Adjusted EBITDA1,2 Totaled NIS 225
Million
Net Debt2 Totaled NIS 956 Million
Cellular Churn Rate Continued to Decrease
and Totaled 7.7%
Third quarter 2019 highlights
(compared with third quarter 2018)
- Total Revenues: NIS 825 million (US$ 237 million), an increase
of NIS 3 million
- Service Revenues: NIS 658 million (US$ 189 million), an
increase of 1%
- Equipment Revenues: NIS 167 million (US$ 48 million), a
decrease of 1%
- Total Operating Expenses (OPEX)2: NIS 474 million (US$ 136
million), a decrease of 6%
- Adjusted EBITDA: NIS 225 million (US$ 65 million), an increase
of 12%
- Adjusted EBITDA Margin1,2: 27% of total revenues compared with
24%
- Profit for the Period: NIS 7 million (US$ 2 million), a
decrease of 73%
- Net Debt: NIS 956 million (US$ 275 million), an increase of NIS
58 million
- Adjusted Free Cash Flow (before interest)2: NIS 13 million (US$
4 million), a decrease of NIS 57 million
- Cellular ARPU: NIS 59 (US$ 17), a decrease of 2%
- Cellular Subscriber Base: approximately 2.65 million at
quarter-end, an increase of 1%
- TV Subscriber Base: approximately 176 thousand subscribers at
quarter-end, an increase of 70 thousand subscribers since the third
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 September 30, 2019.
Commenting on the results for the third quarter of 2019, Mr.
Isaac Benbenisti, CEO of Partner noted:
“In the third quarter, Partner
reported increases in revenues, in cellular subscribers, in Partner
TV subscribers and in the number of households that we reached with
our fiber optic infrastructure, "Partner Fiber".
In the cellular segment, our
strategy of enhancing the value to customers and focusing on
customer service led to a net increase of 35 thousand subscribers
this quarter, alongside a further decrease in the churn rate to
7.7%, the lowest rate in 8 years.
As of Today, Partner TV’s
subscriber base has reached more than 183 thousand, the majority of
whom are in offerings which also include Internet. Partner TV is
the fastest growing TV service in Israel, and is suited to the
current era as a super aggregator of international content services
open to the Israeli viewer, in addition to our multi-channel
offering. Our groundbreaking collaborations with the world’s
largest content providers have started to be imitated by our
competitors, and we are proud of the significant gap that we have
opened compared to them.
Partner is leading today the
fiber optic deployment field in Israel, with an independent
infrastructure that is being rapidly deployed and has already
reached over 540 thousand households, approximately 28% of
Internet-connected households in Israel.
Partner's vast fiber optic
deployment, from the north of the country to Eilat in the south,
supports the acceleration of the migration of wholesale internet
subscribers to our independent infrastructure, as well as the
recruitment of new customers and the expansion of Partner's
operations within the business sector across the
country.
Partner's financial strength
and the positive trends in the cellular segment enable the Company
to continue to implement our business plans for the fixed line
segment, with the aim of improving profitability and customer
loyalty while maintaining a stable level of debt.”
Mr. Tamir Amar, Partner's Chief Financial Officer, commented
on the results:
“The third quarter of 2019
ended with stability in service revenues, while continuing to
report growth in the fixed-line segment in terms of subscribers and
revenues, relative stability in OPEX over time and a positive net
profit.
In the cellular segment, where
the intensity of competition continues to remain high, a clear
trend of decreasing erosion in service revenues can be seen for
several quarters, as a result of our strategy according to which we
operate. The churn rate totaled 7.7% in the quarter, continuing the
declining trend from previous quarters. In addition, our subscriber
base increased by 35 thousand subscribers and ARPU for the quarter
totaled NIS 59, maintaining relative stability. We see in these
results a reflection of our continued efforts to increase value to
our customers through value added offerings and to strive for
continued improvement in our customer service, which leads to a
decline in price erosion and churn rates. We believe that the steps
that we are taking improve our competitiveness in a very
challenging business environment.
Adjusted EBITDA this quarter
totaled NIS 225 million, demonstrating that the Company continues
to manage its OPEX responsibly, alongside revenue growth in the
fixed line segment mainly reflecting the impact of the Company's
growth engines.
In addition, Adjusted FCF
(before interest) was positive and totaled NIS 13 million in the
third quarter. Cash flow from operations totaled NIS 230 million.
