ADJUSTED EBITDA2 TOTALED NIS
239 MILLION
ADJUSTED FREE CASH FLOW2
TOTALED NIS 202 MILLION
NET DEBT2 DECLINED BELOW NIS 1
BILLION TO NIS 887 MILLION
30 THOUSAND HOUSEHOLDS ARE CONNECTED TO
PARTNER TV AS OF TODAY
CELLULAR SUBSCRIBERS INCREASE FOR THE SECOND
CONSECUTIVE QUARTER
Third quarter 2017 highlights (compared with third quarter
2016)
- Total Revenues: NIS 826 million
(US$ 234 million), a decrease of 3%
- Service Revenues: NIS 666
million (US$ 189 million), a decrease of 5%
- Equipment Revenues: NIS 160
million (US$ 45 million), an increase of 6%
- Total Operating Expenses
(OPEX2): NIS 477 million (US$ 135 million), a
decrease of 16%
- Adjusted EBITDA: NIS 239 million
(US$ 68 million), an increase of 9%
- Adjusted EBITDA
Margin2: 29% of total revenues compared with
26%
- Profit for the Period: NIS 54
million (US$ 15 million), an increase of 184%
- Net Debt: NIS 887 million (US$
251 million), a decrease of NIS 881 million
- Adjusted Free Cash Flow (before
interest): NIS 202 million (US$ 57 million), a decrease of NIS
13 million
- Cellular ARPU: NIS 64 (US$ 18),
a decrease of 3%
- Cellular Subscriber Base:
approximately 2.68 million at quarter-end, a decrease of 1%
1 The quarterly financial results are unaudited.2 For the
definition of this and other Non-GAAP financial measures, see “Use
of Non-GAAP Financial Measures” in this press release.
Partner Communications Company Ltd. (“Partner” or
the “Company”) (NASDAQ and TASE: PTNR), a leading Israeli
communications provider, announced today its results for the
quarter ended September 30, 2017.
Commenting on the third quarter 2017 results, Mr. Isaac
Benbenisti, CEO of Partner noted:
"Our strong entrance to the TV market, together with our
significant presence in the internet and cellular markets,
establishes Partner as a comprehensive communications group. The
customer recruitment figures for Partner TV are high compared to
our preliminary forecasts. In the last month, the sales rate has
increased even more and the number of daily installations has
accelerated compared to the period from August through October. In
less than a month, we have completed installations in 10,000
additional households and currently the number of households that
are already connected to the Partner TV service is approximately
30,000. In addition, thousands of additional households have
scheduled installations by the end of the month after they have
already completed joining the service. Most of the customers that
have joined the TV service have chosen the service as part of our
bundle and triple offerings which also includes ISP and internet
infrastructure.
As part of our strategic plan as a comprehensive communications
group, in August we also announced the commencement of the
commercial phase of our independent fiber optic infrastructure
project - Partner Fiber - which provides, for the first time, a
more advanced and cost-effective alternative to the existing fixed
infrastructure in Israel.
Partner's optic fibers have already reached tens of thousands of
households throughout the country, and we are working to deploy
further at an accelerated rate in several cities simultaneously. In
complete alignment with the Ministry of Communications and other
regulatory bodies, we will continue to offer the most advanced
technology with an attractive value offering to more and more
customers.
In the cellular segment we added approximately 33 thousand net
Post-Paid subscribers in the last quarter and recorded a net
increase in our cellular subscriber base for the second consecutive
quarter, despite a decline of approximately 18 thousand Pre-Paid
subscribers.”
Mr. Dudu Mizrahi, Partner's Chief Financial Officer,
commented on the third quarter 2017 results:
“In the third quarter, many of the activities that the Company
has been engaged in during the last year were reflected, among
others, in the growth of 33 thousand Post-Paid cellular
subscribers, a continued single digit cellular churn rate, a
significant improvement in the equipment sales gross profit margin
which stood at 27%, an improvement in the EBITDA margin compared
with Q3 2016, and an additional quarter with a strong free cash
flow before interest which totaled NIS 202 million.
The increase in CAPEX in the quarter mainly reflected the
acceleration of the Company's fiber project, which enables the
Company to offer advanced services based on an independent
fixed-line infrastructure both to the residential market and the
business market, as well as the entrance to the TV market.
In the third quarter the Company early adopted the new
International Financial Reporting Standard 15 ("IFRS 15"),
retroactively as from January 1, 2017 (the standard is effective
from January 1, 2018, earlier application is permitted). The total
increase in operating profit and profit for the first three
quarters of 2017 amounted to NIS 51 million and NIS 39 million,
respectively. The increase in the operating profit and profit for
the third quarter 2017 alone amounted to NIS 19 million and NIS 15
million, respectively. The increase is mainly a result of costs
capitalization of obtaining contracts with customers (part of
payroll expenses and selling commissions).
The financial steps which we executed in the past months,
including among others, the early repayments of loans in an amount
of approximately NIS 0.9 billion and the raising of a new traded
bond series, are reflected in the significant decline in finance
expenses compared to Q3 2016. The financial steps, together with
the strong free cash flow presented by the Company in the current
quarter, resulted in a decline in net debt to below NIS 1 billion –
to NIS 887 million.”
NIS Million Q3’17 Q2’17 Comments Service
Revenues 666 646
The increase results mainly from higher
cellular seasonalroaming revenues
Equipment Revenues 160 159 Total Revenues 826 805 Gross profit from
equipment sales 43 33 OPEX 477 *472
Q3 2017 include expenses related to the
launch of theCompany's TV services
Adjusted EBITDA 239 *269
Q2 2017 was the last quarter for which the
Companyrecorded NIS 54 million income with respect to thesettlement
agreement with Orange. This was partially offsetby an increase in
service revenues and an increase in grossprofit from equipment
Profit for the Period 54 *46 Capital Expenditures (additions) 107
*78
Adjusted free cash flow (beforeinterest
payments)
202 208 Net Debt 887 1,081
* Figures include the impact of IFRS15 retroactive
implementation as from beginning of 2017.
