Adjusted EBITDA1, 2 Totaled NIS 214
Million
Net Debt2 Remained below NIS 1
Billion
Cellular Churn Rate Decreased to 7.9%, the
Lowest Level since 2011
Partner’s CEO, Isaac Benbenisti, Noted:
“While our competitors in the telecommunications market are facing
instability and impairments, Partner presents business leadership
and financial strength.”
Second quarter 2019 highlights (compared with second quarter
2018)
- Total Revenues: NIS 781 million (US$ 219 million), a decrease
of 2%
- Service Revenues: NIS 642 million (US$ 180 million), an
increase of 4%
- Equipment Revenues: NIS 139 million (US$ 39 million), a
decrease of 21%
- Total Operating Expenses (OPEX)2: NIS 472 million (US$ 132
million), a decrease of 4%
- Adjusted EBITDA1: NIS 214 million (US$ 60 million), an increase
of 24%
- Adjusted EBITDA Margin1, 2: 27% of total revenues compared with
22%
- Profit for the Period: NIS 3 million (US$ 1 million), an
increase of 50%
- Net Debt: NIS 965 million (US$ 271 million), an increase of NIS
72 million
- Adjusted Free Cash Flow (before interest)2: NIS 31 million (US$
9 million), a decrease of NIS 24 million
- Cellular ARPU: NIS 58 (US$ 16), an increase of 2%
- Cellular Subscriber Base: approximately 2.62 million at
quarter-end, unchanged
- TV Subscriber Base: approximately 160 thousand subscribers at
quarter-end, an increase of 77 thousand subscribers since the
second quarter of 2018
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 June 30, 2019.
Commenting on the results for the second quarter of 2019, Mr.
Isaac Benbenisti, CEO of Partner noted:
“While our competitors in the
telecommunications market are facing instability and impairments,
Partner presents business leadership and financial
strength.
Partner is more prepared than
its competitors to cope with the complex challenges in the Israeli
telecommunications market that suffers from ongoing market
failures.
Partner continues to
demonstrate positive trends in key KPI’s, a strong balance sheet
and operational excellence while other competitors experience
balance sheet write-downs and instability.
Partner today has an advantage
in the range of services that we offer to over 3 million
customers:
Cellular – Despite the ongoing
competition, our ARPU has increased and churn rate has decreased,
and is at the lowest level since 2011. This is attributed to our
choice to provide our customers with value added services as part
of our "MORE" Partner plans.
TV – For over two years
Partner TV is the fastest growing TV service in Israel. At the end
of the second quarter we report a net growth of 77 thousand
subscribers compared with the corresponding quarter in 2018, and as
of today, Partner TV has over 170 thousand subscribers. Unlike all
of our competitors, Partner is the only company that does not need
to replace its subscribers' set top boxes to be prepared for the
new viewing habits: 100% of Partner TV set top boxes broadcast with
4K quality, support Catch Up and allow access to world leading
content applications.
Fiber Optics – two years after
the launch of Partner Fiber our fiber optic infrastructure reaches
over 480 thousand households in Israel. We connect customers in
dozens of cities nationwide to the fastest data internet speed in
Israel of up to 1,000 mbps. In addition, we are working to switch
wholesale internet customers to the independent infrastructure in
order to reduce dependency on monopolies and increase the Company's
profit.
The combination of all these
services solidifies our status as a leading communications group
and the positive figures in this report reflect Partner's
leadership in a range of services within the highly competitive
Israeli telecommunications market."
Mr. Tamir Amar, Partner's Chief Financial Officer, commented
on the results:
“Partner completed a positive
quarter which was characterized by stability and even slight growth
in cellular service revenues, alongside continued growth in the
fixed line segment compared with Q2 2018 and Q1 2019, mainly
reflecting the growth in our TV and Internet operations. The
decline trend in our cellular churn rate continued, as churn rate
decreased to the lowest level since the third quarter of 2011,
totaling less than 8%. We continue to strive to maintain our
customer base while creating value for our customers and limiting
price erosion, through our strategic focus on profit rather than
market share. Despite the decline in revenues from equipment we
experienced only a slight decrease in gross profit from equipment
sales.
The Adjusted EBITDA increased
this quarter and totaled NIS 214 million compared with NIS 197
million in the previous quarter and NIS 172 million in the second
quarter 2018. As we announced last quarter, the Company has adopted
the IFRS 16 accounting standard, effective as of January 2019. The
effect of the new standard totaled NIS 38 million in this quarter;
thus even after eliminating the effect of IFRS 16 on Adjusted
EBITDA, there was an increase compared with both periods. The
increase was mainly a result of the increase in fixed line segment
Adjusted EBITDA alongside stability in cellular segment Adjusted
EBITDA.
Cash Flow from operating
activities totaled NIS 216 million and Adjusted Free Cash Flow
(before interest) totaled NIS 31 million this quarter. As part of
our investment plan, CAPEX totaled NIS 143 million this quarter.
The Company continues its investments in growth engines, through
both the continued rapid deployment of our fiber optic
infrastructure as well as our increased penetration rate in the TV
market. These developments have all been pursued according to our
strategic plans while maintaining financial strength and a strong
balance sheet. As a result of the rapid deployment pace of the
fiber optic project, we are expected to increase investment in the
project in 2019 compared with 2018 but overall CAPEX is expected to
remain unchanged from our original plans for 2019. In addition, in
the coming years investments in the fiber optic project are
expected to return to 2018 levels. Our investments place the
Company at the technological forefront in Israel and have enabled
us to reach over 480 thousand households with our fiber
infrastructure and to connect customers to Partner's TV and Fiber
services."
