|
PRESS RELEASES
TEL AVIV, Israel, August 21 /PRNewswire-FirstCall/ -- Bezeq The Israel
Telecommunication Corp., Limited (TASE: BEZQ), Israel's leading
telecommunications provider, announced today its financial results for the
second quarter 2008, the period ended June 30, 2008. Details regarding
today's investor conference call and web cast are included later in this
press release.
Bezeq Group Second Quarter 2008 Financial Highlights:
- Revenues of NIS 3.09 billion, up 1.1% compared to the prior year
period.
- Operating profit totaled NIS 800 million, up 40.1% compared to the
prior year period.
- Net profit attributable to shareholders totaled NIS 437 million, up
21.1% compared to the prior year period.
- Earnings per basic and diluted shares amounted to NIS 0.17, compared to
earnings per basic and diluted share of NIS 0.14 for the second quarter
of 2007.
- Earnings before interest, taxes, depreciation and amortization (EBITDA)
totaled NIS 1.22 billion, up 21.4% compared to the prior year period.
- EBITDA margin was an impressive 39.6% compared to 33.0% in prior year
period.
- Capital expenditures (gross) totaled NIS 386 million, up 38.8%
year-over-year.
- Free cash flow totaled NIS 416 million, a decline of 19.4%
year-over-year and an increase of 25.3% sequentially.
Divisional Highlights:
- Bezeq Fixed-Line: Fixed-Line segment results were highlighted by a
76.1% year-over-year increase in operating profit to NIS 428 million,
and a 33.4% increase in EBITDA to NIS 639 million. Segment EBTIDA
margin totaled an impressive 47.2% for the quarter. While Fixed-Line
revenues posted a modest and anticipated decline, the improvement in
profitability was driven by streamlining efforts that have begun to
yield significant benefits to the segment's - and the Group's – bottom
lines.
- Pelephone: Pelephone's mobile operations delivered double-digit
year-over-year and sequential growth in operating profit and EBITDA, as
revenues rose 3.1%. EBITDA reached NIS 396 million, yielding an EBITDA
margin of 33.3%, the highest for Pelephone in several years. Results
were driven by the strength of Pelephone's 3G subscriber growth
(977,000 total 3G subscribers as of June 30 and over one million as of
today), which helped push total cellular subscribers up to
approximately 2.64 million, an increase of 4.9% year-over-year.
- Bezeq International: Operating profit increased 18.9% year-over-year to
NIS 63 million and net profit increased 20.5% to NIS 47 million driven
by continued focus and enhanced profitability in core businesses such
as broadband Internet services, international calls, as well as a
doubling in revenues associated with the segment's enterprise
integration solutions. EBITDA reached a record NIS 83 million, up 10.7%
year-over-year, and reflecting an EBITDA margin of 25.5%.
- yes: Multi-channel pay-TV revenue increased 7.3% year-over-year to NIS
380 million driven by a 5.5% improvement in ARPU to NIS 230 and a 1.5%
increase in subscribers to 551,000. EBITDA reached NIS 103 million, up
3.0% year-over-year, reflecting an EBITDA margin of 27.1%.
Dividend Highlight: The company's Board of Directors has recommended the
distribution of a cash dividend to shareholders of NIS 835 million, or
approximately NIS 0.32 per share.
Shlomo Rodav, Chairman of the Board of Bezeq, stated, "The strength of
our second quarter financial performance completes an excellent first half of
2008. With strong double-digit year-over-year improvements in Group wide
operating profit, net profit attributable to shareholders and EBITDA we are
seeing clear evidence that the corporate streamlining and operating
efficiency measures we continue to implement are yielding results, as we also
continued to see top line growth versus the comparable year ago period. All
segments of the business delivered year-over-year growth, with the exception
of revenues related to traditional fixed-line telephony which was anticipated
to decline modestly and was partially offset by record revenues related to
high-speed Internet and data communications services.
"Following the recent decisions concerning the Gronau Committee
recommendations by the Minister of Communications on August 13th, we are
pleased to have some initial clarity on the regulatory front, although we
cannot assess at this stage what will be the exact impact on the Group's
business results. Accordingly, we will be moving to adapt Bezeq's strategy
and offerings to maximize any new opportunities that are created as well as
meet the challenges that arise as we move forward.
