ROSH
HA'AYIN, Israel, Aug. 11,
2022 /PRNewswire/ --
QUARTERLY ADJUSTED
EBITDA2 TOTALED
NIS 276 MILLION
NET DEBT2 TOTALED NIS 706 MILLION
QUARTERLY CELLULAR SUBSCRIBER GROWTH TOTALED 32
THOUSAND
PARTNER'S FIBER-OPTIC SUBSCRIBER BASE TOTALS 258
THOUSAND
AS OF TODAY
THE NUMBER OF HOUSEHOLDS IN BUILDINGS CONNECTED TO PARTNER'S
FIBER-OPTIC INFRASTRUCTURE TOTALS 866 THOUSAND AS OF
TODAY
Second quarter 2022 highlights (compared with second
quarter 2021)
- Total Revenues: NIS 859
million (US$ 245 million), an
increase of 2%
- Service Revenues: NIS
706 million (US$ 202 million),
an increase of 9%
- Equipment Revenues: NIS
153 million (US$ 44 million),
a decrease of 20%
- Total Operating Expenses
(OPEX)2: NIS 469 million (US$ 134
million), a decrease of 3%
- Adjusted EBITDA: NIS
276 million (US$ 79 million),
an increase of 30%
- Profit for the Period:
NIS 47 million (US$ 13 million), an increase of NIS 38 million
- Adjusted Free Cash Flow (before
interest)2: NIS 57 million (US$ 16
million), an increase of NIS 49
million
- Cellular ARPU: NIS
49 (US$ 14), an increase of
2%
- Cellular Subscriber Base: approximately 3.1
million subscribers at quarter-end, an increase
of 4%
- Fiber-Optic Subscriber Base: 250 thousand
subscribers at quarter-end, an increase of 77 thousand since Q2
2021, and an increase of 17 thousand in the quarter
- Homes Connected (HC) to
Partner's Fiber-Optic Infrastructure: 837 thousand
at quarter-end, an increase of 266 thousand since Q2 2021, and an
increase of 67 thousand in the quarter
- Infrastructure-Based Internet Subscriber Base:
395 thousand subscribers at quarter-end, an increase of 41
thousand since Q2 2021, and an increase of 8 thousand in the
quarter
- TV Subscriber Base: 224 thousand subscribers
at quarter-end, an increase of 1 thousand subscribers since Q2
2021, and a decrease of 1 thousand in the quarter
Partner Communications Company
Ltd. ("Partner" or the "Company") (NASDAQ:
PTNR) (TASE: PTNR), a leading Israeli communications provider,
announced today its results for the quarter ended June 30, 2022.
Commenting on the results for the second quarter 2022, Mr.
Avi Gabbay, CEO of Partner,
noted:
"We are pleased with the good results which reflect stability
and growth. We will continue to invest in infrastructure and fiber
and 5G services in order to bring more value to our customers."
Mr. Tamir Amar, Partner's
Deputy CEO & Chief Financial Officer, commented on the
results:
"In the second quarter of 2022 we report the highest revenues in
the past six years, due to growth in both the cellular and
fixed-line segments. Together with a decrease in the level of OPEX,
we have succeeded in bringing about an increase in profit and
profitability compared to the corresponding quarter last year.
Adjusted EBITDA presented for the second quarter of 2022 was the
highest in the past seven years and totaled NIS 276 million, an increase of 30% compared to
NIS 213 million in the corresponding
quarter last year.
Partner continues with the expedited 5G infrastructure
deployment and expects to achieve over 40% population coverage by
the end of the year. The cellular subscriber base increased in the
quarter by 32 thousand subscribers, of which 25 thousand were
Post-Paid subscribers. Excluding the churn of Ministry of Education
subscribers who joined for limited periods, the cellular churn rate
in the second quarter of 2022 totaled just 6.6%. For the first time
in five quarters, Partner recorded an increase in Cellular ARPU.
In the second quarter, ARPU totaled NIS 49 compared to NIS
48 in previous quarters. The increase reflected, among other
things, an increase in roaming service revenues that was partially
offset by the continued price erosion and by a decrease in
interconnect revenues.
As we have stated before, Partner considers fiber-optic
deployment to be a significant growth engine in its activity. The
number of Homes Connected within buildings connected to our
fiber-optic infrastructure reached 837 thousand at the end of
second quarter of 2022, an increase of 67 thousand in the quarter.
