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News Article | May 18, 2017
Site: www.prnewswire.com

Private Placement of Series C Debentures: On January 11, 2017, the Company completed a private placement of NIS 118 million par value of its Series C Debentures to Israeli institutional investors for an aggregate consideration of approximately NIS 118 million ($32 million). The private placement was carried out as an increase to the outstanding Series C Debentures, which were first issued in September 2016 and have identical terms. Agreement with the Israeli Tax Authority: On April 27, 2017, the Company entered into a tax assessment agreement with the Israeli Tax Authority with respect to final tax assessments for the tax years 2010-2014. The Agreement covers all pending tax assessments and other tax matters with respect to such years. Pursuant to the Agreement, the Company will pay the Israeli Tax Authority NIS 25 million ($7 million), including interest and CPI linkage differences. Dividend from Bezeq: In accordance with Bezeq's dividend policy, its Board of Directors recommended the distribution of 100% of its profits for the second half of 2016 as a cash dividend of NIS 578 million ($159 million) to its shareholders. The dividend was approved by Bezeq's general meeting of shareholders on May 9, 2017 and will be paid on May 29, 2017 to shareholders of record as of May 16, 2017. B Communications share of the dividend distribution is NIS 152 million ($42 million). Financial Liabilities and Liquidity: As of March 31, 2017, B Communications' unconsolidated liquidity balances (comprised of cash and cash equivalents, short term investments and funds deposited in a pledged account) totaled NIS 298 million ($82 million) and its financial liabilities totaled NIS 2.5 billion ($689 million), including NIS 2 billion ($555 million) of Series C Debentures, NIS 454 million ($125 million) of Series B Debentures (the totals for both series include accrued interest and unamortized premiums, discounts and debt issuance costs) and a NIS 32 million ($9 million) tax liability. (1)   Account previously pledged as collateral to the security agent for the benefit of the holders of the 7⅜% Senior Secured Notes (the "Notes"). After the full redemption of the Notes in October 2016, the Pledged account is solely for the benefit of the holders of the Series C Debentures. According to the indenture for the Series C Debentures the account is required to include sufficient funds to meet the next interest payment payable to the holders of those debentures. B Communications' consolidated revenues for the first quarter of 2017 totaled NIS 2.5 billion ($675 million), a 4.1% decrease compared to the NIS 2.6 billion reported in the first quarter of 2016. For both the current and the prior-year periods, B Communications' consolidated revenues consisted entirely of Bezeq's revenues. B Communications' consolidated operating profit for the first quarter of 2017 totaled NIS 461 million ($127 million), a 2.7% decrease compared to the NIS 474 million reported in the first quarter of 2016. B Communications' consolidated net profit for the first quarter of 2017 totaled NIS 239 million ($66 million), a 49.4% increase compared with the NIS 160 million reported in the first quarter of 2016. The increase was mainly due to the Company's lower net financial expenses in the first quarter of 2017 compared with the first quarter of 2016 as a result of the refinance of the Company's debt in the third quarter of 2016. As of March 31, 2017, B Communications held approximately 26.3% of Bezeq's outstanding shares.  B Communications' interest in Bezeq's net profit for the first quarter of 2017 totaled NIS 92 million ($25 million), compared with NIS 80 million reported in the first quarter of 2016. During the first quarter of 2017, B Communications recorded net amortization expenses of NIS 21 million ($5 million), related to its Bezeq purchase price allocation ("Bezeq PPA"). From April 14, 2010, the date of the acquisition of its interest in Bezeq, until March 31, 2017, B Communications has amortized approximately 77% of the total Bezeq PPA. The Bezeq PPA amortization expense is a non-cash expense that is subject to adjustment. B Communications' unconsolidated net financial expenses for the first quarter of 2017 totaled NIS 30 million ($8 million) compared with net financial expenses of NIS 90 million in the first quarter of 2016. B Communications' net financial expenses in the first quarter of 2017 included NIS 28 million ($7 million) related to its Series B and C debentures and financial expenses of NIS 2 million ($1 million) generated by short term investments. B Communications' net profit attributable to shareholders in the first quarter of 2017 was NIS 39 million ($11 million) compared with a loss attributable to shareholders of NIS 23 million reported in the first quarter of 2016. The net profit in the first quarter of 2017 was mainly due to the Company's lower net financial expenses resulting from the refinance of its debt in the third quarter of 2016. 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 quarter ended March 31, 2017. For a full discussion of Bezeq's results for the quarter ended March 31, 2017, please refer to its website: http://ir.bezeq.co.il. Revenues of the Bezeq Group in the first quarter of 2017 were NIS 2.45 billion ($675 million) compared to NIS 2.56 billion in the corresponding quarter of 2016, a decrease of 4.1%. The decrease was due to lower revenues in all of the Bezeq Group segments. Salary expenses of the Bezeq Group in the first quarter of 2017 were NIS 504 million ($139 million) compared to NIS 513 million in the corresponding quarter of 2016, a decrease of 1.8%. Operating expenses of the Bezeq Group in the first quarter of 2017 were NIS 959 million ($264 million) compared to NIS 1.02 billion in the corresponding quarter of 2016, a decrease of 5.8%. The decrease was primarily due to a reduction in expenses in all of the Bezeq group segments, primarily at Pelephone and was impacted by the early adoption of accounting standard IFRS 15 whereby dealer commissions are capitalized. Other operating income, net of the Bezeq