Q2 2019 compared with Q1
2019
NIS Million
Q1’19
Q2’19
Comments
Service Revenues
624
642
The increase resulted from increases both in
cellular service revenues mainly as a result of seasonality and in
fixed-line segment service revenues
Equipment Revenues
170
139
The decrease reflected a lower volume of
equipment sales and a change in product mix
Total Revenues
794
781
Gross profit from equipment sales
39
35
OPEX
472
472
Adjusted EBITDA
197
214
The increase mainly resulted from increase in
service revenues
Profit for the Period
2
3
Profit remained stable despite the increase
in Adjusted EBITDA results from income tax expenses in the second
quarter compared with income tax income in the first
quarter
Capital Expenditures (additions)
157
142
Adjusted free cash flow (before interest
payments)
(11)
31
The increase mainly resulted from the
decrease in CAPEX payments
Net Debt
977
965
Q1’19
Q2’19
Comments
Cellular Post-Paid Subscribers
(end of period,
thousands)
2,340
2,337
Decrease of 3 thousand subscribers
Cellular Pre-Paid Subscribers
(end of period, thousands)
280
279
Decrease of 1 thousand subscribers
Monthly Average Revenue per
Cellular User (ARPU)
(NIS)
56
58
Quarterly Cellular Churn Rate (%)
8.5%
7.9%
Decrease in both Post-Paid and Pre-Paid churn
rate
Key Financial Results
Q2 2019 compared with Q2
2018
NIS MILLION (except
EPS)
Q2'18
Q2'19
% Change
Revenues
797
781
-2%
Cost of revenues
661
650
-2%
Gross profit
136
131
-4%
Operating profit
22
22
0%
Profit for the period
2
3
+50%
Earnings per share (basic, NIS)
0.01
0.02
Adjusted free cash flow (before
interest)
55
31
-44%
Key Operating Indicators
Q2'18
Q2'19
Change
Adjusted EBITDA (NIS million)
172
214
+24%
Adjusted EBITDA margin (as a % of total
revenues)
22%
27%
+5
Cellular Subscribers (end of period,
thousands)
2,623
2,616
-7
Quarterly Cellular Churn Rate (%)
10.1%
7.9%
-2.2
Monthly Average Revenue per Cellular User
(ARPU) (NIS)
57
58
+1
Partner Consolidated
Results
Cellular Segment
Fixed-Line Segment
Elimination
Consolidated
NIS Million
Q2'18
Q2'19
Change %
Q2'18
Q2'19
Change %
Q2'18
Q2'19
Q2'18
Q2'19
Change %
Total Revenues
611
568
-7%
230
254
+10%
(44)
(41)
797
781
-2%
Service Revenues
454
453
0%
210
230
+10%
(44)
(41)
620
642
+4%
Equipment Revenues
157
115
-27%
20
24
+20%
-
-
177
139
-21%
Operating Profit
12
14
+17%
10
8
-20%
-
-
22
22
0%
Adjusted EBITDA
126
159
+26%
46
55
+20%
-
-
172
214
+24%
Financial Review
In Q2 2019, total
revenues were NIS 781 million
(US$ 219 million), a decrease of 2% from NIS 797 million in Q2
2018.
Service revenues in Q2
2019 totaled NIS 642 million (US$ 180 million), an increase of 4%
from NIS 620 million in Q2 2018.
Service revenues for the cellular segment in Q2 2019 totaled NIS 453 million (US$ 127
million), approximately unchanged from NIS 454 million in Q2 2018.
The stability 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 being offset by a one-time
provision which was recorded in Q2 2018 with respect to a class
action.
Service revenues for the fixed-line segment in Q2 2019 totaled NIS 230 million (US$ 64
million), an increase of 10% from NIS 210 million in Q2 2018. The
increase mainly reflected higher revenues from TV services and
internet services, which were partially offset principally by the
decline in revenues from international calling services.
Equipment revenues in
Q2 2019 totaled NIS 139 million (US$ 39 million), a decrease of 21%
from NIS 177 million in Q2 2018, mainly reflecting a lower volume
of equipment sales partially offset by a change in product
mix.
Gross profit from equipment sales in Q2 2019 was NIS 35 million (US$ 10
million), compared with NIS 37 million in Q2 2018, a decrease of
5%, mainly reflecting the decline in sales volumes, partially
offset by higher profit margins from sales due to a change in the
product mix.
Total operating expenses (‘OPEX’) totaled NIS 472 million (US$ 132
million) in Q2 2019, a decrease of 4% or NIS 20 million from Q2
2018. The decrease mainly reflected the impact of the
implementation of IFRS 16 which totaled NIS 38 million, as well as
decreases in credit losses and in marketing expenses. These
decreases were partially offset by an increase in expenses relating
to the growth in TV and internet services as well as the one-time
cancellation in Q2 2018 of a provision for a class action in an
amount of NIS 8 million. Including depreciation and amortization
expenses and other expenses (mainly amortization of employee share
based compensation), OPEX in Q2 2019 increased by 3% compared with
Q2 2018, the increase largely reflecting the increase in
depreciation and amortization expenses related to IFRS
16.
Operating profit for Q2
2019 was NIS 22 million (US$ 6 million), unchanged compared with Q2
2018. Excluding the impact of the adoption of IFRS 16, operating
profit in Q2 2019 would have been NIS 20 million. See Adjusted
EBITDA analysis for each segment below.
Adjusted EBITDA in Q2
2019 totaled NIS 214 million (US$ 60 million), an increase of 24%
from NIS 172 million in Q2 2018. The impact of the adoption of IFRS
16 on Adjusted EBITDA in Q2 2019 was an increase of NIS 38 million
and, therefore, excluding the impact of IFRS 16, Adjusted EBITDA
would have been NIS 176 million, an increase of NIS 4 million from
Q2 2018. As a percentage of total revenues, Adjusted EBITDA in Q2
2019 was 27% compared with 22% in Q2 2018.
Adjusted EBITDA for the cellular segment was NIS 159 million (US$ 45 million) in Q2
2019, an increase of 26% from NIS 126 million in Q2 2018, mainly
reflecting the impact of the adoption of IFRS 16 which increased
cellular segment Adjusted EBITDA by NIS 35 million, as well as a
decrease in other cellular operating expenses, and was partially
offset by a decrease in gross profit from cellular equipment sales.
