RAMAT GAN, Israel, March 30,
2017 /PRNewswire/ -- Internet Gold - Golden Lines Ltd.
(NASDAQ Global Select Market and TASE: IGLD) today reported its
financial results for the fourth quarter and year ended
December 31, 2016. 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).
Doron Turgeman, CEO of
Internet Gold said: "2016 was a great year for Internet Gold,
as the Company improved in all of its important debt parameters.
With full confidence in B Communications' dividend generating power
and Bezeq's 2017 guidance, which was released this morning, we
intend to continue our efforts to improve both our debt and equity
positions."
Debt and Liquidity Balances: As of December 31, 2016, Internet Gold's
unconsolidated liquidity balances comprised of cash and cash
equivalents and short term investments totaled NIS 382 million ($99
million), its unconsolidated total debt was NIS 946 million ($246
million) and its unconsolidated net debt was NIS 564 million ($147
million).
Internet Gold's Unconsolidated Debt and Liquidity Balances
(1)
(In
millions)
|
December
31,
|
December
31,
|
December
31,
|
|
2015
|
2016
|
2016
|
|
NIS
|
NIS
|
US$
|
Short term
liabilities
|
153
|
151
|
39
|
Long term
liabilities
|
926
|
795
|
207
|
Total debt
|
1,079
|
946
|
246
|
Liquidity
balances
|
277
|
382
|
99
|
Net debt
|
802
|
564
|
147
|
|
|
|
|
(1) Does not include the debt or
liquidity balances of B Communications and its subsidiaries.
Internet Gold Unconsolidated Sources and Uses
(In
millions)
|
NIS
|
US$
|
|
|
|
Net debt as of
December 31, 2015
|
802
|
209
|
Dividends received
from B Communications
|
(230)
|
(60)
|
Proceeds from the
sale of B Communications shares
|
(57)
|
(14)
|
Financial expenses,
net
|
44
|
11
|
Operating
expenses
|
5
|
1
|
|
|
|
Net debt as of
December 31, 2016
|
564
|
147
|
Internet Gold's Fourth Quarter and Full Year Consolidated
Financial Results
Internet Gold's consolidated revenues for the fourth quarter of
2016 totaled NIS 2.5 billion
($651 million), a 3.9% decrease
compared to the NIS 2.6 billion
reported in the fourth quarter of 2015. For the full year 2016,
Internet Gold's revenues totaled NIS 10.1
billion ($2.6 billion), a 1.0%
increase compared to NIS 10.0 billion
reported in 2015. The increase in 2016 was due to the consolidation
of Yes beginning in the second quarter of 2015, partially offset by
a decrease in revenues in all of the Bezeq Group's segments and
primarily at Pelephone. 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 fourth
quarter of 2016 totaled NIS 368
million ($96 million), a 1.1%
decrease compared with NIS 372
million reported in the fourth quarter of 2015. For the full
year 2016, Internet Gold's consolidated operating profit totaled
NIS 1.84 billion ($479 million), an 8.4% decrease compared with
NIS 2.01 billion reported in
2015.
Internet Gold's consolidated net profit for the fourth quarter
of 2016 totaled NIS 72 million
($19 million), a 76.4% decrease
compared with NIS 306 million
reported in the fourth quarter of 2015. For the full year 2016,
Internet Gold's consolidated net profit totaled NIS 426 million ($111
million), a 60.7% decrease compared with NIS 1.08 billion reported in 2015. The decrease
was due to Bezeq's lower net profit in 2016 compared with 2015 and
due to one-time refinancing expenses recorded by B Communications
related to its early redemption of its 7⅜% Senior Secured Notes
("Notes").
Internet Gold's Fourth Quarter and Full Year
Unconsolidated Financial Results
As of December 31, 2016, Internet
Gold held approximately 65% of B Communications' outstanding
shares. Accordingly, Internet Gold's interest in B Communications'
net profit for the fourth quarter of 2016 totaled NIS 2 million ($1
million) compared with NIS 69
million in the fourth quarter of 2015. For the full year
2016, Internet Gold's interest in B Communications' net loss
totaled NIS 153 million ($40 million) compared with its interest in B
Communications' net profit of NIS 140
million in 2015.