Group in the first quarter of 2017 amounted to NIS 4 million ($1 million) compared to other operating expenses, net of NIS 5 million in the corresponding quarter of 2016. Other operating income, net was impacted by the collective labor agreement at Bezeq International in the corresponding quarter of 2016 as well as the reduction in capital gains from the sale of fixed assets at Bezeq Fixed-Line in the first quarter of 2017. Depreciation and amortization expenses of the Bezeq Group in the first quarter of 2017 were NIS 428 million ($118 million) compared to NIS 449 million in the corresponding quarter of 2016, a decrease of 4.7%. The decrease was due to a reduction in depreciation and amortization expenses at Pelephone due to the termination of depreciation of the CDMA network as well as other assets. Operating profit of the Bezeq Group in the first quarter of 2017 was NIS 566 million ($156 million) compared to NIS 574 million in the corresponding quarter of 2016, a decrease of 1.4%. Financing expenses, net of the Bezeq Group in the first quarter of 2017 amounted to NIS 101 million ($28 million) compared to NIS 102 million in the corresponding quarter of 2016, a decrease of 1.0%. Tax expenses of the Bezeq Group in the first quarter of 2017 were NIS 113 million ($31 million) compared to NIS 183 million in the corresponding quarter of 2016, a decrease of 38.3%. The decrease in tax expenses was due to a reduction in the tax asset and the recognition of deferred tax expenses in the corresponding quarter of 2016 in the amount of NIS 64 million resulting from a decrease in corporate tax rates in Israel from 26.5% to 25%. Net profit of the Bezeq Group in the first quarter of 2017 was NIS 350 million ($96 million) compared to NIS 288 million in the corresponding quarter of 2016, an increase of 21.5%. The increase in net profit was primarily due to the aforementioned decrease in tax expenses. EBITDA of the Bezeq Group in the first quarter of 2017 was NIS 994 million ($274 million) (EBITDA margin of 40.5%) compared to NIS 1.023 billion (EBITDA margin of 40.0%) in the corresponding quarter of 2015, a decrease of 2.8%. Cash flow from operating activities of the Bezeq Group in the first quarter of 2017 was NIS 826 million ($227 million) compared to NIS 922 million in the corresponding quarter of 2016, a decrease of 10.4%. The decrease was primarily due to changes in working capital. Payments for investments (Capex) of the Bezeq Group in the first quarter of 2017 was NIS 380 million ($105 million) compared to NIS 345 million in the corresponding quarter of 2016, an increase of 10.1%. Free cash flow of the Bezeq Group in the first quarter of 2017 was NIS 456 million ($126 million) compared to NIS 619 million in the corresponding quarter of 2016, a decrease of 26.3%. Total debt of the Bezeq Group as of March 31, 2017 was NIS 10.7 billion ($2.9 billion) compared to NIS 10.6 billion as of March 31, 2016. Net debt of the Bezeq Group was NIS 9.33 billion ($2.57 billion) as of March 31, 2017 compared to NIS 8.83 billion as of March 31, 2016. Net debt to EBITDA (trailing twelve months) ratio of the Bezeq Group as of March 31, 2017, was 2.32, compared to 2.04 as of March 31, 2016. Unless noted specifically otherwise, the dollar denominated figures were converted to US$ using a convenience translation based on the New Israeli Shekel (NIS)/US$ exchange rate of NIS 3.632 = US$ 1 as published by the Bank of Israel for March 31, 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 are useful for investors and financial institutions to analyze and compare companies on the basis of operating performance: 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 the net debt and 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. B Communications is a holding company with a controlling interest in Israel's largest telecommunications provider, Bezeq, The Israel Telecommunication Corp. (TASE: BEZQ). B Communications shares are traded on NASDAQ and the TASE under the symbol "BCOM." For more information please visit the following Internet sites: 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: Designated Disclosure with Respect to the Company's Projected Cash Flows In connection with the issuance of our Series C Debentures in September 2016, 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 C 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 C Debentures. In examining the existence of warning signs as of March 31, 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 quarter ended March 31, 2017 reflect that we had a continuing negative cash flow from operating activities of NIS 2 million for the first 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 2 million for the first 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 during the first 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. Disclosure with Respect to the Company's Requirements Under Series C Debentures The Company declares with respect to the PR/reporting period as follows: 1.   The Company did not record in favor of a third party any lien of any rank whatsoever over its direct or indirect holdings of 691,361,036 shares of Bezeq (the "Bezeq Shares") including over any of the rights accompanying such shares. 2.   The Company did not make any disposition of the Bezeq Shares. 3.   The Company did not assume any financial debt (as defined in the Trust Deed of Series C) during the reporting period (other than in the framework of the issuance of the Debentures (Series C), and its wholly owned subsidiaries, including B Communications (SP1) and B Communications (SP2) did not issue any financial debt whatsoever during the reporting period. 4.    As of the reporting date, the Company holds approximately 26.34% of Bezeq's outstanding shares, directly and through its subsidiary. 5.    The equity attributable to the Company's shareholders (not including non-controlling interests) according to this report amounts to NIS 1,211 million, and represents 32.6% of the Company's total balance sheet on an unconsolidated basis. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/b-communications-reports-financial-results-for-the-first-quarter-of-2017-300459929.html


