B Communications Ltd. reported consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported revenues of ILS 2,405 million compared to ILS 2,740 million a year ago. Operating income was ILS 494 million compared to ILS 391 million a year ago. Income before income tax was ILS 390 million compared to ILS 323 million a year ago. Net income attributable to owners of the company was ILS 45 million or ILS 1.50 per diluted share compared to ILS 16 million or 0.54 per diluted share a year ago. EBITDA was 1,089 million against ILS 1,208 million for the same period a year ago. Cash flow from operating activities was ILS 972 million against ILS 998 million for the same period a year ago. Purchase of property, plant and equipment was ILS 245 million against ILS 385 million for the same period a year ago. Net financial debt was ILS 7.30 billion at March 31, 2013 compared with ILS 6.65 billion as at March 31, 2012. The reduction in the Group Revenue was primarily due to a decrease in revenues from the cellular segment, specifically due to a reduction in revenues from handset sales (decrease of ILS 160 million) together with a decrease in revenues from cellular services (decrease of ILS 120 million). The decline in profitability metrics was primarily due to a decrease in profitability in the cellular segment as a result of increased competition in the sector.

B Communications Ltd announced that they will report Q1, 2013 results on May 13, 2013

On April 8, 2013, B Communications Ltd. received a statement of claim filed by one of the shareholders of Bezeq The Israel Telecommunications Corp. Ltd. against B Communications and against Bezeq. The Claim was filed with the Tel Aviv District Court. The relief sought in the claim is for the court to declare that B Communications Ltd. has a personal interest in the distribution of the dividend up for approval of the next General Meeting of Bezeq, and that Bezeq should publish information and documents and summon economic experts whose opinions were published by Bezeq in its notice of convening the meeting, in preparation for the General Meeting. From an initial review of the statement of Claim, B Communications and Bezeq believe that they acted and continue to act lawfully, including leading up to the upcoming General Meeting, and they shall present their positions in the competent courts. On April 21, 2013, the Tel Aviv District Court dismissed an urgent motion to shorten the procedure for clarifying the Claim filed by the plaintiff. Accordingly, the claim will be adjudicated in accordance with the dates prescribed by law, and there has been no change in the dates determined for the dividend distribution from Bezeq.