATORY
NOTE
| EXHIBIT NO. |
|
DESCRIPTION |
| |
|
|
| 99.1 |
|
Bezeq Group Reports Second Quarter 2015 Financial Results. |
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
| |
INTERNET GOLD-GOLDEN LINES LTD. |
| |
(Registrant) |
| |
|
|
| |
By |
/s/
Doron Turgeman |
| |
|
Doron Turgeman |
| |
|
Chief Executive Officer |
Date:
August 31, 2015
EXHIBIT
INDEX
| EXHIBIT NO. |
|
DESCRIPTION |
| |
|
|
| 99.1 |
|
Bezeq Group Reports Second Quarter 2015 Financial Results. |
4
Exhibit 99.1
 |
Press
Release |
BEZEQ
GROUP REPORTS
SECOND
QUARTER 2015 Financial results
Tel Aviv, Israel – August
31, 2015 – Bezeq – The Israel Telecommunication Corp., Ltd. (TASE: BEZQ), Israel’s leading telecommunications
provider, today announced its financial results for the three months ended June 30, 2015. Details regarding the investor conference
call and webcast to be held today are included later in this press release.
| Bezeq Group (consolidated) | |
Q2 2015 | | |
Q2 2014 | | |
% change | |
| | |
(NIS millions) | | |
| |
| | |
| | |
| | |
| |
| Revenues | |
| 2,603 | | |
| 2,250 | | |
| 15.7 | % |
| Operating profit | |
| 794 | | |
| 1,234 | | |
| -35.7 | % |
| EBITDA | |
| 1,245 | | |
| 1,553 | | |
| -19.8 | % |
| EBITDA margin | |
| 47.8 | % | |
| 69.0 | % | |
| | |
| Net profit | |
| 482 | | |
| 810 | | |
| -40.5 | % |
| Diluted EPS (NIS) | |
| 0.17 | | |
| 0.29 | | |
| -41.4 | % |
| Cash flow from operating activities | |
| 840 | | |
| 1,064 | | |
| -21.1 | % |
| Payments for investments | |
| 511 | | |
| 323 | | |
| 58.2 | % |
| Free cash flow 1 | |
| 413 | | |
| 787 | | |
| -47.5 | % |
| Net debt/EBITDA (end of period) 2 | |
| 2.30 | | |
| 1.54 | | |
| | |
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.
Shaul Elovitch, Bezeq's Chairman,
stated, “The second quarter of the year was marked by increased competition in the telecom market, with full rollout of
the wholesale market reform. We are leveraging our capabilities, developed through years of experience with infrastructure and
service operations, to successfully meet the competition head-on. The next step in the consumer-oriented reform should be to eliminate
structural separation, thereby expanding competition into service offerings as well.”
David "Dudu" Mizrahi,
Chief Financial Officer and Deputy CEO of Bezeq, commented, “The second quarter of 2015 includes the first-time
consolidation of yes results while in the corresponding quarter of 2014 we recorded a one-time gain from the sale of "Yad2".
After adjusting for these events, we continued posting solid operating results across all our core businesses, based on continuing
streamlining and cost-cutting efforts.”
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
1 |
|
|
Press
Release |
Bezeq
Group Results (Consolidated)
Revenues in the second
quarter of 2015 amounted to NIS 2.60 billion compared with NIS 2.25 billion in the corresponding quarter of 2014, an increase
of 15.7%. The increase was related to the first-time consolidation of yes revenues in the second quarter of 2015 in the amount
of NIS 439 million in addition to an increase in the revenues of Bezeq Fixed-Line and Bezeq International. The increase was partially
mitigated by lower revenues at Pelephone.
Salary expenses in the
second quarter of 2015 amounted to NIS 497 million compared with NIS 443 million in the corresponding quarter of 2014, an increase
of 12.2%. The increase was due to the first-time consolidation of yes salary expenses in the second quarter of 2015 in
the amount of NIS 62 million. The increase was partially mitigated by a decrease in salary expenses of Pelephone due to continued
streamlining efforts.
Operating expenses in the
second quarter of 2015 amounted to NIS 1.00 billion compared with NIS 822 million in the corresponding quarter of 2014, an increase
of 21.9%. The increase was due to the first-time consolidation of yes operating expenses in the second quarter of 2015 in the
amount of NIS 227 million. The increase was partially mitigated by a decrease in operating expenses at Pelephone and Bezeq Fixed-Line
due to continued streamlining procedures.
Other operating income
in the second quarter of 2015 amounted to NIS 141 million compared with NIS 568 million in the corresponding quarter of 2014.
Other operating income was influenced by the recording of a one-time gain of NIS 582 million from the sale of Coral Tel Ltd.,
the operator of the "Yad2" web site, in the corresponding quarter of 2014. The decrease in other operating income was
partially mitigated by a provision in the amount of NIS 117 million for the early retirement of employees at Bezeq Fixed-Line
in the corresponding quarter of 2014.
Operating profit in the
second quarter of 2015 amounted to NIS 794 million compared with NIS 1.23 billion in the corresponding quarter of 2014, a decrease
of 35.7%. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter of 2015 amounted
to NIS 1.25 billion (EBITDA margin of 47.8%) compared with NIS 1.55 billion (EBITDA margin of 69.0%) in the corresponding quarter
of 2014, a decrease of 19.8%. Net profit in the second quarter of 2015 amounted to NIS 482 million compared with NIS 810
million in the corresponding quarter of 2014, a decrease of 40.5%.
The decrease in profitability
metrics was due to the aforementioned recording of a one-time gain of NIS 582 million from the sale of Coral Tel Ltd., the operator
of the "Yad2" web site, in the corresponding quarter of 2014 which was partially mitigated by a provision in the amount
of NIS 117 million for the early retirement of employees at Bezeq Fixed-Line in the corresponding quarter of 2014.
Cash flow from operating activities
in the second quarter of 2015 amounted to NIS 840 million compared with NIS 1.06 billion in the corresponding quarter of 2014,
a decrease of 21.1%. The decrease in cash flow from operating activities was primarily due to lower profitability at Pelephone
and changes in working capital at Pelephone and Bezeq Fixed-Line. The decrease was partially mitigated by the first-time consolidation
of yes cash flow from operating activities in the second quarter of 2015 in the amount of NIS 106 million.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
2 |
|
|
Press
Release |
Payments for investments
(Capex) in the second quarter of 2015 amounted to NIS 511 million compared with NIS 323 million in the corresponding quarter
of 2014, an increase of 58.2%. The increase in investments was primarily due to the payment of NIS 96 million by Pelephone
for the LTE 4G frequencies as well as the first-time consolidation of yes investments in the second quarter of 2015 in the amount
of NIS 82 million.
Free cash flow in the second
quarter of 2015 amounted to NIS 413 million compared with NIS 787 million in the corresponding quarter of 2014, a decrease of
47.5%.
Net financial debt of the
Group amounted to NIS 9.54 billion at June 30, 2015 compared with NIS 6.95 billion as of June 30, 2014. At June 30, 2015, the
Group's net financial debt to EBITDA ratio was 2.30, compared with 1.54 on June 30, 2014.