Capex totaled NIS 174 million and reflected the Company's strategy
to continue to be a technology leader while continuing to invest in
its growth engines with a focus on deploying its fiber optic
infrastructure and increasing penetration in the TV market. These
investments are possible as a result of Partner's financial
stability and strong balance sheet. Accordingly, we report
continued growth in the TV subscriber base which totals 183
thousand as of today, and in the rate of fiber optic deployment
which remains high and reaches over 540 thousand households as of
today.”
Q3 2019 compared with Q2
2019
NIS Million
Q2’19
Q3’19
Comments
Service Revenues
642
658
The increase resulted from increases both in
cellular service revenues as a result of seasonality and in
fixed-line segment service revenues
Equipment Revenues
139
167
The increase reflected a higher volume of
equipment sales
Total Revenues
781
825
Gross profit from equipment sales
35
33
The stability in gross profit compared with
the increase in equipment revenues mainly reflected a decrease in
the average profit per sale and change in product mix
OPEX
472
474
Adjusted EBITDA
214
225
The increase resulted mainly from an increase
in service revenues
Profit for the Period
3
7
Capital Expenditures (additions)
142
150
Adjusted free cash flow (before interest
payments)
31
13
The decrease resulted from the increase in
CAPEX payments
Net Debt
965
956
Q2’19
Q3’19
Comments
Cellular Post-Paid Subscribers (end of
period, thousands)
2,337
2,366
Increase of 29 thousand
subscribers
Cellular Pre-Paid Subscribers
(end of period, thousands)
279
285
Increase of 6 thousand subscribers
Monthly Average Revenue per Cellular User
(ARPU) (NIS)
58
59
Quarterly Cellular Churn Rate (%)
7.9%
7.7%
Decrease in Post-Paid churn rate
Key Financial Results
Q3 2019 compared with Q3
2018
NIS MILLION (except
EPS)
Q3'18
Q3'19
% Change
Revenues
822
825
0%
Cost of revenues
657
687
+5%
Gross profit
165
138
-16%
Operating profit
48
26
-46%
Profit for the period
26
7
-73%
Earnings per share (basic, NIS)
0.16
0.04
Adjusted free cash flow (before
interest)
70
13
-81%
Key Operating Indicators
Q3'18
Q3'19
Change
Adjusted EBITDA (NIS million)
201
225
+12%
Adjusted EBITDA margin (as a % of total
revenues)
24%
27%
+3
Cellular Subscribers (end of period,
thousands)
2,630
2,651
+21
Quarterly Cellular Churn Rate (%)
8.0%
7.7%
-0.3
Monthly Average Revenue per Cellular User
(ARPU) (NIS)
60
59
-1
Partner Consolidated
Results
Cellular Segment
Fixed-Line Segment
Elimination
Consolidated
NIS Million
Q3'18
Q3'19
Change %
Q3'18
Q3'19
Change %
Q3'18
Q3'19
Q3'18
Q3'19
Change %
Total Revenues
619
608
-2%
245
258
+5%
(42)
(41)
822
825
0%
Service Revenues
476
466
-2%
220
233
+6%
(42)
(41)
654
658
+1%
Equipment Revenues
143
142
-1%
25
25
0%
-
-
168
167
-1%
Operating Profit
32
24
-25%
16
2
-88%
-
-
48
26
-46%
Adjusted EBITDA
145
170
+17%
56
55
-2%
-
-
201
225
+12%
Financial Review
In Q3 2019, total
revenues were NIS 825 million
(US$ 237 million), an increase of NIS 3 million from NIS 822
million in Q3 2018.
Service revenues in Q3
2019 totaled NIS 658 million (US$ 189 million), an increase of 1%
from NIS 654 million in Q3 2018.
Service revenues for the cellular segment in Q3 2019 totaled NIS 466 million (US$ 134
million), a decrease of 2% from NIS 476 million in Q3 2018. 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 2019 totaled NIS 233 million (US$ 67
million), an increase of 6% from NIS 220 million in Q3 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
Q3 2019 totaled NIS 167 million (US$ 48 million), a decrease of 1%
from NIS 168 million in Q3 2018.
Gross profit from equipment sales in Q3 2019 was NIS 33 million (US$ 9
million), compared with NIS 44 million in Q3 2018, a decrease of
25%, mainly reflecting a change in the product mix which led to a
decrease in the average profit per sale.