As of today, the number of Homes Connected within buildings
connected to our fiber-optic infrastructure totals 866 thousand.
The fiber-optic subscriber base totaled 250 thousand at the end of
the quarter, reflecting a 30% penetration rate from potential
customers in connected buildings, unchanged from the rate at the
end of the previous quarter and the corresponding quarter last
year. The increase in the fiber-optic subscriber base in the
quarter was negatively impacted by the relatively low number of
working days and totaled 17 thousand. As of today, the fiber-optic
subscriber base totals 258 thousand.
Adjusted Free Cash Flow (before interest and including lease
payments) for the quarter totaled NIS 57 million. CAPEX
payments in the second quarter of 2022 totaled NIS 174 million. For the first half of 2022, the
increase of CAPEX payments compared to first half of 2021 totaled
NIS 56 million, reflecting the
acceleration of the fiber-optic deployment plan, with the goal of
reaching approximately one million households by the end of the
year.
Net debt was NIS 706 million at
the end of the quarter, compared with NIS
670 million at the end of the corresponding quarter last
year, an increase of NIS 36 million.
The Company's net debt to Adjusted EBITDA ratio stood at 0.7 at the
end of the quarter, compared to a ratio of 0.8 in the corresponding
quarter last year."
Q2 2022 compared with Q2 2021
NIS Million (except EPS)
|
Q2'21
|
Q2'22
|
Comments
|
Service
Revenues
|
649
|
706
|
The increase reflected
growth in both cellular and fixed-line services,
due to an increase in cellular roaming services and subscriber
growth
in cellular and fiber-optics
|
Equipment
Revenues
|
191
|
153
|
The decrease reflected
lower sales in both the cellular and fixed-line
segments
|
Total
Revenues
|
840
|
859
|
|
Gross profit from
equipment sales
|
39
|
28
|
|
OPEX
|
485
|
469
|
The decrease mainly
reflected a decrease in credit losses, a one-time
decrease in network operating expenses and a decrease in
wholesale
expenses, which were partially offset by increases in roaming
expenses
and payroll and related expenses
|
Operating
profit
|
30
|
85
|
|
Adjusted
EBITDA
|
213
|
276
|
|
Adjusted EBITDA as a
percentage of total revenues
|
25 %
|
32 %
|
|
Profit for the
period
|
9
|
47
|
|
Earnings per share
(basic, NIS)
|
0.05
|
0.26
|
|
Capital Expenditures
(cash)
|
139
|
174
|
|
Adjusted free cash flow
(before interest payments)
|
8
|
57
|
|
Net Debt
|
670
|
706
|
|
Key Performance Indicators
|
Q2'21
|
Q1'22
|
Q2'22
|
Change Q1 to Q2
|
Reported Cellular
Subscribers (end of period, thousands)
|
2,970
|
3,063
|
3,095
|
Post-Paid: Increase of
25 thousand (including 5 thousand packages from the Ministry of
Education)
Pre-Paid: Increase of 7
thousand
|
Cellular Subscribers
(end of period, thousands) excluding packages for Ministry of
Education
|
2,893
|
2,988
|
3,015
|
Post-Paid: Increase of
20 thousand
Pre-Paid: Increase of 7
thousand
|
Monthly Average Revenue
per Cellular User (ARPU) (NIS)
|
48
|
48
|
49
|
|
Reported Quarterly
Cellular Churn Rate (%)
|
7.2 %
|
7.0 %
|
6.7 %
|
|
Quarterly Cellular
Churn Rate (%) excluding packages
for the Ministry of
Education
|
7.4 %
|
6.7 %
|
6.6 %
|
|
Fiber-Optic
Subscribers (end of period,
thousands)
|
173
|
233
|
250
|
Increase of 17 thousand
subscribers
|
Homes Connected to the
Fiber-Optic Infrastructure (HC)
(end of period, thousands)
|
571
|
770
|
837
|
Increase of 67 thousand
households
|
Infrastructure-Based
Internet Subscribers (end of
period, thousands)
|
354
|
387
|
395
|
Increase of 8 thousand
subscribers
|
TV Subscribers
(end of period, thousands)
|
223
|
225
|
224
|
Decrease of 1 thousand
subscribers
|
Partner Consolidated Results
|
Cellular Segment
|
Fixed-Line Segment
|
Elimination
|
Consolidated
|
NIS Million
|
Q2'21
|
Q2'22
|
Change %
|
Q2'21
|
Q2'22
|
Change %
|
Q2'21