Dividend Announcement
In accordance with the Company's
dividend policy, the Board of Directors recommended the distribution of a cash dividend to shareholders of NIS 933 million. The
dividend represents 100% of net profits for the first half of 2015 in the amount of NIS 945 million, less a one-time profit of
NIS 12 million from the increase to a controlling stake in yes. The profit from the increase to the controlling stake was excluded
from the Company's dividend policy pursuant to the board decision on February 10, 2015. The dividend distribution of approximately
NIS 0.34 per share is subject to shareholder approval, and would be payable on October 26, 2015. The ex-dividend date is October
12, 2015.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
3 |
|
|
Press
Release |
2015 Outlook
Below is the Group's outlook for
2015 based on the existing information known to the Bezeq Group today. There is no change compared with the outlook published
in the Company's 2014 annual report as at December 31, 2014 and includes the execution of a transaction for the acquisition of
all of the holdings in yes as well as the signing of an amendment to the collective labor agreement:
| Net profit
attributable to shareholders: |
Approximately
NIS 1.5 billion |
| |
|
| EBITDA: |
Approximately NIS 4.2
billion |
| |
|
| Free cash flow: |
Approximately NIS 2.0
billion |
The Company's forecasts detailed
above are forward-looking information, as defined in the Securities Law, and are based on assessments, assumptions and expectations
of the Company. The forecasts do not include the effects of a provision for the early retirement of employees.
The forecasts
are based, among other factors, on the Group's assessments concerning the competition in the communications market and the regulation
of the industry, as well as the economic situation in Israel, and consequently, the Group's ability to implement its plans for
2015. Actual results may differ from those assessments, taking into account changes in the above mentioned factors and in the
business conditions as well as in the impact of regulatory decisions, technological changes, developments in the communications
market, and realization of risk factors detailed in the Group's periodic report for the year 2014.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
4 |
|
|
Press
Release |
Bezeq
Fixed-Line Results
Stella Handler, Bezeq CEO,
commented “The second quarter was characterized by increased competition in the Internet market and today there are over
150,000 wholesale lines. Looking forward, we expect this trend to continue. Our strategic investments in advanced infrastructures,
focus on customer services and our continued improvement in operational processes enable us to successfully address the new challenges."
Handler added: “We continue
to differentiate ourselves through our unique service offerings as well as by our entrance into new businesses such as the Smart
Home.”
Revenues in the second
quarter of 2015 amounted to NIS 1.11 billion compared with NIS 1.07 billion in the corresponding quarter of 2014, an increase
of 3.0%, similar to the trend seen in the first quarter of 2015. The increase in revenues was primarily due to higher revenues
from broadband Internet services as well as transmission and data communication services. In addition, the decrease in telephony
revenues moderated as the comparison to the corresponding quarter of 2014 was not influenced by the reduction in fixed call termination
rates which occurred in the fourth quarter of 2013.
Revenues from broadband Internet
services in the second quarter of 2015 amounted to NIS 387 million compared with NIS 345 million in the corresponding quarter
of 2014, an increase of 12.2%. The increase in revenues from broadband Internet services was primarily due to continued growth
in the number of broadband Internet lines. In addition, there was a 4.8% increase in average revenue per subscriber due to ongoing
upgrades to higher speeds. Bezeq Fixed Line revenues from Internet services in the second quarter of 2015 increased by NIS 4 million
compared with the first quarter of 2015.
Revenues from transmission
and data communication services in the second quarter of 2015 amounted to NIS 264 million compared with NIS 255 million in
the corresponding quarter of 2014, an increase of 3.5%. The increase in revenues from transmission and data communication services
was due to growth in the number of business customers and the number of data lines, continued growth in the volume of data transmitted
as well as the entrance into new businesses.
Revenues from telephony services
in the second quarter of 2015 amounted to NIS 396 million compared with NIS 415 million in the corresponding quarter of 2014,
a decrease of 4.6%. The decrease in telephony revenues was primarily due to a reduction in the average revenue per line.
Salary expenses in the
second quarter of 2015 amounted to NIS 226 million compared with NIS 228 million in the corresponding quarter of 2014, a decrease
of 0.9%. The decrease in salary expenses was due to the continued streamlining of Company operations.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
5 |
|
|
Press
Release |
Operating expenses in the
second quarter of 2015 amounted to NIS 176 million compared with NIS 188 million in the corresponding quarter of 2014, a decrease
of 6.4%. The decrease in operating expenses was due to continued streamlining measures which resulted in a reduction in most of
the expense items of the Company.
Other operating income/expenses
in the second quarter of 2015 amounted to income of NIS 139 million compared with expenses of NIS 14 million in the corresponding
quarter of 2014. Other operating income/expenses was influenced by an increase in capital gains from the sale of real estate which
amounted to NIS 146 million in the second quarter of 2015 compared with NIS 103 million in the corresponding quarter of 2014.
In addition, in the corresponding quarter of 2014 a provision for NIS 117 was recorded for early retirement.
Operating profit in the
second quarter of 2015 amounted to NIS 662 million compared with NIS 471 million in the corresponding quarter of 2014, an increase
of 40.6%. After adjusting for the other income/expenses line item, adjusted operating profit in the second quarter of 2015
amounted to NIS 523 million compared with NIS 485 million in the corresponding quarter of 2014, an increase of 7.8%.
EBITDA in the second quarter
of 2015 amounted to NIS 842 million (EBITDA margin of 76.2%) compared with NIS 643 million (EBITDA margin of 59.9%) in the corresponding
quarter of 2014, an increase of 30.9%. After adjusting for the other income/expenses line item, adjusted EBITDA in the
second quarter of 2015 amounted to NIS 703 million (EBITDA margin of 63.6%) compared with NIS 657 million (EBITDA margin of 61.2%)
in the corresponding quarter of 2014, an increase of 7.0%
Net profit in the
second quarter of 2015 amounted to NIS 382 million compared with NIS 251 million in the corresponding quarter of 2014, an increase
of 52.2%. Net profit was influenced by the aforementioned changes in the other operating income/expenses item.
It should be noted that the Company
updated its reporting regarding financing income in connection with shareholder loans provided to yes and, as of the second quarter
of 2015, no longer reports the financing income from such loans in Bezeq Fixed-Lines' financing income. Comparative numbers were
restated in order to provide a proper comparison.
Cash flow from operating activities
in the second quarter of 2015 amounted to NIS 456 million compared with NIS 545 million in the corresponding quarter of 2014,
a decrease of 16.3%. Cash flow from operating activities was influenced by changes in working capital partially resulting from
timing differences.
Payments for investments
(Capex) in the second quarter of 2015 amounted to NIS 191 million compared with NIS 207 million in the corresponding quarter
of 2014, a decrease of 7.7%.
Free cash flow in the second
quarter of 2015 amounted to NIS 345 million compared with NIS 380 million in the corresponding quarter of 2014, a decrease of
9.2%.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
6 |
|
|
Press
Release |
In the second quarter of 2015,
the Company added 28,000 broadband Internet lines, amounting to a total of 1.42 million. Due to the introduction
on May 17th, 2015 of an automated system for transitions to wholesale lines, in the second quarter of 2015 the number
of wholesale lines grew by 67 thousand for a total of 78,000 broadband Internet lines compared to 11,000 at the end of the first
quarter 2015.
During the second quarter of 2015,
average broadband speeds reached 34.9 Mbps compared with 33.2 Mbps sequentially, and 21.9 Mbps in the corresponding quarter
of 2014, representing an increase of 59.4% compared to the corresponding quarter of 2014.
