RAMAT GAN, Israel, August 31,
2017 /PRNewswire/ -- Internet Gold - Golden Lines Ltd. ("the
Company") (NASDAQ Global Select Market and TASE: IGLD) today
reported its financial results for the second quarter of 2017.
Internet Gold holds the controlling interest in B Communications
Ltd. (TASE and NASDAQ: BCOM), which in turn holds the controlling
interest in Bezeq, The Israel Telecommunication Corporation Ltd.
(TASE: BEZQ).
"We are very pleased with the results of both B Communications
and Bezeq, which continues to generate a steady return. With full
confidence in Bezeq dividend generating power, we will continue our
efforts to improve both our debt and equity positions," said
Doron Turgeman, CEO of Internet
Gold.
ISA Investigation: The Company has been reporting the
events concerning the investigation by the Israel Securities
Authority ("ISA") relating to alleged improprieties surrounding the
Yes-Bezeq deal. As reported, the investigation appears to focus on
Bezeq's 2015 acquisition of the remaining ownership interest in its
satellite TV unit, Yes, from its parent company Eurocom
Communications. As previously reported the Company's Chairman and
other senior officers at Yes were remanded to house arrest for a
period of time and later barred from communicating on certain
issues related to the investigation. In addition, following initial
reports about the investigation, civil claims with motions to
certify the claims as class action lawsuits were filed in
Israel against the Company, Bezeq
and others. The Company is currently evaluating the claims and its
course of action.
Debt and Liquidity Balances
As of June 30, 2017, Internet
Gold's unconsolidated liquidity balances comprised of cash and cash
equivalents and short term investments totaled NIS 216 million ($62
million), its unconsolidated total debt was NIS 811 million ($232
million) and its unconsolidated net debt was NIS 595 million ($170
million).
(In
millions)
|
June
30,
|
June
30,
|
June
30,
|
December
31,
|
|
2017
|
2017
|
2016
|
2016
|
|
NIS
|
US$
|
NIS
|
NIS
|
|
|
|
|
|
Series C
debentures
|
261
|
75
|
386
|
389
|
Series D
debentures
|
550
|
157
|
554
|
551
|
CPI
forward
|
-
|
-
|
6
|
6
|
Total debt
|
811
|
232
|
946
|
946
|
|
|
|
|
|
Cash and cash
equivalents
|
10
|
3
|
238
|
48
|
Short-term
investments
|
206
|
59
|
163
|
334
|
Total
liquidity
|
216
|
62
|
401
|
382
|
|
|
|
|
|
Net debt
|
595
|
170
|
545
|
564
|
|
|
|
|
|
Internet Gold's Second Quarter Consolidated Financial
Results
Internet Gold's consolidated revenues for the second quarter of
2017 totaled NIS 2.46 billion
($705 million), a 1.9% decrease
compared to the NIS 2.51 billion
reported in the second quarter of 2016. For both the current and
the prior-year periods, Internet Gold's consolidated revenues
consisted entirely of Bezeq's revenues.
Internet Gold's consolidated operating profit for the second
quarter of 2017 totaled NIS 466
million ($134 million), a 9.7%
decrease compared with NIS 516
million reported in the second quarter of 2016.
Internet Gold's consolidated net profit for the second quarter
of 2017 totaled NIS 236 million
($68 million), a 6.3% decrease
compared with NIS 252 million
reported in the second quarter of 2016.
Internet Gold's net profit attributable to shareholders for the
second quarter of 2017 totaled NIS 14
million ($4 million) compared
with NIS 14 million for the second
quarter of 2016.
Internet Gold's Second Quarter Unconsolidated Financial
Results
(In
millions)
|
Three months ended
June 30,
|
Year ended
December 31,
|
|
2017
|
2017
|
2016
|
2016
|
|
NIS
|
US$
|
NIS
|
NIS
|
|
|
|
|
|
Financial expenses,
net
|
(14)
|
(4)
|
(11)
|
(44)
|
Operating
expenses
|
(1)
|
-
|
(1)
|
(5)
|
Interest in BCOM's
net profit (loss)
|
29
|
8
|
26
|
(153)
|
Net profit
(loss)
|
14
|
4
|
14
|
(202)
|
As of June 30, 2017, Internet Gold
held approximately 65% of B Communications' outstanding shares.