|
Q2'22
|
Q2'21
|
Q2'22
|
Change %
|
Total
Revenues
|
577
|
592
|
+3 %
|
296
|
297
|
|
(33)
|
(30)
|
840
|
859
|
+2 %
|
Service
Revenues
|
420
|
457
|
+9 %
|
262
|
279
|
+6 %
|
(33)
|
(30)
|
649
|
706
|
+9 %
|
Equipment
Revenues
|
157
|
135
|
-14 %
|
34
|
18
|
-47 %
|
-
|
-
|
191
|
153
|
-20 %
|
Operating Profit
(Loss)
|
35
|
82
|
+134 %
|
(5)
|
3
|
|
-
|
-
|
30
|
85
|
+183 %
|
Adjusted
EBITDA
|
139
|
187
|
+35 %
|
74
|
89
|
+20 %
|
-
|
-
|
213
|
276
|
+30 %
|
Financial Review
In Q2 2022, total revenues were NIS 859 million (US$ 245
million), an increase of 2% from NIS
840 million in Q2 2021.
Service revenues in Q2 2022 totaled NIS 706 million (US$ 202
million), an increase of 9% from NIS
649 million in Q2 2021.
Service revenues for the cellular segment in Q2 2022
totaled NIS 457 million (US$ 131 million), an increase of 9% from
NIS 420 million in Q2 2021. The
increase was mainly the result of higher roaming service revenues,
reflecting the return of international air travel almost to
pre-COVID 19 levels, and the growth of the cellular subscriber
base. These increases were partially offset by the continued price
erosion, although to a lesser degree than in the past, and a
decrease in interconnect revenues.
Service revenues for the fixed-line segment in Q2
2022 totaled NIS 279 million
(US$ 80 million), an increase of 6%
from NIS 262 million in Q2 2021. The
increase mainly reflected higher revenues from the growth in
internet and TV services, which were partially offset by a decline
in revenues from international calling services.
Equipment revenues in Q2 2022 totaled NIS 153 million (US$ 44
million), a decrease of 20% from NIS
191 million in Q2 2021, mainly reflecting a lower average
price per sale mainly due to a change in the sales mix in the
cellular segment, and a decrease in sales in the fixed-line
segment, largely reflecting the Company's decision in the final
quarter of 2021 to move towards a leasing model of internet routers
to private customers instead of a sales model.
Gross profit from equipment sales in Q2 2022
was NIS 28 million (US$ 8 million), compared with NIS 39 million in Q2 2021, a decrease of 28%,
mainly reflecting the negative impact of foreign exchange rate
movements, as well as the change in the sales mix in the cellular
segment and the decrease in fixed-line segment sales.
Total operating expenses ('OPEX') totaled
NIS 469 million (US$ 134 million), in Q2 2022, a decrease of 3% or
NIS 16 million from Q2 2021, mainly
reflecting a decrease in credit loss expenses, a one-time decrease
in cellular network operating expenses and a decrease in fixed-line
segment wholesale expenses. The decreases were partially
offset by increases in roaming expenses and payroll and related
expenses. Including depreciation and amortization expenses and
other expenses (mainly amortization of employee share-based
compensation), OPEX in Q2 2022 decreased by 1% compared with Q2
2021.
Operating profit for Q2 2022 was NIS 85 million (US$ 24
million), an increase of 183% compared with NIS 30 million in Q2 2021.
Adjusted EBITDA in Q2 2022 totaled NIS 276 million (US$ 79
million), an increase of 30% from NIS
213 million in Q2 2021. As a percentage of total revenues,
Adjusted EBITDA in Q2 2022 was 32% compared with 25% in Q2
2021.
Adjusted EBITDA for the cellular segment was
NIS 187 million (US$ 53 million) in Q2 2022, an increase of 35%
from NIS 139 million in Q2 2021,
largely reflecting the increase in service revenues as well as the
decrease in credit losses expenses, and the one-time decrease in
network operating expenses, which were partially offset by the
decrease in gross profit from equipment sales and the increase in
payroll and related expenses. As a percentage of total cellular
segment revenues, Adjusted EBITDA for the cellular segment was 32%
in Q2 2022 compared with 24% in Q2 2021.