Total operating expenses (‘OPEX’) totaled NIS 474 million (US$ 136
million) in Q3 2019, a decrease of 6% or NIS 30 million from Q3
2018. The decrease mainly reflected the impact of the
implementation of IFRS 16 which totaled NIS 39 million, as well as
decreases in other expenses, which were partially offset by an
increase in expenses relating to the growth in TV and internet
services. Including depreciation and amortization expenses and
other expenses (mainly amortization of employee share based
compensation), OPEX in Q3 2019 increased by 2% compared with Q3
2018.
Operating profit for Q3
2019 was 26 million (US$ 7 million), a decrease of 46% compared
with NIS 48 million in Q3 2018. The decrease resulted from the
increase in depreciation and amortization expenses mainly as a
result of the adoption of IFRS 16, partially offset by the increase
in Adjusted EBITDA. See Adjusted EBITDA analysis for each segment
below.
Adjusted EBITDA in Q3
2019 totaled NIS 225 million (US$ 65 million), an increase of 12%
from NIS 201 million in Q3 2018. The impact of the adoption of IFRS
16 on Adjusted EBITDA in Q3 2019 was an increase of NIS 39 million.
As a percentage of total revenues, Adjusted EBITDA in Q3 2019 was
27% compared with 24% in Q3 2018.
Adjusted EBITDA for the cellular segment was NIS 170 million (US$ 49 million) in Q3
2019, an increase of 17% from NIS 145 million in Q3 2018, mainly
reflecting the impact of the adoption of IFRS 16 which increased
cellular segment Adjusted EBITDA by NIS 35 million, partially
offset by a decrease in gross profit from cellular equipment sales
of NIS 9 million. As a percentage of total cellular segment
revenues, Adjusted EBITDA for the cellular segment in Q3 2019 was
28% compared with 23% in Q3 2018.
Adjusted EBITDA for the fixed-line segment was NIS 55 million (US$ 16 million) in Q3
2019, a decrease of 2% from NIS 56 million in Q3 2018, reflecting
the increase in OPEX, partially offset by the increase in
fixed-line service revenues. The impact of the adoption of IFRS 16
in Q3 2019 on Adjusted EBITDA for the fixed-line segment was an
increase of NIS 4 million. As a percentage of total fixed-line
segment revenues, Adjusted EBITDA for the fixed-line segment in Q3
2019 was 21%, compared with 23% in Q3 2018.
Finance costs, net in
Q3 2019 were NIS 18 million (US$ 5 million), an increase of 80%
compared with NIS 10 million in Q3 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
Q3 2019 were NIS 1 million (US$ 0.3 million), compared with NIS 12
million in Q3 2018.
Profit in Q3 2019 was
NIS 7 million (US$ 2 million), a decrease of 73% compared with a
profit of NIS 26 million in Q3 2018. The impact of the adoption of
IFRS 16 in Q3 2019 on profit was a decrease of NIS 2
million.
Based on the weighted average
number of shares outstanding during Q3 2019, basic
earnings per share or ADS,
was NIS 0.04 (US$ 0.01), compared with basic earnings per share of
NIS 0.16 in Q3 2018.
Cellular Segment Operational
Review
At the end of Q3 2019, the
Company's cellular subscriber base (including mobile data, 012 Mobile
subscribers and M2M subscriptions) was approximately 2.65 million,
including approximately 2.37 million Post-Paid subscribers or 89%
of the base, and approximately 285 thousand Pre-Paid subscribers,
or 11% of the subscriber base.
During the third quarter of
2019, the cellular subscriber base increased by approximately 35
thousand. The Pre-Paid subscriber base increased by approximately 6
thousand, and the Post-Paid subscriber base increased by
approximately 29 thousand.
The quarterly churn
rate for cellular subscribers
in Q3 2019 was 7.7%, compared with 8.0% in Q3 2018.
Total cellular
market share (based on the
number of subscribers) at the end of Q3 2019 was estimated to be
approximately 25%, unchanged from Q3 2018.
The monthly Average Revenue
per User (“ARPU”)
for cellular subscribers in Q3 2019 was NIS 59 (US$ 17), a decrease
of 2% from NIS 60 in Q3 2018 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 Q3 2019, Adjusted
Free Cash Flow (including lease payments) totaled NIS 13 million (US$ 4 million), a
decrease of 81% from NIS 70 million in Q3 2018.
Cash generated from operating activities increased by 22% from NIS 188 million in Q3
2018 to NIS 230 million (US$ 66 million) in Q3 2019, 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 42 million (US$ 12 million) in Q3 2019.