Average revenue per Internet
subscriber (ARPU - retail) in the second quarter of 2015 amounted to NIS 88, compared with NIS 87 sequentially and
NIS 84 in the corresponding quarter of 2014, representing an increase of 4.8% compared to the corresponding quarter of 2014.
The number of telephony
access lines continued to stabilize, and at the end of June 2015 amounted to 2.204 million, compared with 2.208 million
sequentially and 2.205 million in the corresponding quarter of 2014.
Average revenue per line
(ARPL) in the second quarter of 2015 amounted to NIS 60, compared with NIS 61 sequentially and NIS 63 in the corresponding
quarter of 2014, a decrease of 4.8% compared to the year ago quarter.
| Bezeq Fixed-Line - Financial data | |
Q2 2015 | | |
Q2 2014 | | |
% change | |
| | |
(NIS millions) | | |
| |
| | |
| | |
| | |
| |
| Revenues | |
| 1,105 | | |
| 1,073 | | |
| 3.0 | % |
| Operating profit | |
| 662 | | |
| 471 | | |
| 40.6 | % |
| Operating profit, adjusted 3 | |
| 523 | | |
| 485 | | |
| 7.8 | % |
| EBITDA | |
| 842 | | |
| 643 | | |
| 30.9 | % |
| EBITDA, adjusted 3 | |
| 703 | | |
| 657 | | |
| 7.0 | % |
| EBITDA margin | |
| 76.2 | % | |
| 59.9 | % | |
| | |
| EBITDA margin, adjusted 3 | |
| 63.6 | % | |
| 61.2 | % | |
| | |
| Net profit 1 | |
| 382 | | |
| 251 | | |
| 52.2 | % |
| Cash flows from operating activities | |
| 456 | | |
| 545 | | |
| -16.3 | % |
| Payments for investments | |
| 191 | | |
| 207 | | |
| -7.7 | % |
| Free cash flow 2 | |
| 345 | | |
| 380 | | |
| -9.2 | % |
1 Excluding share in profits/losses of equity-accounted
investees.
2 Free cash flow is defined as cash flows from
operating activities less net payments for investments.
3 Excluding other operating expenses (income).
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
7 |
|
|
Press
Release |
| Bezeq Fixed-Line - KPIs | |
Q2 2015 | | |
Q1 2015 | | |
Q2 2014 | |
| | |
| | | |
| | | |
| | |
| Number of active subscriber lines (end of period, in thousands) 1 | |
| 2,204 | | |
| 2,208 | | |
| 2,205 | |
| Average monthly revenue per line (NIS) 2 | |
| 60 | | |
| 61 | | |
| 63 | |
| Number of outgoing minutes (millions) | |
| 1,396 | | |
| 1,459 | | |
| 1,522 | |
| Number of incoming minutes (millions) | |
| 1,385 | | |
| 1,428 | | |
| 1,424 | |
| Churn rate (%) 3 | |
| 2.4 | % | |
| 2.4 | % | |
| 2.8 | % |
| Total number of broadband Internet lines (end of period, in thousands)4 | |
| 1,418 | | |
| 1,390 | | |
| 1,308 | |
| of which: Number of broadband Internet lines (end of period, in thousands) - Wholesale 4 | |
| 78 | | |
| 11 | | |
| - | |
| Average monthly revenue per broadband Internet subscriber (NIS) - Retail | |
| 88 | | |
| 87 | | |
| 84 | |
| Average broadband speed per subscriber (end of period, Mbps) | |
| 34.9 | | |
| 33.2 | | |
| 21.9 | |
1
Inactive subscribers are those whose lines have been physically disconnected (except for a subscriber in the first three
months of collection proceedings).
2 Not including revenues from data communications
and transmissions services, Internet services, services to communications providers, and contract and other services. Based on
average lines for the period.
3 Churn rate is calculated according to the number
of telephone subscribers who have disconnected from the Company's services during the period, divided by the average number of
telephone subscribers during the period.
4 The total number of broadband Internet lines
includes retail and wholesale lines. Retail - direct Internet subscriber of the Company; Wholesale - Internet line through Bezeq's
wholesale service for telecom operators.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
8 |
|
|
Press
Release |
Pelephone
Results
| · | Net
profit increased 36.1% in Q2 2015 and amounted to NIS 49 million compared with NIS 36
million sequentially |
| · | Operating
profit amounted to NIS 53 million in Q2 2015 compared with NIS 32 million sequentially,
an increase of 65.6% |
| · | EBITDA
in Q2 2015 amounted to NIS 159 million compared with NIS 136 million sequentially |
| · | ARPU
in Q2 2015 remained stable sequentially at NIS 65 |
| · | Pelephone
had the lowest churn among Israeli incumbent cellular operators in the quarter primarily
due to the recruitment of prepaid subscribers |
Gil Sharon, CEO, Pelephone,
said today, “In the second quarter, we continued our strategic focus on customer retention, maintaining our market share
and continuing our operational streamlining activities. This focus was reflected in increased sequential profits, and stability
in our subscriber base. In the present quarter we implemented several initiatives, such as acquiring YouPhone’s operations,
which will enable us to grow our subscriber base. We also expanded our presence in the prepaid market, launching new programs
at the end of April which enabled us to recruit more subscribers during the quarter. Thanks to these initiatives, this is the
first quarter in some time that we have managed to stop the net churn. In addition, we continued to have the lowest net porting
numbers among Israeli incumbent cellular operators in the quarter.
Sharon also stated that, “We
have recently received our 4G frequency allocations from the Ministry of Communications, and are preparing to increase bandwidth
on our 4G network, and improve Internet speeds.”
Sharon further added, “Market
competition continued to be fierce, with migration levels between carriers continuing to be extremely high. This puts downward
pressure on revenues, which was partially offset by seasonal revenues from international roaming.”
Total revenues in the second
quarter of 2015 amounted to NIS 721 million compared with NIS 727 million sequentially and NIS 843 million in the corresponding
quarter of 2014, a decrease of 0.8% and 14.5% respectively.
Revenues from cellular services
in the second quarter of 2015 amounted to NIS 502 million compared with NIS 499 million sequentially, an increase of 0.6%,
and compared with NIS 622 million in the corresponding quarter of 2014, a decrease of 19.3%.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
9 |
|
|
Press
Release |
The decrease in service revenues
compared with the corresponding quarter was due to a decrease of NIS 52 million from the hosting agreement with Hot Mobile which
terminated at the end of December 2014. In addition, there was a decrease in tariffs as a result of increased competition in the
cellular market and the transition of existing customers to lower-priced plans in line with existing market prices.
Revenues from equipment sales
in the second quarter of 2015 amounted to NIS 219 million compared with NIS 228 million sequentially, a decrease of 3.9%,
and compared with NIS 221 million in the corresponding quarter of 2014, a decrease of 0.9%.
Operating profit in the
second quarter of 2015 amounted to NIS 53 million compared with NIS 32 million sequentially, an increase of 65.6%, and compared
with NIS 127 million in the corresponding quarter of 2014, a decrease of 58.3%. The sequential increase in operating profit was
primarily due to an increase in roaming revenues as well as operational streamlining measures which reduced expenses such as salaries,
site rentals and others.