As a percentage of total cellular segment revenues, Adjusted EBITDA
for the cellular segment in Q2 2019 was 28% compared with 21% in Q2
2018.
Adjusted EBITDA for the fixed-line segment was NIS 55 million (US$ 15 million) in Q2
2019, an increase of 20% from NIS 46 million in Q2 2018, reflecting
increases in fixed-line service revenues and in gross profit from
equipment sales, partially offset by an increase in OPEX among
other reasons as a result of the one-time cancellation in Q2 2018
of a provision for a class action in an amount of NIS 8 million.
The impact of the adoption of IFRS 16 in Q2 2019 on the Adjusted
EBITDA for the fixed-line segment was an increase of NIS 3 million.
As a percentage of total fixed-line segment revenues, Adjusted
EBITDA for the fixed-line segment in Q2 2019 was 22%, compared with
20% in Q2 2018.
Finance costs, net in
Q2 2019 were NIS 16 million (US$ 4 million), an increase of 23%
compared with NIS 13 million in Q2 2018. The increase largely
reflected the impact of the adoption of IFRS 16, which resulted in
an increase of NIS 5 million in finance costs.
Income tax expenses for
Q2 2019 were NIS 3 million (US$ 1 million), a decrease of 57%
compared with NIS 7 million in Q2 2018.
Profit in Q2 2019 was
NIS 3 million (US$ 1 million), an increase of 50% compared with a
profit of NIS 2 million in Q2 2018. The impact of the adoption of
IFRS 16 in Q2 2019 on profit was a decrease of NIS 2
million.
Based on the weighted average
number of shares outstanding during Q2 2019, basic
earnings per share or ADS,
was NIS 0.02 (US$ 0.006), compared with basic earnings per share of
NIS 0.01 in Q2 2018.
Cellular Segment Operational
Review
At the end of Q2 2019, the
Company's cellular subscriber base (including mobile data, 012 Mobile
subscribers and M2M subscriptions) was approximately 2.62 million,
including approximately 2.34 million Post-Paid subscribers or 89%
of the base, and approximately 279 thousand Pre-Paid subscribers,
or 11% of the subscriber base.
During the second quarter of
2019, the cellular subscriber base decreased by approximately four
thousand. The Pre-Paid subscriber base decreased by approximately
one thousand, and the Post-Paid subscriber base decreased by
approximately three thousand.
The quarterly churn
rate for cellular subscribers
in Q2 2019 was 7.9%, compared with 10.1% in Q2 2018 – the lowest
level since Q3 2011.
Total cellular
market share (based on the
number of subscribers) at the end of Q2 2019 was estimated to be
approximately 25%, unchanged from Q2 2018.
The monthly Average Revenue
per User (“ARPU”)
for cellular subscribers in Q2 2019 was NIS 58 (US$ 16), an
increase of 2% from NIS 57 in Q2 2018. Excluding a one-time
provision recorded in Q2 2018, ARPU would have decreased by NIS 1
as a result of the continued price erosion in key cellular services
due to the competition in the cellular market.
Funding and Investing
Review
In Q2 2019, Adjusted
Free Cash Flow (including lease payments) totaled NIS 31 million (US$ 9 million), a
decrease of 44% from NIS 55 million in Q2 2018.
Cash generated from operating activities increased by 36% from NIS 159 million in Q2
2018 to NIS 216 million (US$ 61 million) in Q2 2019, mainly as a
result of the adoption of IFRS 16 in 2019, under which lease
payments are recorded in cash flows from financing activities
instead of in cash flows from operating activities.
Lease payments,
recorded in cash flows from financing activities under IFRS 16,
totaled NIS 43 million (US$ 12 million) in Q2 2019.
Cash capital expenditures (‘CAPEX payments’), as represented by cash flows used for the
acquisition of property and equipment and intangible assets, were
NIS 143 million (US$ 40 million) in Q2 2019, an increase of 38%
from NIS 104 million in Q2 2018, mainly reflecting the increased
investments in the fiber optics infrastructure.
The level of Net
Debt at the end of Q2 2019
amounted to NIS 965 million (US$ 271 million), compared with NIS
893 million at the end of Q2 2018, an increase of NIS 72
million.
Regulatory Developments
Further to the description in
the Company's annual report for 2018 regarding Policy principles
for the deployment of fiber-optic infrastructure in Israel
("Call for Public Comments Document"), on July 24, 2019, the Ministry of
Communications published two hearings (1) a hearing with respect to
setting a maximum tariff for ultra-broadband access managed over
the Bezeq fiber optic network and (2) a hearing with respect to
changing the "reverse bundle" marketing format by Bezeq. On August
4, 2019, the Ministry published an additional hearing regarding the
determination of a uniform tariff for fiber-optic based internet
access services.
Based on the content of these
hearings (the "Hearings"), the Hearings form part of the overall
fiber optic strategy which the Ministry of Communications is
formulating these days. The main provisions proposed in the
hearings are as follows:
- A recommendation regarding the maximum tariff that Bezeq will
be allowed to charge for ultra-broadband access managed over its
fiber optic network - as proposed in the hearing, for a line with a
speed of up to 400 Mbps the proposed maximum tariff will be NIS 71
per month (excluding VAT) and for a line with a speed of up to
1,000 Mbps the suggested maximum tariff will be NIS 85 per month
(excluding VAT). The proposed rates include installation and fault
repairs. As stated in the hearing documents, the maximum tariff
stated is temporary and the Ministry intends to complete a process
for setting fixed tariffs for these services in accordance with the
principles set out in this regard in the Call for Public Comments
Document.