Cash capital expenditures (‘CAPEX payments’), as represented by cash flows used for the
acquisition of property and equipment and intangible assets, were
NIS 174 million (US$ 50 million) in Q3 2019, an increase of 49%
from NIS 117 million in Q3 2018, mainly reflecting the impact of
the change in the accounting treatment of PHI from the beginning of
2019, as well as the increased investments in the fiber optics
infrastructure.
The level of Net
Debt at the end of Q3 2019
amounted to NIS 956 million (US$ 275 million), compared with NIS
898 million at the end of Q3 2018, an increase of NIS 58
million.
Regulatory Developments
Holdings of approved Israeli
shareholders in the Company
The provisions of the
Company's cellular license require, among others, that the
"founding shareholders or their approved substitutes", as defined
in the cellular license, hold at least 26% of the means of control
in the Company, including 5% which must be held by Israeli
shareholders (Israeli citizens and residents), who were approved as
such by the Minister of Communications.
The controlling stake of the
Phoenix Group (One of the Company’s approved Israeli shareholders)
has been sold to foreign entities. On November 12, 2019, the
Israeli Ministry of Communications issued a temporary order (ending
on November 1, 2020) amending the Company’s cellular license and
reducing the percentage that the approved Israeli shareholders are
required to hold by the amount of shares now held by the foreign
entities (from 5% down to 3.82% of the means of control in the
Company). This temporary order will allow the Ministry and the
Company one year in which to resolve the issue of holdings of
approved Israeli shareholders in the Company.
Transition to IPv6 internet
protocol
On the July 3, 2019, the
Ministry of Communications published its decision regarding the
transition to the IPv6 protocol, which is the most recent version
of internet protocol. The Ministry decided, among others, that
telecom operators (such as the Company) will adapt their network
and its components to fully support the IPv6 protocol. ISPs and
domestic fixed-line operators will be required to complete this
transition within 48 months of the decision while cellular
operators will be required to complete it within 24
months.
The subscribers will be
transitioned gradually to the IPv6 protocol according to milestones
so that 100% of subscribers are transitioned to the IPv6 protocol
at the end of the time periods mentioned above.
Operators will be obliged to
replace terminal equipment which their subscribers have rented or
leased from them and which does not support the IPv6 protocol.
Operators will not be obliged to transition subscribers which own
terminal equipment that does not support the IPv6 protocol,
provided that such subscribers have refused to replace their
terminal equipment and have signed a written waiver on this
issue.
Inter-Ministerial recommendations on
Bezeq’s FTTH/B Universal Service obligations
On November 5, 2019, an
Inter-Ministerial team published a hearing regarding the universal
service obligations applicable to Bezeq with regards to Fiber Optic
infrastructure (FTTH/B) deployment. The recommendations of the
Inter-Ministerial team include the following:
- Bezeq will be allowed to decide for itself in which areas it
will roll out its fiber-optic network. Within such areas, Bezeq
will be required to connect 100% of households to its fiber-optic
network within a timeframe set out in its license;
- In the areas where Bezeq decides not to lay a fiber-optic
network, another operator will be chosen (by a reverse tender
process) to deploy a fiber-optic network to all households in the
area. Such operator will receive an incentive for such deployment
from a universal service fund and will enjoy exclusivity in
deploying a fiber optic network in this area (but will be obliged
to provide other operators with a wholesale Bit Stream Access (BSA)
service provided over their fiber optic network;
- The universal service fund incentive plan will be financed by a
tax on all telecommunications operators (including Bezeq and
Partner) at an annual rate of 0.5% of all income;
- In the areas where Bezeq decides not to lay a fiber-optic
network, it and its subsidiaries will not be allowed to deploy a
fiber-optic network.