The decrease in operating profit
compared with the corresponding quarter of 2014 was largely due to the aforementioned decrease in hosting revenues. The decrease
in revenues was partially mitigated by operational streamlining measures which reduced expenses such as salaries, advertising,
doubtful debts, site rentals and others.
After adjusting for the revenues
from the hosting agreement with Hot Mobile, operating profit decreased by NIS 22 million compared with the corresponding quarter
of 2014, a decrease of 29.3%.
EBITDA in the second quarter
of 2015 amounted to NIS 159 million (EBITDA margin of 22.1%) compared with NIS 136 million sequentially (EBITDA margin of 18.7%),
and NIS 232 million (EBITDA margin of 27.5%) in the corresponding quarter of 2014.
After adjusting for the revenues
from the hosting agreement with Hot Mobile, EBITDA decreased by NIS 21 compared with the corresponding quarter of 2014, a decrease
of 11.7%.
Net profit in the second
quarter of 2015 amounted to NIS 49 million compared with NIS 36 million sequentially, an increase of 36.1%, and compared with
NIS 106 million in the corresponding quarter of 2014, a decrease of 53.8%.
After adjusting for the revenues
from the hosting agreement with Hot Mobile, net profit decreased by NIS 19 million compared with the corresponding quarter of
2014, a decrease of 27.9%.
Cash flow from operating activities
in the second quarter of 2015 amounted to NIS 202 million compared with NIS 351 million sequentially, a decrease of 42.5%,
and compared with NIS 420 million in the corresponding quarter of 2014, a decrease of 51.9%.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
10 |
|
|
Press
Release |
The number of Pelephone subscribers
totaled 2.566 million subscribers as of June 30, 2015, compared with 2.565 million at March 31, 2015. In the second quarter
of 2015, Pelephone again had the best net porting numbers compared with the incumbent cellular operators and, for the first time
in many quarters, Pelephone succeeded in stopping the net churn due to customer retention measures as well as the launching of
new prepaid plans which resulted in an increase in subscribers.
Monthly ARPU in the second
quarter of 2015 remained stable sequentially and amounted to NIS 65, compared with NIS 79 in the corresponding quarter of 2014.
The decrease in monthly ARPU compared with the corresponding quarter was primarily due to the termination of the hosting agreement
with Hot Mobile which resulted in a decrease of NIS 7 in ARPU in the quarter.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
11 |
|
|
Press
Release |
| Pelephone - Financial data | |
Q2 2015 | | |
Q2 2014 | | |
% change | |
| | |
(NIS millions) | | |
| |
| | |
| | |
| | |
| |
| Total revenues | |
| 721 | | |
| 843 | | |
| -14.5 | % |
| Service revenues | |
| 502 | | |
| 622 | | |
| -19.3 | % |
| Equipment revenues | |
| 219 | | |
| 221 | | |
| -0.9 | % |
| Operating profit | |
| 53 | | |
| 127 | | |
| -58.3 | % |
| EBITDA | |
| 159 | | |
| 232 | | |
| -31.5 | % |
| EBITDA margin | |
| 22.1 | % | |
| 27.5 | % | |
| | |
| Net profit | |
| 49 | | |
| 106 | | |
| -53.8 | % |
| Cash flows from operating activities | |
| 202 | | |
| 420 | | |
| -51.9 | % |
| Payments for investments | |
| 199 | | |
| 90 | | |
| 121.1 | % |
| Free cash flow 1 | |
| 3 | | |
| 335 | | |
| -99.1 | % |
1
Free cash flow is defined as cash flows from operating activities less net payments for investments
| Pelephone - KPIs | |
Q2 2015 | | |
Q1 2015 | | |
Q2 2014 | |
| | |
| | | |
| | | |
| | |
| Total subscribers (end of period, in thousands) 1 | |
| 2,566 | | |
| 2,565 | | |
| 2,610 | |
| Average revenue per user (ARPU, NIS) 2 | |
| 65 | | |
| 65 | | |
| 79 | |
| Churn rate 3 | |
| 6.1 | % | |
| 6.5 | % | |
| 6.5 | % |
1 Subscriber data includes Pelephone subscribers
(excluding subscribers of operators that Pelephone hosts on its network) and do not include inactive subscribers who are connected
to Pelephone's services for six months or more. An inactive subscriber is one who in the past six months has not received at least
one call, not made at least one call/SMS, did not take one Internet action nor pay for any Pelephone services. A customer may have
more than one subscriber line.
2 Average monthly revenue per subscriber is calculated
by dividing average monthly revenue from cellular services, both from Pelephone subscribers and from other communications operators,
including revenues from cellular operators who use Pelephone's network, and repair and warranty services in the period by average
Pelephone active subscribers in the same period.
3 Churn rate is calculated according to the proportion
of subscribers who have disconnected from the Company's services and subscribers who have become inactive during the period, divided
by the total number of average active subscribers during the period.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
12 |
|
|
Press
Release |
Bezeq
International Results
| · | Revenues
in Q2 2015 increased 7% y-o-y to NIS 391 million |
| · | Increase
of 30% y-o-y in ICT revenues |
| · | Continued
successful leveraging of the submarine cable led to a 5% increase in revenues from Internet
services and a 10% rise in the number of Internet subscribers compared to a year ago
|
| · | Significant
growth in all profitability metrics compared to the corresponding quarter of 2014: Increases
of 9.9% in net profit, 7.2% in operating profit and 4.4% in EBITDA |
Moti Elmaliach, CEO
of Bezeq International said, “In the second quarter of 2015 we continued to deliver growth and outstanding results across
all operating segments. Our operational focus, coupled with our sustained investment in market-leading technologies and excellence
in customer service, provide us with a strong foundation for continued growth. Our unique human capital is the Company’s
real asset, enabling us to offer optimal customer service and drive us forward.”
Revenues in the second
quarter of 2015 amounted to NIS 391 million compared with NIS 365 million in the corresponding quarter of 2014, an increase of
7.0%. The increase was primarily due to the significant growth in revenues from business communications (ICT) and cloud services,
increased international hubbing and data activities as well as the continued increases in revenues from Internet services delivered
across the submarine cable infrastructure.
Operating profit in the
second quarter of 2015 amounted to NIS 62 million compared with NIS 58 million in the corresponding quarter of 2014, an increase
of 7.2%. EBITDA in the second quarter of 2015 amounted to NIS 94 million (EBITDA margin of 24.1%) compared with NIS 90
million (EBITDA margin of 24.7%) in the corresponding quarter of 2014, an increase of 4.4%. Net profit in the second quarter
of 2015 amounted to NIS 45 million compared with NIS 41 million in the corresponding quarter of 2014, an increase of 9.9%.
The increase in profitability
metrics was due to the sale of the Company's 50% holding in Bezeqcom (an associate company) as well as increased revenues from
business communications, international hubbing and data activities, as well as continued growth in the number of Internet subscribers
and in revenues from Internet services delivered across the submarine cable infrastructure.