- A recommendation regarding change in Bezeq's "reverse bundle"
marketing format - as proposed in the hearing, the Ministry is
considering changing the format that was presented in the hearing
regarding the reverse bundle in March 2019, and determining that
Bezeq will not be obligated to market in its "reverse bundle"
service providers which have accumulated 100,000 or more wholesale
Bit Stream Access ("BSA") customers, or more, on the Bezeq
network and have access to 100,000 households, or more, with their
independent fiber optic infrastructure using Bezeq's physical
infrastructure. All existing "reverse bundle" subscribers on the
date this format becomes effective, will continue with the same
package and with the same service provider (even those who are not
obliged to be marketed as stated above). It is proposed that this
format will become effective after the launch of Bezeq's fiber
project and with at least two months' prior notice to the service
providers, and given the reasonable possibility of purchasing BSA
service over the fiber network.
- A recommendation regarding setting a uniform tariff for
fiber-optic internet services - as proposed at the hearing, the
infrastructure owners (Bezeq and Hot Telecom) and the service
providers will be required to set a uniform price (throughout the
country) for each fiber-based service (FTTP), whether it is a
service provided on the network belonging to said licensee or
whether it is provided through another licensee's network. Such
discrimination in fiber service prices would be prohibited, whether
by providing different tariffs or by providing value. The Company
is studying the Hearing documents and examining its position
regarding the provisions proposed therein.
Conference Call Details
Partner will hold a conference
call on Tuesday, August 27, 2019 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: +972.3.918.0610
North America toll-free:
+1.888.407.2553 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 August 27, 2019 until September 10, 2019, at
the following numbers: International: +972.3.925.5928
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
steps to be taken by the Company in order to switch wholesale
internet customers to Partner's independent infrastructure in order
to reduce dependency on monopolies and increase the Company's
profit, the continued investment in growth engines and the expected
increased investment in the fiber optic project in 2019 compared
with 2018, while the expected investments in the coming years is
expected to remain similar to 2018. 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,
whether market conditions will support the Company's goal to reduce
dependency on monopolies and increase the Company's profit by
switching customers to the Company's independent fiber optic
infrastructure; whether the Company's financial resources and
market conditions will enable it to continue to invest in its
growth engines according to its plans; whether the Company's
technological capabilities in fiber optics will enable it to
continue to lead in telecommunication technology; and whether such
leadership might be challenged by capabilities developed by
competitors or by changes occurring in the regulatory environment.
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 June 30, 2019: US $1.00
equals NIS 3.566. 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-GAAP Measure
Calculation
Most Comparable IFRS Financial
Measure
Adjusted EBITDA
Adjusted EBITDA margin (%)
Adjusted EBITDA:
Profit (Loss)
add
Income tax expenses,
Finance costs, net,
Depreciation and amortization expenses
(including amortization of intangible assets, deferred
expenses-right of use and impairment charges), Other expenses
(mainly amortization of share based compensation)
Adjusted EBITDA margin (%):
Adjusted EBITDA
divided by
Total revenues
Profit (Loss)
Adjusted Free Cash Flow
Adjusted Free Cash Flow:
Cash flows from operating
activities
deduct
Cash flows from investing
activities
add
Short-term investment in (proceeds from)
deposits
deduct
Lease payments
Cash flows from operating
activities
deduct
Cash flows from investing
activities
Total Operating Expenses (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
employee share based compensation)
Sum of:
Cost of service revenues,
Selling and marketing expenses,
General
and administrative expenses
Net Debt
Net Debt:
Current maturities of notes payable and
borrowings
add
Notes payable
add
Borrowings from banks and others
add
Advances on account of notes
payables
add
Financial liabilities at fair
value
deduct
Cash and cash equivalents
deduct
Short-term deposits
Sum of:
Current maturities of notes payable and
borrowings,
Notes payable,
Borrowings from banks and others,
Advances on account of notes
payables,
Financial liabilities at fair
value
About Partner
Communications
Partner Communications Company
Ltd. is a leading Israeli provider of telecommunications services
(cellular, fixed-line telephony, internet services and TV
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
December 31,
June 30,
June 30,
2018
2019*
2019*
(Audited)
(Unaudited)
(Unaudited)
In millions
CURRENT ASSETS
Cash and cash equivalents
416
427
120
Short-term deposits
241
68
Trade receivables
656
587
165
Other receivables and prepaid
expenses
33
41
11
Deferred expenses – right of use
51
26
7
Inventories
98
100
28
1,254
1,422
399
NON CURRENT ASSETS
Trade receivables
260
251
70
Prepaid expenses and other
4
3
1
Deferred expenses – right of use
185
90
25
Lease – right of use
605
170
Property and equipment
1,211
1,414
397
Intangible and other assets
617
567
158
Goodwill
407
407
114
Deferred income tax asset
38
44
12
2,722
3,381
947
TOTAL ASSETS
3,976
4,803
1,346
* See section 'IFRS 16' above
regarding the adoption of IFRS 16 - Leases.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
New Israeli
Shekels
Convenience translation
into U.S. Dollars
December 31,
June 30,
June 30,
2018
2019**
2019**
(Audited)
(Unaudited)
(Unaudited)
In millions
CURRENT LIABILITIES
Current maturities of notes
payable and borrowings
162
320
90
Trade payables
711
677
190
Payables in respect of
employees
96
98
27
Other payables (mainly
institutions)
10
8
2
Income tax payable
35
29
8
Lease liabilities
136
38
Deferred revenues from HOT
mobile
31
31
9
Other deferred revenues
41
45
13
Provisions
64
55
15
1,150
1,399
392
NON CURRENT
LIABILITIES
Notes payable
1,013
1,076
302
Borrowings from banks and
others
191
164
46
Advances on account of notes
payables
34
10
Financial liability at fair