Accordingly, Internet Gold's interest in B Communications' net
profit for the second quarter of 2017 totaled NIS 29 million ($8
million) compared with NIS 26
million in the second quarter of 2016.
Internet Gold's unconsolidated net financial expenses in the
second quarter of 2017 totaled NIS 14
million ($4 million) compared
with NIS 11 million in the second
quarter of 2016. These expenses consist of NIS 13 million ($4
million) of interest and CPI linkage expenses related to the
Company's publicly-traded debentures and of NIS 1 million ($300
thousands) of financial expenses generated by short term
investments.
Internet Gold's unconsolidated net profit for the second quarter
of 2017 totaled NIS 14 million
($4 million) compared with
NIS 14 million for the second quarter
of 2016.
The Bezeq Group Results (Consolidated)
To provide further insight into its results, the Company is
providing the following summary of the consolidated financial
report of the Bezeq Group for the second quarter ended June 30, 2017. For a full discussion of Bezeq's
results for the second quarter ended June
30, 2017, please refer to its website:
http://ir.bezeq.co.il.
Bezeq Group
(consolidated)
|
Q2 2017
|
Q2 2016
|
%
change
|
|
(NIS
millions)
|
|
|
|
|
|
Revenues
|
2,463
|
2,511
|
(1.9%)
|
Operating
profit
|
573
|
616
|
(7.0%)
|
Operating
margin
|
23.3%
|
24.5%
|
|
Net
profit
|
358
|
377
|
(5.0%)
|
EBITDA
|
997
|
1,056
|
(5.6%)
|
EBITDA
margin
|
40.5%
|
42.1%
|
|
Diluted EPS
(NIS)
|
0.13
|
0.14
|
(7.1%)
|
Cash flow from
operating activities
|
875
|
870
|
0.6%
|
Payments for
investments
|
406
|
387
|
4.9%
|
Free cash flow
1
|
487
|
539
|
(9.6%)
|
Total debt
|
11,519
|
11,504
|
0.1%
|
Net debt
|
9,646
|
9,254
|
4.2%
|
EBITDA (trailing
twelve months)
|
3,972
|
4,135
|
(3.9%)
|
Net debt/EBITDA (end
of period) 2
|
2.43
|
2.24
|
|
|
|
|
|
1Free cash
flow is defined as cash flow from operating activities less net
payments for investments.
|
2EBITDA in
this calculation refers to the trailing twelve months.
|
Revenues of the Bezeq Group in the second quarter of 2017 were
NIS 2.46 billion ($705 million) compared to NIS 2.51 billion in the corresponding quarter of
2016, a decrease of 1.9%. The decrease was due to lower revenues at
Bezeq Fixed-Line, Pelephone and Yes partially offset by an increase
in revenues at Bezeq International.
Salary expenses of the Bezeq Group in the second quarter of 2017
were NIS 494 million ($139 million) compared to NIS 495 million in the corresponding quarter of
2016, a decrease of 0.2%.
Operating expenses of the Bezeq Group in the second quarter of
2017 were NIS 973 million
($278 million) compared to
NIS 972 million in the corresponding
quarter of 2016, an increase of 0.1%.
Other operating income, net of the Bezeq Group in the second
quarter of 2017 amounted to NIS 1
million ($300 thousands)
compared to NIS 12 million in the
corresponding quarter of 2016. Other operating income, net was
impacted due to timing differences in the sale of real estate at
Bezeq Fixed-Line in the second quarter of 2017.
Depreciation and amortization expenses of the Bezeq Group in the
second quarter of 2017 were NIS 424
million ($121 million)
compared to NIS 440 million in the
corresponding quarter of 2016, a decrease of 3.6%. The decrease was
primarily due to a reduction in depreciation expenses at Bezeq
Fixed-Line as well as a reduction in PPA amortization expenses
recorded in connection with the increased ownership interest in
Yes.
Operating profit of the Bezeq Group in the second quarter of
2017 was NIS 573 million
($164 million) compared to
NIS 616 million in the corresponding
quarter of 2016, a decrease of 7.0%.