Cash flow from operating activities
in the second quarter of 2015 amounted to NIS 74 million, compared with NIS 95 million in the corresponding quarter of 2014,
a decrease of 22.3%. Free cash flow in the second quarter of 2015 amounted to NIS 48 million compared with NIS 72 million
in the corresponding quarter of 2014, a decrease of 32.7%. The decrease in operating and free cash flow was due to changes in
working capital resulting from timing differences.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
13 |
|
|
Press
Release |
| Bezeq International | |
Q2 2015 | | |
Q2 2014 | | |
% change | |
| | |
(NIS millions) | |
| |
| | |
| | |
| | |
| |
| Revenues | |
| 391 | | |
| 365 | | |
| 7.0 | % |
| Operating profit | |
| 62 | | |
| 58 | | |
| 7.2 | % |
| EBITDA | |
| 94 | | |
| 90 | | |
| 4.4 | % |
| EBITDA margin | |
| 24.1 | % | |
| 24.7 | % | |
| | |
| Net profit | |
| 45 | | |
| 41 | | |
| 9.9 | % |
| Cash flows from operating activities | |
| 74 | | |
| 95 | | |
| -22.3 | % |
| Payments for investments | |
| 26 | | |
| 24 | | |
| 8.1 | % |
| Free cash flow 1 | |
| 48 | | |
| 72 | | |
| -32.7 | % |
1 Free cash flow is defined as cash flows from operating activities less net payments for investments.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
14 |
|
|
Press
Release |
yes
Results
| · | Yes
added 4,000 subscribers in the second quarter of 2015 and reached a record 638,000 total
subscribers |
| · | Revenues
in Q2 2015 increased 2.7% and amounted to NIS 439 million compared with NIS 428 million
in the corresponding period |
Ron Eilon, CEO of yes,
stated, “This is our ninth consecutive quarter of growth in our subscriber base, despite a changing market landscape and
discriminating regulation. We are happy to see that our customers continue to choose yes, the leader in television viewer experience,
offering world-class content and outstanding service, based on cutting-edge technology. In keeping with that tradition, we have
recently announced our new Quattro set-top box – the most advanced in the country, with Prime Time service and numerous
recording options – which will join our other ground-breaking services."
Revenues in the second
quarter of 2015 amounted to NIS 439 million compared with NIS 428 million in the corresponding quarter of 2014, an increase of
2.7%. The increase in revenues was due to growth in the number of subscribers.
Operating profit in the
second quarter of 2015 amounted to NIS 70 million compared with NIS 67 million, an increase of 5.3%. EBITDA in the second
quarter of 2015 amounted to NIS 150 million (EBITDA margin of 34.3%) compared with NIS 141 million (EBITDA margin of 32.9%) in
the corresponding quarter of 2014, an increase of 7.0%.
The increase in operating profit
and EBITDA was primarily due to higher revenues partially mitigated by an increase in content and space segment expenses which
were influenced by the increase in the US dollar exchange rate.
Profit before financing expenses
to shareholders and taxes in the second quarter of 2015 amounted to NIS 15 million compared with NIS 22 million in the corresponding
quarter of 2014.
Net loss in the second
quarter of 2015 amounted to NIS 166 million compared with NIS 115 million in the corresponding quarter of 2014, an increase
in net loss of 43.8%. The increase in net loss was due to an increase in financing expenses as a result of the higher Israeli
consumer price index (CPI) in the second quarter of 2015 compared with the corresponding quarter of 2014.
Cash flow from operating activities
in the second quarter of 2015 amounted to NIS 106 million, in line with the corresponding quarter of 2014. Free cash flow
in the second quarter of 2015 decreased 34.4% and amounted to NIS 25 million. The decrease in free cash flow was due to an
increase in investments resulting from timing differences.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
15 |
|
|
Press
Release |
ARPU in the second quarter
of 2015 amounted to NIS 230 compared with NIS 234 in the corresponding period of 2014, a decrease of 1.7%.
| yes - Financial data | |
Q2 2015 | | |
Q2 2014 | | |
% change | |
| | |
(NIS millions) | | |
| |
| | |
| | |
| | |
| |
| Revenues | |
| 439 | | |
| 428 | | |
| 2.7 | % |
| Operating profit | |
| 70 | | |
| 67 | | |
| 5.3 | % |
| EBITDA | |
| 150 | | |
| 141 | | |
| 7.0 | % |
| EBITDA margin | |
| 34.3 | % | |
| 32.9 | % | |
| | |
| Net loss | |
| (166 | ) | |
| (115 | ) | |
| 43.8 | % |
| Cash flows from operating activities | |
| 106 | | |
| 106 | | |
| | |
| Payments for investments | |
| 82 | | |
| 68 | | |
| 20.4 | % |
| Free cash flow 1 | |
| 25 | | |
| 38 | | |
| -34.4 | % |
1 Free cash flow is defined as cash flows from operating activities less net payments for investments.
| yes - KPIs | |
Q2 2015 | | |
Q1 2015 | | |
Q2 2014 | |
| | |
| | |
| | |
| |
| Number of subscribers (end of period, in thousands) 1 | |
| 638 | | |
| 634 | | |
| 613 | |
| Average revenue per user (ARPU, NIS) 2 | |
| 230 | | |
| 232 | | |
| 234 | |
| Churn rate (%) 3 | |
| 3.1 | % | |
| 3.4 | % | |
| 3.1 | % |
1 Subscriber – one household or small business
customer. For a business customer with numerous intake points or set top boxes (such as a hotel, kibbutz or gym), the number of
subscribers is calculated by dividing the total payment received from the business customer by the average revenue from a small
business customer.
2 ARPU includes total yes revenues (content and
equipment, premium channels, advanced services, and others) divided by average subscribers for the period.
3 Churn rate - the number of yes subscribers who
left yes during the period divided by the average number of registered yes subscribers in the period.
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
16 |
|
|
Press
Release |
Conference Call & Webcast
Information
Bezeq will conduct a conference
call hosted by Mr. Shaul Elovitch, Bezeq Chairman, and Mr. David "Dudu" Mizrahi, Bezeq Chief Financial Officer and Deputy
CEO on Monday, August 31, 2015, at 4:00 PM Israel Time / 9:00 AM Eastern Time. Participants are invited to join the live conference
call by dialing:
International Phone Number: + 972-3-918-0664
Israel Phone Number: 03-918-0664
A live webcast of the conference
call will be available on the investor relations section of the Bezeq corporate website at www.bezeq.co.il. Please visit the website
at least 15 minutes early to register for the webcast and download any necessary audio software.
A webcast replay will be made
available on the investor relations section of the Bezeq corporate website. An automated telephone replay will also be available
approximately three hours after the completion of the live call through Friday, September 4, 2015. Participants are invited to
listen to the conference call replay by dialing:
International Phone Number: + 972-3-925-5930
Israel Phone Number: 03-925-5930
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
17 |
|
|
Press
Release |
About Bezeq The Israel Telecommunication
Corp.
Bezeq is Israel's leading telecommunications
service provider. Established in 1984, the Company has led Israel into the new era of communications, based on the most advanced
technologies and services. Bezeq and its subsidiaries offer the full range of communications services including domestic, international
and cellular phone services; broadband Internet, and other data communications; satellite-based multi-channel TV; and corporate
networks.
For more information about Bezeq
please visit the corporate website at www.bezeq.co.il.
This press release contains
general data and information as well as forward looking statements about Bezeq. Such statements include expressions of management's
expectations about new and existing programs, opportunities, technology and market conditions. Although Bezeq believes its expectations
are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. These statements should
not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. These forward-looking
statements are made only as of the date hereof and the Company assumes no obligation to update any forward-looking statement.
