NETANYA, Israel, May 24, 2017 /PRNewswire/ --
First Quarter 2017 Highlights (compared to first quarter
of 2016):
- Total Revenues totaled NIS 959
million ($264 million)
compared to NIS 1,022 million
($281 million) in the first quarter
last year, a decrease of 6.2%
- Service revenues totaled NIS 739
million ($203 million)
compared to NIS 774 million
($213 million) in the first quarter
last year, a decrease of 4.5%
- EBITDA1 totaled NIS
201 million ($55 million)
compared to NIS 238 million
($66 million) in the first quarter
last year, a decrease of 15.5%
- EBITDA margin 21.0%, a decrease from 23.3% in the first
quarter last year
- Operating income totaled NIS 67
million ($19 million) compared
to NIS 101 million ($28 million) in the first quarter last year, a
decrease of 33.7%
- Net income totaled NIS 26
million ($7 million) compared
to NIS 59 million ($16 million) in the first quarter last year, a
decrease of 55.9%
- Free cash flow1 totaled NIS 66 million ($18
million) compared to NIS 149
million ($41 million) in the
first quarter last year, a decrease of 55.7%
- Cellular subscriber base totaled approximately 2.792
million subscribers (at the end of March
2017)
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."
Shlomi Fruhling, Chief
Financial Officer, said:
"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 ($0.07).
MAIN CONSOLIDATED FINANCIAL RESULTS:
|
Q1/2017
|
Q1/2016
|
Change%
|
Q1/2017
|
Q1/2016
|
|
|
|
|
US$
million
|
|
NIS
million
|
(convenience translation)
|
Total
revenues
|
959
|
1,022
|
(6.2%)
|
264
|
281
|
Operating
Income
|
67
|
101
|
(33.7%)
|
19
|
28
|
Net Income
|
26
|
59
|
(55.9%)
|
7
|
16
|
Free cash
flow
|
66
|
149
|
(55.7%)
|
18
|
41
|
EBITDA
|
201
|
238
|
(15.5%)
|
55
|
66
|
EBITDA, as percent of
total revenues
|
21.0%
|
23.3%
|
(9.9%)
|
|
|
MAIN FINANCIAL DATA BY OPERATING
SEGMENTS:
|
Cellular
(*)
|
Fixed-line
(**)
|
Consolidation
adjustments
(***)
|
Consolidated
results
|
NIS
million
|
Q1'17
|
Q1'16
|
Change
%
|
Q1'17
|
Q1'16
|
Change
%
|
Q1'17
|
Q1'16
|
Q1'17
|
Q1'16
|
Change
%
|
Total
revenues
|
692
|
778
|
(11.1%)
|
316
|
293
|
7.8%
|
(49)
|
(49)
|
959
|
1,022
|
(6.2%)
|
Service
revenues
|
509
|
559
|
(8.9%)
|
279
|
264
|
5.7%
|
(49)
|
(49)
|
739
|
774
|
(4.5%)
|
Equipment
revenues
|
183
|
219
|
(16.4%)
|
37
|
29
|
27.6%
|
-
|
-
|
220
|
248
|
(11.3%)
|
EBITDA
|
159
|
178
|
(10.7%)
|
42
|
60
|
(30.0%)
|
-
|
-
|
201
|
238
|
(15.5%)
|
EBITDA, as percent of
total revenues
|
23.0%
|
22.9%
|
0.4%
|
13.3%
|
20.5%
|
(35.1%)
|
|
|
21.0%
|
23.3%
|
(9.9%)
|
(*)
|
The segment includes
the cellular communications services, end user cellular equipment
and supplemental services.
|
(**)
|
The segment includes
landline telephony services, internet infrastructure and
connectivity services, television
services, end user fixed-line equipment and supplemental
services.
|
(****)
|
Include cancellation
of inter-segment revenues between "Cellular" and "Fixed-line"
segments.
|
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.