Financing expenses, net of the Bezeq Group in the second quarter
of 2017 amounted to NIS 102 million
($29 million) compared to
NIS 105 million in the corresponding
quarter of 2016, a decrease of 2.9%. The decrease in financing
expenses was primarily due a decrease in the estimated second
contingent consideration in relation to the acquisition of Yes of
NIS 84 million ($24 million). This amount was partially
offset by an update in the estimated fair value of advanced
payments made by the Bezeq Group to Eurocom DBS of NIS 57 million ($16
million), increased financing expenses at Yes as well as
financing expenses of NIS 13 million
recognized in connection with the exchange of Yes debentures for
Bezeq Fixed-Line debentures.
Tax expenses of the Bezeq Group in the second quarter of 2017
were NIS 111 million ($32 million) compared to NIS 133 million in the corresponding quarter of
2016, a decrease of 16.5%. The decrease was due a decrease in the
Israeli corporate tax rates from 25% in 2016 to 24% in 2017.
Net profit of the Bezeq Group in the second quarter of 2017 was
NIS 358 million ($102 million) compared to NIS 377 million in the corresponding quarter of
2016, a decrease of 5.0%.
EBITDA of the Bezeq Group in the second quarter of 2017 was
NIS 997 million ($285 million) (EBITDA margin of 40.5%) compared
to NIS 1.056 billion (EBITDA margin
of 42.1%) in the corresponding quarter of 2016, a decrease of
5.6%.
Cash flow from operating activities of the Bezeq Group in the
second quarter of 2017 was NIS 875
million ($250 million)
compared to NIS 870 million in the
corresponding quarter of 2016, an increase of 0.6%.
Payments for investments (Capex) of the Bezeq Group in the
second quarter of 2017 was NIS 406
million ($116 million)
compared to NIS 387 million in the
corresponding quarter of 2016, an increase of 4.9%.
Free cash flow of the Bezeq Group in the second quarter of 2017
was NIS 487 million ($139 million) compared to NIS 539 million in the corresponding quarter of
2016, a decrease of 9.6%. The decrease was primarily due to a
decrease in proceeds from the sale of real estate in the amount of
NIS 38 million ($11 million).
Total debt of the Bezeq Group as of June
30, 2017 was NIS 11.5 billion
($3.3 billion) compared to
NIS 11.5 billion as of June 30, 2016.
Net debt of the Bezeq Group was NIS 9.6
billion ($2.75 billion) as of
June 30, 2017 compared to
NIS 9.3 billion as of June 30, 2016.
Net debt to EBITDA (trailing twelve months) ratio of the Bezeq
Group as of June 30, 2017, was 2.43,
compared to 2.24 as of June 30,
2016.
Notes:
Convenience translation to U.S Dollars
Unless noted specifically otherwise, the dollar denominated
figures were converted to US$ using a convenience translation based
on the New Israeli Shekel (NIS)/US$ exchange rate of NIS 3.496 = US$ 1
as published by the Bank of Israel
for June 30, 2017.
Use of non-IFRS financial measures
We and the Bezeq Group's management regularly use supplemental
non-IFRS financial measures internally to understand, manage and
evaluate its business and make operating decisions. The following
non-IFRS measures are provided in the press release and
accompanying supplemental information because management believes
these measurements provide consistent and comparable measures to
help investors understand the Bezeq Group's current and future
operating cash flow performance and are useful for investors and
financial institutions to analyze and compare companies on the
basis of operating performance:
- EBITDA - defined as net profit plus income tax expenses, share
of loss in equity accounted investee, net financing expenses and
depreciation and amortization;
- EBITDA trailing twelve months - defined as net profit plus
income tax expenses, share of loss in equity accounted investee,
net financing expenses and depreciation and amortization during
last twelve months;
- Net debt - defined as long and short term bank loans and
debentures minus cash and cash equivalents and short term
investments;
- Net debt to EBITDA ratio - defined as net debt divided by the
trailing twelve months EBITDA;
- Free Cash Flow (FCF) - defined as cash from operating
activities less cash used for the purchase/sale of property, plant
and equipment, and intangible assets, net.