News Article | May 18, 2017
Site: www.prnewswire.com

Debt and Liquidity Balances: As of March 31, 2017, Internet Gold's unconsolidated liquidity balances comprised of cash and cash equivalents and short term investments totaled NIS 219 million ($60 million), its unconsolidated total debt was NIS 798 million ($220 million) and its unconsolidated net debt was NIS 579 million ($160 million). (1)     Does not include the debt or liquidity balances of B Communications and its subsidiaries. Internet Gold's consolidated revenues for the first quarter of 2017 totaled NIS 2.5 billion ($675 million), a 4.1% decrease compared to the NIS 2.6 billion reported in the first 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 first quarter of 2016 totaled NIS 460 million ($127 million), a 2.5% decrease compared with NIS 472 million reported in the first quarter of 2016. Internet Gold's consolidated net profit for the first quarter of 2017 totaled NIS 224 million ($62 million), a 56.6% increase compared with NIS 143 million reported in the first quarter of 2016. The increase in net profit in the first quarter of 2017 was mainly due to B Communications' lower net financial expenses resulted from the refinance of its debt in the third quarter of 2016. As of March 31, 2017, Internet Gold held approximately 65% of B Communications' outstanding shares. Accordingly, Internet Gold's interest in B Communications' net profit for the first quarter of 2017 totaled NIS 25 million ($7 million) compared with a net loss of NIS 15 million in the first quarter of 2016. Internet Gold's unconsolidated net financial expenses for the first quarter of 2017 totaled NIS 14 million ($4 million) compared with NIS 15 million in the first quarter of 2016. These expenses consist of NIS 12 million ($3 million) of interest and CPI linkage expenses related to Internet Gold's publicly-traded debentures and of NIS 2 million ($1 million) of financial expenses generated by short term investments. Internet Gold's net profit attributable to shareholders for the first quarter of 2017 totaled NIS 10 million ($3 million) compared with a loss attributable to shareholders of NIS 32 million in the first quarter of 2016. The net profit in the first quarter of 2017 was mainly due to B Communications' lower net financial expenses resulting from the refinance of its debt in the third quarter of 2016. 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 first quarter ended March 31, 2017. For a full discussion of Bezeq's results for the first quarter ended March 31, 2017, please refer to its website: http://ir.bezeq.co.il. Revenues of the Bezeq Group in the first quarter of 2017 were NIS 2.45 billion ($675 million) compared to NIS 2.56 billion in the corresponding quarter of 2016, a decrease of 4.1%. The decrease was due to lower revenues in all of the Bezeq Group segments. Salary expenses of the Bezeq Group in the first quarter of 2017 were NIS 504 million ($139 million) compared to NIS 513 million in the corresponding quarter of 2016, a decrease of 1.8%. Operating expenses of the Bezeq Group in the first quarter of 2017 were NIS 959 million ($264 million) compared to NIS 1.02 billion in the corresponding quarter of 2016, a decrease of 5.8%. The decrease was primarily due to a reduction in expenses in all of the Bezeq Group segments, primarily at Pelephone and was impacted by the early adoption of accounting standard IFRS 15 whereby dealer commissions are capitalized. Other operating income, net of the Bezeq Group in the first quarter of 2017 amounted to NIS 4 million ($1 million) compared to other operating expenses, net of NIS 5 million in the corresponding quarter of 2016. Other operating income, net was impacted by the collective labor agreement at Bezeq International in the corresponding quarter of 2016 as well as the reduction in capital gains from the sale of fixed assets at Bezeq Fixed-Line in the first quarter of 2017. Depreciation and amortization expenses of the Bezeq Group in the first quarter of 2017 were NIS 428 million ($118 million) compared to NIS 449 million in the corresponding quarter of 2016, a decrease of 4.7%. The decrease was due to a reduction in depreciation and amortization expenses at Pelephone due to the termination of depreciation of the CDMA network as well as other assets. Operating profit of the Bezeq Group in the first quarter of 2017 was NIS 566 million ($156 million) compared to NIS 574 million in the corresponding quarter of 2016, a decrease of 1.4%. Financing expenses, net of the Bezeq Group in the first quarter of 2017 amounted to NIS 101 million ($28 million) compared to NIS 102 million in the corresponding quarter of 2016, a decrease of 1.0%. Tax expenses of the Bezeq Group in the first quarter of 2017 were NIS 113 million ($31 million) compared to NIS 183 million in the corresponding quarter of 2016, a decrease of 38.3%. The decrease in tax expenses was due to a reduction in the tax asset and the recognition of deferred tax expenses in the corresponding quarter of 2016 in the amount of NIS 64 million resulting from a decrease in corporate tax rates in Israel from 26.5% to 25%. Net profit of the Bezeq Group in the first quarter of 2017 was NIS 350 million ($96 million) compared to NIS 288 million in the corresponding quarter of 2016, an increase of 21.5%. The increase in net profit was primarily due to the aforementioned decrease in tax expenses. EBITDA of the Bezeq Group in the first quarter of 2017 was NIS 994 million ($274 million) (EBITDA margin of 40.5%) compared to NIS 1.023 billion (EBITDA margin of 40.0%) in the corresponding quarter of 2015, a decrease of 2.8%. Cash flow from operating activities of the Bezeq Group in the first quarter of 2017 was NIS 826 million ($227 million) compared to NIS 922 million in the corresponding quarter of 2016, a decrease of 10.4%. The decrease was primarily due to changes in working capital. Payments for investments (Capex) of the Bezeq Group in the first quarter of 2017 was NIS 380 million ($105 million) compared to NIS 345 million in the corresponding quarter of 2016, an increase of 10.1%. Free cash flow of the Bezeq Group in the first quarter of 2017 was NIS 456 million ($126 million) compared to NIS 619 million in the corresponding quarter of 2016, a decrease of 26.3%. Total debt of the Bezeq Group as of March 31, 2017 was NIS 10.7 billion ($2.9 billion) compared to NIS 10.6 billion as of March 31, 2016. Net debt of the Bezeq Group was NIS 9.33 billion ($2.57 billion) as of March 31, 2017 compared to NIS 8.83 billion as of March 31, 2016. Net debt to EBITDA (trailing twelve months) ratio of the Bezeq Group as of March 31, 2017, was 2.32, compared to 2.04 as of March 31, 2016. Unless noted specifically otherwise, the dollar denominated figures were converted to US$ using a convenience translation based on the New Israeli Shekel (NIS)/US$ exchange rate of NIS 3.632 = US$ 1 as published by the Bank of Israel for March 31, 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: 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. 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: 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. 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 March 31 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 quarter ended March 31, 2017 reflect that we had a continuing negative cash flow from operating activities of NIS 1 million for the first 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 for the first 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 first 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. For further information, please contact: To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/internet-gold-reports-its-financial-results-for-the-first-quarter-2017-300459931.html


A conference call to discuss the results will be held today at 4 PM (Israel); 2 PM (UK); 9:00 AM (ET). The call will be accompanied by a slide presentation which will be available at Leumi Q1 2017 Financial Results Investor Presentation. It is recommended to connect to the link at least 10 minutes prior to the beginning of the call. An archived recording will be available on the Leumi website one business day after the call ends. The conference call does not replace the latest periodic/quarterly reports in which full information is contained, including forward-looking information, as defined in the Israeli Securities Law, and set out in the aforementioned reports. Leumi Group (TASE: LUMI) - Principal Data from the Financial Statements The data in this press release has been converted into US dollars solely for convenience, at the representative rate of exchange published by the Bank of Israel prevailing on March 31, 2017, NIS 3.632. For more information, visit www.leumi.co.il or contact Daphna Golden, VP, Head of Investor Relations, at Daphna.Golden@bankleumi.co.il To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/leumi-reports-a-net-profit-of-nis-622-million-171-million-in-first-quarter-2017-up-36-from-first-quarter-2016-300463814.html