Internet Gold's unconsolidated net financial expenses for the
fourth quarter of 2016 totaled NIS 5
million ($2 million) compared
with NIS 9 million in the fourth
quarter of 2015. These expenses consist of NIS 11 million ($4
million) of interest and CPI linkage expenses related to
Internet Gold's publicly-traded debentures, which were partially
offset by NIS 6 million ($2 million) of financial income generated by
short term investments. For the full year 2016, Internet Gold's
unconsolidated net financial expenses totaled NIS 44 million ($11
million) compared with NIS 60
million in 2015. These expenses consisted of NIS 51 million ($13
million) of interest and CPI linkage expenses related to
Internet Gold's publicly-traded debentures, which were partially
offset by NIS 7 million ($2 million) of financial income generated by
short term investments.
Internet Gold's loss attributable to shareholders for the fourth
quarter of 2016 totaled NIS 4 million
($1 million) compared with net profit
attributable to shareholders of NIS 70
million in the fourth quarter of 2015. For the full year
2016, Internet Gold's loss attributable to shareholders totaled
NIS 202 million ($53 million) compared with net profit of
NIS 87 million in 2015. The loss in
2016 was due to Bezeq's lower net profit in 2016 compared with 2015
and due to one-time refinancing expenses recorded by B
Communications related to its early redemption of the Notes.
)In
millions(
|
Three months ended
December 31,
|
Year ended
December 31,
|
|
2015
|
2016
|
2016
|
2015
|
2016
|
2016
|
|
NIS
|
NIS
|
US$
|
NIS
|
NIS
|
US$
|
Financial expenses,
net
|
(9)
|
(5)
|
(2)
|
(60)
|
(44)
|
(11)
|
Income tax
benefit
|
11
|
-
|
-
|
11
|
-
|
-
|
Operating
expenses
|
(1)
|
(1)
|
-
|
(4)
|
(5)
|
(2)
|
Interest in BCOM's
net
|
|
|
|
|
|
|
profit
(loss)
|
69
|
2
|
1
|
140
|
(153)
|
(40)
|
Net profit
(loss)
|
70
|
(4)
|
(1)
|
87
|
(202)
|
(53)
|
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 fourth quarter and year ended
December 31, 2016. For a full
discussion of Bezeq's results for the fourth quarter and full year
ended December 2016, please refer to
its website: http://ir.bezeq.co.il.
|
|
|
|
|
|
|
|
|
Bezeq Group
(consolidated)
|
Q4 2016
|
Q4 2015
|
%
change
|
FY 2016
|
FY
2015
|
%
change
|
|
|
(NIS
millions)
|
|
(NIS
millions)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
2,504
|
2,606
|
(3.9%)
|
10,084
|
9,985
|
1.0%
|
|
Operating
profit
|
532
|
488
|
9.0%
|
2,321
|
2,570
|
(9.7%)
|
|
Operating
margin
|
21.2%
|
18.7%
|
|
23.0%
|
25.7%
|
|
|
Net
profit
|
185
|
369
|
(49.9%)
|
1,244
|
1,721
|
(27.7%)
|
|
EBITDA
|
940
|
947
|
(0.7%)
|
4,060
|
4,254
|
(4.6%)
|
|
EBITDA
margin
|
37.5%
|
36.3%
|
|
40.3%
|
42.6%
|
|
|
Diluted EPS
(NIS)
|
0.07
|
0.13
|
(46.2%)
|
0.45
|
0.62
|
(27.4%)
|
|
Cash flow from
operating activities
|
832
|
889
|
(6.4%)
|
3,526
|
3,740
|
(5.7%)
|
|
Payments for
investments
|
335
|
329
|
1.8%
|
1,416
|
1,635
|
(13.4%)
|
|
Free cash flow
1
|
513
|
592
|
(13.3%)
|
2,248
|
2,256
|
(0.4%)
|
|
Total debt
|
|
|
|
10,953
|
10,713
|
2.2%
|
|
Net debt
|
|
|
|
9,719
|
9,396
|
3.4%
|
|
EBITDA (trailing
twelve months)
|
|
|
|
4,060
|
4,254
|
(4.6%)
|
|
Net debt/EBITDA (end
of period) 2
|
|
|
|
2.39
|
2.21
|
|
|
|
|
|
|
|
|
|
|
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 2016 totaled NIS 10.08 billion ($2.62
billion) compared to NIS 9.99
billion in 2015, an increase of 1.0%. The increase was due
to the consolidation of Yes beginning in the second quarter of
2015, which was partially offset by a decrease in revenues in all
of the Bezeq Group segments and primarily at Pelephone.