These non-IFRS financial measures may differ materially from the
non-IFRS financial measures used by other companies.
We present the Bezeq Group's EBITDA as a supplemental
performance measure because we believe that it facilitates
operating performance comparisons from period to period and company
to company by backing out potential differences caused by
variations in capital structure, tax positions (such as the impact
of changes in effective tax rates or net operating losses) and the
age of, and depreciation expenses associated with, fixed assets
(affecting relative depreciation expense).
EBITDA should not be considered in isolation or as a substitute
for net profit 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.
Management of Bezeq believes that free cash flow is an important
measure of its liquidity as well as its ability to service
long-term debt, fund future growth and to provide a return to
shareholders. We also believe this free cash flow definition does
not have any material limitations. Free cash flow is a financial
index which is not based on IFRS. Free cash flow is defined as cash
from operating activities less cash for the purchase/sale of
property, plant and equipment, and intangible assets, net.
Bezeq also uses net debt and the net debt to EBITDA trailing
twelve months ratio to analyze its financial capacity for further
leverage and in analyzing the company's business and financial
condition. Net debt reflects long and short term liabilities minus
cash and cash equivalents and investments.
Reconciliations between the Bezeq Group's results on an IFRS and
non-IFRS basis with respect to these non-IFRS measurements are
provided in tables immediately following the Company's consolidated
results. The non-IFRS financial measures are not meant to be
considered in isolation or as a substitute for comparable IFRS
measures, and should be read only in conjunction with its
consolidated financial statements prepared in accordance with
IFRS.
About Internet Gold
Internet Gold is a
telecommunications-oriented holding company which is a controlled
subsidiary of Eurocom Communications Ltd. Internet Gold's primary
holding is its controlling interest in B Communications Ltd. (TASE
and Nasdaq: BCOM), which in turn holds the controlling interest in
Bezeq, The Israel Telecommunication Corp., Israel's largest telecommunications provider
(TASE: BEZQ). Internet Gold's shares are traded on NASDAQ and the
TASE under the symbol IGLD. For more information, please visit the
following Internet sites:
www.igld.com
www.bcommunications.co.il
ir.bezeq.co.il
www.eurocom.co.il
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.
For further information, please contact:
Idit Cohen - IR
Manager
idit@igld.com / Tel:
+972-3-924-0000
Investor relations contacts:
Hadas Friedman - Investor
Relations
Hadas@km-ir.co.il / Tel:
+972-3-516-7620
Internet Gold -
Golden Lines Ltd.
|
|
Condensed
Consolidated Statements of Financial Position as at
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
June
30,
|
June
30,
|
June
30,
|
December
31,
|
|
|
2017
|
2017
|
2016
|
2016
|
|
|
NIS
|
US$
|
NIS
|
NIS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
1,958
|
560
|
1,595
|
810
|
Restricted
cash
|
|
-
|
-
|
658
|
-
|
Investments
|
|
503
|
144
|
1,747
|
1,240
|
Trade receivables,
net
|
|
1,991
|
570
|
2,029
|
2,000
|
Other
receivables
|
|
349
|
100
|
210
|
217
|
Related
party
|
|
56
|
16
|
29
|
-
|
Inventory
|
|
105
|
30
|
109
|
106
|
Total current
assets
|
|
4,962
|
1,420
|
6,377
|
4,373
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Trade and other
receivables
|
|
507
|
146
|
647
|
644
|
Property, plant and
equipment
|
|
7,049
|
2,016
|
7,120
|
7,072
|
Intangible
assets
|
|
6,314
|
1,806
|
6,859
|
6,534
|
Deferred expenses and
investments
|
|
448
|
128
|
636
|
447
|
Broadcasting
rights
|
|
456
|
130
|
455
|
432
|
Investment in
equity-accounted investee
|
|
12
|
3
|
21
|
18
|
Deferred tax
assets
|
|
1,015
|
290
|
1,099
|
1,007
|
Total non-current
assets
|
|
15,801
|
4,519
|
16,837
|
16,154
|
|
|
|
|
|
|
Total
assets
|
|
20,763
|
5,939
|
23,214
|
20,527
|
|
|
|
|
|
|
Internet Gold -
Golden Lines Ltd.