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, November 26, 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: +972.3.918.0685
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 November 26, 2019 until December 10, 2019, at
the following numbers: International: +972.3.925.5925
North America toll-free:
+1.888.782.4291 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 ability to continue to implement its business plans for
the fixed line segment with the aim of improving the Company's
profitability and customer loyalty while maintaining a stable level
of debt and the Company's strategy to continue to be a leading
company in terms of technology while continuing to invest in its
growth engines with a focus on deploying a fiber optic
infrastructure and increasing penetration in the TV market. 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 improve profitability and customer loyalty while
maintaining a stable level of debt by implementing its business
plans for the fixed line segment as well as enable it to continue
to invest in its growth engines with a focus on deploying a fiber
optic infrastructure and increasing penetration in the TV market
and whether the Company's technological capabilities in fiber
optics will enable it to continue to lead in telecommunication
technology. 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, 2019: US $1.00
equals NIS 3.482. 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,
September 30,
September 30,
2018
2019*
2019*
(Audited)
(Unaudited)
(Unaudited)
In millions
CURRENT ASSETS
Cash and cash equivalents
416
511
147
Short-term deposits
156
45
Trade receivables
656
595
171
Other receivables and prepaid
expenses
33
38
11
Deferred expenses – right of use
51
25
7
Inventories
98
100
29
1,254
1,425
410
NON CURRENT ASSETS
Trade receivables
260
250
72
Prepaid expenses and other
4
3
1
Deferred expenses – right of use
185
98
28
Lease – right of use
600
172
Property and equipment
1,211
1,434
412
Intangible and other assets
617
547
157
Goodwill
407
407
117
Deferred income tax asset
38
43
12
2,722
3,382
971
TOTAL ASSETS
3,976
4,807
1,381
* 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,
September 30,
September 30,
2018
2019**
2019**
(Audited)
(Unaudited)
(Unaudited)
In millions
CURRENT LIABILITIES
Current maturities of notes
payable and borrowings
162
320
92
Trade payables
711
680
195
Payables in respect of
employees
96
90
26
Other payables (mainly
institutions)
10
32
9
Income tax payable
35
29
8
Lease liabilities
138
40
Deferred revenues from HOT
mobile
31
31
9
Other deferred revenues
41
47
14
Provisions
64
50
14
1,150
1,417
407
NON CURRENT
LIABILITIES
Notes payable
1,013
1,115
320
Borrowings from banks and
others
191
151
43
Financial liability at fair
value
37
11
Liability for employee rights
upon retirement, net
40
42
12
Dismantling and restoring sites
obligation
13
Lease liabilities
513
147
Deferred revenues from HOT
mobile
133
109
31
Other non-current liabilities
30
16
6
1,420
1,983
570
TOTAL LIABILITIES
2,570
3,400
977
EQUITY
Share capital – ordinary shares of NIS
0.01
par value: authorized – December
31, 2018
and September 30, 2019 –
235,000,000 shares;
issued and outstanding -
2
2
1
December 31, 2018 –***162,628,397
shares
September 30, 2019 –
***162,915,186 shares
Capital surplus
1,102
1,077
309
Accumulated retained earnings
563
567
163
Treasury shares, at cost
December 31, 2018 – ****8,560,264
shares
September 30, 2019 –
****8,275,837 shares
(261)
(239)
(69)
Non-controlling interests
*
TOTAL EQUITY
1,406
1,407
404
TOTAL LIABILITIES AND
EQUITY
3,976
4,807
1,381
*
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 1,226,364 as of December 31, 2018 and September 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
9 months ended
September 30,
3 months ended
September 30,
9 months ended September
30,
3 months ended
September 30,
2018
2019**
2018
2019**
2019**
2019**
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions (except per share
data)
Revenues, net
2,445
2,400
822
825
689
237
Cost of revenues
2,006
2,014
657
687
578
197
Gross profit
439
386
165
138
111
40
Selling and marketing expenses
221
228
78
78
65
23
General
and administrative
expenses
137
124
46
42
36
12
Other income, net
21
23
7
8
7
2
Operating profit
102
57
48
26
17
7
Finance income
4
4
1
1
1
*
Finance expenses
45
52
11
19
15
5