Revenues of the Bezeq Group in the fourth quarter of 2016 were
NIS 2.50 billion ($651 million), compared to NIS 2.61 billion in the corresponding quarter of
2015, a decrease of 3.9%. The decrease was due to lower revenues in
all of the Bezeq Group segments and primarily at Pelephone.
Salary expenses of the Bezeq Group in 2016 totaled NIS 2.01 billion ($523
million) compared to NIS 1.96
billion in 2015, an increase of 2.8%. The increase was
primarily due to the consolidation of Yes beginning in the second
quarter of 2015.
Salary expenses of the Bezeq Group in the fourth quarter of 2016
were NIS 503 million ($131 million), compared to NIS 515 million in the corresponding quarter of
2015, a decrease of 2.3%.
Operating expenses of the Bezeq Group in 2016 totaled
NIS 4.01 billion ($1.04 billion) compared to NIS 3.87 billion in 2015, an increase of 3.7%.
The increase was primarily due to the consolidation of Yes
beginning in the second quarter of 2015, partially offset by a
decrease in expenses in most of the Bezeq Group segments and
primarily at Pelephone.
Operating expenses of the Bezeq Group in the fourth quarter of
2016 were NIS 1.03 billion
($267 million) compared to
NIS 1.07 billion in the corresponding
quarter of 2015, a decrease of 3.7%. The decrease was primarily due
to a reduction in interconnect fees and payments to telecom
operators, and decreased terminal equipment and marketing expenses,
which expenses were partially offset by an increase in content and
sub-contractor expenses.
Other operating income, net of the Bezeq Group in 2016 was NIS
nil compared with NIS 95 million in
2015. The decrease was primarily due to a reduction in
capital gains from the sale of real estate at Bezeq Fixed-Line.
Other operating expenses, net of the Bezeq Group in the fourth
quarter of 2016 amounted to NIS 33
million ($9 million), compared
to NIS 76 million in the
corresponding quarter of 2015. The decrease was due to a reduction
in the provision for the early retirement of employees at Bezeq
Fixed-Line.
Depreciation and amortization expenses of the Bezeq Group in
2016 totaled NIS 1.74 billion
($452 million) compared to
NIS 1.68 billion in 2015, an increase
of 3.3%. The increase was primarily due to the consolidation
of Yes beginning in the second quarter of 2015 and the amortization
of the surplus acquisition costs incurred as a result of the
increase in Bezeq's ownership interest in Yes to a controlling
stake, which was partially offset by a reduction in depreciation
expenses at Pelephone.
Depreciation and amortization expenses of the Bezeq Group in the
fourth quarter of 2016 were NIS 408
million ($106 million),
compared to NIS 459 million in the
corresponding quarter of 2015, a decrease of 11.1%. The decrease
was due to a reduction in depreciation and amortization expenses in
all group segments.
Operating profit of the Bezeq Group in 2016 totaled NIS 2.32 billion ($604
million) compared to NIS 2.57
billion in 2015, a decrease of 9.7%. Operating profit
of the Bezeq Group in the fourth quarter of 2016 was NIS 532 million ($138
million) compared to NIS 488
million in the corresponding quarter of 2015, an increase of
9.0%.
Financing expenses, net of the Bezeq Group in 2016 totaled
NIS 447 million ($116 million), compared to NIS 263 million in 2015, an increase of 70.0%.
Financing expenses, net of the Bezeq Group in the fourth quarter of
2016 amounted to NIS 136 million
($35 million) compared to financing
income of NIS 3 million in the
corresponding quarter of 2015. The increase was primarily due to
the cancellation of a provision in 2015 for accumulated interest on
taxes owed for prior years relating to financing income from Yes
pursuant to an agreement with the Israeli Tax Authorities, as well
as an increase in the provision for contingent consideration to
Eurocom in the fourth quarter of 2016 in connection with the
acquisition of Eurocom's stake in Yes.
Tax expenses of the Bezeq Group in 2016 totaled NIS 625 million ($163
million) compared to NIS 598
million in 2015, an increase of 4.5%. The increase in tax
expenses was due to a decrease in deferred tax asset resulting from
a reduction in corporate tax rates in the amount of NIS 143 million ($37
million), partially offset by a decrease in tax expenses at
Bezeq Fixed-Line.