value
39
11
Liability for employee rights
upon retirement, net
40
42
11
Dismantling and restoring sites
obligation
13
Lease liabilities
520
146
Deferred revenues from HOT
mobile
133
117
33
Other non-current liabilities
30
17
4
1,420
2,009
563
TOTAL LIABILITIES
2,570
3,408
955
EQUITY
Share capital – ordinary shares of NIS
0.01
par value: authorized – December
31, 2018
and June 30, 2019 – 235,000,000
shares;
issued and outstanding -
2
2
1
December 31, 2018 –***162,628,397
shares
June 30, 2019 – ***162,835,904
shares
Capital surplus
1,102
1,083
304
Accumulated retained earnings
563
555
155
Treasury shares, at cost
December 31, 2018 – ****8,560,264
shares
June 30, 2019 – ****8,355,119
shares
(261)
(245)
(69)
Non-controlling interests
*
TOTAL EQUITY
1,406
1,395
391
TOTAL LIABILITIES AND
EQUITY
3,976
4,803
1,346
* Representing an amount of
less than 1 million. **
See section 'IFRS 16' above regarding the adoption of IFRS 16 -
Leases. *** Net of
treasury shares. **** Including restricted shares in amount of
1,210,833 and 1,146,736 as of December 31, 2018 and June 30, 2019,
respectively, held by a trustee under the Company's Equity
Incentive Plan, such shares may 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
6 months ended June
30,
3 months ended June
30,
6 months ended June
30,
3 months ended June
30,
2018
2019**
2018
2019**
2019**
2019**
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions (except per share
data)
Revenues, net
1,623
1,575
797
781
442
219
Cost of revenues
1,349
1,327
661
650
372
182
Gross profit
274
248
136
131
70
37
Selling and marketing expenses
143
150
75
75
42
21
General and administrative
expenses
91
82
46
43
23
12
Other income, net
14
15
7
9
4
2
Operating profit
54
31
22
22
9
6
Finance income
3
3
1
1
1
*
Finance expenses
34
33
14
17
10
4
Finance costs, net
31
30
13
16
9
4
Profit before income
tax
23
1
9
6
*
2
Income tax expense (income)
12
(4)
7
3
(1)
1
Profit for the period
11
5
2
3
1
1
Attributable to:
Owners of the Company
11
5
2
3
1
1
Non-controlling interests
*
*
*
*
Profit for the period
11
5
2
3
1
1
Earnings per share
Basic
0.06
0.03
0.01
0.02
0.009
0.006
Diluted
0.06
0.03
0.01
0.02
0.009
0.005
Weighted average number of
shares outstanding (in thousands)
Basic
168,319
162,771
168,291
162,812
162,771
162,812
Diluted
169,207
163,364
169,098
163,376
163,364
163,376
* Representing an amount of
less than 1 million. **
See section 'IFRS 16' above regarding the adoption of IFRS 16 -
Leases.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED
STATEMENTS OF
COMPREHENSIVE INCOME
New Israeli
Shekels
Convenience translation into
U.S. Dollars
6 months ended June
30,
3 months ended June
30,
6 months ended June
30,
3 months ended June
30,
2018
2019**
2018
2019**
2019**
2019**
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Profit for the period
11
5
2
3
1
1
Other comprehensive
income
for the period, net of income
taxes
-
-
-
-
-
-
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD
11
5
2
3
1
1
Total comprehensive income attributable
to:
Owners of the Company
11
5
2
3
1
1
Non-controlling interests
*
*
*
*
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD
11
5
2
3
1
1
* Representing an amount of
less than 1 million. **
See section 'IFRS 16' above regarding the adoption of IFRS 16 -
Leases.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM SEGMENT INFORMATION &
ADJUSTED EBITDA RECONCILIATION
New Israeli Shekels
New Israeli Shekels
6 months ended June 30,
2019**
6 months ended June 30,
2018
In millions
(Unaudited)
In millions
(Unaudited)
Cellular
segment
Fixed line segment
Elimination
Consolidated
Cellular
segment
Fixed line
segment
Elimination
Consolidated
Segment revenue - Services
886
380
1,266
911
334
1,245
Inter-segment revenue - Services
8
74
(82)
9
78
(87)
Segment revenue - Equipment
257
52
309
335
43
378
Total revenues
1,151
506
(82)
1,575
1,255
455
(87)
1,623
Segment cost of revenues -
Services
694
398
1,092
717
334
1,051
Inter-segment cost of revenues -
Services
74
8
(82)
78
9
(87)
Segment cost of revenues -
Equipment
202
33
235
266
32
298
Cost of revenues
970
439
(82)
1,327
1,061
375
(87)
1,349
Gross profit
181
67
248
194
80
274
Operating expenses (3)
169
63
232
173
61
234
Other income, net
11
4
15
13
1
14
Operating profit
23
8
31
34
20
54
Adjustments to presentation of segment
Adjusted EBITDA
–Depreciation and amortization
278
94
219
69
–Other (1)
8
7
Segment Adjusted EBITDA
(2)
309
102
260
89
Reconciliation of segment subtotal Adjusted
EBITDA to profit for the period
Segments subtotal Adjusted
EBITDA (2)
411
349
- Depreciation and amortization
(372)
(288)
- Finance costs, net
(30)
(31)
- Income tax expenses (income)
4
(12)
- Other (1)
(8)
(7)
Profit for the period
5
11
* Representing an amount of
less than 1 million. **
See section 'IFRS 16' above regarding the adoption of IFRS 16 -
Leases. For the 6 months
ended June 30, 2019 the impact of the adoption of IFRS 16 was an
increase of NIS 77 million in the Adjusted EBITDA, an increase of
NIS 69 million in the cellular segment Adjusted EBITDA and an
increase of NIS 8 million in the fixed-line segment Adjusted
EBITDA.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM SEGMENT INFORMATION &
ADJUSTED EBITDA RECONCILIATION
New Israeli Shekels
New Israeli Shekels
3 months ended June 30,
2019**
3 months ended June 30,
2018
In millions
(Unaudited)
In millions
(Unaudited)
Cellular
segment
Fixed line segment
Elimination
Consolidated
Cellular
segment
Fixed line
segment
Elimination
Consolidated
Segment revenue - Services
449
193
642
450
170
620
Inter-segment revenue - Services
4
37
(41)
4
40
(44)
Segment revenue - Equipment
115
24
139
157
20
177
Total revenues
568
254
(41)
781
611
230
(44)
797
Segment cost of revenues -
Services
347
199
546
352
169
521
Inter-segment cost of revenues -
Services
37
4
(41)
40
4
(44)
Segment cost of revenues -
Equipment
89
15
104
126
14
140
Cost of revenues
473
218
(41)
650
518
187
(44)
661
Gross profit
95
36
131
93
43
136
Operating expenses (3)
87
31
118
87
34
121
Other income, net
6
3
9
6
1
7
Operating profit
14
8
22
12
10
22
Adjustments to presentation of segment
Adjusted EBITDA
–Depreciation and amortization
141
47
110
36
–Other (1)
4
4
Segment Adjusted EBITDA
(2)
159
55
126
46
Reconciliation of segment subtotal Adjusted
EBITDA to profit for the period
Segments subtotal Adjusted
EBITDA (2)
214
172
- Depreciation and amortization
(188)
(146)
- Finance costs, net
(16)
(13)
- Income tax expenses
(3)
(7)
- Other (1)
(4)
(4)
Profit for the period
3
2
(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.
