Internet Gold (NASDAQ Global Market: IGLD) (TASE: IGLD) today reported its financial results for the third quarter ended September 30, 2010.
Consolidation of Bezeq Results
- Bezeq results consolidated for entire Q3 period: All of the Q3 results of Bezeq - The Israel Telecommunication Corp., Ltd. (“Bezeq”) are consolidated into Internet Gold’s Q3 results. This reflects the fact that the acquisition of the controlling interest of Bezeq (approximately 30.4%) by Internet Gold’s 76.62%-owned subsidiary, B Communications (NASDAQ Global Market: BCOM) and (TASE: BCOM) was completed before the beginning of the third quarter (on April 14, 2010).
- Supplemental unconsolidated results table: To provide investors with transparent insight into its business, the Company has also provided its results on an unconsolidated basis. In the unconsolidated table, Internet Gold’s interest in B Communication’s net income is presented as a single line item (see below, “Internet Gold’s Unconsolidated Q3 Financial Results”).
- Adoption of IFRS: In contemplation of the acquisition of the controlling interest in Bezeq, on January 1, 2010 Internet Gold adopted the financial reporting standards utilized by Bezeq, the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board, to replace its previous reporting standard, the generally accepted accounting principles in the United States (US GAAP) (see notes C and D below).
Internet Gold’s Q3 Financial Results
Internet Gold’s revenues for the third quarter totaled NIS 3.1 billion (US$ 833 million) a ten-fold increase compared with NIS 310 million reported in the third quarter of 2009. The Company’s revenues for Q3 2010 consisted primarily of Bezeq’s revenues, together with the modest contribution of its media business, which totaled NIS 21 million (US$ 6 million) for the period. Its Q3 2009 revenues consisted of sales generated by the Company’s legacy 012 Smile telecom business. Revenues for the first nine months of 2010, which consolidate Bezeq's results from April 14, 2010,were NIS 5.7 billion (US$ 1.5 billion) compared with NIS 921 million reported in the first nine months of 2009.