Adjusted EBITDA for the fixed-line segment was
NIS 89 million (US$ 25 million) in Q2 2022, an increase of 20%
from NIS 74 million in Q2 2021,
mainly reflecting the increase in fixed-line segment service
revenues and the decrease in wholesale expenses, which were
partially offset by the decrease in gross profit from fixed-line
segment equipment sales as well as the increase in payroll and
related expenses. As a percentage of total fixed-line segment
revenues, Adjusted EBITDA for the fixed-line segment was 30% in Q2
2022, compared with 25% in Q2 2021.
Finance costs, net in Q2 2022 were NIS 21 million (US$ 6
million), an increase of 31% compared with NIS 16 million in Q2 2021. The increase mainly
reflected the negative impact of foreign exchange rate
movements.
Income tax expenses in Q2 2022 were
NIS 17 million (US$ 5 million), an increase of NIS 12 million compared with NIS 5 million in Q2 2021, mainly due to the
increase in operating profit.
Profit in Q2 2022 was NIS 47
million (US$ 13 million), an
increase of NIS 38 million compared
with profit of NIS 9 million in Q2
2021.
Based on the weighted average number of shares outstanding
during Q2 2022, basic earnings per share or ADS, was
NIS 0.26 (US$
0.07) compared with basic earnings per share or ADS of
NIS 0.05 in Q2 2021.
Cellular Segment Operational Review
At the end of Q2 2022, the Company's cellular subscriber
base (including mobile data, 012 Mobile subscribers and
M2M subscriptions) was approximately 3.10 million, including
approximately 2.73 million Post-Paid subscribers or 88% of the
base, and 362 thousand Pre-Paid subscribers, or 12% of the
subscriber base.
During the second quarter of 2022, the cellular subscriber
base increased, net, by 32 thousand subscribers. The Post-Paid
subscriber base increased, net, by 25 thousand subscribers and the
Pre-Paid subscriber base increased, net, by 7 thousand subscribers.
The subscriber base of data packages and voice packages for the
Ministry of Education (MOE) increased by 5 thousand and totaled 80
thousand at the end of Q2 2022. The MOE subscribers base is
expected to decrease to 12 thousand during the third quarter of
2022, following the expiration of most of the time-limited
packages.
Total cellular market share (based on the number of
subscribers) at the end of Q2 2022 was estimated to be
approximately 28%, unchanged from the end of Q1 2022 and compared
to 27% at the end of Q2 2021.
The quarterly churn rate for cellular subscribers in
Q2 2022 was 6.7%, compared with 7.2% in Q2 2021 and 7.0% in Q1
2022. Excluding data and voice packages for the Ministry of
Education, the churn rate in Q2 2022 was 6.6% compared with 7.4% in
Q2 2021 and 6.7% in Q1 2022.
The monthly Average Revenue per User ("ARPU") for
cellular subscribers in Q2 2022 was NIS
49 (US$ 14), an increase of 2%
from NIS 48 in Q2 2021. This increase
mainly reflected the increase in roaming services revenues, which
was offset by the continued price erosion, although to a lesser
degree than in the past, and by a decrease in interconnect
revenues.
Fixed-Line Segment Operational Review
At the end of Q2 2022:
- The Company's fiber-optic subscriber base was 250 thousand
subscribers, an increase, net, of 17 thousand subscribers during
the second quarter of 2022.
- The Company's infrastructure-based internet subscriber base was
395 thousand subscribers, an increase, net, of 8 thousand
subscribers during the second quarter of 2022.
- Households in buildings connected to our fiber-optic
infrastructure (HC) totaled 837 thousand, an increase of 67
thousand during the second quarter of 2022.
- The Company's TV subscriber base totaled 224 thousand
subscribers, a decrease of 1 thousand subscribers during the second
quarter of 2022.
Funding and Investing Review
In Q2 2022, Adjusted Free Cash Flow (including lease
payments) totaled NIS 57
million (US$ 16 million), an
increase of NIS 49 million compared
with NIS 8 million in Q2 2021.
Cash generated from operating activities totaled
NIS 263 million (US$ 75 million) in Q2 2022, an increase of 47%
from NIS 179 million in Q2 2021.