(3) Operating expenses include
selling and marketing expenses, 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
6 months ended June
30,
2018
2019**
2019**
(Unaudited)
(Unaudited)
(Unaudited)
In millions
CASH FLOWS FROM OPERATING
ACTIVITIES:
Cash generated from operations
(Appendix)
317
430
121
Income tax paid
(1)
(1)
*
Net cash provided by operating
activities
316
429
121
CASH FLOWS FROM INVESTING
ACTIVITIES:
Acquisition of property and
equipment
(167)
(247)
(69)
Acquisition of intangible and other
assets
(75)
(81)
(23)
Investment in short-term deposits,
net
(141)
(241)
(67)
Interest received
*
*
*
Consideration received from sales of property
and equipment
2
1
*
Net cash used in investing
activities
(381)
(568)
(159)
CASH FLOWS FROM FINANCING ACTIVITIES:
Lease payments (principal and
interest)
(82)
(23)
Acquisition of treasury shares
(15)
Interest paid
(46)
(20)
(6)
Proceeds from issuance of notes payable, net
of issuance costs
222
62
Proceeds from issuance of option warrants
exercisable for notes
payables
37
10
Advances on account of notes payables
issuance
34
10
Repayment of non-current
borrowings
(375)
(26)
(7)
Repayment of current borrowings
(13)
(4)
Transactions with non-controlling
interests
(2)
(1)
Net cash provided by (used in) financing
activities
(436)
150
41
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(501)
11
3
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
867
416
117
CASH AND CASH EQUIVALENTS AT
END OF PERIOD
366
427
120
* Representing an amount of
less than 1 million. **
See section 'IFRS 16' above regarding the adoption of IFRS 16 -
Leases.
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
6 months ended June
30,
2018
2019**
2019**
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Cash generated from
operations:
Profit for the period
11
5
1
Adjustments for:
Depreciation and amortization
267
358
101
Amortization of deferred expenses - Right of
use
21
14
4
Employee share based compensation
expenses
8
8
2
Liability for employee rights upon
retirement, net
1
1
*
Finance costs, net
(1)
11
3
Interest paid
46
20
6
Interest received
*
*
*
Deferred income taxes
6
1
*
Income tax paid
1
1
*
Changes in operating assets and
liabilities:
Decrease (increase) in accounts
receivable:
Trade
77
78
22
Other
(5)
(1)
Increase (decrease) in accounts payable and
accruals:
Trade
(61)
(4)
(1)
Other payables
(14)
(4)
(1)
Provisions
(4)
(9)
(2)
Deferred revenues from HOT mobile
(16)
(16)
(4)
Other deferred revenues
(1)
4
1
Increase in deferred expenses - Right of
use
(47)
(25)
(7)
Current income tax liability
4
(6)
(2)
Decrease (increase) in inventories
19
(2)
(1)
Cash generated from
operations
317
430
121
* Representing an amount of
less than 1 million. **
See section 'IFRS 16' above regarding the adoption of IFRS 16 -
Leases.
At June 30, 2019 and 2018, trade and other payables include NIS
145 million ($41 million) and NIS 136 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.
Reconciliation of Non-GAAP
Measures:
Adjusted
Free Cash Flow
New Israeli Shekels
Convenience translation into
U.S. Dollars
6 months ended June
30,
3 months ended June
30,
6 months ended June
30,
3 months ended June
30,
2018
2019*
2018
2019*
2019*
2019*
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Net cash provided by operating
activities
316
429
159
216
121
61
Net cash used in investing
activities
(381)
(568)
(95)
(80)
(159)
(22)
Investment in short-term deposits,
net
141
241
(9)
(62)
67
(18)
Lease payments
(82)
(43)
(23)
(12)
Adjusted Free Cash
Flow
76
20
55
31
6
9
Interest paid
(46)
(20)
(11)
(16)
(6)
(5)
Adjusted Free Cash Flow After
Interest
(30)
0
44
15
0
4
Total
Operating Expenses (OPEX)
New Israeli Shekels
Convenience translation into
U.S. Dollars
6 months ended June
30,
3 months ended June
30,
6 months ended June
30,
3 months ended June
30,
2018
2019*
2018
2019*
2019*
2019*
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Cost of revenues - Services
1,051
1,092
521
546
306
153
Selling and marketing expenses
143
150
75
75
42
21
General and administrative
expenses
91
82
46
43
23
12
Depreciation and amortization
(288)
(372)
(146)
(188)
(105)
(53)
Other (1)
(7)
(8)
(4)
(4)
(2)
(1)
OPEX
990
944
492
472
264
132
- Mainly amortization of employee share based compensation.