News Article | May 24, 2017
Site: www.prnewswire.com

1 Please see "Use of Non-IFRS financial measures" section in this press release. Nir Sztern, the Company's Chief Executive Officer, referred to the results of the first quarter of 2017: "Revenues for the first quarter of 2017 were affected by the continued competition and price erosion in service revenues in the cellular segment and a decrease in revenues from national roaming compared to the first quarter of last year. The decrease in service revenues in the cellular segment was partially offset by growth in service revenues from the fixed-line segment in respect of television and wholesale market services. In the first quarter of the year, the equipment revenues also decreased due to postponement of new handsets launches. In the second quarter of the year, we see an increase in activity of the end-user equipment in the cellular segment, with the cancellation of the purchase tax on this equipment and the successful launch of the Galaxy S8. In the first quarter of 2017 again the intensified competition is reflected in the Company's results. In this quarter, we received all the required approvals for the network sharing agreements including the network sharing agreement with Golan which entered into force and guarantees us aggregate consideration of approximately NIS 2 billion over the coming decade. This is a significant achievement for the Company in the competitive market in which it operates. The effect of the network sharing agreement with Golan will be reflected gradually from the second quarter over the term of the agreement. We continue the quarterly growth trend of Cellcom tv subscribers, and in the first quarter, approximately 13,000 households who chose the best television in Israel joined the service. In the field of Internet infrastructure we also maintained our position as significant recruiters in the market with the addition of 17,000 new households. I am proud of our position in the television market as an innovative and quality company which provides value to the customer. In the recent weeks we announced that HBO content will be added to Cellcom tv at no additional cost. In addition we announced the possibility of viewing and recording from all smart TV screens and Android TV and launched the first Quattro package in Israel - all communications services in one package which includes television, three cellular lines, internet (connectivity and infrastructure) and a landline telephone service at a worthwhile and attractive price to the customer. This move is another step in our long-term strategy as a communications group that provides comprehensive service to its customers. We continue to develop new growth engines and recently launched Cyber 360, an advanced comprehensive security solution for the business, that enables end-to-end protection of the enterprise through an innovative digital interface under control and monitoring of the business owner. The cyber-attack that took place two weeks ago illustrates the need for comprehensive cyber solutions for businesses." "In the first quarter of 2017 we continued to recruit customers for Cellcom tv, the wholesale market service and the triple play service. Revenues from services in the fixed-line segment continue to grow following vast recruitment of subscribers. In the cellular segment, we experienced continued high level of competition which reflected in a continued erosion of service revenues from customers. In addition, we recorded a decrease in revenues from national roaming services compared to the first quarter of 2016. As of the first quarter of 2017 the Company applies International Financial Reporting Standard (IFRS 15) and capitalizes part of the salaries expenses and commissions related to customer acquisition costs. The application of this standard is expected to have a material positive effect on the Company's financial results for the year. Compared to the previous quarter, we recorded an increase of 2.8% in service revenues and a 16.2% improvement in EBITDA, as a result of the continued implementation of the growth strategy in the fixed-line segment, revenues' enhancement activity, an increase in revenues from national roaming services in the cellular segment and the application of International Financial Reporting Standard (IFRS 15). Free cash flow for the first quarter of 2017 totaled NIS 66 million, a 55.7% decrease compared to the first quarter of 2016. The decrease in free cash flow resulted mainly from a one-time tax refund received in the first quarter of 2016 and from higher cash capital expenditures in fixed assets and intangible assets in the first quarter of 2017 compared to the first quarter of 2016. The Company's Board of Directors decided not to distribute a dividend for the first quarter of 2017, given the continued intensified competition in the market and its effect on the Company's operating results and in order to further strengthen the Company's balance sheet. The Board of Directors will re-evaluate its decision as market conditions develop, and taking into consideration the Company's needs." Cellcom Israel Ltd. (NYSE: CEL; TASE: CEL) ("Cellcom Israel" or the "Company" or the "Group") announced today its financial results for the first quarter of 2017. The Company reported that revenues for the first quarter of 2017 totaled NIS 959 million ($264 million); EBITDA for the first quarter of 2017 totaled NIS 201 million ($55 million), or 21.0% of total revenues; net income for the first quarter of 2017 totaled NIS 26 million ($7 million). Basic earnings per share for the first quarter of 2017 totaled NIS 0.25 ($0.07). FINANCIAL REVIEW (FIRST QUARTER OF 2017 COMPARED TO FIRST QUARTER OF 2016): Revenues for the first quarter of 2017 decreased 6.2% totaling NIS 959 million ($264 million), compared to NIS 1,022 million ($281 million) in the first quarter last year. The decrease in revenues is attributed to a 4.5% decrease in service revenues and an 11.3% decrease in equipment revenues. Service revenues totaled NIS 739 million ($203 million) in the first quarter of 2017, a 4.5% decrease from NIS 774 million ($213 million) in the first quarter last year. Service revenues in the cellular segment totaled NIS 509 million ($140 million) in the first quarter of 2017, an 8.9% decrease from NIS 559 million ($154 million) in the first quarter last year. This decrease resulted mainly from a decrease in cellular services revenues and from a decrease in revenues from national roaming services. The decrease in cellular services revenues resulted from the ongoing erosion in the prices of these services and churn of customers as a result of the aggressive competition in the cellular market. Service revenues in the fixed-line segment totaled NIS 279 million ($77 million) in the first quarter of 2017, a 5.7% increase from NIS 264 million ($73 million) in the first quarter last year. This increase resulted mainly from an increase in revenues from Internet and TV services. Equipment revenues totaled NIS 220 million ($61 million) in the first quarter of 2017, an 11.3% decrease compared to NIS 248 million ($68 million) in the first quarter last year. This decrease resulted mainly from a decrease in the amount of end user equipment sold in the cellular segment. This decrease was partially offset by an increase in equipment sales in the fixed-line segment. Cost of revenues for the first quarter of 2017 totaled NIS 665 million ($183 million), compared to NIS 670 million ($184 million) in the first quarter of 2016, a 0.7% decrease. This decrease resulted mainly from a decrease in the quantity of end user equipment sold in the cellular segment. The decrease was partially offset by an increase in costs of TV services content and in costs related to internet services in the fixed-line segment. Gross profit for the first quarter of 2017 decreased 16.5% to NIS 294 million ($81 million), compared to NIS 352 million ($97 million) in the first quarter of 2016. Gross profit margin for the first quarter of 2017 amounted to 30.7%, down from 34.4% in the first quarter of 2016. Selling, Marketing, General and Administrative Expenses ("SG&A Expenses") for the first quarter of 2017 decreased 9.6% to NIS 227 million ($62 million), compared to NIS 251 million ($69 million) in the first quarter of 2016. This decrease is primarily a result of a decrease in salaries and commissions expenses due to capitalization of part of the customer acquisition costs as a result of early adoption of a new International Financial Reporting Standard (IFRS 15) as of the first quarter of 2017. Operating income for the first quarter of 2017 decreased by 33.7% to NIS 67 million ($19 million) from NIS 101 million ($28 million) in the first quarter of 2016. The decrease in the operating income resulted mainly from a decrease in revenues from cellular services. The decrease was partially offset by a decrease in selling and marketing expenses in the amount of NIS 28 million ($8 million) due to capitalization of part of the customer acquisition costs as a result of early adoption of a new International Financial Reporting Standard (IFRS 15) as of the first quarter