Lease payments (principal and interest), recorded in cash
flows from financing activities under IFRS 16, totaled NIS 34 million (US$ 10
million) in Q2 2022, an increase of 6% from NIS 32 million in Q2 2021.
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 Q2 2022, an increase of 25% from NIS 139
million in Q2 2021.
The level of net debt at the end of Q2 2022 amounted
to NIS 706 million (US$ 202 million), compared with NIS 670 million at the end of Q2 2021, an
increase of NIS 36 million.
Regulatory Developments
Further to the Company's immediate report dated September 14, 2021 with respect to a hearing
process regarding the potential reduction of the interconnect
tariff, on June 23, 2022 the Ministry
of Communications published its decision regarding a change in the
interconnection tariff regime. According to this decision there
will be a gradual reduction of the interconnection tariffs over a
period of three years (ending on the 15th of June 2025). After this period, each operator will
bear its own call completion costs and there will no longer be
payment transfers for interconnection with respect to call minutes
(both on MRT networks and on fixed-line networks). The Ministry has
also decided that the maximum tariff for completion of incoming
international calls will be cancelled (effective on the 28th of
July 2022), which is expected to
increase the company's revenues from incoming international calls.
The overall outcome of this decision is not expected to have a
material effect on our business and results of operations.
Conference Call Details
Partner will host a conference call to discuss its financial
results on Thursday, August 11, 2022
at 10.00 a.m. Eastern Time /
5.00 p.m. Israel Time.
Please dial the following numbers (at least 10 minutes before
the scheduled time) in order to participate:
International: +972.3.918.0687
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:
http://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
11, 2022 until August 25,
2022, at the following numbers:
International: +972.3.925.5921
North America toll-free:
+1.888.254.7270
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. In particular, this press release communicates
our belief regarding (i) the Company's continued investment in
infrastructure and fiber and 5G services; (ii) the expedited
deployment of the Company's fiber-optic infrastructure by the end
of 2022 and (iii) the fiber-optic deployment as a significant
growth engine for the Company. 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 in
particular (i) the remaining impact on our business of the Covid-19
health crisis, (ii) unexpected technical or commercial issues which
may arise as we continue to deploy and expand the use of our fiber
optic infrastructure; and (iii) unexpected technical or financial
constraints which undermine the pursuit of such strategy. In
light of the current unreliability of predictions as to the
ultimate severity and duration of the Covid-19 health crisis, as
well as the specific regulatory and business risks facing our
business, future results may differ materially from those currently
anticipated. For further information regarding risks, uncertainties
and assumptions about Partner, trends in the Israeli
telecommunications industry in general, the impact of 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,
2022: US $1.00 equals
NIS 3.500. 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
(%)
|
Profit
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
divided
by
Total
revenues
|
Profit
|
Adjusted Free Cash
Flow
|
Cash flows from
operating activities
add
Cash flows from
investing activities
deduct
Investment in deposits,
net
deduct
Lease principal
payments
deduct
Lease interest
payments
|
Cash flows from
operating activities
add
Cash flows from
investing activities
|
Total
Operating
Expenses
(OPEX)
|
Cost of service
revenues
add
Selling and marketing
expenses
add
General and
administrative expenses
add
Credit
losses
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,
Credit
losses
|
Net Debt
|
Current maturities of
notes payable and borrowings
add
Notes
payable
add
Borrowings from
banks
add
Financial liability at
fair value
deduct
Cash and cash
equivalents
deduct
Short-term
and long-term deposits
|
Sum of:
Current maturities of
notes
payable and
borrowings,
Notes
payable,
Borrowings from
banks,
Financial liability at
fair value
Less
Sum
of:
Cash and cash
equivalents,
Short-term
deposits,
Long-term
deposits.