"While the details of these decisions, and many other aspects of the new
regulatory guidelines, remain to be clarified, we believe that over the
long-term the net impact from the expected regulatory changes will benefit
service providers that are able to offer a comprehensive range of
communications services, which is where Bezeq excels as the market leader.
Overall, our aim remains to maintain our position as the leading
communications service provider in Israel while continuing to deliver
long-term value to our customers, employees and shareholders," concluded Mr.
Rodav.
Alan Gelman, Chief Financial Officer and Deputy CEO of Bezeq, commented,
"Based on the strength of our second quarter and first half 2008 financial
performance, and healthy cash flows from operations, we are pleased to
announce that our Board of Directors has recommended the distribution of a
cash dividend to shareholders totaling NIS 835 million; this is in addition
to the NIS 679 million dividend declared last March and paid during the
second quarter. Dividend remuneration to our shareholders remains a key
component of our corporate strategy as we also use the strength of our cash
flows to reduce debt and reinvest in our core businesses as evidenced through
our higher capital investments in our new Pelephone HSPA infrastructure and
our fixed-line Next Generation Network project, while maintaining full
financial flexibility for the Group. These network investments are expected
to open up higher value segments of the communications services market while,
in the NGN case, it also offers infrastructure that is expected to deliver
new long-term operating efficiencies as well as lower maintenance costs.
"While improvements during the second quarter were evident across our key
profitability measures, we did experience an increase in finance expenses
during the second quarter, primarily due to the fact that most of the Group's
debt is linked to the Israeli consumer price index which increased 2.24%
during the quarter, resulting in higher financing expenses as compared to the
year-ago period. We are pleased with the Group wide performance in the first
half of the year and look forward to building on these gains in the second
half of 2008," concluded Mr. Gelman.
Bezeq Group Consolidated Results
Bezeq Group Q2 2008 Q2 2007 Change H1 2008 H1 2007 Change
(Consolidated) (NIS millions) (NIS millions)
Revenues 3,086 3,053 1.1% 6,186 6,142 0.7%
Operating profit 800 571 40.1% 1,464 1,228 19.2%
EBITDA 1,222 1,007 21.4% 2,315 2,105 10.0%
EBITDA margin 39.6% 33.0% 37.4% 34.3%
Net profit attributable 437 361 21.1% 835 760 9.9%
to shareholders of the
company
Diluted EPS (NIS) 0.17 0.14 21.4% 0.32 0.29 10.3%
Cash flow from 776 697 11.3% 1,413 1,562 -9.5%
operating activities
Capex, net 360 181 98.9% 665 398 67.1%
Free cash flow 416 516 -19.4% 748 1,164 -35.7%
Net debt/EBITDA (end of 1.22 1.32
period) *
Net debt/shareholders' equity (end of 1.11 1.00
period)
* EBITDA in this calculation refers to trailing twelve months
Bezeq Group's revenues for the second quarter of 2008 were NIS 3.09
billion, up 1.1% from NIS 3.05 billion reported for the second quarter of
2007. Higher revenues were driven by higher sales in our Pelephone, Bezeq
International and yes business segments. Strong sales of high speed Internet
and data communications services at our Fixed-Line segment mitigated the
anticipated decline in revenue associated with fixed-line telephony.
Operating profit for the Group increased 40.1% year-over-year to NIS 800
million, up from NIS 571 in the year ago period, driven mainly by cost
reduction and streamlining initiatives in our major operating segments, as
well as slightly higher Group revenues.
The Group's earnings before interest, taxes, depreciation and
amortization (EBITDA) for the second quarter of 2008 were approximately NIS
1.22 billion (39.6% EBITDA margin), up 21.4% as compared to the second
quarter of 2007 (33.0% EBITDA margin).
Net profit attributed to Bezeq shareholders amounted to NIS 437 million
in the second quarter of 2008, up 21.1% compared with the NIS 361 million
reported in the second quarter of 2007.
Net capital expenditures amounted to NIS 360 million in the second
quarter of 2008, an increase of 98.9% compared to the second quarter of 2007,
mainly due to the ongoing deployment of Pelephone's HSPA network, and to some
extent also due to lower proceeds from the sale of property, plant and
equipment as compared to the same period of 2007.