In addition, the realization and/or otherwise of the forward-looking information will be affected by factors that cannot be assessed
in advance, and which are not within the control of the Corporation, including the risk factors that are characteristic of its
operations, and developments in the general environment, and external factors and the regulation that affects the Corporation’s
operations.
This press release contains
partial information from the public reports of Bezeq under the Israeli Securities Law 5728-1968 (the "Securities Law"),
which reports can be accessed at the Israeli Securities Authority's website, www.magna.isa.gov.il. A review of this press release
is not a substitute for a review of the detailed reports of Bezeq under the Securities Law and is not meant to replace or qualify
them; rather, the press release is prepared merely for the convenience of the reader, with the understanding that the detailed
reports are being reviewed simultaneously. No representation is made as to the accuracy or completeness of the information contained
herein.
This press release does not
constitute an offer or invitation to purchase or subscribe for any securities, and neither this presentation nor anything contained
herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
| Investor Relations Contact: |
Media Relations Contact: |
| Mr. Naftali Sternlicht |
Mr. Guy Hadass |
| Bezeq |
Bezeq |
| Phone: +972-2-539-5441 |
Phone: +972-3-626-2600 |
| Email: ir@bezeq.co.il |
Email: pr@bezeq.co.il |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
18 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Condensed Interim Consolidated
Income Statements
| | |
Six
months ended
June 30 | | |
Three months
ended
June 30 | | |
Year ended December 31 | |
| | |
2015 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| | |
NIS million | | |
NIS million | | |
NIS million | | |
NIS million | | |
NIS million | |
| | |
| | |
| | |
| | |
| | |
| |
| Revenues | |
4,777 | | |
4,561 | | |
2,603 | | |
2,250 | | |
9,055 | |
| Costs of activity | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 768 | | |
| 633 | | |
| 451 | | |
| 319 | | |
| 1,281 | |
| Salaries | |
| 936 | | |
| 891 | | |
| 497 | | |
| 443 | | |
| 1,768 | |
| General and operating expenses | |
| 1,801 | | |
| 1,691 | | |
| 1,002 | | |
| 822 | | |
| 3,366 | |
| Other operating expenses (income), net | |
| (158 | ) | |
| (576 | ) | |
| (141 | ) | |
| (568 | ) | |
| (586 | ) |
| | |
| 3,347 | | |
| 2,639 | | |
| 1,809 | | |
| 1,016 | | |
| 5,829 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating profit | |
| 1,430 | | |
| 1,922 | | |
| 794 | | |
| 1,234 | | |
| 3,226 | |
| Financing expenses (income) | |
| | | |
| | | |
| | | |
| | | |
| | |
| Financing expenses | |
| 265 | | |
| 240 | | |
| 164 | | |
| 127 | | |
| 486 | |
| Financing income | |
| (99 | ) | |
| (166 | ) | |
| (35 | ) | |
| (95 | ) | |
| (356 | ) |
| Financing expenses, net | |
| 166 | | |
| 74 | | |
| 129 | | |
| 32 | | |
| 130 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Profit after financing expenses, net | |
| 1,264 | | |
| 1,848 | | |
| 665 | | |
| 1,202 | | |
| 3,096 | |
| Share in the (profits) losses of equity accounted investees | |
| 16 | | |
| (98 | ) | |
| - | | |
| (79 | ) | |
| (170 | ) |
| Profit before income tax | |
| 1,280 | | |
| 1,750 | | |
| 665 | | |
| 1,123 | | |
| 2,926 | |
| Income tax | |
| 335 | | |
| 483 | | |
| 183 | | |
| 313 | | |
| 815 | |
| Profit for the period | |
| 945 | | |
| 1,267 | | |
| 482 | | |
| 810 | | |
| 2,111 | |
| Earnings per share (NIS) | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic earnings per share | |
| 0.34 | | |
| 0.46 | | |
| 0.18 | | |
| 0.30 | | |
| 0.77 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted earnings per share | |
| 0.34 | | |
| 0.46 | | |
| 0.17 | | |
| 0.29 | | |
| 0.77 | |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
19 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Other Operating Expenses (Income),
Net
| | |
Six
months ended
June 30 | | |
Three months ended
June 30 | | |
Year ended December 31 | |
| | |
2015 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| | |
NIS million | | |
NIS million | | |
NIS million | | |
NIS million | | |
NIS million | |
| | |
| | |
| | |
| | |
| | |
| |
Profit from gaining control in DBS Satellite
Services (1998) Ltd. | |
| 12 | | |
| - | | |
| - | | |
| - | | |
| - | |
| Capital gain from sale of property, plant and equipment (mainly real estate) | |
| 159 | | |
| 121 | | |
| 148 | | |
| 104 | | |
| 175 | |
| Cancellation of provision for contingent liabilities, net | |
| - | | |
| - | | |
| - | | |
| - | | |
| 23 | |
| Profit from sale of the shares of Coral Tell Ltd. | |
| - | | |
| 582 | | |
| - | | |
| 582 | | |
| 582 | |
| Other operating income | |
| 171 | | |
| 703 | | |
| 148 | | |
| 686 | | |
| 780 | |
| Provision for contingent liabilities, net | |
| 12 | | |
| - | | |
| 6 | | |
| - | | |
| - | |
| Provision for early retirement | |
| 1 | | |
| 125 | | |
| 1 | | |
| 117 | | |
| 176 | |
| Others | |
| - | | |
| 2 | | |
| - | | |
| 1 | | |
| 18 | |
| Total other operating expenses | |
| 13 | | |
| 127 | | |
| 7 | | |
| 118 | | |
| 194 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| (158 | ) | |
| (576 | ) | |
| (141 | ) | |
| (568 | ) | |
| (586 | ) |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
20 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Consolidated Balance Sheets
| | |
June 30,
2015 | | |
June 30,
2014 | | |
December 31,
2014 | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| |
NIS million | | |
NIS million | | |
NIS million | |
| Assets | |
| | |
| | |
| |
| Cash and cash equivalents | |
826 | | |
673 | | |
660 | |
| Investments, including derivatives | |
| 999 | | |
| 1,725 | | |
| 2,223 | |
| Trade receivables | |
| 2,256 | | |
| 2,335 | | |
| 2,227 | |
| Other receivables | |
| 216 | | |
| 325 | | |
| 238 | |
| Inventory | |
| 96 | | |
| 89 | | |
| 96 | |
| Assets classified as held for sale | |
| 6 | | |
| 24 | | |
| 22 | |
| Total current assets | |
| 4,399 | | |
| 5,171 | | |
| 5,466 | |
| | |
| | | |
| | | |
| | |
| Trade and other receivables | |
| 655 | | |