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Financial Position as at
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
June
30,
|
June
30,
|
June
30,
|
December
31,
|
|
|
2017
|
2017
|
2016
|
2016
|
|
|
NIS
|
US$
|
NIS
|
NIS
|
Current
liabilities
|
|
|
|
|
|
Bank loans and credit
and debentures
|
|
1,314
|
375
|
2,314
|
2,181
|
Trade and other
payables
|
|
1,634
|
467
|
1,627
|
1,661
|
Related
party
|
|
-
|
-
|
208
|
32
|
Current tax
liabilities
|
|
119
|
34
|
698
|
138
|
Provisions
|
|
79
|
23
|
90
|
80
|
Employee
benefits
|
|
318
|
91
|
370
|
315
|
Total current
liabilities
|
|
3,464
|
990
|
5,307
|
4,407
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Bank loans and
debentures
|
|
13,437
|
3,843
|
13,511
|
12,241
|
Employee
benefits
|
|
259
|
74
|
239
|
258
|
Other
liabilities
|
|
251
|
72
|
252
|
244
|
Provisions
|
|
48
|
14
|
46
|
47
|
Deferred tax
liabilities
|
|
541
|
155
|
667
|
593
|
Total non-current
liabilities
|
|
14,536
|
4,158
|
14,715
|
13,383
|
|
|
|
|
|
|
Total
liabilities
|
|
18,000
|
5,148
|
20,022
|
17,790
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Attributable to
shareholders of the Company
|
|
216
|
62
|
379
|
194
|
Non-controlling
interests
|
|
2,547
|
729
|
2,813
|
2,543
|
Total
equity
|
|
2,763
|
791
|
3,192
|
2,737
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
20,763
|
5,939
|
23,214
|
20,527
|
Internet Gold -
Golden Lines Ltd.
|
|
|
|
|
Condensed
Consolidated Statements of Income for the
|
|
|
|
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
Year
ended
|
|
Six months period
ended June 30,
|
Three months
period ended June 30,
|
December
31,
|
|
2017
|
2017
|
2016
|
2017
|
2017
|
2016
|
2016
|
|
NIS
|
US$
|
NIS
|
NIS
|
US$
|
NIS
|
NIS
|
|
|
|
|
|
|
|
|
Revenues
|
4,916
|
1,406
|
5,070
|
2,463
|
705
|
2,511
|
10,084
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
1,053
|
302
|
1,083
|
525
|
150
|
538
|
2,161
|
Salaries
|
998
|
285
|
1,008
|
494
|
141
|
494
|
2,017
|
General and operating
expenses
|
1,938
|
554
|
1,998
|
976
|
279
|
975
|
4,024
|
Other operating
expenses
|
|
|
|
|
|
|
|
(income),
net
|
1
|
-
|
(7)
|
2
|
1
|
(12)
|
21
|
|
|
|
|
|
|
|
|
|
3,990
|
1,141
|
4,082
|
1,997
|
571
|
1,995
|
8,223
|
|
|
|
|
|
|
|
|
Operating
profit
|
926
|
265
|
988
|
466
|
134
|
516
|
1,861
|
|
|
|
|
|
|
|
|
Financing expenses,
net
|
288
|
82
|
361
|
143
|
41
|
154
|
975
|
|
|
|
|
|
|
|
|
Profit after
financing
|
|
|
|
|
|
|
|
expenses,
net
|
638
|
183
|
627
|
323
|
93
|
362
|
886
|
|
|
|
|
|
|
|
|
Share of loss
in
|
|
|
|
|
|
|
|
equity-accounted investee
|
4
|
1
|
2
|
2
|
1
|
1
|
5
|
|
|
|
|
|
|
|
|
Profit before
income tax
|
634
|
182
|
625
|
321
|
92
|
361
|
881
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
174
|
50
|
230
|
85
|
24
|
109
|
442
|
|
|
|
|
|
|
|
|
Net profit for the
period
|
460
|
132
|
395
|
236
|
68
|
252
|
439
|
|
|
|
|
|
|
|
|
Profit (loss)
attributable to:
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
24
|
7
|
(18)
|
14
|
4
|
14
|
(202)
|
Non-controlling
interests
|
436
|
125
|
413
|
222
|
64
|
238
|
641
|
|
|
|
|
|
|
|
|
Net Profit for the
period
|
460
|
132
|
395
|
236
|
68
|
252
|
439
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