The Bezeq Group's free cash flow totaled NIS 416 million in the second
quarter of 2008, a decrease of 19.4% compared to the second quarter of 2007.
The decline in free cash flow was primarily the result of significantly
higher net capital expenditures, which were partially offset by an 11.3%
increase in cash flows from operations.
As of June 30, 2008, the Group's net financial debt was NIS 5.25 billion,
compared with NIS 4.71 billion as of June 30, 2007.
Bezeq Fixed-Line Results
Bezeq Wireline Q2 2008 Q2 2007 Change H1 2008 H1 2007 Change
(NIS millions) (NIS millions)
Revenues 1,354 1,393 -2.8% 2,762 2,835 -2.6%
Operating profit 428 243 76.1% 796 612 30.1%
EBITDA 639 479 33.4% 1,225 1,085 12.9%
EBITDA margin 47.2% 34.4% 44.4% 38.3%
Capex, net 107 5 n.m. 205 100 105.0%
Number of active subscriber 2,682 2,778 -3.5% 2,682 2,778 -3.5%
lines (end of period, in
thousands)
Average monthly revenue per 82.6 85.1 -2.9% 83.8 86.7 -3.4%
line (NIS) *
Number of outgoing usage 3,413 3,753 -9.1% 3,504 3,834 -8.6%
minutes (millions)
Number of incoming usage 1,191 1,069 11.4% 1,187 1,057 12.3%
minutes (millions) **
Number of ADSL subscribers 982 924 6.3% 982 924 6.3%
(end of period, in
thousands)
Average monthly revenue per 57.7 58.1 -0.7% 57.9 57.8 0.3%
ADSL subscriber (NIS)
* Not including revenues from data communications and transmission
services, services to communications providers, and contract and
other work. This item has been updated going back to 1.1.2006 in
order to present nominal figures instead of normalized
** The increase in incoming minutes compared to the corresponding
period in 2007 stems from an increase in traffic minutes from
domestic carriers in competition with Bezeq.
Bezeq fixed-line's primary objectives remain to compensate for the
predictable erosion in domestic telephony revenues with growing revenues from
broadband Internet and value-added services, and solutions for the business
segment, as well as reducing costs. While revenues posted a modest decline,
the segment posted significant improvements in terms of year-over-year
operating profit and EBITDA performance.
Revenue from fixed-line domestic communications declined 2.8% to NIS 1.35
billion in the second quarter of 2008 compared to NIS 1.39 billion in the
second quarter of 2007. The decrease in fixed-line revenue was mainly due to
a decrease in interconnect fees to the cellular networks as well as a
decrease in the number of lines, mainly due to number portability, a
reduction in call traffic and a decrease in tariffs. The decrease in revenue
was moderated mainly by stronger levels of revenues generated from high-speed
Internet service (ADSL) and by an increase in data communication services.
When adjusted for revenues from cellular airtime collected by Bezeq and
paid to the cellular companies, Bezeq Fixed-Line's revenues reached NIS 1.14
billion, a decline of just 1.0% year-over-year. This continues to demonstrate
Bezeq's ability to compensate for the decline in legacy telephony revenues
through growing advanced services and solutions offered to the consumer and
business markets.
Bezeq set another new record for the number of customers subscribing to
its high-speed Internet service (ADSL), rising 6.3% year-over-year to 982,000
as of June 30, 2008. Even more importantly, Bezeq continued to upgrade its
ADSL subscriber base, with 42% of it already enjoying bandwidths of at least
2 MB, as compared to 23% in the prior year period.
The growth in Bezeq's ADSL customer base helped offset a 3.5% decline in
total telephony access lines during the same period which totaled 2.68
million as of June 30, 2008. The pace of decline in telephony access lines
has slowed down to 31,000 lines lost during the second quarter of 2008, from
48,000 lines lost during the first quarter of 2008, which reflects a more
moderate impact from fixed-line number portability.
ADSL ARPU in the second quarter was NIS 57.7, down just 0.7% from the
prior year period, while fixed-line telephony ARPL fell 2.9% year-over-year
to NIS 82.6.
