Internet Gold Reports its Financial Results for the Fourth Quarter and Full Year 2015

RAMAT GAN, Israel, March 17, 2016

Commenting on the financial results, Doron Turgeman, CEO of Internet Gold said: "2015 was a great year for internet Gold as we changed our company financial position significantly. The improvement in all important debt parameters was reflected in both, the decrease in the yields of both our debentures series during 2015, and the increase in our stock price which rose by more than 125% since January 2015. A few weeks ago we become part of Israel's A issuers group when the local rating agency, Midroog, notched up the ratings for our debt. With full confidence in B Communications' dividend generating power, we will continue our efforts to improve both our debt and equity positions."  

Dividend from B Communications: On November 19, 2015, B Communications' board of directors declared a cash dividend in the amount of NIS 38 million ($10 million) or NIS 1.27 ($0.32) per share. Internet Gold received approximately NIS 25 million ($6 million) on December 23, 2015.

In accordance with Bezeq's dividend policy, its Board of Directors recommended the distribution of 100% of its profits for the second half of 2015 as a cash dividend of NIS 776 million ($199 million) to its shareholders. The dividend, which is subject to shareholder approval, is expected to be paid on May 30, 2016 to shareholders of record as of May 17, 2016. B Communications is expected to receive approximately NIS 204 million ($52 million) in dividends if the distribution is approved by Bezeq's shareholders.

Bezeq's Results: For the fourth quarter of 2015, the Bezeq Group reported revenues of NIS 2.61 billion ($668 million) and operating profit of NIS 488 million ($125 million). Bezeq's EBITDA for the fourth quarter totaled NIS 947 million ($243 million), representing an EBITDA margin of 36.3%. Net profit for the period attributable to Bezeq's shareholders totaled NIS 369 million ($95 million). Bezeq's cash flow from operating activities during the period totaled NIS 889 million ($228 million).

Cash Position: As of December 31, 2015, Internet Gold's unconsolidated cash and cash equivalents and short term investments totaled NIS 277 million ($71 million), its unconsolidated gross debt was NIS 1.1 billion ($277 million) and its unconsolidated net debt was NIS 802 million ($206 million).

Internet Gold's Unconsolidated Balance Sheet Data (1) ARIVA.DE Börsen-Geflüster Kurse BEZEQ ISRAEL TELCM UN/ADR 6,385 $ +1,83% Intnt Gold Golden Lines -   0,00%
(In millions)			Convenience
			translation into
			U.S. dollars
			(Note A)
	December 31,	December 31,	December 31,
	2014	2015	2015
	NIS	NIS	US$
Short term liabilities	67	153	39
Long term liabilities	1,077	926	238
Total liabilities	1,144	1,079	277
Liquidity balances	322	277	71
Total net debt	822	802	206
(1)     Does not include the consolidated balance sheet of B Communications and its subsidiaries.

Sale of B Communications shares: On January 14, 2016, the Company sold 575,000 ordinary shares of B Communications, representing approximately 1.92% of its issued and outstanding shares. The total proceeds from the sale amounted to approximately NIS 56 million ($14 million). As a result of the sale, the Company now holds approximately 65% of the outstanding shares of B Communications. The fourth quarter of 2015 results included a NIS 11 million ($3 million) income tax benefit which was recorded against a deferred tax asset that will be realized in the first quarter of 2016. According to International Accounting Standard No. 12 a tax asset is recognized for deductible temporary differences arising from an investment in a subsidiary to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against, which the temporary difference can be utilized.  This tax asset reflects the sale of our B Communications shares in the first quarter of 2016.

Internet Gold's Cash Management: Internet Gold manages its cash balances according to an investment policy that was approved by its board of directors. The investment policy seeks to preserve principal and maintain adequate liquidity while maximizing the income received from investments without significantly increasing the risk of loss. According to Internet Gold's investment policy approximately 80% of the funds must be invested in investment-grade securities. 