OPERATING REVIEW
MAIN PERFORMANCE INDICATORS - CELLULAR
SEGMENT:
|
Q1/2017
|
Q1/2016
|
Change
(%)
|
Cellular subscribers
at the end of period (in thousands)
|
2,792
|
2,813
|
(0.7%)
|
Churn Rate for
cellular subscribers (in %)
|
12.0%
|
11.1%
|
8.1%
|
Monthly cellular ARPU
(in NIS)
|
60.2
|
65.2
|
(7.7%)
|
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.
MAIN PERFORMANCE INDICATORS - FIXED-LINE SEGMENT:
|
Q1/2017
|
Q1/2016
|
Change
(%)
|
Internet
infrastructure field- households at the end of
period (in thousands)
|
173
|
121
|
43.0%
|
TV
field- households at the end of period (in
thousands)
|
124
|
75
|
65.3%
|
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.
FINANCING AND INVESTMENT REVIEW
Cash Flow
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
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.
Cash Capital Expenditures in Fixed Assets and Intangible
Assets
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.
Dividend
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".
Debentures
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.
Loans from Financial Institutions
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
Network Sharing Agreements
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.
Sale of Indirect Subsidiary
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.
CONFERENCE CALL DETAILS
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.
US Dial-in Number: 1
866 652
8972
|
UK Dial-in Number: 0
808 101 2717
|
Israel Dial-in
Number: 03 918
0608
|
International Dial-in
Number: +972 3 918 0608
|
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.
About Cellcom Israel
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.
Forward-Looking Statements
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.
Company
Contact
Shlomi
Fruhling
Chief Financial
Officer
investors@cellcom.co.il
Tel: +972 52 998
9735
|
Investor Relations
Contact
Ehud Helft
GK Investor &
Public Relations
cellcom@GKIR.com
Tel: +1 617 418
3096
|
|
Financial Tables Follow
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Condensed
Consolidated Interim Statements of Financial
Position
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
into US
dollar
|
|
|
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
December
31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
681
|
|
589
|
|
162
|
|
1,240
|
Current investments,
including derivatives
|
|
282
|
|
283
|
|
78
|
|
284
|
Trade
receivables
|
|
1,299
|
|
1,293
|
|
356
|
|
1,325
|
Current tax
assets
|
|
-
|
|
47
|
|
13
|
|
25
|
Other
receivables
|
|
61
|
|
71
|
|
20
|
|
61
|
Inventory
|
|
78
|
|
67
|
|
18
|
|
64
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
2,401
|
|
2,350
|
|
647
|
|
2,999
|
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
|
808
|
|
914
|
|
252
|
|
796
|
Property, plant and
equipment, net
|
|
1,696
|
|
1,628
|
|
448
|
|
1,659
|
Intangible assets and
others, net
|
|
1,221
|
|
1,230
|
|
339
|
|
1,207
|
Deferred tax
assets
|
|
8
|
|
1
|
|
-
|
|
1
|
|
|
|
|
|
|
|
|
|
Total non- current
assets
|
|
3,733
|
|
3,773
|
|
1,039
|
|
3,663
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
6,134
|
|
6,123
|
|
1,686
|
|
6,662
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current maturities of
debentures
|
|
858
|
|
709
|
|
195
|
|
863
|
Trade payables and
accrued expenses
|
|
636
|
|
639
|
|
176
|
|
675
|
Current tax
liabilities
|
|
57
|
|
1
|
|
-
|
|
-
|
Provisions
|
|
107
|
|
101
|
|
28
|
|
108
|
Other payables,
including derivatives
|
|
272
|
|
243
|
|
67
|
|
279
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
1,930
|
|
1,693
|
|
466
|
|
1,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans from