of 2017. EBITDA for the first quarter of 2017 decreased by 15.5% totaling NIS 201 million ($55 million) compared to NIS 238 million ($66 million) in the first quarter of 2016. EBITDA as a percent of revenues for the first quarter of 2017 totaled 21.0%, down from 23.3% in the first quarter of 2016. The decrease in EBITDA resulted mainly from the ongoing erosion in service revenues. The decrease was partially offset by a decrease in selling and marketing expenses due to capitalization of part of the customer acquisition costs as a result of early adoption of a new International Financial Reporting Standard (IFRS 15) as of the first quarter of 2017. Cellular segment EBITDA for the first quarter of 2017 totaled NIS 159 million ($44 million), compared to NIS 178 million ($49 million) in the first quarter last year, a decrease of 10.7%, which resulted mainly from a decrease in service revenues as mentioned above. Fixed-line segment EBITDA for the first quarter of 2017 totaled NIS 42 million ($12 million), compared to NIS 60 million ($17 million) in the first quarter last year, a 30.0% decrease, mainly as a result of an erosion in the internet field profitability. Financing expenses, net for the first quarter of 2017 increased 29.2% and totaled NIS 31 million ($9 million), compared to NIS 24 million ($7 million) in the first quarter of 2016. The increase resulted mainly from lower deflation of the Israeli Consumer Price Index in the first quarter of 2017 compared to the first quarter of 2016. Net Income for the first quarter of 2017 totaled NIS 26 million ($7 million), compared to NIS 59 million ($16 million) in the first quarter of 2016, a 55.9% decrease. Basic earnings per share for the first quarter of 2017 totaled NIS 0.25 ($0.07), compared to NIS 0.59 ($0.16) in the first quarter last year. Cellular subscriber base - at the end of the first quarter of 2017 the Company had approximately 2.792 million cellular subscribers. During the first quarter of 2017 the Company's cellular subscriber base decreased by approximately 9,000 net cellular subscribers. Cellular Churn Rate for the first quarter of 2017 totaled to 12.0%, compared to 11.1% in the first quarter last year. The monthly cellular Average Revenue per User ("ARPU") for the first quarter of 2017 totaled NIS 60.2 ($16.6), compared to NIS 65.2 ($18.0) in the first quarter last year. The decrease in ARPU resulted, among others, from the ongoing erosion in the prices of cellular services, resulting from the intense competition in the cellular market. In the first quarter of 2017, the Company's households base in respect of the internet infrastructure field increased by approximately 17,000 net households (in the fourth quarter of 2016 the Company's internet infrastructure households base was 156,000 and not 163,000, as previously reported), and the Company's households base in the TV field increased by 13,000 net households. Free cash flow for the first quarter of 2017, after elimination of a loan provided to Golan Telecom in the amount of NIS 130 million, as previously reported, totaled NIS 66 million ($18 million), compared to NIS 149 million ($41 million) in the first quarter of 2016, a 55.7% decrease. The decrease in free cash flow, resulted mainly from a one-time tax refund received in the first quarter of 2016 and from higher cash capital expenditures in fixed assets and intangible assets in the first quarter of 2017 compared to the first quarter of 2016. Total Equity as of March 31, 2017 amounted to NIS 1,367 million ($376 million) primarily consisting of undistributed accumulated retained earnings of the Company. During the first quarter of 2017, the Company invested NIS 140 million ($39 million) in fixed assets and intangible assets (including, among others, investments in the Company's communications networks, information systems, software and TV set-top boxes and capitalization of part of the customer acquisition costs as a result of early adoption of a new International Financial Reporting Standard (IFRS 15)), compared to NIS 90 million ($25 million) in the first quarter 2016. On May 23, 2017, the Company's Board of Directors decided not to declare a cash dividend for the first quarter of 2017. In making its decision, the board of directors considered the Company's dividend policy and business status and decided not to distribute a dividend at this time, given the intensified competition and its adverse effect on the Company's results of operations, and in order to strengthen the Company's balance sheet. The board of directors will re-evaluate its decision in future quarters. No future dividend declaration is guaranteed and is subject to the Company's board of directors' sole discretion, as detailed in the Company's annual report for the year ended December 31, 2016 on Form 20-F dated March 20, 2017, or the 2016 Annual Report, under "Item 8 - Financial Information – A. Consolidated Statements and Other Financial Information - Dividend Policy". For information regarding a summary of the Company's financial liabilities and details regarding the Company's outstanding debentures as of March 31, 2017, see "Disclosure for Debenture Holders" section in this press release. For details regarding the fulfillment of financial covenants included in the loan agreements, which are identical to those included in the Company's Debentures Series F through K, see comment no.1 to the table of "Aggregation of the information regarding the debenture series issued by the Company" under "Disclosure for Debenture Holders" section in this press release. For additional details regarding the loans see the Company's 2016 Annual Report, under "Item 5B. Liquidity and Capital Resources – Other Credit Facilities". OTHER DEVELOPMENTS DURING THE FIRST QUARTER OF 2017 AND SUBSEQUENT TO THE END OF THE REPORTING PERIOD Following previous reports regarding the Company's network sharing and hosting services agreements with Marathon 018 Xfone Ltd., or Xfone, and with Electra Consumer Products Ltd., or Electra, in March and April 2017, respectively, both agreements came into effect after their respective preliminary conditions were met and the Company's agreement with Electra was adopted by Golan Telecom Ltd., or Golan Telecom, upon completion of its share capital being purchased by Electra. In April 2017, Xfone notified the Company that the Ministry of Communications granted Xfone a non-exclusive general license for the provision of cellular services. For additional details see the Company's 2016 Annual Report under "Item 3. Key Information – D. Risk Factors – Risks Related to our Business – We face intense competition in all aspects of our business" and "Item 4. Information on the Company – B. Business Overview - Networks and Infrastructure - Cellular Segment- Network Sharing Agreements", "- Competition – Cellular" and "- Government Regulation – Cellular Segment - Additional MNOs" and the Company's current reports on Form 6-K dated March 20 2017 and April 5, 2017. In May 2017, a wholly owned indirect subsidiary of the Company, 013 Netvision Ltd., or Netvision, has entered an agreement for the sale of its holdings in Internet Rimon Israel 2009 Ltd., or Rimon, a subsidiary of Netvision, to the other shareholders of Rimon. The agreement is subject to regulatory approvals and contains customary terms and conditions. The consideration shall be paid to Netvision in several installments over a period of two years from the closing of the transaction. The Company expects to record a capital gain of approximately NIS 10-15 million following the consummation of the agreement. The Company will be hosting a conference call regarding its results for the first quarter of 2017 on Wednesday, May 24, 2017 at 09:30 am ET, 06:30 am PT, 14:30 UK time, 16:30 Israel time. On the call, management will review and discuss the results, and will be available to answer questions. To participate, please either access the live webcast on the Company's website, or call one of the following teleconferencing numbers below. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number. at: 09:30 am Eastern Time; 06:30 am Pacific Time; 14:30 UK Time; 16:30 Israel Time To access the live webcast of the conference call, please access the investor relations section of Cellcom Israel's website: www.cellcom.co.il. After the call, a replay of the call will be available under the same investor relations section. Cellcom Israel Ltd., established in 1994, is the largest Israeli cellular provider; Cellcom Israel provides its approximately 2.792 million cellular subscribers (as at March 31, 2017) with a broad range of value added services including cellular telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an LTE 4 generation network and an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Through its broad customer service network Cellcom Israel offers technical support, account information, direct to the door parcel delivery services, internet and fax services, dedicated centers for hearing impaired, etc. Cellcom Israel further provides OTT TV services (as of December 2014), internet infrastructure (as of February 2015) and connectivity services and international calling services, as well as landline telephone communications services in Israel, in addition to data communications services. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://investors.cellcom.co.il. The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about the Company, may include projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. These statements are only predictions based on the Company's current expectations and projections about future events. There are important factors that could cause the Company's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to: changes to the terms of the Company's license, new legislation or decisions by the regulator affecting the Company's operations, new competition and changes in the competitive environment, the outcome of legal proceedings to which the Company is a party, particularly class action lawsuits, the Company's ability to maintain or obtain permits to construct and operate cell sites, and other risks and uncertainties detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including under the caption "Risk Factors" in its Annual Report for the year ended December 31, 2016. Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company assumes no duty to update any of these forward-looking statements after the date hereof to conform its prior statements to actual results or revised expectations, except as otherwise required by law. The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). 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 3.632 = US$ 1 as published by the Bank of Israel for March 31, 2017. Use of non-IFRS financial measures EBITDA is a non-IFRS measure and is defined as income before financing income (expenses), net; other income (expenses), net (excluding expenses related to employee voluntary retirement plans); income tax; depreciation and amortization and share based payments. This is an accepted measure in the communications industry. The Company presents this measure as an additional performance measure as the Company believes that it enables us to compare operating performance between periods and companies, net of any potential differences which may result from differences in capital structure, taxes, age of fixed assets and related depreciation expenses. EBITDA should not be considered in isolation, or as a substitute for operating income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting Principles as measures of profitability or liquidity. EBITDA does not take into account debt service requirements, or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that may be available for the Company's use. In addition, EBITDA as presented by the Company may not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated. See the reconciliation of net income to EBITDA under "Reconciliation of Non-IFRS Measures" in the press release. Free cash flow is a non-IFRS measure and is defined as the net cash provided by operating activities (including the effect of exchange rate fluctuations on cash and cash equivalents) excluding a loan to Golan Telecom, minus the net cash used in investing activities excluding short-term investment in tradable debentures and deposits and proceeds from sales of such debentures (including interest received in relation to such debentures) and deposits. See "Reconciliation of Non-IFRS Measures" below. (1) In the reporting period, the Company fulfilled all terms of the debentures. The Company also fulfilled all terms of the Indentures and loan agreements. Debentures Series F through K financial and loan agreements covenants - as of March 31, 2017 the net leverage (net debt to EBITDA excluding one time events ratio- see definition in the Company's annual report for the year ended December 31, 2016 on Form 20-F, under "Item 5. Operating and Financial Review and Prospects – B. Liquidity and Capital Resources – Debt Service– Public Debentures") was 3.30. In the reporting period, no cause for early repayment occurred. (2) Including interest accumulated in the books. (3) Semi annual payments, excluding Series D debentures in which the payments are annual. (4) Regarding debenture Series F through K and loan agreements, the Company undertook not to create any pledge on its assets, as long as debentures or loans are not fully repaid, subject to certain exclusions. (5) Regarding debenture Series F through K and loan agreements - the Company has the right for early redemption under certain terms (see the Company's annual report for the year ended December 31, 2016 on Form 20-F, under "Item 5. Operating and Financial Review and Prospects– B. Liquidity and Capital Resources – Debt Service– Public Debentures" and "-Other Credit Facilities". (6) Regarding debenture Series F and G - in June 2013, following a second decrease of the Company's debenture rating since their issuance, the annual interest rate has been increased by 0.25% to 4.60% and 6.99%, respectively, beginning July 5, 2013. (7) In February 2016, pursuant to an exchange offer of the Company's Series H and I debentures for a portion of the Company's outstanding Series D and E debentures (Series E debentures were fully repaid in January 2017), respectively, the Company exchanged approximately NIS 555 million principal amount of Series D debentures with approximately NIS 844 million principal amount of Series H debentures, and approximately NIS 272 million principal amount of Series E debentures with approximately NIS 335 million principal amount of Series I debentures. (8) In January 2017, debentures Series B and E were fully repaid. (1)     In August 2016, S&P Maalot affirmed the Company's rating of "ilA+/stable". (2)     In October 2008, S&P Maalot issued a notice that the AA- rating for debentures issued by the Company is in the process of recheck with stable implications (Credit Watch Stable). This process was withdrawn upon assignment of AA rating in March 2009. In August 2011, S&P Maalot issued a notice that the AA rating for debentures issued by the Company is in the process of recheck with negative implications (Credit Watch Negative). In May 2012, S&P Maalot updated the Company's rating from an "ilAA/negative" to an "ilAA-/negative". In November 2012, S&P Maalot affirmed the Company's rating of "ilAA-/negative". In June 2013, S&P Maalot updated the Company's rating from an "ilAA-/negative" to an "ilA+/stable". In June 2014, August 2014, January 2015, September 2015, March 2016 and August 2016, S&P Maalot affirmed the Company's rating of "ilA+/stable". For details regarding the rating of the debentures see the S&P Maalot report dated August 23, 2016. * A securities rating is not a recommendation to buy, sell or hold securities. Ratings may be subject to suspension, revision or withdrawal at any time, and each rating should be evaluated independently of any other rating. Summary of Financial Undertakings (according to repayment dates) as of March 31, 2017 a.    Debentures issued to the public by the Company and held by the public, excluding such debentures held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS). b.    Private debentures and other non-bank credit, excluding such debentures held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS). c.    Credit from banks in Israel based on the Company's "Solo" financial data (in thousand NIS) - None. d.    Credit from banks abroad based on the Company's "Solo" financial data (in thousand NIS) - None. Summary of Financial Undertakings (according to repayment dates) as of March 31, 2017 (cont.) e.    Total of sections a - d above, total credit from banks, non-bank credit and debentures based on the Company's "Solo" financial data (in thousand NIS). f.     Out of the balance sheet Credit exposure based on the Company's "Solo" financial data - None. g.    Out of the balance sheet Credit exposure of all the Company's consolidated companies, excluding companies that are reporting corporations and excluding the Company's data presented in section f above (in thousand NIS) - None. h.    Total balances of the credit from banks, non-bank credit and debentures of all the consolidated companies, excluding companies that are reporting corporations and excluding Company's data presented in sections a - d above (in thousand NIS) - None. i.      Total balances of credit granted to the Company by the parent company or a controlling shareholder and balances of debentures offered by the Company held by the parent company or the controlling shareholder (in thousand NIS) - None. j.      Total balances of credit granted to the Company by companies held by the parent company or the controlling shareholder, which are not controlled by the Company, and balances of debentures offered by the Company held by companies held by the parent company or the controlling shareholder, which are not controlled by the Company (in thousand NIS). k.    Total balances of credit granted to the Company by consolidated companies and balances of debentures offered by the Company held by the consolidated companies (in thousand NIS) - None. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cellcom-israel-announces-first-quarter-2017-results-300462987.html