Internet Gold's Fourth Quarter and Full Year Consolidated Financial Results

Internet Gold's consolidated revenues for the fourth quarter of 2015 totaled NIS 2.61 billion ($668 million), a 15.2% increase compared to the NIS 2.26 billion reported in the fourth quarter of 2014. For the full year 2015, Internet Gold's revenues totaled NIS 9.99 billion ($2.56 billion), a 10.3% increase compared to NIS 9.06 billion reported in 2014. Both in the fourth quarter and in the full year, the increase resulted from the full consolidation of Yes beginning in the second quarter of 2015. 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 income for the fourth quarter of 2015 totaled NIS 372 million ($95 million), a 24.1% decrease compared with NIS 490 million reported in the fourth quarter of 2014. The decrease was due to a one-time provision for employee retirement in the fourth quarter of 2015. For the full year 2015, Internet Gold's consolidated operating income totaled NIS 2.01 billion ($516 million), a 21.8% decrease compared with NIS 2.58 billion reported in 2014. The decrease was primarily attributed to Bezeq's sale of Yad2 in the second quarter of 2014 that resulted in NIS 582 million ($149 million) of other operating income in 2014.

Internet Gold's consolidated net income for the fourth quarter of 2015 totaled NIS 306 million ($78 million), an 8.1% increase compared with NIS 283 million reported in the fourth quarter of 2014. For the full year 2015, Internet Gold's consolidated net income totaled NIS 1.08 billion ($278 million), a 3.7% increase compared with NIS 1.04 billion reported in 2014.

Internet Gold's Fourth Quarter and Full Year Unconsolidated Financial Results

As of December 31, 2015 Internet Gold held approximately 67% of B Communications' outstanding shares. Accordingly, Internet Gold's interest in B Communications' net income for the fourth quarter of 2015 totaled NIS 69 million ($17 million) compared with NIS 52 million in the fourth quarter of 2014. For the full year 2015, Internet Gold's interest in B Communications' net income totaled NIS 140 million ($35 million) compared with its interest in B Communications' loss of NIS 15 million in 2014.

Internet Gold's unconsolidated net financial expenses for the fourth quarter of 2015 totaled NIS 9 million ($2 million) compared with NIS 19 million in the fourth quarter of 2014. These expenses consist of NIS 10 million ($2 million) of interest and CPI linkage expenses related to its publicly-traded debentures which were partially offset by NIS 1 million of financial income generated by short term investments. For the full year 2015, Internet Gold's unconsolidated net financial expenses totaled NIS 60 million ($15 million) compared with NIS 84 million in 2014. These expenses consisted of NIS 63 million ($16 million) of interest and CPI linkage expenses related to its publicly-traded debentures which were partially offset by NIS 3 million ($1 million) of financial income generated by short term investments.

Internet Gold's net income attributable to shareholders for the fourth quarter of 2015 totaled NIS 70 million ($18 million) compared with net income attributable to shareholders of NIS 32 million in the fourth quarter of 2014. For the full year 2015, Internet Gold's net income attributable to shareholders totaled NIS 87 million ($22 million), compared with a loss of NIS 103 million in 2014. 

In millions			Convenience			Convenience
			translation into			translation into
	Quarter ended		U.S. dollars	Year ended		U.S. dollars
	December 31,		(Note A)	December 31,		(Note A)
	2014	2015	2015	2014	2015	2015
	NIS	NIS	US$	NIS	NIS	US$
Revenues	-	-	-	-	-	-
Financial expenses, net	(19)	(9)	(2)	(84)	(60)	(15)
Income tax benefit	-	11	3	-	11	3 Werbung Mehr Nachrichten zur Intnt Gold Golden Lines Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 27.04.24 - Tippchecker Aktientipps für den Mai – aufgeschnappt auf der Invest Messe 27.04.24 - Small- & Micro Cap ... Batteriespeicher spielen Hauptrolle bei der Energiewende – Samsung, Vanadium Resources und Panasonic Biotech-Einhorn!    FDA Zulassung für das CBD-Wunder?! weiterlesen» Anzeige wo-site-teaser-box-16773_site-teaser-box_2024-04-27_09%253A00%253A00_2024-04-28_09%253A00%253A59