financial institutions
|
|
-
|
|
340
|
|
94
|
|
340
|
Debentures
|
|
2,784
|
|
2,511
|
|
692
|
|
2,866
|
Provisions
|
|
20
|
|
30
|
|
8
|
|
30
|
Other long-term
liabilities
|
|
28
|
|
33
|
|
9
|
|
31
|
Liability for
employee rights upon retirement, net
|
|
12
|
|
12
|
|
3
|
|
12
|
Deferred tax
liabilities
|
|
115
|
|
137
|
|
38
|
|
118
|
|
|
|
|
|
|
|
|
|
Total non- current
liabilities
|
|
2,959
|
|
3,063
|
|
844
|
|
3,397
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,889
|
|
4,756
|
|
1,310
|
|
5,322
|
|
|
|
|
|
|
|
|
|
Equity
attributable to owners of the Company
|
|
|
|
|
|
|
|
|
Share
capital
|
|
1
|
|
1
|
|
-
|
|
1
|
Cash flow hedge
reserve
|
|
(2)
|
|
(1)
|
|
-
|
|
(1)
|
Retained
earnings
|
|
1,230
|
|
1,348
|
|
371
|
|
1,322
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
16
|
|
19
|
|
5
|
|
18
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
1,245
|
|
1,367
|
|
376
|
|
1,340
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
6,134
|
|
6,123
|
|
1,686
|
|
6,662
|
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Condensed
Consolidated Interim Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
into US
dollar
|
|
|
|
|
Three-month
|
|
Three-
month
|
|
|
|
|
period
ended
|
|
period
ended
|
|
Year
ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
1,022
|
|
959
|
|
264
|
|
4,027
|
Cost of
revenues
|
|
(670)
|
|
(665)
|
|
(183)
|
|
(2,702)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
352
|
|
294
|
|
81
|
|
1,325
|
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
(148)
|
|
(114)
|
|
(31)
|
|
(574)
|
General and
administrative expenses
|
|
(103)
|
|
(113)
|
|
(31)
|
|
(420)
|
Other expenses,
net
|
|
-
|
|
-
|
|
-
|
|
(21)
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
101
|
|
67
|
|
19
|
|
310
|
|
|
|
|
|
|
|
|
|
Financing
income
|
|
14
|
|
16
|
|
4
|
|
46
|
Financing
expenses
|
|
(38)
|
|
(47)
|
|
(13)
|
|
(196)
|
Financing expenses,
net
|
|
(24)
|
|
(31)
|
|
(9)
|
|
(150)
|
|
|
|
|
|
|
|
|
|
Profit before
taxes on income
|
|
77
|
|
36
|
|
10
|
|
160
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
|
(18)
|
|
(10)
|
|
(3)
|
|
(10)
|
Profit for the
period
|
|
59
|
|
26
|
|
7
|
|
150
|
Attributable
to:
|
|
|
|
|
|
|
|
|
Owners of the
Company
|
|
58
|
|
25
|
|
7
|
|
148
|
Non-controlling
interests
|
|
1
|
|
1
|
|
-
|
|
2
|
Profit for the
period
|
|
59
|
|
26
|
|
7
|
|
150
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic earnings per
share (in NIS)
|
|
0.59
|
|
0.25
|
|
0.07
|
|
1.47
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (in NIS)
|
|
0.59
|
|
0.25
|
|
0.07
|
|
1.47
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used
in the calculation of basic earnings per
share (in shares)
|
|
100,604,578
|
|
100,604,795
|
|
100,604,795
|
|
100,604,578
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used
in the calculation of diluted earnings per
share (in shares)
|
|
100,604,578
|
|
101,390,301
|
|
101,390,301
|
|
100,698,306
|
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Condensed
Consolidated Interim Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
into US
dollar
|
|
|
|
|
Three-month
|
|
Three-
month
|
|
|
|
|
period
ended
|
|
period
ended
|
|
Year
ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Profit for the
period
|
|
59
|
|
26
|
|
7
|
|
150
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
135
|
|
133
|
|
37
|
|
534
|
Share based
payments
|
|
2
|
|
1
|
|
-
|
|
6
|
Gain on sale of
property, plant and equipment
|
|
1
|
|
-
|
|
-
|
|
10
|
Income tax
expense
|
|
18
|
|
10
|
|
3
|
|
10
|
Financing expenses,
net
|
|
24
|
|
31
|
|
9
|
|
150
|
|
|
|
|
|
|
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Change in