BOSTON--(BUSINESS WIRE)--Sapient Global Markets Extends CMRS Regulatory Reporting Platform for Bank of Israel Requirements


News Article | December 5, 2016
Site: www.prweb.com

UBPartner, a leading European provider of XBRL tools and services (http://www.ubpartner.com), announced today the addition of a new Portal capability to its XBRL Toolkit (XT). The XT Portal provides the same simple-to use and powerful XBRL tools to convert, validate and render XBRL documents, while further enhancing the usability of these tools by adding a new enterprise-level interface, flexible shared workflows, role-based access controls and enhanced performance through parallel document processing. The UBPartner XBRL Toolkit is already being used by hundreds of banks and insurance companies in Europe that need to submit CRD4 (COREP and FINREP) and Solvency II reports in XBRL format. These simple-to-use, yet powerful tools have also been adopted by industry and financial application suppliers, systems integrators and services firms to enable them deliver 100% compliance for their clients. UBPartner has further extended its support for XBRL by adding pre-mapped templates for local National Specific Templates (NSTs) to support additional XBRL reporting requirements in countries such as Ireland and France, plus new XBRL reporting frameworks, such as the Bank of Israel’s new Banking Supervision Directives. “The Bank of Israel’s adoption of XBRL reporting was totally new for us, so we needed a partner who had the specialist software and the expertise to provide the right support to our banking customers. UBPartner has an excellent reputation and its underlying XBRL technology is used around the world in major projects.” stated Reshef Radin, Board Member responsible for Partnerships and Banking Solutions at HMS (http://www.hms.co.il/en/), a leading Israeli systems integrator. “The partnership has worked well despite the BoI implementation being very difficult as the regulator, banks and local IT suppliers were learning as they went along”. “UBPartner’s XT Portal and pre-mapped templates removes the need to understand complex XBRL syntax. Our users can simply load the data into the template, then upload and run the XBRL conversion tools to generate a 100% compliant XBRL document. The system delivers a complete set of validation reports that alert the user to any errors in the report. They can then review any errors at a business level, by highlighting them in the template. Once the XBRL document is generated with no errors, it is ready to submit” he added. “Many of our customers across Europe were asking how they could utilize our XBRL Toolkit in a multi-user, multi-taxonomy environment. So we worked with them to define a set of capabilities that have become the XT Portal. They helped us to test and develop the core requirements and their feedback over 9 months has been invaluable in ensuring that the XT Portal meets exactly what users are looking for to extend their current XBRL systems and to integrate XBRL more fully into their reporting processes.” said Laetitia Boublil, Development Director at UBPartner. “In addition, we wanted to help firms who already have their own preferred Portal for reporting. So we have worked with a development partner to ensure that the same APIs for our tools that underpin the new XT Portal can also work with standard commercial Portal environments, such as Microsoft SharePoint.” she added. The UBPartner XBRL Reporting Toolkit does not require an extensive implementation phase over many months, nor does it require that confidential information is sent over networks to remote portals or services to convert or validate the data. “Tight deadlines, new technology and uncertain future requirements make the move to XBRL reporting potentially stressful for reporting banks and insurance companies” said Roger Haddad, President, UBPartner “We have used all our experience in implementing XBRL systems for national banking supervisors and working with major financial application vendors, to design a set of tools that are easy to integrate, simple to use, but also powerful and proven to work.” The latest version of the UBPartner XBRL Reporting Toolkit and the new XT Portal will be made available for download from the UBPartner download website in the coming weeks for customers and partners who have current agreements. XBRL is fast becoming the standard for financial information exchange and reporting demonstrated by the XBRL programs being driven by the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA) and numerous government agencies. The XBRL standard is maintained by XBRL International: http://www.xbrl.org HMS Consulting Group is a leading Israeli consulting firm serving the financial and banking sectors in the areas of consulting, professional services and information technology. The group, consisting of approximately 200 multi-disciplinary consultants, uses their expertise and leverages their abilities in the domains of accounting, information systems and the financial world, resulting in a continued business advantage for its customers. HMS possesses 20 years of experience gained from hundreds of projects, embracing consulting, development and integration of large information technology solutions for medium and large businesses. http://www.hms.co.il/en/ UBPartner is a privately owned company with headquarters in Paris and offices in London. It provides a full suite of solutions and services that enable companies and regulatory agencies to realize the benefits of XBRL – from the underlying processing engine, to desktop development and deployment tools, all the way to packaged solutions for regulators and government agencies. UBPartner technology and tools are used today in many advanced and demanding XBRL environments such as market regulators, government agencies and major corporations in France, Belgium, UK, Ireland, Poland, Norway, and Luxembourg and by leading software vendors, such as Oracle, SAP and Infor.