Bezeq's fixed-line segment posted positive EBITDA of NIS 639 million
(47.2% EBITDA margin) in the second quarter of 2008, compared to NIS 479
million (34.4% EBITDA margin) in the second quarter of 2007. This significant
improvement was driven by an 8% decline in wages, and almost a 16% reduction
in general and operating expenses. These reflect the success of cost-cutting
measures that have been taken in this segment over the past year and have now
begun to yield results.
During the second quarter the company announced the formal launch and
deployment of its Next Generation Network (NGN) project, including full
coverage in two operational trials as well as the purchase of soft switches.
The project will be deployed on a modular basis, and the Company will
evaluate the completion of each stage, and update the development and
deployment strategy, timeline on an annual basis.
Pelephone Results
Pelephone Q2 2008 Q2 2007 Change H1 2008 H1 2007 Change
(NIS millions) (NIS millions)
Revenues 1,188 1,152 3.1% 2,361 2,299 2.7%
Operating profit 266 240 10.8% 481 453 6.2%
EBITDA 396 355 11.5% 740 685 8.0%
EBITDA margin 33.3% 30.8% 31.3% 29.8%
Net profit 180 173 4.0% 343 327 4.9%
Cash flows from
operating activities 351 246 42.7% 615 605 1.7%
Capex, net 181 117 54.7% 283 178 59.0%
Free cash flow 170 129 31.8% 332 427 -22.2%
Number of subscribers
(end of 2.636 2.513 4.9% 2.636 2.513 4.9%
period, in millions)
Average revenue per
user (ARPU, NIS) 128 129 -0.8% 127 131 -2.7%
Average monthly
minutes of use per
subscriber (MOU) 358 350 2.3% 357 347 2.7%
Pelephone generated double-digit percentage improvements year-over-year
in operating profit, and EBITDA performance driven by growth in its
subscriber base, in revenues related to data, content and value added
services, lower handset subsidies, as well as a continued focus on cost
efficiencies.
As of June 30, 2008, Pelephone had approximately 2.64 million active
subscribers, an increase of 4.9% year-over-year, and a net addition of 41,000
subscribers from the first quarter of 2008. Pelephone remains the market
leader in 3G subscribers with a record 977,000 3G subscribers as of June 30,
2008, representing over 37% of all Pelephone subscribers (and over one
million 3G subscribers as of today, or about 38% of its total subscriber
base). Pelephone revenues from data and value added and content services
constituted a record 15.5% of revenues from cellular services in the second
quarter, compared to approximately 12.5% in the year ago period.
Pelephone's revenues increased 3.1% year-over-year to NIS 1.19 billion in
the second quarter of 2008. The rise is mainly attributable to an increase in
the number of subscribers. which was partially offset by a decrease in
average revenue per user, mainly due to erosion of fees for outgoing calls
and a decrease in interconnect fees. There was also an increase in revenue
from sale of terminal equipment, due to an increase in the number of handsets
sold and upgraded.
Pelephone posted positive EBITDA of NIS 396 million (33.3% EBITDA margin)
in the second quarter of 2008, compared to NIS 355 million (30.8% EBITDA
margin) in the second quarter of 2007. Pelephone's net profit in the second
quarter of 2008 increased 4.0% year-over-year to NIS 180 million.
The company is continuing with the deployment of the new HSPA wireless
network infrastructure and expects this network to be operational by the
beginning of 2009. The HSPA network initiative is central to Pelephone's
commitment to leading edge technologies, leveraging new higher value segments
of the mobile communications market and delivering our customers additional
choice when selecting a mobile solution that best meets their needs.
Bezeq International Results
Bezeq International Q2 2008 Q2 2007 Change H1 2008 H1 2007 Change
(NIS millions) (NIS millions)
Revenues 326 321 1.6% 640 644 -0.6%
Operating profit 63 53 18.9% 117 104 12.5%
EBITDA 83 75 10.7% 157 149 5.4%
EBITDA margin 25.5% 23.4% 24.5% 23.1%
Net profit 47 39 20.5% 88 76 15.8%
Cash flows from operating
activities 51 32 59.4% 59 31 90.3%
Capex, net 31 18 72.2% 59 26 126.9%
Free cash flow 20 14 42.9% - 5 n.m.