inventory
|
|
7
|
|
(3)
|
|
(1)
|
|
21
|
Change in trade
receivables (including long-term amounts)
|
|
(58)
|
|
60
|
|
16
|
|
(28)
|
Change in other
receivables (including long-term amounts)
|
|
32
|
|
(152)
|
|
(42)
|
|
(5)
|
Change in trade
payables, accrued expenses and provisions
|
|
2
|
|
(11)
|
|
(3)
|
|
-
|
Change in other
liabilities (including long-term amounts)
|
|
38
|
|
(6)
|
|
(2)
|
|
20
|
Income tax
paid
|
|
(21)
|
|
(12)
|
|
(3)
|
|
(88)
|
Income tax
received
|
|
-
|
|
-
|
|
-
|
|
1
|
Net cash from
operating activities
|
|
239
|
|
77
|
|
21
|
|
781
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant, and equipment
|
|
(68)
|
|
(93)
|
|
(25)
|
|
(295)
|
Additions to
intangible assets and others
|
|
(22)
|
|
(47)
|
|
(13)
|
|
(73)
|
Change in current
investments, net
|
|
(1)
|
|
1
|
|
-
|
|
(9)
|
Payments for other
derivative contracts, net
|
|
-
|
|
(1)
|
|
-
|
|
-
|
Proceeds from sale of
property, plant and equipment
|
|
-
|
|
-
|
|
-
|
|
2
|
Interest
received
|
|
6
|
|
4
|
|
1
|
|
11
|
Net cash used in
investing activities
|
|
(85)
|
|
(136)
|
|
(37)
|
|
(364)
|
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Condensed
Consolidated Interim Statements of Cash Flows
(cont'd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
into US
dollar
|
|
|
|
|
Three-month
|
|
Three-
month
|
|
|
|
|
period
ended
|
|
period
ended
|
|
Year
ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Payments for
derivative contracts, net
|
|
(6)
|
|
-
|
|
-
|
|
(13)
|
Receipt of long-term
loans from financial institutions
|
|
-
|
|
-
|
|
-
|
|
340
|
Repayment of
debentures
|
|
(385)
|
|
(514)
|
|
(142)
|
|
(732)
|
Proceeds from
issuance of debentures, net of issuance costs
|
|
250
|
|
-
|
|
-
|
|
653
|
Dividend
paid
|
|
(1)
|
|
-
|
|
-
|
|
(1)
|
Interest
paid
|
|
(92)
|
|
(78)
|
|
(21)
|
|
(185)
|
|
|
|
|
|
|
|
|
|
Net cash from
(used in) financing activities
|
|
(234)
|
|
(592)
|
|
(163)
|
|
62
|
|
|
|
|
|
|
|
|
|
Changes in cash
and cash equivalents
|
|
(80)
|
|
(651)
|
|
(179)
|
|
479
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents as at the beginning of the period
|
|
761
|
|
1,240
|
|
341
|
|
761
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents as at the end of the period
|
|
681
|
|
589
|
|
162
|
|
1,240
|
Cellcom Israel
Ltd
|
(An Israeli
Corporation)
|
|
|
|
Reconciliation for
Non-IFRS Measures
|
|
|
|
EBITDA
|
|
|
|
The following is a
reconciliation of net income to EBITDA:
|
|
|
|
|
Three-month period
ended
March
31,
|
Year
ended
December
31,
|
|
2016
|
2017
|
Convenience
translation
into US
dollar
2017
|
2016
|
|
NIS
millions
|
US$
millions
|
NIS
millions
|
Profit for the
period
|
59
|
26
|
7
|
150
|
Taxes on
income
|
18
|
10
|
3
|
10
|
Financing
income
|
(14)
|
(16)
|
(4)
|
(46)
|
Financing
expenses
|
38
|
47
|
13
|
196
|
Other
expenses
|
-
|
-
|
-
|
8
|
Depreciation and
amortization
|
135
|
133
|
36
|
534
|
Share based
payments
|
2
|
1
|
-
|
6
|
EBITDA
|
238
|
201
|
55
|
858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
|
The following table
shows the calculation of free cash flow:
|
|
|
|
|
Three-month period
ended
March
31,
|
Year
ended
December
31,
|
|
2016
|
2017
|
Convenience
translation
into US
dollar
2017
|
2016
|
|
NIS
millions
|
US$
millions
|
NIS
millions
|
Cash flows from
operating
activities(*)
|
239
|
77
|
21
|
781
|
Loan to Golan
Telecom
|
-
|
130
|
36
|
-
|
Cash flows from
investing
activities
|
(90)
|
(136)
|
(37)
|
(364)
|
Sale of short-term
tradable
debentures and deposits (**)
|
-
|
(5)
|
(2)
|
(1)
|
Free cash
flow
|
149
|
66
|
18
|
416
|
|
|
|
|
|
|
|
|
|
|
(*) Including the
effects of exchange rate fluctuations in cash and cash
equivalents.