Q3’17 Q2’17 Comments
Cellular Post-Paid Subscribers(end of
period, thousands)
2,306 2,273 Increase of 33 thousand
subscribers
Cellular Pre-Paid Subscribers
(end of period, thousands)
371 389 Decrease of 18 thousand subscribers
Monthly Average Revenue perCellular User
(ARPU) (NIS)
64 62 Mainly the result of higher seasonal roaming revenues
Quarterly Cellular Churn Rate (%) 9.3% 9.0%
Key Financial Results
NIS MILLION (except EPS) Q3'17
Q3'16 % Change Revenues 826 849
-3% Cost of revenues 625 691 -10% Gross profit 201 158 +27%
Operating profit 92 64 +44% Profit for the period 54 19 +184%
Earnings per share (basic, NIS) 0.32 0.12 +167% Adjusted free cash
flow (before interest) 202 215 -6%
Key Operating Indicators
Q3'17 Q3'16 Change
Adjusted EBITDA (NIS million) 239 220 +9%
Adjusted EBITDA (as a % of total revenues) 29% 26% +3 Cellular
Subscribers (end of period, thousands) 2,677 2,693 -16 Quarterly
Cellular Churn Rate (%) 9.3% 9.7% -0.4 Monthly Average Revenue per
Cellular User (ARPU) (NIS) 64 66 -2
Partner Consolidated
Results
Cellular Segment Fixed-Line Segment
Elimination Consolidated NIS
Million Q3'17 Q3'16
Change % Q3'17 Q3'16
Change % Q3'17 Q3'16
Q3'17 Q3'16 Change % Total
Revenues
652
670
-3%
216
232
-7%
(42)
(53)
826
849
-3%
Service Revenues
514
531
-3%
194
220
-12%
(42)
(53)
666
698
-5%
Equipment Revenues
138
139
-1%
22
12
+83%
160
151
+6%
Operating Profit
74
36
+106%
18
28
-36%
92
64
+44%
Adjusted EBITDA
189
156
+21%
50
64
-22%
239
220
+9%
Financial Review
In Q3 2017, total revenues were NIS 826 million (US$ 234
million), a decrease of 3% from NIS 849 million in Q3 2016.
Service revenues in Q3 2017 totaled NIS 666 million (US$
189 million), a decrease of 5% from NIS 698 million in Q3 2016.
Service revenues for the cellular segment in Q3 2017
totaled NIS 514 million (US$ 146 million), a decrease of 3% from
NIS 531 million in Q3 2016. The decrease was mainly the result of
the continued price erosion of cellular services (both Post-Paid
and Pre-Paid) due to the continued competitive market
conditions.
Service revenues for the fixed-line segment in Q3 2017
totaled NIS 194 million (US$ 55 million), a decrease of 12% from
NIS 220 million in Q3 2016. The decrease reflected the continuing
decrease in revenues from international calls as well as other
fixed line services.
Equipment revenues in Q3 2017 totaled NIS 160 million
(US$ 45 million), an increase of 6% from NIS 151 million in Q3
2016, largely reflecting a change in product mix.
Gross profit from equipment sales in Q3 2017 was
NIS 43 million (US$ 12 million), compared with NIS 28 million in Q3
2016, an increase of 54%, mainly reflecting higher profit margins
from sales due to a change in the product mix.
Total operating expenses (‘OPEX’) totaled NIS 477 million
(US$ 135 million) in Q3 2017, a decrease of 16% or NIS 93 million
from Q3 2016. The decrease mainly reflected a decline in expenses
related to the cellular network, the implementation of the
International Financial Reporting Standard 15 ("IFRS 15"), a
nonrecurring decrease in site-rental expenses as well as a decrease
in other expenses reflecting the impact of various efficiency
measures undertaken as part of a long-term plan to reduce the
Company’s cost base, partially offset by additional expenses
relating to the Company's TV services which were launched in June
2017. Including depreciation and amortization expenses and other
expenses (mainly amortization of employee share based
compensation), OPEX in Q3 2017 decreased by 14% compared with Q3
2016.
Operating profit for Q3 2017 was NIS 92 million (US$ 26
million), an increase of 44% compared with NIS 64 million in Q3
2016.
Adjusted EBITDA in Q3 2017 totaled NIS 239 million (US$
68 million), an increase of 9% from NIS 220 million in Q3
2016. As a percentage of total revenues, Adjusted EBITDA in Q3 2017
was 29% compared with 26% in Q3 2016.
Adjusted EBITDA for the cellular segment was NIS 189
million (US$ 54 million), in Q3 2017, an increase of 21% from NIS
156 million in Q3 2016, reflecting the decrease in OPEX (as
explained above) and the increase in gross profit from equipment
sales partially offset by the decrease in service revenues and
despite the fact that Q3 2017 was the first quarter (since Q2 2015)
in which the Company did not record any income with respect to the
settlement agreement regarding the Orange brand. As a percentage of
total cellular segment revenues, Adjusted EBITDA for the cellular
segment in Q3 2017 was 29% compared with 23% in Q3 2016.
Adjusted EBITDA for the fixed-line segment was NIS 50
million (US$ 14 million) in Q3 2017, a decrease of 22% from NIS 64
million in Q3 2016, reflecting the decrease in service revenues,
partially offset by the decrease in OPEX and the increase in gross
profit from equipment sales. As a percentage of total fixed-line
segment revenues, Adjusted EBITDA for the fixed-line segment in Q3
2017 was 23%, compared with 28% in Q3 2016.
Finance costs, net in Q3 2017 were NIS 15 million (US$ 4
million), a decrease of 50% compared with NIS 30 million in Q3
2016. The decrease largely reflects lower interest expenses due to
the lower level of debt as a result of early repayments made in
June and July 2017 as well as regular maturities, in addition to
lower linkage expenses due to a lower CPI level.
Income taxes for Q3 2017 were NIS 23 million (US$ 7
million), compared with NIS 15 million in Q3 2016.
Profit in Q3 2017 was NIS 54 million (US$ 15 million),
compared with a profit of NIS 19 million in Q3 2016, an increase of
184%.
Based on the weighted average number of shares outstanding
during Q3 2017, basic earnings per share or ADS, was NIS
0.32 (US$ 0.09), compared to basic earnings per share of NIS 0.12
in Q3 2016.
Cellular Segment Operational
Review
At the end of Q3 2017, the Company's cellular subscriber
base (including mobile data and 012 Mobile subscribers) was
approximately 2.68 million including approximately 2.31 million
Post-Paid subscribers or 86% of the base, and approximately 371
thousand Pre-Paid subscribers, or 14% of the subscriber base.
During the third quarter of 2017, the cellular subscriber base
increased by approximately 15 thousand subscribers. The Post-Paid
subscriber base increased by approximately 33 thousand subscribers,
while the Pre-Paid subscriber base declined by approximately 18
thousand subscribers.
The quarterly churn rate for cellular subscribers in Q3
2017 was 9.3%, compared with 9.7% in Q3 2016.
Total cellular market share (based on the number of
subscribers) at the end of Q3 2017 was estimated to be
approximately 26%, unchanged from Q3 2016.