Bezeq International, Israel's leading supplier of Internet services,
direct-dial international calls in Israel and network end-point (NEP)
services, posted second quarter 2008 segment revenue of NIS 326 million, up
1.6% compared to the second quarter of 2007. The increase in year-over-year
revenue was driven by higher revenue from Bezeq International's core business
areas, primarily those related to Internet broadband service, outgoing calls
and enterprise integration solutions. Gains in these areas were partially
offset by a decline in hubbing traffic between foreign operators using Bezeq
International's switching equipment.
Bezeq International posted a record EBITDA of NIS 83 million (25.5%
EBITDA margin) in the second quarter of 2008, up 10.7% compared to NIS 75
million (23.4% EBITDA margin) in the second quarter of 2007.
Bezeq International generated an operating profit of NIS 63 million and a
net profit of NIS 47 million in the second quarter of 2008, up 18.9% and
20.5% respectively year-over-year. The rise in net profit year-over-year came
as a result of growth in all core business areas, combined with a decrease in
general and operating expenses.
As reflected in its quarterly and half-year results, Bezeq International
continues to lead the ISP and direct-dial international calls markets in
terms of revenues, profits and profit margins.
yes Results
yes Q2 2008 Q2 2007 Change H1 2008 H1 2007 Change
(NIS millions) (NIS millions)
Revenues 380 354 7.3% 761 708 7.5%
Operating profit 43 31 38.7% 69 56 23.2%
EBITDA 103 100 3.0% 194 193 0.5%
EBITDA margin 27.1% 28.2% 25.5% 27.3%
Net profit (99) (65) 52.3% (165) (113) 46.0%
Cash flows from
operating activities 32 25 28.0% 116 118 -1.7%
Capex, net * 40 45 -11.1% 119 90 32.2%
Free cash flow (8) (20)-60.0% (3) 28 -110.7%
Number of subscribers
(end of period, in 551 543 1.5% 551 543 1.5%
thousands)
Average revenue per user
(ARPU, NIS) 230 218 5.5% 231 218 5.7%
* Including subscriber acquisition costs
Revenue from the yes multi-channel pay-TV segment increased 7.3% to NIS
380 million in the second quarter of 2008 from NIS 354 million in the year
ago period. The rise in revenue was primarily related to a 5.5%
year-over-year increase in ARPU to NIS 230 as well as a 1.5% net increase in
subscribers.
Net loss for the yes segment in the second quarter of 2008 totaled NIS 99
million compared to a net loss of NIS 65 million in the second quarter of
2007, an increase of 52.3% year-over-year. This increase stemmed mainly from
higher finance expenses related to debt linked to the Israeli consumer price
index (CPI), an increase in content costs due to broadcasts of original
productions and an increase in maintenance services by subcontractors.
yes posted positive EBITDA of NIS 103 million (27.1% EBITDA margin) in
the second quarter of 2008 as compared to EBITDA of NIS 100 million (28.2%
EBITDA margin) in the second quarter of 2007.
The number of yes subscribers as of June, 2008 was 551,000, up 8,000
subscribers from the year ago period and up from 549,000 as compared to March
31, 2008.
Outlook
Based on current business conditions, Bezeq continues to expect Group
wide full year 2008 revenues to remain stable, reflecting the combination of
continued erosion in domestic fixed-line telephony with growth across the
rest of the business segments. In addition, the company expects to continue
focusing on reducing costs and expanding margins. Regarding Group level gross
capital expenditures, in 2008 the company is reiterating its forecast for an
increase of approximately 50% year-over-year mainly due to the deployment of
Pelephone's HSPA network infrastructure as well as the initial stages of the
company's NGN project.
Conference Call & Web Cast Information
Bezeq will conduct a conference call hosted by Mr. Shlomo Rodav, Bezeq
Chairman and Mr. Alan Gelman, Bezeq Chief Financial Officer and Deputy CEO,
on Thursday, August 21, 2008, 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: +972-3-918-0609
Israel Phone Number: 03-918-0609
A live webcast of the conference call will be available on the investor
relations section of the Bezeq corporate website at http://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 two hours after the completion of the live call
through Thursday, August 28, 2008. Participants are invited to listen to the
conference call replay by dialing:
International Phone Number: +972-3-925-5937
Israel Phone Number: 03-925-5937
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; Internet,
ADSL, and other data communications; satellite-based multi-channel TV; and
corporate networks.