Tax expenses of the Bezeq Group in the fourth quarter of 2016
were NIS 210 million ($55 million) compared to NIS 119 million in the corresponding quarter of
2015, an increase of 76.5%. The increase in tax expenses was due to
the aforementioned recognition of the one-time deferred tax expense
resulting from the reduction in corporate tax rates.
Net profit of the Bezeq Group in 2016 totaled NIS 1.24 billion ($324
million) compared to NIS 1.72
billion in 2015, a decrease of 27.7%.
Net profit of the Bezeq Group in the fourth quarter of 2016 was
NIS 185 million ($48 million) compared to NIS 369 million in the corresponding quarter of
2015, a decrease of 49.9%.
EBITDA of the Bezeq Group in 2016 totaled NIS 4.06 billion ($1.06
billion) (EBITDA margin of 40.3%) compared to NIS 4.25 billion (EBITDA margin of 42.6%) in
2015, a decrease of 4.6%.
EBITDA of the Bezeq Group in the fourth quarter of 2016 was
NIS 940 million ($244 million) (EBITDA margin of 37.5%) compared
to NIS 947 million (EBITDA margin of
36.3%) in the corresponding quarter of 2015, a decrease of
0.7%.
Cash flow from operating activities of the Bezeq Group in 2016
totaled NIS 3.53 billion
($917 million) compared to
NIS 3.74 billion in 2015, a decrease
of 5.7%. The decrease was primarily due to changes in working
capital partially offset by the consolidation of yes beginning in
the second quarter of 2015.
Cash flow from operating activities of the Bezeq Group in the
fourth quarter of 2016 was NIS 832
million ($216 million)
compared to NIS 889 million in the
corresponding quarter of 2015, a decrease of 6.4%.
Payments for investments (Capex) of the Bezeq Group in 2016
totaled NIS 1.42 billion
($368 million) compared to
NIS 1.64 billion in 2015, a decrease
of 13.4%. The decrease was due to a reduction in investments in all
Bezeq Group segments and specifically at Pelephone, mainly due to
payments made in 2015 for LTE 4G frequencies.
Capex of the Bezeq Group in the fourth quarter of 2016 was
NIS 335 million ($87 million) compared to NIS 329 million in the corresponding quarter of
2015, an increase of 1.8%.
Free cash flow of the Bezeq Group in 2016 totaled NIS 2.25 billion ($585
million) compared to NIS 2.26
billion in 2015, a decrease of 0.4%.
Free cash flow of the Bezeq Group in the fourth quarter of 2016
was NIS 513 million ($133 million) compared to NIS 592 million in the corresponding quarter of
2015, a decrease of 13.3%.
Total debt of the Bezeq Group as of December 31, 2016 was NIS
11.0 billion ($2.8 billion)
compared to NIS 10.7 billion as of
December 31, 2015.
Net debt of the Bezeq Group was NIS 9.72
billion ($2.53 billion) as of
December 31, 2016 compared to
NIS 9.40 billion as of December 31, 2015.
Net debt to EBITDA (trailing twelve months) ratio of the Bezeq
Group as of December 31, 2016, was
2.39, compared to 2.21 as of December 31,
2015.
Notes:
Convenience translation to U.S. Dollars
Unless noted specifically otherwise, the dollar denominated
figures were converted to US$ using a convenience translation based
on the New Israeli Shekel (NIS)/US$ exchange rate of NIS 3.845 = US$ 1
as published by the Bank of Israel
for December 31, 2016.
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 net interest expense,
provision for income taxes, depreciation and
amortization;
- EBITDA trailing twelve months - defined as net profit plus net
interest expense, provision for income taxes, depreciation
and amortization during last twelve months;
- Net debt - defined as long and short term liabilities minus
cash and cash equivalents and short term investments; and
- 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.
The Bezeq Group defines EBITDA as net profit before financial
income (expenses), net, impairment and other charges, expenses
recorded for stock compensation in accordance with IFRS 2, income
tax expenses and depreciation and amortization. We present the
Bezeq Group's EBITDA as a supplemental performance measure because
we believe that it facilitates operating performance comparisons
from period to period and company to company by backing out
potential differences caused by variations in capital structure,
tax positions (such as the impact of changes in effective tax rates
or net operating losses) and the age of, and depreciation expenses
associated with, fixed assets (affecting relative depreciation
expense).