The monthly Average Revenue per User (“ARPU”) for
cellular subscribers in Q3 2017 was NIS 64 (US$ 18), a decrease of
3% from NIS 66 in Q3 2016. The decrease mainly reflected the
continued price erosion in key cellular services due to the
persistent competition in the cellular market.
Funding and Investing
Review
In Q3 2017, Adjusted Free Cash Flow totaled NIS 202
million (US$ 57 million), a decrease of 6% from NIS 215 million in
Q3 2016. Excluding the impact of the NIS 35 million payment
received from Hot Mobile in Q3 2016, Adjusted Free Cash Flow
increased by 12%.
Cash generated from operations increased by 21% to NIS
306 million (US$ 87 million) in Q3 2017 from NIS 253 million in Q3
2016. The increase mainly reflected the increase in Adjusted EBITDA
and the smaller decrease in operating assets and liabilities.
Cash capital expenditures (‘CAPEX payments’), as
represented by cash flows used for the acquisition of property and
equipment and intangible assets, were NIS 105 million (US$ 30
million) in Q3 2017, an increase of 139% from NIS 44 million in Q3
2016. The increase mainly reflected the impact of the
implementation of IFRS 15 (capitalization of part of payroll and
selling commission expenses) and the increase in investments
related to fiber deployment and TV services.
The level of Net Debt at the end of Q3 2017 amounted to
NIS 887 million (US$ 251 million), compared with NIS 1,768 million
at the end of Q3 2016.
Business Developments
The Company's Board of Directors approved on November 20, 2017
the appointment of Mr. Tomer Bar Zeev as a member to the Company's
Board of Directors. Mr. Tomer Bar Zeev was nominated by S.B. Israel
Telecom Ltd., the Company's principal shareholder. In accordance
with the Company's Articles of Association and applicable law, Mr.
Bar Zeev shall serve in office until the coming Annual General
Meeting of shareholders.
Mr. Bar Zeev is the founder and CEO of ironSource since 2010, a
leading digital content company that offers monetization and
distribution solutions for app developers, software developers,
mobile carriers, and device manufacturers. Mr. Bar Zeev holds a BA
in computer science from IDC Herziliya.
An active investor in other technology startups, Mr. Bar Zeev
has a deep understanding of companies in the telecommunication and
technology fields..
Regulatory Developments
In August 2015, the Ministry of Communications' regulation
regarding access to Bezeq's passive infrastructure came into force.
The purpose of this regulation is to allow other licensees to use
Bezeq's passive infrastructure (such as ducts, manholes, poles,
boxes etc.) in order to deploy their own high speed fiber optical
cables. According to the Ministry's temporary instructions at the
time (which was in force until November 1, 2015), any work inside
Bezeq's passive infrastructure was to be performed by Bezeq's
employees. Although the interim period has since passed, the
Ministry of Communications did not effectively enforce its
abovementioned decision on Bezeq.
Following the enactment of the Economic Program Law for the
years 2017-2018 (which set Bezeq's obligation to allow access to
its passive infrastructure into law), Bezeq has begun to partially
observe its duty to provide access to its passive infrastructures.
Bezeq has deployed several fiber optic cables for licensees using
its own personnel.
On October 19, 2017, the Ministry of Communications instructed
Bezeq to allow other domestic operators (including Partner) to
deploy fiber optic cables with their own contractors (without the
need for the use of Bezeq personnel). This change has the potential
to substantially increase the speed of deployment of Partner's
fiber infrastructure.
IFRS 15
In the third quarter of 2017 the Company early adopted (the
standard is effective from January 1, 2018, earlier application is
permitted), as from January 1, 2017 (the transition date), IFRS 15,
Revenue from Contracts with Customers, which outlines a single
comprehensive model of accounting for revenue arising from
contracts with customers and supersedes IAS 18, Revenue, and IAS
11, Construction contracts (the "previous standards"). The model
includes five steps for analyzing transactions so as to determine
when to recognize revenue and at what amount:
1) Identifying the contract with the customer.
2) Identifying separate performance obligations in the
contract.
3) Determining the transaction price.
4) Allocating the transaction price to separate performance
obligations.
5) Recognizing revenue when the performance obligations are
satisfied.
In accordance with the model, the Company recognizes revenue
when the customer obtains control over the goods or services.
Revenue is based on the consideration that the Company expects to
receive for the transfer of the goods or services promised to the
customer, excluding amounts collected on behalf of third parties,
and where collection is probable.
The Company applied IFRS 15 using the cumulative effect approach
as from the transition date, without a restatement of comparative
figures. As part of the initial implementation of IFRS 15,
the Company has chosen to apply the expedients in the transitional
provisions, according to which the cumulative effect approach is
applied only for contracts not yet complete at the transition date,
and therefore there is no change in the accounting treatment for
contracts completed at the transition date. The Company also
applied the practical expedient of examining the aggregate effect
of contracts changes that occurred before the transition date,
instead of examining each change separately. Contracts that are
renewed on a monthly basis and may be cancelled by the customer at
any time, without penalty, were considered completed contracts at
the transition date. The cumulative effect as of the transition
date was immaterial and did not affect the financial
statements.
The application of IFRS 15 did not have a material effect on the
measurement and timing of the Company’s revenue in the reporting
period, compared to the provisions of the previous standards.
The main effect of the Company’s application of IFRS 15 is the
accounting treatment for the incremental costs of obtaining
contracts with customers, which in accordance with IFRS 15, are
recognized as assets when the costs are incremental to obtaining
the contracts, and it is probable that the Company will recover
these costs, instead of recognizing these costs in the statement of
income as incurred. IFRS 15 also determines that direct costs of
fulfilling a contract which the Company can specifically identify
and which produce or improve the Company’s resources that are used
for its future performance obligation (and it is probable that the
Company will recover these costs) are recognized as assets (the
incremental and direct costs together: "contract costs"). Contract
costs that were recognized as assets are presented in the
statements of cash flows as part of cash flows used in investing
activities.
Direct commissions paid to resellers and sales employees for
sales and upgrades, are recognized as an asset for obtaining a
contract instead of an expense in the statement of income. The
assets are amortized in accordance with the expected service period
(mainly over 2 to 3 years), using the portfolio approach.
For the effect of IFRS 15 on the financial reports, see also the
section, 'Effect of IFRS15 implementation' in this press
release.
Conference Call Details
Partner will hold a conference call on Tuesday, November 21,
2017 at 10.00AM Eastern Time / 5.00PM Israel Time.