|
|
|
|
Basic
|
1.26
|
0.36
|
(0.93)
|
0.71
|
0.20
|
0.72
|
(10.52)
|
Diluted
|
1.26
|
0.36
|
(0.93)
|
0.71
|
0.20
|
0.72
|
(10.52)
|
|
|
|
|
|
|
|
|
Reconciliation for
NON-IFRS Measures
|
|
EBITDA
|
|
The following is a
reconciliation of the Bezeq Group's net profit to
EBITDA:
|
|
(In
millions)
|
Three month period
ended June 30,
|
Trailing twelve
months ended June 30,
|
|
2017
|
2017
|
2016
|
2017
|
2017
|
2016
|
|
NIS
|
US$
|
NIS
|
NIS
|
US$
|
NIS
|
|
|
|
|
|
|
|
Net profit
|
358
|
102
|
377
|
1,287
|
368
|
1,441
|
Income tax
expenses
|
111
|
32
|
133
|
533
|
152
|
579
|
Share of loss
in equity- accounted investee
|
2
|
1
|
1
|
7
|
2
|
6
|
Financing expenses,
net
|
102
|
29
|
105
|
443
|
127
|
304
|
Depreciation and
amortization
|
424
|
121
|
440
|
1,702
|
487
|
1,805
|
|
|
|
|
|
|
|
EBITDA
|
997
|
285
|
1,056
|
3,972
|
1,136
|
4,135
|
Net
Debt
|
|
|
The following table
shows the calculation of the Bezeq Group's net debt:
|
|
|
(In
millions)
|
As at June
30,
|
|
2017
|
2017
|
2016
|
|
NIS
|
US$
|
NIS
|
|
|
|
|
Short term bank loans
and credit and debentures
|
958
|
274
|
1,958
|
Non-current bank
loans and debentures
|
10,561
|
3,020
|
9,546
|
Cash and cash
equivalents
|
(1,854)
|
(530)
|
(1,338)
|
Investments
|
(19)
|
(5)
|
(912)
|
|
|
|
|
Net debt
|
9,646
|
2,759
|
9,254
|
|
|
|
|
Net Debt to
Trailing Twelve Months EBITDA Ratio
|
|
|
The following table
shows the calculation of the Bezeq Group's net debt to EBITDA
trailing twelve months ratio:
|
|
|
(In
millions)
|
As at June
30,
|
|
2017
|
2017
|
2016
|
|
NIS
|
US$
|
NIS
|
|
|
|
|
Net debt
|
9,646
|
2,759
|
9,254
|
|
|
|
|
Trailing twelve
months EBITDA
|
3,972
|
1,136
|
4,135
|
|
|
|
|
Net debt to EBITDA
ratio
|
2.43
|
2.43
|
2.24
|
Reconciliation for
NON-IFRS Measures
|
|
|
Free Cash
Flow
|
|
|
The following table
shows the calculation of the Bezeq Group's free cash
flow:
|
|
|
(In
millions)
|
Three month period
ended June 30,
|
|
2017
|
2017
|
2016
|
|
NIS
|
US$
|
NIS
|
|
|
|
|
Cash flow from
operating activities
|
875
|
250
|
870
|
Purchase of property,
plant and equipment
|
(303)
|
(87)
|
(317)
|
Investment in
intangible assets and deferred expenses
|
(103)
|
(29)
|
(70)
|
Proceeds from the
sale of property, plant and equipment
|
18
|
5
|
56
|
|
|
|
|
Free cash
flow
|
487
|
139
|
539
|
Loan to Value
(LTV)
|
|
|
The following table
shows the calculation of IGLD's loan to value ratio:
|
|
|
(In
millions)
|
As at June
30,
|
|
2017
|
|
NIS
|
|
|
IGLD's unconsolidated
net debt
|
595
|
|
|
Market value of B
Communications share held by IGLD
|
1,171
|
|
|
IGLD's LTV
|
50.8%
|
Net Asset Value
(NAV)
|
|
|
The following table
shows the calculation of IGLD's net asset value:
|
|
|
(In
millions)
|
As at June
30,
|
|
2017
|
|
NIS
|
|
|
Market value of B
Communications share held by IGLD
|
1,171
|
|
|
IGLD's unconsolidated
net debt
|
595
|
|
|
IGLD's NAV
|
576
|
Designated Disclosure with Respect to the Company's Projected
Cash Flows
In connection with the issuance of the Series D Debentures in
2014, we undertook to comply with the "hybrid model disclosure
requirements" as determined by the Israeli Securities Authority and
as described in the prospectus governing our Series D
Debentures.