* See section 'IFRS 16' above
regarding the adoption of IFRS 16 - Leases.
Key Financial and Operating Indicators
(unaudited) ****
NIS M unless otherwise stated
Q2'
17
Q3'
17
Q4'
17
Q1'
18
Q2'
18
Q3'
18
Q4'
18
Q1'
19
Q2'
19
2017
2018
Cellular Segment Service Revenues
497
514
478
466
454
476
447
441
453
1,978
1,843
Cellular Segment Equipment
Revenues
145
138
182
178
157
143
165
142
115
610
643
Fixed-Line Segment Service
Revenues
192
194
197
202
210
220
220
224
230
777
852
Fixed-Line Segment Equipment
Revenues
14
22
22
23
20
25
24
28
24
76
92
Reconciliation for consolidation
(43)
(42)
(45)
(43)
(44)
(42)
(42)
(41)
(41)
(173)
(171)
Total Revenues
805
826
834
826
797
822
814
794
781
3,268
3,259
Gross Profit from Equipment Sales
33
43
40
43
37
44
42
39
35
142
166
Operating Profit*
118
92
0
32
22
48
14
9
22
315
116
Cellular Segment Adjusted EBITDA*
210
189
124
134
126
145
119
150
159
710
524
Fixed-Line Segment Adjusted
EBITDA*
59
50
34
43
46
56
53
47
55
207
198
Total Adjusted EBITDA*
269
239
158
177
172
201
172
197
214
917
722
Adjusted EBITDA Margin (%)*
33%
29%
19%
21%
22%
24%
21%
25%
27%
28%
22%
OPEX*
472
477
519
498
492
504
502
472
472
1,946
1,996
Income with respect to settlement
agreement
with Orange
54
108
Finance costs, net*
54
15
88
18
13
10
12
14
16
180
53
Profit (Loss)*
46
54
(50)
9
2
26
19
2
3
114
56
Capital Expenditures (cash)
76
105
113
138
104
117
143
185
143
376
502
Capital Expenditures (additions)
78
107
174
113
98
111
177
157
142
417
499
Adjusted Free Cash Flow
208
202
63
21
55
70
(22)
(11)
31
599
124
Adjusted Free Cash Flow (after
interest)
150
192
(17)
(14)
44
62
(37)
(15)
15
434
55
Net Debt
1,081
887
906
919
893
898
950
977
965
906
950
Cellular Subscriber Base
(Thousands)**
2,662
2,677
2,662
2,649
2,623
2,630
2,646
2,620
2,616
2,662
2,646
Post-Paid Subscriber Base
(Thousands)**
2,273
2,306
2,308
2,318
2,323
2,333
2,361
2,340
2,337
2,308
2,361
Pre-Paid Subscriber Base
(Thousands)
389
371
354
331
300
297
285
280
279
354
285
Cellular ARPU (NIS)
62
64
59
58
57
60
57
56
58
62
58
Cellular Churn Rate (%)**
9.0%
9.3%
9.9%
8.9%
10.1%
8.0%
8.5%
8.5%
7.9%
38%
35%
Number of Employees (FTE)***
2,582
2,696
2,797
2,778
2,808
2,821
2,782
2,897
2,895
2,797
2,782
* Figures from 2019 include impact of adoption
of IFRS 16. See also section 'IFRS 16' above. ** As from Q4 2018, M2M subscriptions are
included in the post-paid subscriber base on a standardized basis.
This change had the effect of increasing the Post-Paid subscriber
base at December 31, 2018, by approximately 34 thousand
subscribers. See also ‘Cellular Segment Operational Review’
section. *** Number of
employees (FTE) from 2019 includes the number of FTE of PHI on a
basis proportional to Partner's share in the company (50%).
****See footnote 2 regarding use
of non-GAAP measures.
Disclosure for notes holders as of June 30, 2019
Information regarding the notes series
issued by the Company, in million NIS
Series
Original issuance date
Principal on the date of issuance
As of 30.06.2019
Interest rate
Principal repayment dates
Interest repayment dates
Linkage
Trustee contact details
Principal book value
Linked principal book value
Interest accumulated in books
Market value
From
To
D
25.04.10
04.05.11*
400
146
328
328
**
328
1.477%
(MAKAM+1.2%)
30.12.17
30.12.21
30.03, 30.06, 30.09, 30.12
Variable interest MAKAM (4)
Hermetic Trust (1975) Ltd. Merav Offer. 113
Hayarkon St., Tel Aviv. Tel: 03-5544553.
F
(1) (3)
20.07.17
12.12.17*
04.12.18*
255
389
150
794
794
**
806
2.16%
25.06.20
25.06.24
25.06, 25.12
Not Linked
Hermetic Trust (1975) Ltd.
Merav Offer. 113 Hayarkon St., Tel Aviv. Tel:
03-5544553.
G
(2) (3)
06.01.19
01.07.19*
225
38.5
225
225
**
231
4%
25.06.22
25.06.27
25.06
Not Linked
Hermetic Trust (1975) Ltd.
Merav Offer. 113 Hayarkon St., Tel Aviv. Tel:
03-5544553.
- In December 2018, the Company issued an additional Series F
Notes in a principal amount of NIS 150 million. In December 2017
and January 2018, the Company entered into agreements with Israeli
institutional investors to issue in December 2019, in the framework
of a private placement, additional Series F notes, in an aggregate
principal amount of NIS 227 million. S&P Maalot has rated the
additional deferred issuances with an 'ilA+' rating. For additional
details see the Company's press releases dated September 13 and 17,
2017, December 27, 2017 and January 9, 2018.