Finance costs, net
41
48
10
18
14
5
Profit before income
tax
61
9
38
8
3
2
Income tax expenses (income)
24
(3)
12
1
(1)
*
Profit for the period
37
12
26
7
4
2
Attributable to:
Owners of the Company
37
12
26
7
4
2
Non-controlling interests
*
*
*
*
Profit for the period
37
12
26
7
4
2
Earnings per share
Basic
0.22
0.07
0.16
0.04
0.021
0.012
Diluted
0.22
0.07
0.16
0.04
0.021
0.012
Weighted average number of
shares outstanding (in thousands)
Basic
167,137
162,802
164,785
162,864
162,802
162,864
Diluted
168,047
163,497
165,611
163,505
163,497
163,505
*
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
(note 2a)
9 months ended
September 30,
3 months ended
September 30,
9 months ended September
30,
3 months ended
September 30,
2018
2019**
2018
2019**
2019**
2019**
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Profit for the period
37
12
26
7
4
2
Other comprehensive income
for the period, net of income
taxes
-
-
-
-
-
-
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD
37
12
26
7
4
2
Total comprehensive income attributable
to:
Owners of the Company
37
12
26
7
4
2
Non-controlling interests
*
*
*
*
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD
37
12
26
7
4
2
*
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
9 months ended September 30,
2019**
9 months ended September 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
1,348
576
1,924
1,384
515
1,899
Inter-segment revenue - Services
12
111
(123)
12
117
(129)
Segment
revenue - Equipment
399
77
476
478
68
546
Total revenues
1,759
764
(123)
2,400
1,874
700
(129)
2,445
Segment
cost of revenues - Services
1,044
601
1,645
1,072
512
1,584
Inter-segment cost of revenues -
Services
111
12
(123)
116
13
(129)
Segment
cost of revenues - Equipment
321
48
369
377
45
422
Cost of revenues
1,476
661
(123)
2,014
1,565
570
(129)
2,006
Gross profit
283
103
386
309
130
439
Operating expenses (3)
253
99
352
261
97
358
Other
income, net
17
6
23
18
3
21
Operating profit
47
10
57
66
36
102
Adjustments to presentation of
segment
Adjusted
EBITDA
–Depreciation and amortization
418
149
328
109
–Other
(1)
14
(2)
11
Segment Adjusted EBITDA (2)
479
157
405
145
Reconciliation of segment subtotal Adjusted
EBITDA to profit for the period
Segments subtotal Adjusted EBITDA
(2)
636
550
-
Depreciation and amortization
(567)
(437)
-
Finance costs, net
(48)
(41)
- Income
tax income (expenses)
3
(24)
- Other
(1)
(12)
(11)
Profit for the period
12
37
*
Representing an amount of less than 1 million. ** See section 'IFRS 16' above regarding the
adoption of IFRS 16 - Leases. For the 9 months ended September 30,
2019 the impact of the adoption of IFRS 16 was an increase of NIS
117 million in the Adjusted EBITDA, an increase of NIS 105 million
in the cellular segment Adjusted EBITDA and an increase of NIS 12
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 September 30,
2019*
3 months ended September 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
462
196
658
473
181
654
Inter-segment revenue - Services
4
37
(41)
3
39
(42)
Segment
revenue - Equipment
142
25
167
143
25
168
Total revenues
608
258
(41)
825
619
245
(42)
822
Segment
cost of revenues - Services
350
203
553
355
178
533
Inter-segment cost of revenues -
Services
37
4
(41)
38
4
(42)
Segment
cost of revenues - Equipment
119
15
134
111
13
124
Cost of revenues
506
222
(41)
687
504
195
(42)
657
Gross profit
102
36
138
115
50
165
Operating expenses (3)
84
36
120
88
36
124
Other
income, net
6
2
8
5
2
7
Operating profit
24
2
26
32
16
48
Adjustments to presentation of segment
Adjusted EBITDA
–Depreciation and
amortization
140
55
109
40
–Other
(1)
6
(2)
4
Segment Adjusted EBITDA (2)
170
55
145
56
Reconciliation of segment subtotal Adjusted
EBITDA to profit for the period
Segments subtotal Adjusted EBITDA
(2)
225
201
-
Depreciation and amortization
(195)
(149)
-
Finance costs, net
(18)
(10)
- Income
tax expenses
(1)
(12)
- Other
(1)
(4)
(4)
Profit for the period
7
26
(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. * 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
New Israeli Shekels
Convenience translation into
U.S. Dollars (note 2a)
9 months ended September
30,
2018
2019**
2019**
(Unaudited)
(Unaudited)
(Unaudited)
In millions
CASH FLOWS FROM OPERATING
ACTIVITIES:
Cash generated from operations
(Appendix)
504
660
190
Income tax paid
*
(1)
*
Net cash provided by operating
activities