To join the call, please dial the following numbers (at least 10
minutes before the scheduled time):
International: +972.3.918.0687
North America toll-free: +1.866.860.9642
A live webcast of the call will also be available on Partner's
Investors Relations website at:
www.partner.co.il/en/Investors-Relations/lobby/
If you are unavailable to join live, the replay of the call will
be available from November 21, 2017 until December 12, 2017, at the
following numbers:
International: +972.3.925.5940
North America toll-free: +1.877.456.0009
In addition, the archived webcast of the call will be available
on Partner's Investor Relations website at the above address for
approximately three months.
Forward-Looking
Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the US Securities Act of 1933, as
amended, Section 21E of the US Securities Exchange Act of 1934, as
amended, and the safe harbor provisions of the US Private
Securities Litigation Reform Act of 1995. Words such as "estimate",
“believe”, “anticipate”, “expect”, “intend”, “seek”, “will”,
“plan”, “could”, “may”, “project”, “goal”, “target” and similar
expressions often identify forward-looking statements but are not
the only way we identify these statements. Specific statements have
been made regarding the Company's anticipated acceleration of the
deployment of its fiber optic infrastructure. In addition, all
statements other than statements of historical fact included in
this press release regarding our future performance are
forward-looking statements. We have based these forward-looking
statements on our current knowledge and our present beliefs and
expectations regarding possible future events. These
forward-looking statements are subject to risks, uncertainties and
assumptions, including, as regards the anticipated acceleration of
fiber cable deployment, whether the Ministry of Communications’
instruction to Bezeq to allow other domestic operators (including
Partner) to deploy fiber optic cables with their own contractors
(without the need for the use of Bezeq personnel) will be respected
or enforced and whether the Company will have the financial
resources needed to continue to increase the number of customers
served by its fiber optic infrastructure. The future results may
differ materially from those anticipated herein. For further
information regarding risks, uncertainties and assumptions about
Partner, trends in the Israeli telecommunications industry in
general, the impact of current global economic conditions and
possible regulatory and legal developments, and other risks we
face, see “Item 3. Key Information - 3D. Risk Factors”, “Item 4.
Information on the Company”, “Item 5. Operating and Financial
Review and Prospects”, “Item 8. Financial Information - 8A.
Consolidated Financial Statements and Other Financial Information -
8A.1 Legal and Administrative Proceedings” and “Item 11.
Quantitative and Qualitative Disclosures about Market Risk” in the
Company’s Annual Reports on Form 20-F filed with the SEC, as well
as its immediate reports on Form 6-K furnished to the SEC. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
The quarterly financial results presented in this press release
are unaudited financial results.
The results were prepared in accordance with IFRS, other than
the non-GAAP financial measures presented in the section, “Use of
Non-GAAP Financial Measures”.
The financial information is presented in NIS millions (unless
otherwise stated) and the figures presented are rounded
accordingly.
The convenience translations of the New Israeli Shekel (NIS)
figures into US Dollars were made at the rate of exchange
prevailing at September 30, 2017: US $1.00 equals NIS 3.529. The
translations were made purely for the convenience of the
reader.
Use of Non-GAAP Financial
Measures
The following non-GAAP measures are used in this report. These
measures are not financial measures under IFRS and may not be
comparable to other similarly titled measures for other companies.
Further, the measures may not be indicative of the Company’s
historic operating results nor are meant to be predictive of
potential future results.
Non-GAAPMeasure
Calculation
Most Comparable IFRSFinancial Measure
AdjustedEBITDA*
AdjustedEBITDA margin(%)
Adjusted EBITDA:
Profit (Loss)
add
Income tax expenses,
Finance costs, net,
Depreciation and amortization expenses
(includingamortization of intangible assets, deferredexpenses-right
of use and impairment charges),Other expenses (mainly amortization
of sharebased compensation)
Adjusted EBITDA margin (%):
Adjusted EBITDA
divided by
Total revenues
Profit (Loss)
Adjusted FreeCash Flow**
Adjusted Free Cash Flow:
Cash flows from operating activities
deduct
Cash flows from investing activities
add
Short-term investment in (proceeds from)
deposits
Cash flows fromoperating activities
deduct
Cash flows frominvesting activities
Total OperatingExpenses(OPEX)
Total Operating Expenses:
Cost of service revenues
add
Selling and marketing expenses
add
General and administrative expenses
deduct
Depreciation and amortization
expenses,
Other expenses (mainly amortization of
employeeshare based compensation)
Sum of:
Cost of servicerevenues,
Selling and marketingexpenses,
General andadministrative expenses
Net Debt
Net Debt:
Current maturities of notes payable and
borrowings
add
Notes payable
add
Borrowings from banks and others
deduct
Cash and cash equivalents
deduct
Short-term deposits
Sum of:
Current maturities ofnotes payable
andborrowings,
Notes payable,
Borrowings from banksand others
* Adjusted EBITDA is fully comparable with EBITDA measure which
was provided in reports for prior periods.**Adjusted Free
Cash Flow measure is fully comparable to Free Cash Flow measure
which was provided in reports for prior periods.
About Partner
Communications
Partner Communications Company Ltd. is a leading Israeli
provider of telecommunications services (cellular, fixed-line
telephony, internet services and television services). Partner’s
ADSs are quoted on the NASDAQ Global Select Market™ and its shares
are traded on the Tel Aviv Stock Exchange (NASDAQ and TASE:
PTNR).