For more information about Bezeq please visit the corporate website at
http://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.
"Bezeq" The Israel Telecommunication Corp., Limited
Condensed Interim Consolidated Income Statements
For the six-month period For the three-month For the
ended June 30 period ended June 30 year
ended
December
31
2008 2007 2008 2007 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
NIS NIS NIS NIS NIS
millions millions millions millions millions
Revenues 6,186 6,141 3,086 3,053 12,400
Costs and
expenses
Depreciation
and
amortization 851 877 422 436 1,769
Salary 1,201 1,160 585 584 2,375
Operating
and general
expenses 2,683 2,833 1,313 1,410 5,841
Other
operating
expenses
(income), net (13) 44 (34) 52 79
4,722 4,914 2,286 2,482 10,064
Operating 1,464 1,227 800 571 2,336
income
Financing
costs
Financing 392 321 230 159 796
expenses
Financing (109) (190) (48) (85) (487)
income
Net 283 131 183 74 309
financing
expenses
Profit after 1,181 1,096 617 497 2,027
financing
expenses
Equity in
profits of
investees
accounted by
the equity
method 2 2 1 1 6
Profits 1,183 1,098 618 498 2,033
before
income tax
Income tax 385 373 205 158 672
Profit for 798 725 413 340 1,361
the period
Attributable
to:
The 835 760 437 361 1,330
shareholders
of the
Company
Minority (37) (35) (24) (21) 31
rights
Profit for 798 725 413 340 1,361
the period
Earnings per
share
Basic 0.32 0.29 0.17 0.14 0.51
earnings per
share (in
NIS)
Diluted 0.32 0.29 0.17 0.14 0.50
earnings per
share (in
NIS)
"Bezeq" The Israel Telecommunication Corp., Limited
Condensed Interim Consolidated Balance Sheets
June 30, June 30, December 31,
2008 2007 2007
(Unaudited) (Unaudited) (Audited)
NIS millions NIS millions NIS millions
Assets
Cash and cash equivalents 740 2,063 1,203
Investments and loans, including
derivatives 66 1,008 389
Trade receivables 2,497 2,115 2,403
Other receivables 233 231 247
Inventory 186 229 203
Current tax assets 16 12 11
Assets classified as available
for sale 23 - 17
Total current assets 3,761 5,658 4,473
Trade and other receivables 574 498 535
Investments and loans, including
derivatives 226 279 233
Broadcasting rights 278 206 243
Property, plant and equipment 5,971 6,211 6,064
Intangible assets 2,668 2,541 2,526
Deferred and other expenses 394 363 367
Investments in associates
accounted by the equity method 30 33 37
Deferred tax assets 605 789 678
Total non-current assets 10,746 10,920 10,683
Total assets 14,507 16,578 15,156
"Bezeq" The Israel Telecommunication Corp., Limited
Condensed Interim Consolidated Balance Sheets (continued)
June 30, June 30, December 31,
2008 2007 2007
(Unaudited) (Unaudited) (Audited)
NIS millions NIS millions NIS millions
Liabilities
Loans and credit 1,094 4,187 1,913
Trade payables 1,450 1,333 1,533
Other payables, including
derivatives 742 843 745
Current tax liabilities 75 70 57
Deferred income 32 37 47
Provisions 348 332 392
Employee benefits 446 773 705
Total current liabilities 4,187 7,575 5,392
Debentures 3,941 3,350 4,420
Obligations to banks 1,102 392 307
Loans from others 147 126 136
Loans provided by the minority
in a subsidiary 413 599 375
Employee benefits 259 329 261
Deferred income and others 13 28 36
Provisions 56 54 57
Deferred taxes 74 - -
Total non-current liabilities 6,005 4,878 5,592
Total liabilities 10,192 12,453 10,984
Shareholders' Equity
Share capital 6,132 6,132 6,132
Funds 701 681 681
Deficit (2,112) (2,089) (2,268)
Total equity attributable to
shareholders of the Company 4,721 4,724 4,545
Minority equity (406) (599) (373)
Total shareholders' equity 4,315 4,125 4,172
Total shareholders' equity and
liabilities 14,507 16,578 15,156
"Bezeq" The Israel Telecommunication Corp., Limited
Condensed Interim Consolidated Statements of Cash Flows