| 587 | | |
| 566 | |
| Broadcasting rights, net of rights exercised | |
| 471 | | |
| - | | |
| - | |
| Property, plant and equipment | |
| 6,980 | | |
| 6,060 | | |
| 6,079 | |
| Goodwill | |
| 1,647 | | |
| 1,040 | | |
| 1,040 | |
| Intangible assets | |
| 2,045 | | |
| 799 | | |
| 753 | |
| Deferred and other expenses | |
| 254 | | |
| 254 | | |
| 253 | |
| Investments in equity-accounted investees | |
| 28 | | |
| 1,014 | | |
| 1,057 | |
| Investments | |
| 100 | | |
| 80 | | |
| 99 | |
| Deferred tax assets | |
| 854 | | |
| 35 | | |
| - | |
| Total non-current assets | |
| 13,034 | | |
| 9,869 | | |
| 9,847 | |
| Total
assets | |
| 17,433 | | |
| 15,040 | | |
| 15,313 | |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
21 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Consolidated Balance Sheets
(Continued)
| | |
June 30,
2015 | | |
June 30,
2014 | | |
December 31,
2014 | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| |
NIS million | | |
NIS million | | |
NIS million | |
| Liabilities and equity | |
| | |
| | |
| |
| Debentures, loans and borrowings | |
| 1,924 | | |
| 1,534 | | |
| 1,481 | |
| Trade payables | |
| 1,021 | | |
| 638 | | |
| 664 | |
| Other payables, including derivatives | |
| 765 | | |
| 651 | | |
| 710 | |
| Current tax liabilities | |
| 699 | | |
| 591 | | |
| 600 | |
| Provisions | |
| 90 | | |
| 134 | | |
| 62 | |
| Employee benefits | |
| 271 | | |
| 378 | | |
| 259 | |
| Liability to Eurocom DBS Ltd, related party | |
| 101 | | |
| - | | |
| - | |
| Total current liabilities | |
| 4,871 | | |
| 3,926 | | |
| 3,776 | |
| | |
| | | |
| | | |
| | |
| Loans and debentures | |
| 9,444 | | |
| 7,815 | | |
| 8,606 | |
| Employee benefits | |
| 238 | | |
| 229 | | |
| 233 | |
| Provisions | |
| 70 | | |
| 68 | | |
| 69 | |
| Deferred tax liabilities | |
| 67 | | |
| 10 | | |
| 17 | |
| Derivatives | |
| 76 | | |
| 35 | | |
| 94 | |
| Deferred income and others | |
| 87 | | |
| 73 | | |
| 77 | |
| Total non-current liabilities | |
| 9,982 | | |
| 8,230 | | |
| 9,096 | |
| | |
| | | |
| | | |
| | |
| Total liabilities | |
| 14,853 | | |
| 12,156 | | |
| 12,872 | |
| | |
| | | |
| | | |
| | |
| Total equity | |
| 2,580 | | |
| 2,884 | | |
| 2,441 | |
| Total liabilities
and equity | |
| 17,433 | | |
| 15,040 | | |
| 15,313 | |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
22 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Consolidated Statements of Cash
Flows
| | |
Six
months ended
June 30 | | |
Three months ended
June 30 | | |
Year ended December 31 | |
| | |
2015 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| Cash flows from operating activities | |
| | |
| | |
| | |
| | |
| |
| Profit for the period | |
| 945 | | |
| 1,267 | | |
| 482 | | |
| 810 | | |
| 2,111 | |
| Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 768 | | |
| 633 | | |
| 451 | | |
| 319 | | |
| 1,281 | |
| Profit from sale of the shares of Coral Tell Ltd. | |
| - | | |
| (582 | ) | |
| - | | |
| (582 | ) | |
| (582 | ) |
| Share in the losses (profits) of equity-accounted investees | |
| (16 | ) | |
| 98 | | |
| - | | |
| 79 | | |
| 170 | |
| Financing expenses, net | |
| 203 | | |
| 122 | | |
| 136 | | |
| 59 | | |
| 229 | |
| Profit from gaining control in an investee | |
| (12 | ) | |
| - | | |
| - | | |
| - | | |
| - | |
| Capital gain, net | |
| (159 | ) | |
| (121 | ) | |
| (148 | ) | |
| (104 | ) | |
| (175 | ) |
| Share-based payments | |
| - | | |
| (1 | ) | |
| - | | |
| - | | |
| (1 | ) |
| Income tax expenses | |
| 335 | | |
| 483 | | |
| 183 | | |
| 313 | | |
| 815 | |
| Miscellaneous | |
| (5 | ) | |
| (6 | ) | |
| (4 | ) | |
| (3 | ) | |
| (3 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Change in inventory | |
| - | | |
| 34 | | |
| (9 | ) | |
| 13 | | |
| 28 | |
| Change in trade and other receivables | |
| 145 | | |
| 387 | | |
| 61 | | |
| 224 | | |
| 549 | |
| Change in broadcasting rights | |
| (11 | ) | |
| - | | |
| (11 | ) | |
| - | | |
| - | |
| Change in trade and other payables | |
| (195 | ) | |
| (107 | ) | |
| (150 | ) | |
| (45 | ) | |
| (39 | ) |
| Change in provisions | |
| 9 | | |
| 8 | | |
| 6 | | |
| 12 | | |
| (63 | ) |
| Change in employee benefits | |
| 1 | | |
| 117 | | |
| (3 | ) | |
| 104 | | |
| 3 | |
| Net income tax paid | |
| (207 | ) | |
| (225 | ) | |
| (154 | ) | |
| (135 | ) | |
| (527 | ) |
| Net cash from operating activities | |
| 1,801 | | |
| 2,107 | | |
| 840 | | |
| 1,064 | | |
| 3,796 | |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
23 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Consolidated Statements of Cash
Flows (Continued)
| | |
Six
months ended
June 30 | | |
Three months ended
June 30 | | |
Year ended December 31 | |
| | |
2015 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| | |
| | |
| | |
| | |
| | |
| |
| Cash flow used for investing activities | |
| | |
| | |
| | |
| | |
| |
| Investment in intangible assets and deferred expenses | |
| (214 | ) | |
| (90 | ) | |
| (148 | ) | |
| (42 | ) | |
| (194 | ) |
| Proceeds from the sale of property, plant and equipment | |
| 97 | | |
| 75 | | |
| 84 | | |
| 46 | | |
| 230 | |
| Acquisition of financial assets held for trading and others | |
| (929 | ) | |
| (686 | ) | |
| (489 | ) | |
| (476 | ) | |
| (2,720 | ) |
| Proceeds from the sale of financial assets held for trading and others | |
| 2,188 | | |
| 94 | | |
| 2,067 | | |
| 94 | | |
| 1,635 | |
| Cash in a company consolidated for the first time | |
| 299 | | |
| - | | |
| - | | |
| - | | |
| - | |
| Purchase of property, plant and equipment | |
| (665 | ) | |
| (548 | ) | |
| (363 | ) | |
| (281 | ) | |
| (1,081 | ) |
| Non-current investments, net | |
| (1 | ) | |
| (1 | ) | |
| 3 | | |
| 2 | | |
| (19 | ) |
| Net consideration for the sale of Coral Tell Ltd. shares | |
| - | | |
| 596 | | |
| - | | |
| 596 | | |
| 596 | |
| Miscellaneous | |
| 3 | | |
| 3 | | |
| 2 | | |
| 1 | | |
| 7 | |
| Net cash from (used in) investment activities | |
| 778 | | |
| (557 | ) | |
| 1,156 | | |
| (60 | ) | |
| (1,546 | ) |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
24 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Consolidated Statements of Cash