For more information about Partner, see:
http://www.partner.co.il/en/Investors-Relations/lobby
PARTNER COMMUNICATIONS COMPANY LTD.(An
Israeli Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
New Israeli Shekels
Convenience translation
into U.S. Dollars
September 30, December 31, September
30, 2017
2016 2017 (Unaudited) (Audited)
(Unaudited) In millions CURRENT ASSETS Cash
and cash equivalents 1,010 716 286 Short-term deposits 150 452 43
Trade receivables 819 990 232 Other receivables and prepaid
expenses 62 57 18 Deferred expenses – right of use 40 28 11
Inventories 90 96 25 2,171 2,339 615
NON CURRENT
ASSETS Trade receivables 228 333 65 Prepaid expenses and other
2 2 1 Deferred expenses – right of use 121 75 34 Property and
equipment 1,128 1,207 320 Intangible and other assets 716 793 203
Goodwill 407 407 115 Deferred income tax asset 27 41 8 2,629 2,858
746
TOTAL ASSETS 4,800 5,197 1,361
PARTNER COMMUNICATIONS COMPANY LTD.(An
Israeli Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
New Israeli Shekels
Convenience translation into
U.S. Dollars
September 30, December 31, September
30, 2017 2016 2017 (Unaudited)
(Audited)
(Unaudited) In millions CURRENT LIABILITIES
Current maturities of notes payable and borrowings 557 498 158
Trade payables 702 681 199 Payables in respect of employees 51 101
14 Other payables (mainly institutions) 28 28 8 Income tax payable
83 45 23 Deferred income with respect to settlement agreement with
Orange 108 Deferred revenues from HOT mobile 31 31 9 Other deferred
revenues 42 38 12 Provisions 78 77 22 1,572 1,607 445
NON
CURRENT LIABILITIES Notes payable 899 646 255 Borrowings from
banks and others 591 1,550 167 Liability for employee rights upon
retirement, net 36 39 11 Dismantling and restoring sites obligation
28 35 8 Deferred revenues from HOT mobile 172 195 49 Other
non-current liabilities 21 14 6 1,747 2,479 496
TOTAL
LIABILITIES 3,319 4,086 941
EQUITY
Share capital - ordinary shares of NIS
0.01
2 2 1
par value: authorized - December 31,
2016
and September 30, 2017 - 235,000,000
shares;
issued and outstanding -
December 31, 2016 – *156,993,337 shares September 30, 2017 –
*167,527,166 shares Capital surplus 1,199 1,034 340 Accumulated
retained earnings 538 358 152
Treasury shares, at cost
(258) (283) (73)
December 31, 2016 – **3,603,578 shares
September 30, 2017 – **3,296,619
shares
TOTAL EQUITY 1,481 1,111 420
TOTAL LIABILITIES AND
EQUITY 4,800 5,197 1,361
* Net of treasury shares.** Including, restricted shares in
amount of 2,008,584 and 2,061,201 as of September 30, 2017 and
December 31, 2016 respectively held by trustee under the Company's
Equity Incentive Plan, such shares will become outstanding upon
completion of vesting conditions.
PARTNER COMMUNICATIONS COMPANY LTD.(An
Israeli Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
New Israeli shekels
Convenience translation into U.S.
dollars
9 monthperiod ended
September 30
3 monthperiod ended
September 30
9 month period ended
September 30,
3 month period ended
September 30,
2017 2016 2017 2016
2017 2017 (Unaudited) (Unaudited)
(Unaudited) (Unaudited) (Unaudited)
(Unaudited) In millions (except per share data)
Revenues, net 2,434 2,723 826 849 690 234 Cost of revenues 1,916
2,218 625 691 543 177
Gross profit 518 505 201 158 147 57
Selling and marketing expenses 189 330 70 98 54 20 General
and administrative
expenses
146 188 46 60 41 13
Income with respect tosettlement
agreementwith Orange
108 163 55 30 Other income, net 24 35 7 9 7 2
Operating
profit 315 185 92 64 89 26 Finance income 4 10 5 * 1 1 Finance
expenses 96 92 20 30 27 5 Finance costs, net 92 82 15 30 26 4
Profit before income tax 223 103 77 34 63 22 Income tax
expenses 59 44 23 15 17 7
Profit for the period 164 59 54 19
46 15
Earnings per share Basic 1.02 0.38 0.32 0.12
0.29 0.09 Diluted 1.01 0.37 0.32 0.12 0.28 0.09
Weighted average
number of shares outstanding
(in thousands)
Basic 161,002 156,120 167,371 156,178 161,002 167,371 Diluted
162,745 157,925 168,815 157,953 162,745 168,815
* Representing an amount of less than 1 million.
PARTNER COMMUNICATIONS COMPANY LTD.(An
Israeli Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTSOF
COMPREHENSIVE INCOME
New Israeli shekels
Convenience translation into U.S.
dollars
9 monthperiod ended
September 30,
3 monthperiod ended
September 30,
9 month period ended
September 30,
3 month period ended
September 30,
2017 2016 2017 2016
2017 2017 (Unaudited) (Unaudited)
(Unaudited) (Unaudited) (Unaudited)
(Unaudited) In millions
Profit for the period
164 59 54 19 46 15
Other comprehensive income
for the period, net of income
tax
- - - -
- -
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD
164 59 54 19 46 15
PARTNER COMMUNICATIONS COMPANY LTD.(An
Israeli Corporation)INTERIM SEGMENT INFORMATION & ADJUSTED
EBITDA RECONCILIATION
New Israeli Shekels New Israeli
Shekels Nine months ended September 30, 2017 Nine
months ended September 30, 2016 In millions (Unaudited)
In millions (Unaudited) Cellular segment
Fixed line segment Reconciliation
for
consolidation
Consolidated Cellular
segment
Fixed line
segment
Reconciliation
for
consolidation
Consolidated Segment revenue - Services
1,487
465
1,952 1,586 514 2,100 Inter-segment revenue - Services
13
115
(128)
15 147
(162)
Segment revenue - Equipment
428
54
482 571 52 623
Total revenues
1,928
634
(128)
2,434 2,172 713
(162)
2,723 Segment cost of revenues – Services
1,093
443
1,536
1,261 460
1,721
Inter-segment cost of revenues- Services
114
14
(128)
146 16
(162)
Segment cost of revenues - Equipment
342
38
380
454 43 497
Cost of revenues
1,549
495
(128)
1,916 1,861 519
(162)
2,218
Gross profit
379
139
518
311 194 505 Operating expenses (3)
268
67
335
428 90 518
Income with respect to settlement
agreement with
Orange
108
108
163
163 Other income, net
23
1
24
32 3 35
Operating profit
242
73
315
78 107 185 Adjustments to presentation of segment
Adjusted EBITDA
–Depreciation and amortization
327
100
338 110 –Other (1)
17
37
Segment Adjusted EBITDA (2)
586
173
453 217
Reconciliation of segment subtotal
Adjusted
EBITDA to profit
for the period
Segments subtotal Adjusted EBITDA (2)
759
670 - Depreciation and amortization
(427)
(448)
- Finance costs, net
(92)
(82)
- Income tax expenses
(59)
(44)
- Other (1)
(17)
(37)
Profit for the period
164
59
PARTNER COMMUNICATIONS COMPANY LTD.(An
Israeli Corporation)INTERIM SEGMENT INFORMATION & ADJUSTED
EBITDA RECONCILIATION
New Israeli Shekels New Israeli
Shekels Three months ended September 30, 2017 Three
months ended September 30, 2016 In millions (Unaudited)
In millions (Unaudited) Cellular segment
Fixed line segment Reconciliation
for
consolidation
Consolidated Cellular
segment
Fixed line
segment
Reconciliation
for
consolidation
Consolidated Segment revenue - Services
510
156
666
526 172 698 Inter-segment revenue - Services
4
38
(42)
5 48 (53) Segment revenue - Equipment
138
22
160
139 12 151
Total revenues
652
216
(42)
826
670 232 (53) 849 Segment cost of revenues – Services
358
150
508
410 158 568 Inter-segment cost of revenues- Services
38
4
(42)
48 5 (53) Segment cost of revenues - Equipment
102
15
117
112 11 123
Cost of revenues
498
169
(42)
625
570 174 (53) 691
Gross profit
154
47
201
100 58 158 Operating expenses (3)
87
29
116
127 31 158
Income with respect to settlement
agreement with
Orange
55
55 Other income, net
7
*
7
8 1 9
Operating profit
74
18
92
36 28 64
Adjustments to presentation of segment
Adjusted EBITDA
–Depreciation and amortization
109
32
108 35 –Other (1)
6
12 1
Segment Adjusted EBITDA (2)
189
50
156 64
Reconciliation of segment subtotal
Adjusted
EBITDA to profit
for the period
Segments subtotal Adjusted EBITDA (2)
239
220
- Depreciation and amortization
(141)
(143)
- Finance costs, net
(15)
30))
- Income tax expenses
(23)
(15)
- Other (1)
(6)
13))
Profit for the period
54
19
* Representing an amount of less than 1 million.