For the six-month For the three-month For the
period period ended June 30 year
ended June 30 ended
December
31
2008 2007 2008 2007 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)(Audited)
NIS NIS NIS NIS NIS
millions millions millions millions millions
Cash flows from
operating
activities
Net earnings for
the period 798 725 413 340 1,361
Adjustments:
Depreciation 707 741 356 365 1,482
Amortization of
intangible
assets 124 126 56 66 270
Amortization of
deferred and
other charges 20 10 10 5 17
Gain from
decrease in
holding in
companies
accounted by the
equity method - - - - 1
Equity in
earnings of
associates
accounted by the
equity method (2) (2) (1) (1) (6)
Net financing
costs 320 179 191 161 372
Net capital
(gain) loss (19) (5) (18) 11 (88)
Share-based
payment
transactions 35 - 22 - -
Payments to a
former senior
officer - 6 - 6 6
Income tax
expenses 385 373 205 158 672
Payment in
respect of
clearance of
financial
derivative
instruments, net (14) (4) (4) (9) (9)
Change in
inventory 15 (25) 52 22 (6)
Change in trade
receivables (132) (109) (28) (96) (437)
Change in other
receivables (14) (25) 39 27 4
Change in other
payables 4 38 (69) (18) (18)
Change in
suppliers (277) (129) (134) (162) 36
Change in
provisions (46) 45 (42) 30 105
Change in
broadcasting
rights (35) (36) (7) (5) (74)
Change in
employee
benefits (262) (192) (179) (107) (300)
Change in
deferred and
other income (2) (3) (3) (40) (11)
1,605 1,713 859 753 3,377
Interest
received 34 70 15 27 116
Dividend
received 2 3 2 3 3
Income tax paid (228) (224) (100) (86) (430)
Net cash from
operating
activities 1,413 1,562 776 697 3,066
"Bezeq" The Israel Telecommunication Corp., Limited
Condensed Interim Consolidated Statements of Cash Flows
(continued)
For the six-month For the three-month For the
period period ended June 30 year
ended June 30 ended
December
31
2008 2007 2008 2007 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
NIS NIS NIS NIS NIS
millions millions millions millions millions
Cash flows from
investing
activities
Investment in
intangible
assets and in
other expenses (135) (105) (76) (43) (273)
Proceeds from
sale of
property, plant
and equipment
and deferred
expenses 87 121 26 97 177
Proceeds from
realization of
financial assets
held for trade,
net 314 7 257 (108) 647
Purchase of
property, plant
and equipment (617) (413) (310) (235) (973)
Proceeds from
sale of
investments and
long-term loans 11 33 5 26 66
Purchase of
investments and
long-term loans (4) - (4) - (8)
Investment in an
associated
company (1) - - - -
Net cash from
(used for)
investment
activities (345) (357) (102) (263) (364)
Cash flows from
financing
activities
Issue of
debentures - 757 - 757 1,814
Receipt of loans - 50 - 50 50
Repayment of
debentures (627) (97) (398) (15) (1,927)
Repayment of
loans (81) (149) (41) (80) (840)
Short-term
credit, net 68 (23) 56 9 (37)
Dividends paid (679) (2,100) (679) - (2,860)
Interest paid (235) (198) (179) (123) (389)
Receipt
(payment) in
respect of
clearance of
financial
derivative
instruments, net 29 (14) 25 (2) 77
Investment of a
minority in a
subsidiary 4 - 4 - -
Net cash from
(used for)
financing
activities (1,521) (1,774) (1,212) 596 (4,112)
Net increase
(decrease) in
cash and cash
equivalents (453) (569) (538) 1,030 (1,410)
Cash and cash
equivalents at
the beginning of
the period 1,203 2,632 1,283 1,033 2,632
Effect of
fluctuations in
the rate of
exchange on cash
balances (10) - (5) - (19)
Cash and cash
equivalents at
the end of the
period 740 2,063 740 2,063 1,203
Investor Relations Contact:
Mr. Naftali Sternlicht
Bezeq
Phone: +972-2-539-5441
Email: ir@bezeq.co.il
Media Relations Contact:
Mr. Guy Hadass
Bezeq
Phone: +972-3-626-2600
Email: guy@bezeq.co.il
SOURCE Bezeq
|
|