Flows (Continued)
| | |
Six
months ended
June 30 | | |
Three months ended
June 30 | | |
Year ended December 31 | |
| | |
2015 | | |
2014 | | |
2015 | | |
2014 | | |
2014 | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Audited) | |
| | |
| | |
| | |
| | |
| | |
| |
| Cash flows used in financing activities | |
| | |
| | |
| | |
| | |
| |
| Payment to Eurocom DBS for acquisition of shares and DBS loans | |
| (680 | ) | |
| - | | |
| (680 | ) | |
| - | | |
| - | |
| Issue of debentures and receipt of loans | |
| 228 | | |
| - | | |
| 228 | | |
| - | | |
| 1,446 | |
| Repayment of debentures and loans | |
| (863 | ) | |
| (462 | ) | |
| (805 | ) | |
| (380 | ) | |
| (1,149 | ) |
| Dividends paid | |
| (844 | ) | |
| (802 | ) | |
| (844 | ) | |
| (802 | ) | |
| (2,069 | ) |
| Interest paid | |
| (243 | ) | |
| (219 | ) | |
| (223 | ) | |
| (192 | ) | |
| (431 | ) |
| Miscellaneous | |
| (11 | ) | |
| (4 | ) | |
| (14 | ) | |
| (6 | ) | |
| 3 | |
| Net cash used for financing activities | |
| (2,413 | ) | |
| (1,487 | ) | |
| (2,338 | ) | |
| (1,380 | ) | |
| (2,200 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Increase (decrease) in cash and cash equivalents, net | |
| 166 | | |
| 63 | | |
| (342 | ) | |
| (376 | ) | |
| 50 | |
| Cash and cash equivalents at beginning of period | |
| 660 | | |
| 610 | | |
| 1,168 | | |
| 1,049 | | |
| 610 | |
| Cash and cash equivalents at end of period | |
| 826 | | |
| 673 | | |
| 826 | | |
| 673 | | |
| 660 | |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
25 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Condensed Interim Pro Forma
Consolidated Income Statements
| | |
Three months ended June 30, 2015 | | |
Three months ended June 30, 2014 | |
| | |
Prior to the pro forma event | | |
Adjustments for pro forma information | | |
Pro forma information | | |
Prior to the pro forma event | | |
Adjustments for pro forma information | | |
Pro forma information | |
| | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | | |
(Unaudited) | |
| | |
NIS million | | |
NIS million | | |
NIS million | | |
NIS million | | |
NIS million | | |
NIS million | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Revenues | |
| 2,603 | | |
| - | | |
| 2,603 | | |
| 2,250 | | |
| 422 | | |
| 2,672 | |
| Costs of activity | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 451 | | |
| (9 | ) | |
| 442 | | |
| 319 | | |
| 120 | | |
| 439 | |
| Salaries | |
| 497 | | |
| - | | |
| 497 | | |
| 443 | | |
| 69 | | |
| 512 | |
| General and operating expenses | |
| 1,002 | | |
| - | | |
| 1,002 | | |
| 822 | | |
| 213 | | |
| 1,035 | |
| Other operating income, net | |
| (141 | ) | |
| - | | |
| (141 | ) | |
| (568 | ) | |
| - | | |
| (568 | ) |
| | |
| 1,809 | | |
| (9 | ) | |
| 1,800 | | |
| 1,016 | | |
| 402 | | |
| 1,418 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Operating profit | |
| 794 | | |
| 9 | | |
| 803 | | |
| 1,234 | | |
| 20 | | |
| 1,254 | |
| Financing expenses (income) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Financing expenses | |
| 164 | | |
| 2 | | |
| 166 | | |
| 127 | | |
| 31 | | |
| 158 | |
| Financing income | |
| (35 | ) | |
| - | | |
| (35 | ) | |
| (95 | ) | |
| 68 | | |
| (27 | ) |
| Financing expenses, net | |
| 129 | | |
| 2 | | |
| 131 | | |
| 32 | | |
| 99 | | |
| 131 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Profit after financing expenses, net | |
| 665 | | |
| 7 | | |
| 672 | | |
| 1,202 | | |
| (79 | ) | |
| 1,123 | |
| Share in earnings (losses) of equity accounted investees | |
| - | | |
| - | | |
| - | | |
| (79 | ) | |
| 76 | | |
| (3 | ) |
| Profit before income tax | |
| 665 | | |
| 7 | | |
| 672 | | |
| 1,123 | | |
| (3 | ) | |
| 1,120 | |
| Income tax | |
| 183 | | |
| 2 | | |
| 185 | | |
| 313 | | |
| (22 | ) | |
| 291 | |
| Profit for the period | |
| 482 | | |
| 5 | | |
| 487 | | |
| 810 | | |
| 19 | | |
| 829 | |
| Earnings per share (NIS) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Basic earnings per share | |
| 0.18 | | |
| - | | |
| 0.18 | | |
| 0.30 | | |
| - | | |
| 0.30 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Diluted earnings per share | |
| 0.17 | | |
| 0.01 | | |
| 0.18 | | |
| 0.29 | | |
| 0.01 | | |
| 0.30 | |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
26 |
|
|
Press
Release |
"Bezeq" The Israel
Telecommunication Corp., Limited
Condensed Pro Forma Consolidated
Income Statements (Continued)
| | |
Year ended December 31, 2014 | |
| | |
Prior to the pro forma event | | |
Adjustments for pro forma information | | |
Pro forma information | |
| | |
(Audited) | | |
(Audited) | | |
(Audited) | |
| | |
NIS million | | |
NIS million | | |
NIS million | |
| | |
| | |
| | |
| |
| Revenues | |
| 9,055 | | |
| 1,710 | | |
| 10,765 | |
| Costs of activity | |
| | | |
| | | |
| | |
| Depreciation and amortization | |
| 1,281 | | |
| 484 | | |
| 1,765 | |
| Salaries | |
| 1,768 | | |
| 267 | | |
| 2,035 | |
| General and operating expenses | |
| 3,366 | | |
| 872 | | |
| 4,238 | |
| Other operating income, net | |
| (586 | ) | |
| 1 | | |
| (585 | ) |
| | |
| 5,829 | | |
| 1,624 | | |
| 7,453 | |
| | |
| | | |
| | | |
| | |
| Operating profit | |
| 3,226 | | |
| 86 | | |
| 3,312 | |
| Financing expenses (income) | |
| | | |
| | | |
| | |
| Financing expenses | |
| 486 | | |
| 98 | | |
| 584 | |
| Financing income | |
| (356 | ) | |
| 188 | | |
| (168 | ) |
| Financing expenses, net | |
| 130 | | |
| 286 | | |
| 416 | |
| | |
| | | |
| | | |
| | |
| Profit after financing expenses, net | |
| 3,096 | | |
| (200 | ) | |
| 2,896 | |
| Share in losses of equity-accounted investees | |
| (170 | ) | |
| 165 | | |
| (5 | ) |
| Profit before income tax | |
| 2,926 | | |
| (35 | ) | |
| 2,891 | |
| Income tax | |
| 815 | | |
| (47 | ) | |
| 768 | |
| Profit for the year | |
| 2,111 | | |
| 12 | | |
| 2,123 | |
| Earnings per share (NIS) | |
| | | |
| | | |
| | |
| Basic earnings per share | |
| 0.77 | | |
| 0.01 | | |
| 0.78 | |
| | |
| | | |
| | | |
| | |
| Diluted earnings per share | |
| 0.77 | | |
| - | | |
| 0.77 | |
BEZEQ
GROUP REPORTS SECOND QUARTER 2015 FINANCIAL RESULTS
|
PAGE |
27 |
| |
|
|
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