|
(**) Net of interest
received in relation to tradable debentures.
|
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Key financial and
operating indicators
|
|
NIS millions
unless
otherwise stated
|
Q1-2016
|
Q2-2016
|
Q3-2016
|
Q4-2016
|
Q1-2017
|
FY-2016
|
|
|
|
|
|
|
|
Cellular service
revenues
|
559
|
567
|
534
|
502
|
509
|
2,162
|
Fixed-line service
revenues
|
264
|
264
|
276
|
267
|
279
|
1,071
|
|
|
|
|
|
|
|
Cellular equipment
revenues
|
219
|
217
|
195
|
205
|
183
|
836
|
Fixed-line equipment
revenues
|
29
|
30
|
39
|
60
|
37
|
158
|
|
|
|
|
|
|
|
Consolidation
adjustments
|
(49)
|
(49)
|
(52)
|
(50)
|
(49)
|
(200)
|
Total
revenues
|
1,022
|
1,029
|
992
|
984
|
959
|
4,027
|
|
|
|
|
|
|
|
Cellular
EBITDA
|
178
|
181
|
149
|
117
|
159
|
625
|
Fixed-line
EBITDA
|
60
|
57
|
60
|
56
|
42
|
233
|
Total
EBITDA
|
238
|
238
|
209
|
173
|
201
|
858
|
|
|
|
|
|
|
|
Operating
profit
|
101
|
104
|
73
|
32
|
67
|
310
|
Financing expenses,
net
|
24
|
44
|
42
|
40
|
31
|
150
|
Profit for the
period
|
59
|
44
|
33
|
14
|
26
|
150
|
|
|
|
|
|
|
|
Free cash
flow
|
149
|
103
|
81
|
83
|
66
|
416
|
|
|
|
|
|
|
|
Cellular subscribers
at the end
of period (in 000's)
|
2,813
|
2,812
|
2,822
|
2,801
|
2,792
|
2,801
|
Monthly cellular ARPU
(in NIS)
|
65.2
|
66.0
|
62.8
|
59.3
|
60.2
|
63.3
|
Churn rate for
cellular
subscribers (%)
|
11.1%
|
10.6%
|
10.5%
|
10.4%
|
12.0%
|
42.4%
|
Cellcom Israel
Ltd.
|
|
Disclosure for
debenture holders as of March 31, 2017
|
|
Aggregation of the
information regarding the debenture series issued by the Company
(1), in million NIS
|
|
Series(8)
|
Original Issuance
Date
|
Principal on the Date
of Issuance
|
As of
31.03.2017
|
As of
23.05.2017
|
Interest Rate
(fixed)
|
Principal Repayment
Dates
|
Interest Repayment
Dates (3)
|
Linkage
|
Trustee
Contact
Details
|
Principal
Balance on
Trade
|
Linked Principal
Balance
|
Interest Accumulated
in Books
|
Debenture
Balance Value in Books (2)
|
Market
Value
|
Principal Balance on
Trade
|
Linked Principal
Balance
|
From
|
To
|
D
(7)**
|
07/10/07
03/02/08*
06/04/09*
30/03/11*
18/08/11*
|
2,423.075
|
299.602
|
347.668
|
13.479
|
361.147
|
364.795
|
299.602
|
349.120
|
5.19%
|
01.07.13
|
01.07.17
|
July-1
|
Linked to
CPI
|
Hermetic Trust (1975)
Ltd. Meirav Ofer Oren. 113 Hayarkon St., Tel Aviv. Tel:
03-5274867.
