SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2007
INTERNET GOLD-GOLDEN LINES LTD.
(Name of Registrant)
1 Alexander Yanai Street Petach-Tikva, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will
file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82-_________
Internet Gold-Golden Lines Ltd.
6-K Items
1. Press Release re 012 Golden Lines, a wholly-owned subsidiary (through
Smile Communications) of Internet Gold, Reports Record Results for
2006 dated March 4, 2007.
ITEM 1
Press Release Source: 012 Golden Lines Ltd.
012 Golden Lines Reports Record Results for 2006
Sunday March 4, 8:05 am ET
- Revenues Up 12% to NIS 715M with 23% Rise in Operating Income, 85% Increase in
Profit Before Taxes -
PETACH TIKVA, Israel, March 4 /PRNewswire-FirstCall/ -- 012 Golden Lines Ltd., a
wholly-owned subsidiary (through Smile Communications) of Internet Gold
(Nasdaq: IGLD - News) that will soon complete its statutory merger with
Internet Gold's wholly-owned subsidiary Smile.Communications Ltd., today
reported its unaudited financial results for the year ended December 31, 2006.
Highlights
* Record revenues, up 12% year-over-year (YOY) to NIS 715 million
* 20% YOY growth in broadband customer base
* Poised for a steep ramp-up of domestic telephony services: in February
2007, 012 Golden Lines became the first Israeli company to be granted a
permanent license to provide domestic VOB (Voice Over Broadband) telephony
services in Israel. This positions it to begin an accelerated ramp up from
its existing 15,000 VOB customer base with the goal of securing a
significant share of Israel's over NIS 5 billion domestic telephony
market.
* Merger with Smile.Communications: 012 Golden Lines recently began the
process of merging with Smile.Communications. The merger is expected to
create a company with 2007 revenues of more than NIS 1.2 billion and
improved profitability and cash flow as a result of synergies between the
two companies.
Financial Results
Revenues for 2006 reached a record NIS 715 million, an increase of 12% compared
to NIS 639 million in 2005. Operating profit for the year reached NIS 83
million, an increase of 23% compared to NIS 68 million in 2005. On a non-GAAP
basis, EBITDA* (defined as income before financial income (expenses), net; other
income (expenses), net; income taxes; depreciation and amortization) for 2006
increased by 13% to NIS 147 million compared to NIS 130 million recorded in the
previous year.
Net income for the year was NIS 41 million. This includes the effect of a
one-time charge of NIS 6 million relating to 012 Golden Lines' uncompleted
initial public offering. Excluding this one-time charge, the Company's net
income in 2006 reached NIS 47 million, an increase of 74% compared with NIS 27
million in 2005.
Non-GAAP Measure
EBITDA is a non-GAAP financial measure which is not in accordance with GAAP. The
company believes that this non-GAAP financial measure provides meaningful
supplemental information to both management and investors that is indicative of
the Company's results and facilitates comparison of results across reporting
periods. The Company used this non-GAAP measure when evaluating its financial
results as well as for internal resource management, planning and forecasting
purposes. This non-GAAP measure should not be viewed in isolation from or as a
substitute for the Company's financial results in accordance with GAAP. For more
information, please see the table included at the end of this release.
Comments of Management
Commenting on the results, Ms. Stella Handler, CEO of 012 Golden Lines, said,
"We are proud to report an excellent year across all parameters. We reported
record revenues along with strong operating profit, net profit and EBITDA, the
tangible results of the professional execution delivered throughout the year by
each of our business segments.
"As we move into 2007, our goal is to continue building each of our businesses
while simultaneously merging with Smile.Communications, building a forceful new
company with a significant share of several large markets and annual revenues
above of NIS 1.2 billion. We will work to further expand our Internet access
customer base, adding significant numbers of new residential and business
customers. In parallel, we intend to immediately begin taking advantage of our
new VOB license with the roll-out of an attractive variety of innovative
services, to make VOB one of our strongest growth drivers during the next
several years."
012 Golden Lines is Israel's largest provider of domestic telephony over
broadband (VOB) services, and the first company to receive a permanent VOB
license. Over the past two years, it has been offering VOB services under a
limited temporary license and it now has approximately 15,000 residential and
business customers.
Expected post-merger positioning
After the completion of the 012 Golden Lines statutory merger with
Smile.Communications, the merged company will be positioned as one of Israel's
strongest communications groups with a one third market share of both Internet
Access (ISP) and International Telephony (ILD) markets.
About 012 Golden Lines
012 Golden Lines is one of Israel's leading communications companies with
approximately 16% of Israel's Broadband Internet Access market and more than 30%
of its International Telephony market. 012 Golden Lines was Israel's first
company to offer domestic Telephony Over Broadband (VOB) services and is the
first to have received a permanent VOB license.
Established in 1996, 012 Golden Lines has grown from its beginning as an
International Telephony operator to become a full-service Communications
Services Provider, offering Broadband Internet Access, Domestic and
International Telephony, Data Services and a broad range of Value Added
Services, including Data Security, VPN, Data Storage, IP Roaming and Network
Management.
About Internet Gold
Internet Gold is Israel's leading IP Group with a major presence across all
Internet-related sectors. Its Smile.Communications segment offers a variety of
Internet access and related value-added services, international telephony and
enterprise/IT integration services. Its Smile.Media segment manages a growing
portfolio of Internet portals and e-Commerce sites.
Internet Gold is part of the Eurocom Communications Group. Its shares trade on
the Nasdaq Global Market and on the Tel Aviv Stock Exchange.
For additional information about Internet Gold, please visit its investors' site
at http://www.igld.com.
For further information, please contact:
Ms. Idit Azulay, Internet Gold
+972 3 939-9848
idita@co.zahav.net.il
* RECONCILIATION TABLE OF NON-GAAP MEASURES
(NIS in millions)(Unaudited)
2006 2005
------ ------
Net Income as reported 41 27
Taxes on income 21 6
Other expenses 6 -
Financial expense 15 35
Depreciation & Amortization 64 62
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EBITDA as adjusted 147 130
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
INTERNET GOLD-GOLDEN LINES LTD.
(Registrant)
By /s/Eli Holtzman
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Eli Holtzman
Chief Executive Officer
Date: March 5, 2007