(1) Mainly amortization of employee share based compensation.(2)
Adjusted EBITDA as reviewed by the CODM represents Earnings Before
Interest (finance costs, net), Taxes, Depreciation and Amortization
(including amortization of intangible assets, deferred
expenses-right of use and impairment charges) and Other expenses
(mainly amortization of share based compensation). Adjusted EBITDA
is not a financial measure under IFRS and may not be comparable to
other similarly titled measures for other companies. Adjusted
EBITDA may not be indicative of the Group's historic operating
results nor is it meant to be predictive of potential future
results. The usage of the term "Adjusted EBITDA" is to highlight
the fact that the Amortization includes amortization of deferred
expenses – right of use and amortization of employee share based
compensation and impairment charges; it is fully comparable to
EBITDA information which has been previously provided for prior
periods.(3) Operating expenses include selling and marketing
expenses and general and administrative expenses.
PARTNER COMMUNICATIONS COMPANY LTD.(An
Israeli Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
New Israeli Shekels
Convenience translation
into U.S. Dollars
9 months endedSeptember
30,
2017 2016 2017 (Unaudited)
(Unaudited) (Unaudited) In millions CASH
FLOWS FROM OPERATING ACTIVITIES: Cash generated from operations
(Appendix) 804 652 227 Income tax paid (7) (20) (2) Net cash
provided by operating activities 797 632 225
CASH FLOWS FROM INVESTING
ACTIVITIES:
Acquisition of property and equipment (146)
(97)
(41) Acquisition of intangible and other assets (117) (52) (33)
Proceeds from (investment in) short-term deposits, net 302 85
Interest received 2 2 1 Consideration received from sales of
property and equipment * 4 * Net cash provided by (used in)
investing activities 41 (143) 12
CASH FLOWS FROM FINANCING ACTIVITIES:
Share issuance 190 54 Interest paid (85)
(80)
(24) Current borrowings received 52 Repayment of non-current
borrowings (901) (11) (255) Proceeds from issuance of notes
payable, net of issuance costs 252 71 Repayment of notes payable
(235) Net cash used in financing activities (544)
(274) (154)
INCREASE IN CASH AND CASH
EQUIVALENTS
294 215 83
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD
716 926 203
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
1,010 1,141 286
* Representing an amount of less than 1 million.
PARTNER COMMUNICATIONS COMPANY LTD.(An
Israeli Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
Appendix - Cash generated from operations and supplemental
information
New Israeli Shekels
Convenience translation
into U.S. Dollars
9 months endedSeptember 30, 2017
2016 2017 (Unaudited) (Unaudited)
(Unaudited) In millions Cash generated from
operations: Profit for the period 164 59 46 Adjustments for:
Depreciation and amortization 399 427 113 Amortization of deferred
expenses - Right of use 28 21 8 Employee share based compensation
expenses 16 36 5 Liability for employee rights upon retirement, net
(3) (3) (1) Finance costs, net (3) 2 (1) Change in fair value of
derivative financial instruments (1) * * Capital loss from property
and equipment * 1 * Interest paid 85 80 24 Interest received (2)
(2) (1) Deferred income taxes 14 12 4 Income tax paid 7 20 2
Changes in operating assets and liabilities: Decrease (increase)in
accounts receivable: Trade 276 122 78 Other (5) 8 (1) Increase
(decrease) in accounts payable and accruals: Trade 45 (3) 13 Other
payables (49) (38) (14) Provisions 1 (6) *
Deferred income with respect to
settlement
agreement with
Orange
(108) (163) (31) Deferred revenues from HOT mobile (23) 54 (7)
Other deferred revenues 5 6 1 Increase in deferred expenses - Right
of use (86) (52) (24) Current income tax liability 38 11 11
Decrease in inventories 6 60 2
Cash generated from
operations 804 652 227
* Representing an amount of less than 1 million.
At September 30, 2017 and 2016, trade and other payables include
NIS 102 million ($29 million) and NIS 96 million,
respectively, in respect of acquisition of intangible assets and
property and equipment; payments in respect thereof are presented
in cash flows from investing activities.
These balances are recognized in the cash flow statements upon
payment.
Effect of IFRS15
implementation:
The tables below summarize the effects on the interim condensed
consolidated statement of financial position as at September 30,
2017 and on the interim condensed consolidated statements of income
and cash flows for the nine and three months periods ended as of
the same date.