504
659
190
CASH FLOWS FROM
INVESTING ACTIVITIES:
Acquisition of property and
equipment
(241)
(378)
(109)
Acquisition of intangible and other
assets
(118)
(124)
(36)
Acquisition of a business, net of cash
acquired
(3)
(1)
Investment in short-term deposits,
net
(141)
(156)
(45)
Interest received
1
1
*
Consideration received from sales of property
and equipment
3
2
1
Payment for acquisition of subsidiary, net of
cash acquired
(3)
Net cash used in investing
activities
(499)
(658)
(190)
CASH FLOWS FROM
FINANCING ACTIVITIES:
Lease payments (principal and
interest)
(124)
(36)
Acquisition of treasury shares
(82)
Interest paid
(54)
(21)
(6)
Proceeds from issuance of notes payable, net
of issuance costs
256
75
Proceeds from issuance of option warrants
exercisable for notes
payables
37
11
Repayment of non-current
borrowings
(375)
(39)
(11)
Repayment of current borrowings
(13)
(4)
Transactions with non-controlling
interests
(2)
(1)
Net cash provided by (used in) financing
activities
(511)
94
28
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
(506)
95
28
CASH AND CASH
EQUIVALENTS AT BEGINNING
OF PERIOD
867
416
119
CASH AND CASH EQUIVALENTS AT
END OF PERIOD
361
511
147
*
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 (note 2a)
9 months ended September
30,
2018
2019**
2019**
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Cash generated from
operations:
Profit for the period
37
12
4
Adjustments for:
Depreciation and amortization
406
546
157
Amortization of deferred expenses - Right of
use
31
21
6
Employee share based compensation
expenses
11
13
4
Liability for employee rights upon
retirement, net
1
2
1
Finance costs, net
(1)
19
5
Interest paid
54
21
6
Interest received
2
(1)
*
Deferred income taxes
17
2
1
Income tax paid
1
*
Changes in operating assets and
liabilities:
(2)
(1)
Decrease (increase) in accounts
receivable:
Trade
110
71
21
Other
(2)
(2)
(1)
Increase (decrease) in accounts payable and
accruals:
Trade
(46)
28
8
Other payables
(29)
8
2
Provisions
(6)
(14)
(4)
Deferred revenues from HOT mobile
(23)
(24)
(7)
Other deferred revenues
(1)
6
2
Increase in deferred expenses - Right of
use
(77)
(39)
(11)
Current income tax liability
7
(6)
(2)
Decrease (increase) in inventories
13
(2)
(1)
Cash generated from
operations
504
660
190
*
Representing an amount of less than 1 million. ** See section 'IFRS 16' above regarding the
adoption of IFRS 16 - Leases.
At September 30, 2019 and 2018, trade and other payables include
NIS 133 million ($38 million) and NIS 130 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
9 months ended
September 30,
3 months ended
September 30,
9 months ended September
30,
3 months ended September
30,
2018
2019*
2018
2019*
2019*
2019*
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Net cash provided by operating
activities
504
659
188
230
190
66
Net cash used in investing
activities
(499)
(658)
(118)
(90)
(190)
(26)
Investment in short-term deposits,
net
141
156
(85)
45
(24)
Lease payments
(124)
(42)
(36)
(12)
Adjusted Free Cash
Flow
146
33
70
13
9
4
Interest paid
(54)
(21)
(8)
(1)
(6)
(1)
Adjusted Free Cash Flow After
Interest
92
12
62
12
3
3
Total
Operating Expenses (OPEX)
New Israeli Shekels
Convenience translation into
U.S. Dollars
9 months ended
September 30,
3 months ended
September 30,
9 months ended September
30,
3 months ended September
30,
2018
2019*
2018
2019*
2019*
2019*
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Cost of revenues - Services
1,584
1,645
533
553
472
159
Selling and marketing expenses
221
228
78
78
65
23
General and administrative
expenses
137
124
46
42
36
12
Depreciation and amortization
(437)
(567)
(149)
(195)
(163)
(56)
Other (1)
(11)
(12)
(4)
(4)
(3)
(1)
OPEX
1,494
1,418
504
474
407
137
(1) 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
Q3'
17
Q4'
17
Q1'
18
Q2'
18
Q3'
18
Q4'
18
Q1'
19
Q2'
19
Q3'
19
2017
2018
Cellular Segment Service Revenues
514
478
466
454
476
447
441
453
466
1,978
1,843
Cellular Segment Equipment
Revenues
138
182
178
157
143
165
142
115
142
610
643
Fixed-Line Segment Service
Revenues
194
197
202
210
220
220
224
230
233
777
852
Fixed-Line Segment Equipment
Revenues
22
22
23
20
25
24
28
24
25
76
92
Reconciliation for consolidation
(42)
(45)
(43)
(44)
(42)
(42)
(41)
(41)
(41)
(173)
(171)
Total Revenues
826
834
826
797
822
814
794
781
825
3,268
3,259
Gross Profit from Equipment Sales