EBITDA should not be considered in isolation or as a substitute
for net 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
http://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.
Internet Gold –
Golden Lines Ltd.
|
|
Consolidated
Statements of Financial Position as at December 31,
|
(In
millions)
|
|
|
2015
|
2016
|
2016
|
|
|
NIS
|
NIS
|
US$
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
619
|
810
|
211
|
Restricted
cash
|
|
155
|
-
|
-
|
Investments
|
|
1,774
|
1,240
|
323
|
Trade receivables,
net
|
|
2,058
|
2,000
|
520
|
Other
receivables
|
|
286
|
221
|
57
|
Inventory
|
|
115
|
106
|
28
|
|
|
|
|
|
Total current
assets
|
|
5,007
|
4,377
|
1,139
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Trade and other
receivables
|
|
674
|
644
|
167
|
Property, plant and
equipment
|
|
7,197
|
7,070
|
1,839
|
Intangible
assets
|
|
7,118
|
6,509
|
1,693
|
Deferred expenses and
investments
|
|
643
|
447
|
116
|
Broadcasting
rights
|
|
456
|
432
|
112
|
Investment in
equity-accounted investee
|
|
25
|
18
|
5
|
Deferred tax
assets
|
|
1,290
|
1,007
|
262
|
|
|
|
|
|
Total non-current
assets
|
|
17,403
|
16,127
|
4,194
|
|
|
|
|
|
Total
assets
|
|
22,410
|
20,504
|
5,333
|
|
|
|
|
|
Internet Gold –
Golden Lines Ltd.
|
|
Consolidated
Statements of Financial Position as at December 31,
(cont'd)
|
(In
millions)
|
|
|
2015
|
2016
|
2016
|
|
|
NIS
|
NIS
|
US$
|
Current
liabilities
|
|
|
|
|
Bank loans and credit
and debentures
|
|
2,219
|
2,181
|
568
|
Trade and other
payables
|
|
1,717
|
1,662
|
432
|
Related
party
|
|
233
|
32
|
8
|
Current tax
liabilities
|
|
705
|
134
|
35
|
Provisions
|
|
100
|
80
|
21
|
Employee
benefits
|
|
378
|
315
|
82
|
Total current
liabilities
|
|
5,352
|
4,404
|
1,146
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Bank loans and
debentures
|
|
13,215
|
12,241
|
3,184
|
Employee
benefits
|
|
240
|
258
|
67
|
Other
liabilities
|
|
227
|
244
|
63
|
Provisions
|
|
46
|
47
|
12
|
Deferred tax
liabilities
|
|
729
|
587
|
153
|
Total non-current
liabilities
|
|
14,457
|
13,377
|
3,479
|
|
|
|
|
|
Total
liabilities
|
|
19,809
|
17,781
|
4,625
|
|
|
|
|
|
Equity
|
|
|
|
|
Attributable to
shareholders
|
|
(93)
|
193
|
50
|
Non-controlling
interests
|
|
2,694
|
2,530
|
658
|
|
|
|
|
|
Total
equity
|
|
2,601
|
2,723
|
708
|
|
|
|
|
|
Total liabilities
and equity
|
|
22,410
|
20,504
|
5,333
|
Internet Gold –
Golden Lines Ltd.