- In January 2019, the Company issued Series G Notes in a
principal amount of NIS 225 million. In April 2019, the Company
issued in a private placement 2 series of untradeable option
warrants that are exercisable for the Company's Series G
debentures. The exercise period of the first series is between July
1, 2019 and May 31, 2020 and of the second series is between July
1, 2020 and May 31, 2021. The Series G debentures that will be
allotted upon the exercise of an option warrant will be identical
in all their rights to the Company's Series G debentures
immediately upon their allotment, and will be entitled to any
payment of interest or other benefit, the effective date of which
is due after the allotment date. The debentures that will be
allotted as a result of the exercise of option warrants will be
registered on the TASE. The total amount received by the Company on
the allotment date of the option warrants is NIS 37 million. The
total consideration expected to the Company in respect of the
allotment of the option warrants and in respect of their full
exercise (and assuming that there will be no change to the exercise
price) is approximately NIS 323.7 million. For additional details
see the Company's press release dated April 17, 2019. In July 2019,
following partial exercise of option warrants from the first
series, the Company issued Series G Notes in a principal amount of
NIS 38.5 million.
- Regarding Series F and G 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 June 30, 2019, the ratio of Net Debt to
Adjusted EBITDA was 1.2. Additional stipulations regarding Series F
and G Notes mainly include: shareholders' equity shall not decrease
below NIS 400 million and NIS 600 million, respectively; 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. In any
case, the total maximum additional interest for Series F and G,
shall not exceed 1.25% or 1%, respectively. For more information
see the Company’s Annual Report on Form 20-F for the year ended
December 31, 2018. In the reporting period, the Company was in
compliance with all financial covenants and obligations and no
cause for early repayment occurred.
- '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. ** Representing an amount of less than
NIS 1 million.
Disclosure for Notes holders as of June 30, 2019
(cont.)
Notes Rating Details*
Series
Rating Company
Rating as of 30.06.2019 and 28.08.2019 (1)
Rating assigned upon issuance of the Series
Recent date of rating as of 30.06.2019 and 28.08.2019
Additional ratings between the original
issuance date and the recent date of rating (2)
Date
Rating
D
S&P Maalot
ilA+
ilAA-
04/2019 and 08/2019
07/2010, 09/2010,10/2010, 09/2012,
12/2012, 06/2013,07/2014, 07/2015,
07/2016, 07/2017,08/2018, 11/2018,
12/2018, 01/2019,04/2019, 08/2019
ilAA-, ilAA-,ilAA-, ilAA-,
ilAA-, ilAA-,ilAA-, ilA+,
ilA+, ilA+,ilA+, ilA+,
ilA+, ilA+,ilA+, ilA+
F
S&P Maalot
ilA+
ilA+
04/2019 and 08/2019
07/2017, 09/2017, 12/2017,
01/2018,
08/2018, 11/2018, 12/2018, 01/2019
04/2019, 08/2019
ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+
G (3)
S&P Maalot
ilA+
ilA+
04/2019 and 08/2019
12/2018, 01/2019, 04/2019, 08/2019
ilA+, ilA+, ilA+, ilA+
(1) In August 2019, S&P
Maalot has reaffirmed the Company's ilA+ credit rating and updated
the Company's rating outlook to “Negative”.
(2) For details regarding the
rating of the notes see the S&P Maalot report dated August 5,
2019.
(3) In January 2019, the
Company issued Series G Notes in a principal amount of NIS 225
million. In July 2019, the Company issued additional Series G Notes
in a principal amount of NIS 38.5 million.
* 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 June 30, 2019
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 interest payments (without deduction of tax)
ILS linked to CPI
ILS not linked to CPI
Euro
Dollar
Other
First year
-
268,035
-
-
-
30,250
Second year
-
268,035
-
-
-
25,165
Third year
-
290,535
-
-
-
20,106
Fourth year
-
181,307
-
-
-
14,960
Fifth year and on
-
338,807
-
-
-
25,950
Total
-
1,346,719
-
-
-
116,431
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 – None.
c. Credit from banks in Israel 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
-
52,132
-
-
-
4,823
Second year
-
52,132
-
-
-
3,542
Third year
-
52,132
-
-
-
2,282
Fourth year
-
37,426
-
-
-
1,055
Fifth year and on
-
22,759
-
-
-
357
Total
-
216,581
-
-
-
12,059
Summary of Financial Undertakings (according to repayment
dates) as of June 30, 2019 (cont.)
d. Credit from banks abroad based on the Company's "Solo"
financial data – None.
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 interest payments (without deduction of tax)
ILS linked to CPI
ILS not linked to CPI
Euro
Dollar
Other
First year
-
320,167
-
-
-
35,073
Second year
-
320,167
-
-
-
28,707
Third year
-
342,667
-
-
-
22,388
Fourth year
-
218,733
-
-
-
16,015
Fifth year and on
-
361,566
-
-
-
26,307
Total
-
1,563,300
-
-
-
128,490
f. Off-balance sheet Credit exposure based on the Company's
"Solo" financial data (in thousand NIS) – 50,000 (Guarantees on
behalf of a joint arrangement, 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.
In addition to the total
credit above, Company's financial debt includes financial liability
at fair value in respect of option warrants issued in May 2019 in a
total amount of NIS 39 million and advances on account of notes
payables in a total amount of NIS 34 million which were issued on
July 1, 2019
1 The quarterly
financial results are unaudited. The Company has applied the
standard IFRS 16 – Leases, from January 1, 2019. The effects of the
application of the standard on the quarterly financial results are
provided in this press release, and in particular in the section
“IFRS 16”. The impact of the adoption of IFRS 16 on Adjusted EBITDA
in Q2 2019 was an increase of NIS 38 million. 2
For the definition of this and
other Non-GAAP financial measures, see “Use of Non-GAAP Financial
Measures” in this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190826005690/en/
Tamir Amar Chief
Financial Officer Tel:
+972-54-781-4951
Liat Glazer Shaft Head
of Investor Relations and Corporate Projects Tel: +972-54-781-5051 E-mail: investors@partner.co.il
Partner Communications (NASDAQ:PTNR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Partner Communications (NASDAQ:PTNR)
Historical Stock Chart
From Jul 2023 to Jul 2024