News Article | December 21, 2016
Site: www.prweb.com

Advise Technologies, an industry leading provider of regulatory reporting software, is pleased to announce the addition of the Bank of Israel Derivatives Reporting module to the growing regulatory reporting capacity of the Consensus RMS platform. The Bank of Israel Derivatives Reporting module joins a list of over 20 global regulatory filing modules on the Consensus RMS platform, which covers regulations such as AIFMD Annex IV, Form PF, Form ADV, and PRIIPs KID. Consensus RMS allows firms to prepare, manage, and store all relevant regulatory information on one system. By enabling the use of one set of data across all filings and regulations, Consensus RMS ensures consistency and operational efficiency. It also includes assistive workflow processes, such as regulatory validations and electronic submission. “As new regulations come out and requirements change, Consensus RMS can calculate, format, and populate the data as the regulators expect. This can be done on all the forms we support, including Bank of Israel reporting,” says Roger van Elderen, business development manager at Advise Technologies. “Firms need a built-in workflow and a repeatable process.” The Bank of Israel reporting requirement, which goes into effect on January 1st, 2017, aims to gather detailed data on foreign currency, index, and interest rate derivative trades executed by relevant entities. In scope are all Israeli banks (including domestic branches of foreign banks), in addition to both Israeli financial institutions and non-Israeli firms whose foreign currency derivative trades in the preceding year exceeded a daily average of 15 million USD. Once the threshold is met, the reporting requirement applies to all executed trades. (Note that the reporting obligation also includes FX spot, which is not typically considered a derivative). Reports are to be submitted not later than one trading day after the trade was executed. A monthly report of the inventory of open such trades is to be submitted not later than one trading day after the end of the month being reported. Firms will need to submit these reports to the Bank of Israel for one year following when the 15 million USD threshold was met. More information about the new regulation is available on the Bank of Israel website: Consensus Regulatory Management System is an award-winning platform used by investment managers for a repeatable, reliable, and automated filing process. Consensus RMS includes filing capabilities for regulatory forms including AIFMD, CPO-PQR, Form PF, Open Protocol, Solvency II, 13F, and TIC. Advise Technologies is a premier provider of reporting and compliance software for investment managers. With four flagship products – Consensus, Notes, Signal, and Vault – it provides innovative solutions to the regulatory and operational challenges faced by clients. Advise was founded in 2010 and is headquartered in New York with offices in major European financial centers. For more information: http://www.AdviseTechnologies.com


News Article | November 30, 2016
Site: www.prweb.com

The Group of Thirty (G30) announces that Jacob A. Frenkel, Chairman of JP Morgan Chase International, and former Governor of the Bank of Israel, has been reappointed as Chairman of the G30 Board of Trustees, and Tharman Shanmugaratnam, Deputy Prime Minister and Coordinating Minister for Economic and Social Policies, Singapore, and former chairman of the International Monetary and Financial Committee at the IMF, will become the next Chairman of the Group of Thirty (G30). Both terms will begin January 1, 2017 and run for five years. Tharman Shanmugaratnam succeeds Jean-Claude Trichet, former President of the European Central Bank, who will complete his five-year term as Chairman at the end of 2016. Mr. Frenkel said: “It is with great pleasure that the Group welcomes Tharman Shanmugaratnam as the next Chairman of the G30. We are confident that Tharman will successfully pursue the Group’s mission: to deepen understanding of key international economic and financial issues and, thereby, contribute to the quality of public policy decision making.” Mr. Frenkel added: “I extend our deep appreciation and gratitude to Jean-Claude Trichet who has led the G30 so skillfully and effectively over the last five years, and we look forward to his continued active engagement with and contributions to the G30 in the years to come.” Mr. Shanmugaratnam stated: “It will be a real privilege to succeed Jean-Claude Trichet, whose knowledge, wisdom and warmth have made him a role model for so many of us, in the G30 and beyond.” He added: “I look forward to working closely with my colleagues in the Group as we continue to inform and influence dialogue within the global economic and financial community.” Mr. Trichet commented: “It has been an honor to serve as Chairman of the G30 during my five years term. I am extremely pleased that the Trustees have decided to reappoint Jacob Frenkel, and have chosen Tharman Shanmugaratnam to lead the Group. The Group could not be in more experienced and capable hands. The G30 will continue to be a forum where leaders exchange views on the major economic and financial global governance issues. It has been my privilege to lead the G30 and I will continue to engage actively with the G30.” To see a full list of the G30 leadership and members, please visit http://www.group30.org.


Etkes H.,Bank of Israel
Peace Economics, Peace Science and Public Policy | Year: 2012

This study provides circumstantial evidence for the impact of permits for employment in Israel on the Palestinian labor force in the West Bank during the late Intifada period and its aftermath (2005-2008). The study utilizes a unique dataset that merges data from the Palestinian Labor Force Survey with Israeli administrative data on permits for employment in Israel. The study quantifies the increase in Palestinian employment in the Israeli and Palestinian economies and the decrease in Palestinian unemployment, as well as the drop in the return to schooling in a West Bank governorate, which coincided with an increase in the number of permits issued for residents of that governorate. These results reflect the short-run benefits for the un-skilled Palestinian labor force as well as the adverse long-run effects of Palestinian employment in Israel on human capital accumulation. Copyright © 2012 De Gruyter. All rights reserved.


We estimate a small DSGE model by full information Bayesian techniques on the basis of Israeli data from 1995 to 2006. The model was first developed and estimated by means of classical GMM in Argov and Elkayam (2010), and since then it has been used at the Bank of Israel for monetary policy analysis. It is widely believed that in 2007 (out of sample year) as elsewhere worldwide, inflation rose in Israel due to high commodity prices in global markets. However, our baseline model attributes most of the high inflation in 2007 to supply shocks. One conjecture is that this model's result derives from the inappropriate original use of the unit value of imported consumer goods (which do not include unprocessed food and energy) as the main foreign price measure. We test this conjecture by re-estimating the model with various other foreign price measures that typically do reflect the global rise in commodity prices and compare the log-marginal likelihoods. We find that no other price measure outperforms the original choice in the sample period. Only the foreign trade-weighted CPI equals the performance of the original choice while improving the 2007 interpretation of inflation, and should therefore be considered the main foreign price measure. The proposed methodology for comparing the suitability of alternative measures for observable variables can be applied to any model with exogenous variables that are characterized by univariate equations. © 2011 Elsevier B.V.

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