Effect of change on interim condensed consolidated statement
of financial position:
New Israeli Shekels in millions As of September
30, 2017
Previous accounting
policy
Effect of change
According to IFRS15
(Unaudited)
Costs to obtain contracts recognized in
intangible assets, net – non-current
assets
- 51 51 Deferred income tax asset 39 (12) 27 Equity 1,442 39 1,481
Effect of change on interim condensed consolidated statement
of income:
New Israeli Shekels in millions Nine months ended
September 30, 2017 Three months ended September 30,
2017
Previous accounting
policy
Effect of change
According to IFRS15
Previous accounting
policy
Effect of change
According to IFRS15
(Unaudited) Selling and marketing expenses 240 (51) 189 89
(19) 70 Operating profit 264 51 315 73 19 92 Profit before income
tax 172 51 223 58 19 77 Income tax expenses 47 12 59 19 4 23 Profit
for the period 125 39 164 39 15 54 Depreciation and
amortization expense 422 5 427 138 3 141
Effect of change on interim condensed consolidated statement
cash flows:
New Israeli Shekels in millions Nine months ended
September 30, 2017 Three months ended September 30,
2017
Previous accounting
policy
Effect of change
According to IFRS15
Previous accounting
policy
Effect of change
According to IFRS15
(Unaudited) Net cash provided by operating activities
746 51 797 286 20 306 Net cash provided by (used in) investing
activities 92 (51) 41 (234) (20) (254)
Reconciliation of Non-GAAP
Measures:
Adjusted Free
Cash Flow
New Israeli Shekels
Convenience translation into
U.S. Dollars
Convenience translation into
U.S. Dollars
9 months
period ended September
30,
9 months
period ended September
30,
3 months
period ended
September 30,
3 months
period ended September
30,
9 months
period ended
September 30,
3 months
period ended
September 30,
2017 2016 2017 2016 2017
2017 (Unaudited) (Unaudited)
(Unaudited) (Unaudited) (Unaudited)
(Unaudited) In millions Net cash provided by
operating activities 797 632 306 253 225 87 Net cash used in
investing activities 41 (143) (254) (38) 12 (72) Proceeds from
(investment in) short-term deposits (302) 150 (85) 43
Adjusted Free Cash Flow 536 489 202 215 152 58
Interest paid (85) (80) (10) (14) (24) (3)
Adjusted Free Cash
Flow After Interest
451
409
192
201
128
55
Total Operating
Expenses (OPEX)
New Israeli Shekels
Convenience translation into
U.S. Dollars
Convenience translation into
U.S. Dollars
9 months
period ended September
30,
9 months
period ended September
30,
3 months
period ended
September 30,
3 months
period ended September
30,
9 months
period ended
September 30,
3 months
period ended
September 30,
2017 2016 2017 2016 2017
2017 (Unaudited) (Unaudited)
(Unaudited) (Unaudited) (Unaudited)
(Unaudited) In millions Cost of revenues – Services
1,536 1,721 508 568 435 144 Selling and marketing expenses 189 330
70 98 54 20 General and administrative expenses 146 188 46 60 41 13
Depreciation and amortization (427) (448) (141) (143) (121) (40)
Other (1) (17) (37) (6) (13) (5) (2)
OPEX 1,427
1,754
477 570 404 135
(1) Mainly amortization of employee share based compensation
Key Financial and Operating Indicators
(unaudited)*
NIS M unless otherwise stated
Q3'
15
Q4'
15
Q1'
16
Q2'
16
Q3'
16
Q4'
16
Q1'
17
Q2'
17
Q3'
17
2015 2016 Cellular Segment Service
Revenues 587 550 543 527 531
498 489 497 514 2,297
2,099 Cellular Segment Equipment Revenues 234 269
244 188 139 158 145 145
138 1,051 729 Fixed-Line Segment Service
Revenues 225 223 222 219 220
205 194 192 194 906 866
Fixed-Line Segment Equipment Revenues 12 22 23
17 12 11 18 14 22
68 63 Reconciliation for consolidation (52)
(57) (55) (54) (53) (51) (43)
(43) (42) (211) (213) Total Revenues
1,006 1,007 977 897 849
821 803 805 826 4,111 3,544
Gross Profit from Equipment Sales 52 61 56
42 28 18 26 33 43
239 144 Operating Profit (Loss) 32 (48)
54 67 64 8 **105 **118 92
107 193 Cellular Segment Adjusted EBITDA 137
152 142 155 156 109 **187
**210 189 597 562 Fixed-Line Segment
Adjusted EBITDA 59 65 80 73 64
55 **64 **59 50 279 272
Total Adjusted EBITDA 196 217 222 228
220 164 **251 **269 239
876 834 Adjusted EBITDA Margin (%) 19% 22%
23% 25% 26% 20% **31%
**33% 29% 21% 24% OPEX 650 608
612 572 570 570 **478
**472 477 2,463 2,324 Impairment charges on
operating profit 98
98 Income with respect to
settlement agreement
with Orange
23 38 54 54 55 54 54
54 61 217 Finance costs, net
40 39 24 28 30 23
23 54 15 143 105 Profit (loss)
(9) (65) 14 26 19 (7)
**64 **46 54 (40) 52 Capital
Expenditures (cash) 64 56 48 57
44 47 **82 **76 105 359
196 Capital Expenditures (additions) 51 86 34
40 44
84
**58 **78 107 271 202 Adjusted
Free Cash Flow 291 230 114 160
215 269 126 208 202 566
758 Adjusted Free Cash Flow (After Interest) 277 172
89 119 201 241 109 150
192 429 650 Net Debt 2,355 2,175
2,079 1,964 1,768 1,526 1,415
1,081 887 2,175 1,526 Cellular
Subscriber Base (Thousands) 2,739 2,718 2,692
2,700 2,693 2,686 2,658 2,662
2,677 2,718 2,686 Post-Paid Subscriber Base
(Thousands) 2,136 2,156 2,174 2,191
2,215 2,241 2,259 2,273 2,306
2,156 2,241 Pre-Paid Subscriber Base (Thousands)
603 562 518 509 478 445
399 389 371 562 445 Cellular
ARPU (NIS) 71 67 67 65 66
62 61 62 64 69 65 Cellular Churn
Rate (%) 10.8% 11.1% 11.2% 9.8%
9.7% 9.4% 9.8% 9.0% 9.3% 46%
40% Number of Employees (FTE) 3,017 2,882
2,827 2,740 2,742 2,686 2,580
2,582 2,696 2,882 2,686
* See footnote 2 regarding use of non-GAAP measures.** Figures
include impact of IFRS15 retroactive implementation as from
beginning of 2017.
Disclosure for notes holders as of September 30, 2017
Information regarding the notes series
issued by the Company, in million NIS
Series
Originalissuancedate
Principal onthe date ofissuance
As of 30.09.2017 Interest rate
Principal repaymentdates
Interestrepaymentdates
Linkage
Trustee contact details
Principalbook value
Linked principalbook value
Interestaccumulatedin books
Marketvalue
From To
C 25.04.10
24.02.11*
200
444
393 425 4 435 3.35%
+
CPI
30.12.16 30.12.18 30.6, 30.12 Linked to
CPI
Hermetic Trust (1975) Ltd.
Merav Offer. 113 Hayarkon St.,Tel Aviv.
Tel: 03-5544553.
D 25.04.10
04.05.11*
400
146
546 546 2 551 1.328%
(MAKAM+1.2%)
30.12.17 30.12.21 30.3, 30.6, 30.9, 30.12
VariableinterestMAKAM (2)
Hermetic Trust (1975) Ltd.Merav Offer. 113
Hayarkon St.,Tel Aviv. Tel: 03-5544553.