This model provides that in the event certain financial "warning
signs" exist, and for as long as they exist, we will be subject to
certain disclosure obligations towards the holders of our Series D
Debentures.
In examining the existence of warning signs as of June 30, 2017, our board of directors noted that
our consolidated financial statements (unaudited) as well as our
separate internal (unpublished) unaudited financial information as
of and for the three months period ended June 30, 2017 reflect that we had a continuing
negative cash flow from operating activities of NIS 1 million in the second quarter of 2017.
The Israeli regulations provide that the existence of a
continuing negative cash flow from operating activities could be
deemed to be a "warning sign" unless our board of directors
determines that the possible "warning sign" does not reflect a
liquidity problem.
Such continuing negative cash flow from operating activities
results from the general operating expenses of the Company of
NIS 1 million in the second quarter
of 2017 and due to the fact that the Company, as a holding company,
does not have any cash inflows from operating activities. Our main
source of cash inflows is generated from dividends (classified as
cash flow from investing activities) or debt issuances (classified
as cash flow from financing activities). We did not have any such
inflows in the second quarter of 2017.
Such continuing negative cash flow from operating activities
does not effect our liquidity in any manner. Our board of directors
reviewed our financial position, outstanding debt obligations and
our existing and anticipated cash resources and uses and determined
that the existence of the continuing negative cash flow from
operating activities, as mentioned above, does not reflect a
liquidity problem.
Internet Gold's Unconsolidated Balance Sheet
(In
millions)
|
June
30,
|
June
30,
|
June
30,
|
December
31,
|
|
2017
|
2017
|
2016
|
2016
|
|
NIS
|
US$
|
NIS
|
NIS
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
10
|
3
|
238
|
48
|
Short-term
investments
|
206
|
59
|
163
|
334
|
Other
receivables
|
-
|
-
|
1
|
-
|
Total current
assets
|
216
|
62
|
402
|
382
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Investment in an
investee (*)
|
811
|
232
|
924
|
758
|
|
|
|
|
|
Total
assets
|
1,027
|
294
|
1,326
|
1,140
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
debentures
|
130
|
37
|
130
|
130
|
Other
payables
|
13
|
4
|
22
|
21
|
Total current
liabilities
|
143
|
41
|
152
|
151
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Debentures
|
668
|
191
|
795
|
795
|
|
|
|
|
|
Total
liabilities
|
811
|
232
|
947
|
946
|
|
|
|
|
|
Total
equity
|
216
|
62
|
379
|
194
|
|
|
|
|
|
Total liabilities and
equity
|
1,027
|
294
|
1,326
|
1,140
|
(*) Investment in B Communications.
Unconsolidated figures as of June 30,
2017:
- Unconsolidated Total equity represents 21% of unconsolidated
total balance sheet.
- Unconsolidated LTV ratio is 50.8%.
- The ratio of cash and cash equivalents plus short-term
investments plus dividend receivable from B Communication and
market value of B Communications shares over the control permit
(approximately 14.78% of B Communications outstanding shares) to
unconsolidated current maturities of debentures is 3.37.
- Internet Gold's NAV is NIS 576
million.
View original
content:http://www.prnewswire.com/news-releases/internet-gold-reports-its-financial-results-for-the-second-quarter-of-2017-300512325.html
SOURCE Internet Gold - Golden Lines Ltd.