43
40
43
37
44
42
39
35
33
142
166
Operating Profit*
92
0
32
22
48
14
9
22
26
315
116
Cellular Segment Adjusted EBITDA*
189
124
134
126
145
119
150
159
170
710
524
Fixed-Line Segment Adjusted
EBITDA*
50
34
43
46
56
53
47
55
55
207
198
Total Adjusted EBITDA*
239
158
177
172
201
172
197
214
225
917
722
Adjusted EBITDA Margin (%)*
29%
19%
21%
22%
24%
21%
25%
27%
27%
28%
22%
OPEX*
477
519
498
492
504
502
472
472
474
1,946
1,996
Income with respect to settlement
agreement
with Orange
108
Finance costs, net*
15
88
18
13
10
12
14
16
18
180
53
Profit (Loss)*
54
(50)
9
2
26
19
2
3
7
114
56
Capital Expenditures (cash)
105
113
138
104
117
143
185
143
174
376
502
Capital Expenditures (additions)
107
174
113
98
111
177
157
142
150
417
499
Adjusted Free Cash Flow
202
63
21
55
70
(22)
(11)
31
13
599
124
Adjusted Free Cash Flow (after
interest)
192
(17)
(14)
44
62
(37)
(15)
15
12
434
55
Net Debt
887
906
919
893
898
950
977
965
956
906
950
Cellular Subscriber Base
(Thousands)**
2,677
2,662
2,649
2,623
2,630
2,646
2,620
2,616
2,651
2,662
2,646
Post-Paid Subscriber Base
(Thousands)**
2,306
2,308
2,318
2,323
2,333
2,361
2,340
2,337
2,366
2,308
2,361
Pre-Paid Subscriber Base
(Thousands)
371
354
331
300
297
285
280
279
285
354
285
Cellular ARPU (NIS)
64
59
58
57
60
57
56
58
59
62
58
Cellular Churn Rate (%)**
9.3%
9.9%
8.9%
10.1%
8.0%
8.5%
8.5%
7.9%
7.7%
38%
35%
Number of Employees (FTE)***
2,696
2,797
2,778
2,808
2,821
2,782
2,897
2,895
2,923
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 subsidiary
(50%). ****See footnote 2
regarding use of non-GAAP measures.
Disclosure for notes holders as of September 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 30.09.2019
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
1
325
1.491%
(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
5
803
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
263.5
263.5
3
271
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.
(1) 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. (2) 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. 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. The total future
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 253 million. Following an additional partial
exercise of option warrants from the first series in November 2019,
the Company intends to issue additional Series G Notes in a
principal amount of NIS 86.5 million at the end of November 2019.
(3) 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 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, 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. (4) '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 September 30, 2019
(cont.)
Notes Rating Details*
Series
Rating Company
Rating as of 30.09.2019 and 26.11.2019 (1)
Rating assigned upon issuance of the Series
Recent date of rating as of 30.09.2019 and 26.11.2019
Additional ratings between the original
issuance date and the recent date of rating (2)
Date
Rating
D
S&P Maalot
ilA+
ilAA-
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+
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+
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 September 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
-
-
-
32,382
Second year
-
268,035
-
-
-
26,172
Third year
-
294,385
-
-
-
21,213
Fourth year
-
185,157
-
-
-
16,346
Fifth year and on
-
369,607
-
-
-
29,803
Total
-
1,385,219
-
-
-
125,916
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
-
-
-
4,500
Second year
-
52,132
-
-
-
3,229
Third year
-
52,132
-
-
-
1,959
Fourth year
-
30,073
-
-
-
825
Fifth year and on
-
17,079
-
-
-
213
Total
-
203,548
-
-
-
10,726
Summary of Financial Undertakings (according to repayment
dates) as of September 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
-
-
-
36,882
Second year
-
320,167
-
-
-
29,401
Third year
-
346,517
-
-
-
23,172
Fourth year
-
215,230
-
-
-
17,171
Fifth year and on
-
386,686
-
-
-
30,016
Total
-
1,588,767
-
-
-
136,642
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 37 million.
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 Q3 2019 was an increase of NIS 39 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/20191125005889/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 Oct 2024 to Nov 2024
Partner Communications (NASDAQ:PTNR)
Historical Stock Chart
From Nov 2023 to Nov 2024