|
|
Consolidated
Statements of Income for the Year Ended December 31,
|
(In millions,
except per share data)
|
|
2015
|
2016
|
2016
|
|
NIS
|
NIS
|
US$
|
Revenues
|
9,985
|
10,084
|
2,623
|
|
|
|
|
Costs and
expenses
|
|
|
|
Depreciation and
amortization
|
2,131
|
2,183
|
568
|
Salaries
|
1,960
|
2,012
|
523
|
General and operating
expenses
|
3,878
|
4,026
|
1,047
|
Other operating
expense, net
|
3
|
20
|
5
|
|
|
|
|
|
7,972
|
8,241
|
2,143
|
|
|
|
|
Operating
profit
|
2,013
|
1,843
|
480
|
|
|
|
|
Financing expenses,
net
|
595
|
979
|
255
|
|
|
|
|
Profit after
financing expenses, net
|
1,418
|
864
|
225
|
|
|
|
|
Share of loss
(income) in equity-accounted investee
|
(12)
|
5
|
1
|
|
|
|
|
Profit before
income tax
|
1,430
|
859
|
224
|
|
|
|
|
Income tax
|
347
|
433
|
113
|
|
|
|
|
Net profit for the
year
|
1,083
|
426
|
111
|
|
|
|
|
Profit (loss)
attributable to:
|
|
|
|
Owners of the
company
|
87
|
(202)
|
(53)
|
Non-controlling
interests
|
996
|
628
|
164
|
|
|
|
|
Net profit for the
year
|
1,083
|
426
|
111
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
Basic
|
3.97
|
(10.54)
|
(2.74)
|
Diluted
|
3.90
|
(10.54)
|
(2.74)
|
Bezeq, The Israel
Telecommunication Corp
|
Reconciliation for
NON-IFRS Measures
|
|
EBITDA
|
|
The following is a
reconciliation of the Bezeq Group's net profit to
EBITDA:
|
|
(In
millions)
|
Three months ended
December 31,
|
Year ended December
31,
|
|
2015
|
2016
|
2016
|
2015
|
2016
|
2016
|
|
NIS
|
NIS
|
US$
|
NIS
|
NIS
|
US$
|
|
|
|
|
|
|
|
Net profit
|
369
|
185
|
48
|
1,721
|
1,244
|
324
|
Income tax
|
119
|
210
|
55
|
598
|
625
|
163
|
Share of loss
(income) in equity-accounted investee
|
3
|
1
|
-
|
(12)
|
5
|
1
|
Financing expenses,
net
|
(3)
|
136
|
35
|
263
|
447
|
116
|
Depreciation and
amortization
|
459
|
408
|
106
|
1,684
|
1,739
|
452
|
|
|
|
|
|
|
|
EBITDA
|
947
|
940
|
244
|
4,254
|
4,060
|
1,056
|
Net
Debt
|
|
The following table
shows the calculation of the Bezeq Group's net debt:
|
|
(In
millions)
|
As at December
31,
|
|
2015
|
2016
|
2016
|
|
NIS
|
NIS
|
US$
|
|
|
|
|
Short term bank loans
and credit and debentures
|
1,913
|
1,825
|
475
|
Non-current bank
loans and debentures
|
8,800
|
9,128
|
2,374
|
Cash and cash
equivalents
|
(555)
|
(648)
|
(169)
|
Investments
|
(762)
|
(586)
|
(152)
|
|
|
|
|
Net debt
|
9,396
|
9,719
|
2,528
|
|
|
|
|
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 December
31,
|
|
2015
|
2016
|
2016
|
|
NIS
|
NIS
|
US$
|
|
|
|
|
Net debt
|
9,396
|
9,719
|
2,528
|
|
|
|
|
Trailing twelve
months EBITDA
|
4,254
|
4,060
|
1,056
|
|
|
|
|
Net debt to EBITDA
ratio
|
2.21
|
2.39
|
2.39
|
Bezeq, The Israel
Telecommunication Corp.
|
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 months ended
December 31,
|
Year ended December
31,
|
|
2015
|
2016
|
2016
|
2015
|
2016
|
2016
|
|
NIS
|
NIS
|
US$
|
NIS
|
NIS
|
US$
|
|
|
|
|
|
|
|
Cash flow from
operating activities
|
889
|
832
|
216
|
3,740
|
3,526
|
917
|
Purchase of property,
plant and equipment
|
(286)
|
(292)
|
(76)
|
(1,324)
|
(1,193)
|
(310)
|
Investment in
intangible assets and
deferred expenses
|
(43)
|
(43)
|
(11)
|
(311)
|
(223)
|
(58)
|
Proceeds from the
sale of property, plant and equipment
|
32
|
16
|
4
|
151
|
138
|
36
|
|
|
|
|
|
|
|
Free cash
flow
|
592
|
513
|
133
|
2,256
|
2,248
|
585
|
|
|
|
|
|
|
|
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 December 31 2016, 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 quarter ended December 31,
2016 reflect that we had a continuing negative cash flow
from operating activities of NIS 1
million for the fourth quarter of 2016.
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 for the fourth quarter
of 2016 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 fourth quarter.
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.
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
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/internet-gold-reports-its-financial-results-for-the-fourth-quarter-and-full-year-2016-300431776.html
SOURCE Internet Gold - Golden Lines Ltd.