E 25.04.10
04.05.11*
400
535
121 121 2 124 5.5%
30.12.13 30.12.17 30.6, 30.12 Not Linked
Mishmeret Trust Company Ltd.Rami Sebty. 48
MenachemBegin Rd. Tel Aviv.Tel:03-6374355.
F
(1)
20.07.17 255 255 255 1
260 2.16% 25.06.20 25.06.24 25.6, 25.12
Not Linked
Hermetic Trust (1975) Ltd.
Merav Offer. 113 Hayarkon St.,Tel Aviv.
Tel: 03-5544553.
(1) In July 2017, the Company issued Series F Notes in a
principal amount of NIS 255 million. Regarding Series F Notes, the
Company is required to comply with a financial covenant that the
ratio of Net Debt to Adjusted EBITDA shall not exceed 5. Compliance
will be examined and reported on a quarterly basis. For the
definitions of Net Debt and Adjusted EBITDA see 'Use of non-GAAP
measures' section above. For the purpose of the covenant, Adjusted
EBITDA is calculated as the sum total for the last 12 month period,
excluding adjustable one-time items. As of September 30, 2017, the
ratio of Net Debt to Adjusted EBITDA was 1.0. Additional
stipulations regarding Series F Notes are as follows: shareholders'
equity shall not decrease below NIS 400 million; the Company
shall not create floating liens subject to certain terms; the
Company has the right for early redemption under certain
conditions; the Company shall pay additional annual interest of
0.5% in the case of a two-notch downgrade in the Notes rating and
an additional annual interest of 0.25% for each further
single-notch downgrade, up to a maximum additional interest of 1%;
the Company shall pay additional annual interest of 0.25% during a
period in which there is a breach of the financial covenant.The
Company has additional financial covenants regarding its borrowings
from financial institutions. See note 15 to the Company's 2016
annual financial statements.In the reporting period, the Company
was in compliance with all financial covenants and obligations and
no cause for early repayment occurred.In September 2017, the
Company entered into an agreement with Israeli institutional
investors to issue in December 2018, in the framework of a private
placement, additional Series F notes, in an aggregate principal
amount of NIS 150 million. S&P Maalot has rated the additional
deferred issuance with an 'ilA+' rating. For additional details see
the Company's press releases dated September 13 and 17, 2017.(2)
'MAKAM' is a variable interest based on the yield of 12 month
government bonds issued by the government of Israel. The interest
rate is updated on a quarterly basis.(*) On these dates additional
Notes of the series were issued. The information in the table
refers to the full series.
Disclosure for Notes holders as of September 30, 2017
(cont.)
Notes Rating Details*
Series
RatingCompany
Rating as of30.09.2017 and22.11.2017
(1)
Ratingassigned uponissuance ofthe
Series
Recent date ofrating as of30.09.2017
and22.11.2017
Additional ratings between the original
issuance date and the recent date ofrating (2)
Date Rating C
S&P Maalot ilA+ ilAA- 07/2017 07/2010,
09/2010,
10/2010, 09/2012,
12/2012, 06/2013,
07/2014, 07/2015,
07/2016, 07/2017
ilAA-/Stable, ilAA-/Stable,
ilAA-/Negative, ilAA-/Watch Neg,
ilAA-/Negative, ilAA-/Stable,
ilAA-/Stable, ilA+/Stable,
ilA+/Stable, ilA+/Stable
D S&P Maalot ilA+ ilAA- 07/2017 E
S&P Maalot ilA+ ilAA- 07/2017
F S&P Maalot ilA+ ilA+
07/2017 07/2017 ilA+/Stable
(1) In July 2017, S&P Maalot affirmed the Company's rating
of “ilA+/Stable”.
(2) For details regarding the rating of the notes see the
S&P Maalot report dated July 2, 2017 and July 27, 2017.
* 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 September 30, 2017
a. Notes issued to the public by the Company and held by the
public, excluding such notes 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 interestpayments (withoutdeduction
of tax)
ILS linkedto CPI
ILS not linkedto CPI
Euro Dollar Other First year
212,513 230,506 - - - 26,963
Second year 212,513 109,228 - -
- 13,651 Third year - 160,138 -
- - 8,678 Fourth year - 160,138
- - - 6,165 Fifth year and on -
261,958 - - - 6,951 Total
425,026 921,968 - - - 62,408
b. Private notes and other non-bank credit, excluding such notes
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 interestpayments (withoutdeduction
of tax)
ILS linkedto CPI
ILS not linkedto CPI
Euro Dollar Other First year -
115,000 - - - 35,036 Second year
- 152,917 - - - 23,548
Third year - 163,333 - - -
16,592 Fourth year - 133,333 - -
- 9,845 Fifth year and on - 141,667
- - - 6,003 Total -
706,250 - - - 91,024
c. Credit from banks in Israel based on the Company's "Solo"
financial data – None.
d. Credit from banks abroad based on the Company's "Solo"
financial data – None.
Summary of Financial Undertakings (according to repayment
dates) as of September 30, 2017 (cont.)
e. Total of sections a - d above, total credit from banks,
non-bank credit and notes based on the Company's "Solo" financial
data (in thousand NIS).
Principal payments
Gross interestpayments (withoutdeduction
of tax)
ILS linkedto CPI
ILS not linked toCPI
Euro Dollar Other First year
212,513 345,506 - - - 61,999
Second year 212,513 262,145 - -
- 37,199 Third year - 323,471 -
- - 25,270 Fourth year - 293,471
- - - 16,010 Fifth year and on -
403,625 - - - 12,954 Total
425,026 1,628,218 - - - 153,432
f. Off-balance sheet Credit exposure based on the Company's
"Solo" financial data (in thousand NIS) – 50,000 (Guarantees on
behalf of an associate, without expiration date).g. Off-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 – None.h. Total
balances of the credit from banks, non-bank credit and notes of all
the consolidated companies, excluding companies that are reporting
corporations and excluding Company's data presented in sections a -
d above - None.i. Total balances of credit granted to the Company
by the parent company or a controlling shareholder and balances of
notes offered by the Company held by the parent company or the
controlling shareholder - 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 notes offered by the Company held by companies held
by the parent company or the controlling shareholder, which are not
controlled by the Company – None.k. Total balances of credit
granted to the Company by consolidated companies and balances of
notes offered by the Company held by the consolidated companies -
None.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171120006233/en/
Partner Communications Company Ltd.Dudu Mizrahi,
+972-54-781-4951Chief Financial OfficerorLiat Glazer Shaft,
+972-54-781-5051Head of Investor Relations and Corporate
Projectsinvestors@partner.co.il
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