|
F (4)(5)(6)
**
|
20/03/12
|
714.802
|
643.322
|
656.197
|
7.018
|
663.215
|
703.279
|
643.322
|
659.398
|
4.60%
|
05.01.17
|
05.01.20
|
January-5
and July-5
|
Linked to
CPI
|
Strauss Lazar Trust
Company (1992) Ltd. Ori Lazar. 17 Yizhak Sadeh St., Tel Aviv. Tel:
03- 6237777.
|
G
(4)(5)(6)
|
20/03/12
|
285.198
|
228.158
|
228.307
|
3.714
|
232.021
|
247.232
|
228.158
|
228.293
|
6.99%
|
05.01.17
|
05.01.19
|
January-5
and July-5
|
Not linked
|
Strauss Lazar Trust
Company (1992) Ltd. Ori Lazar. 17 Yizhak Sadeh St., Tel Aviv. Tel:
03- 6237777.
|
H
(4)(5)(7)**
|
08/07/14
03/02/15*
11/02/15*
|
949.624
|
949.624
|
830.022
|
4.379
|
834.401
|
968.711
|
949.624
|
834.062
|
1.98%
|
05.07.18
|
05.07.24
|
January-5
and July-5
|
Linked to
CPI
|
Mishmeret Trust
Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel:
03-6374355.
|
I
(4)(5)(7)**
|
08/07/14
03/02/15*
11/02/15*
30/03/16*
|
804.010
|
804.010
|
754.941
|
7.752
|
762.693
|
872.914
|
804.010
|
756.360
|
4.14%
|
05.07.18
|
05.07.25
|
January-5
and July-5
|
Not linked
|
Mishmeret Trust
Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel:
03-6374355.
|
J
(4)(5)
|
26/09/16
|
103.267
|
103.267
|
102.257
|
0.589
|
102.846
|
107.078
|
103.267
|
102.280
|
2.45%
|
05.07.21
|
05.07.26
|
January-5 and
July-5
|
Linked to
CPI
|
Mishmeret Trust
Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel:
03-6374355.
|
K
(4)(5)**
|
26/09/16
|
303.971
|
303.971
|
300.926
|
2.513
|
303.439
|
313.637
|
303.971
|
300.995
|
3.55%
|
05.07.21
|
05.07.26
|
January-5 and
July-5
|
Not linked
|
Mishmeret Trust
Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel:
03-6374355.
|
Total
|
|
5,583.947
|
3,331.954
|
3,220.318
|
39.444
|
3,259.762
|
3,577.646
|
3,331.954
|
3,230.508
|
|
|
|
|
|
|
Comments:
(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.
(*)
|
On these dates
additional debentures of the series were issued, the information in
the table refers to the full series.
|
(**)
|
As of March 31, 2017,
debentures Series D, F, H, I and K are material, which represent 5%
or more of the total liabilities of the Company, as presented in
the financial statements.
|
Cellcom Israel
Ltd.
|
|
Disclosure for
debenture holders as of March 31, 2017 (cont.)
|
|
Debentures Rating
Details*
|
|
Series
|
Rating
Company
|
Rating as of
31.03.2017 (1)
|
Rating as of
23.05.2017
|
Rating assigned upon
issuance of the Series
|
Recent date of rating
as of 23.05.2017
|
Additional ratings
between original issuance and the recent date of rating as of
23.05.2017 (2)
|
|
Rating
|
D
|
S&P
Maalot
|
A+
|
A+
|
AA-
|
08/2016
|
1/2008, 10/2008,
3/2009, 9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012, 6/2013,
6/2014, 8/2014, 01/2015, 9/2015, 3/2016, 08/2016
|
AA-,
AA,AA-,
A+
(2)
|
F
|
S&P
Maalot
|
A+
|
A+
|
AA
|
08/2016
|
5/2012, 11/2012,
6/2013, 6/2014, 8/2014, 1/2015, 9/2015, 3/2016, 08/2016
|
AA,AA-,A+
(2)
|
G
|
S&P
Maalot
|
A+
|
A+
|
AA
|
08/2016
|
5/2012, 11/2012,
6/2013, 6/2014, 8/2014, 1/2015, 9/2015, 3/2016, 08/2016
|
AA,AA-,A+
(2)
|
H
|
S&P
Maalot
|
A+
|
A+
|
A+
|
08/2016
|
6/2014, 8/2014,
1/2015, 9/2015, 3/2016, 08/2016
|
A+
(2)
|
I
|
S&P
Maalot
|
A+
|
A+
|
A+
|
08/2016
|
6/2014, 8/2014,
1/2015, 9/2015, 3/2016, 08/2016
|
A+
(2)
|
J
|
S&P
Maalot
|
A+
|
A+
|
A+
|
08/2016
|
08/2016
|
A+
(2)
|
K
|
S&P
Maalot
|
A+
|
A+
|
A+
|
08/2016
|
08/2016
|
A+
(2)
|
(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.
Cellcom Israel Ltd.
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).
|
Principal
payments
|
Gross interest
payments
(without
deduction of
tax)
|
ILS linked
to CPI
|
ILS not
linked to
CPI
|
Euro
|
Dollar
|
Other
|
First
year
|
563,709
|
142,029
|
-
|
-
|
-
|
128,875
|
Second
year
|
330,901
|
165,457
|
-
|
-
|
-
|
88,196
|
Third
year
|
330,901
|
80,240
|
-
|
-
|
-
|
66,658
|
Fourth
year
|
113,043
|
80,240
|
-
|
-
|
-
|
51,076
|
Fifth year and
on
|
703,066
|
861,701
|
-
|
-
|
-
|
123,970
|
Total
|
2,041,620
|
1,329,667
|
-
|
-
|
-
|
458,775
|
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).
|
Principal
payments
|
Gross interest
payments
(without
deduction of
tax)
|
ILS linked
to CPI
|
ILS not
linked to
CPI
|
Euro
|
Dollar
|
Other
|
First
year
|
-
|
-
|
-
|
-
|
-
|
16,060
|
Second
year
|
-
|
78,000
|
-
|
-
|
-
|
14,213
|
Third
year
|
-
|
78,000
|
-
|
-
|
-
|
10,541
|
Fourth
year
|
-
|
78,000
|
-
|
-
|
-
|
6,874
|
Fifth year and
on
|
-
|
106,000
|
-
|
-
|
-
|
3,881
|
Total
|
-
|
340,000
|
-
|
-
|
-
|
51,569
|
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.
Cellcom Israel Ltd.
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).
|
Principal
payments
|
Gross interest
payments
(without
deduction of
tax)
|
ILS linked
to CPI
|
ILS not
linked to
CPI
|
Euro
|
Dollar
|
Other
|
First
year
|
563,709
|
142,029
|
-
|
-
|
-
|
144,935
|
Second
year
|
330,901
|
243,457
|
-
|
-
|
-
|
102,409
|
Third
year
|
330,901
|
158,240
|
-
|
-
|
-
|
77,199
|
Fourth
year
|
113,043
|
158,240
|
-
|
-
|
-
|
57,950
|
Fifth year and
on
|
703,066
|
967,701
|
-
|
-
|
-
|
127,851
|
Total
|
2,041,620
|
1,669,667
|
-
|
-
|
-
|
510,344
|
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).
|
Principal
payments
|
Gross interest
payments
(without
deduction of
tax)
|
ILS linked
to CPI
|
ILS not
linked to
CPI
|
Euro
|
Dollar
|
Other
|
First
year
|
1,913
|
570
|
-
|
-
|
-
|
641
|
Second
year
|
1,436
|
503
|
-
|
-
|
-
|
493
|
Third
year
|
1,436
|
161
|
-
|
-
|
-
|
420
|
Fourth
year
|
912
|
161
|
-
|
-
|
-
|
371
|
Fifth year and
on
|
7,960
|
5,077
|
-
|
-
|
-
|
975
|
Total
|
13,657
|
6,472
|
-
|
-
|
-
|
2,900
|
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
SOURCE Cellcom Israel Ltd.