|
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
Contacts:
Mr. Tamir Amar
Deputy CEO & Chief
Financial Officer
Tel:
+972-54-781-4951
|
Mr. Amir
Adar
Head of Investor
Relations and Corporate Projects
Tel:
+972-54-781-5051
E-mail:
investors@partner.co.il
|
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,
|
|
|
2021
|
2022
|
2022
|
|
|
(Audited)
|
(Unaudited)
|
(Unaudited)
|
|
|
In millions
|
CURRENT ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
308
|
384
|
110
|
Short-term
deposits
|
|
344
|
346
|
99
|
Trade
receivables
|
|
571
|
564
|
161
|
Other receivables and
prepaid expenses
|
|
152
|
116
|
33
|
Deferred expenses –
right of use
|
|
27
|
31
|
9
|
Inventories
|
|
87
|
123
|
35
|
|
|
1,489
|
1,564
|
447
|
|
|
|
|
|
NON CURRENT ASSETS
|
|
|
|
|
Long-term
deposits
|
|
280
|
|
|
Trade
receivables
|
|
245
|
225
|
64
|
Deferred expenses –
right of use
|
|
142
|
158
|
45
|
Lease – right of
use
|
|
679
|
682
|
195
|
Property and
equipment
|
|
1,644
|
1,724
|
492
|
Intangible and other
assets
|
|
472
|
448
|
128
|
Goodwill
|
|
407
|
407
|
116
|
Deferred income tax
asset
|
|
34
|
22
|
6
|
Other non-current
receivables
|
|
1
|
*
|
*
|
|
|
3,904
|
3,666
|
1,046
|
|
|
|
|
|
TOTAL ASSETS
|
|
5,393
|
5,230
|
1,493
|
*
Representing an amount of less than 1 million.
|
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,
|
|
|
2021
|
2022
|
2022
|
|
|
(Audited)
|
(Unaudited)
|
(Unaudited)
|
|
|
In millions
|
CURRENT LIABILITIES
|
|
|
|
|
Current
maturities of notes payable and borrowings
|
|
268
|
253
|
72
|
Trade
payables
|
|
705
|
690
|
196
|
Other payables and
provisions
|
|
185
|
186
|
54
|
Current maturities of
lease liabilities
|
|
125
|
126
|
36
|
Deferred revenues and
other
|
|
139
|
151
|
43
|
|
|
1,422
|
1,406
|
401
|
NON CURRENT LIABILITIES
|
|
|
|
|
Notes
payable
|
|
1,224
|
1,010
|
289
|
Borrowings
from banks
|
|
184
|
173
|
49
|
Liability for employee
rights upon retirement, net
|
|
35
|
33
|
9
|
Lease
liabilities
|
|
595
|
594
|
170
|
Deferred
revenues from HOT mobile
|
|
39
|
23
|
7
|
Non-current
liabilities and provisions
|
|
35
|
33
|
9
|
|
|
2,112
|
1,866
|
533
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
3,534
|
3,272
|
934
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Share capital -
ordinary shares of NIS 0.01
par
value: authorized - December 31, 2021
and June 30, 2022
- 235,000,000 shares;
issued
and outstanding
-
|
2
|
2
|
1
|
December 31, 2021 –
*183,678,220 shares
|
|
|
|
June
30, 2022 – *184,286,996
shares
|
|
|
|
Capital
surplus
|
|
1,279
|
1,244
|
355
|
Accumulated
retained earnings
|
|
742
|
841
|
240
|
Treasury shares, at
cost
December
31, 2021 – **7,337,759
shares
June 30, 2022 –
**6,094,812 shares
|
|
(164)
|
(129)
|
(37)
|
TOTAL EQUITY
|
|
1,859
|
1,958
|
559
|
TOTAL LIABILITIES AND EQUITY
|
|
5,393
|
5,230
|
1,493
|
* Net
of treasury shares.
|
** Including restricted
shares in amount of 1,349,119 and 791,661 as of and December
31, 2021 and
June 30, 2022, 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 (note
2a)
|
|
|
6 months period ended
June 30,
|
3 months period ended
June 30,
|
6 months period
ended June 30,
|
3 months period
ended June
30,
|
|
|
2021
|
2022
|
2021
|
2022
|
2022
|
2022
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
In millions (except per share
data)
|
Revenues,
net
|
|
1,673
|
1,713
|
840
|
859
|
489
|
245
|
Cost of
revenues
|
|
1,387
|
1,321
|
696
|
656
|
377
|
187
|
Gross profit
|
|
286
|
392
|
144
|
203
|
112
|
58
|
|
|
|
|
|
|
|
|
Selling and marketing
expenses
|
|
157
|
175
|
78
|
87
|
50
|
25
|
General and
administrative expenses
|
|
86
|
75
|
44
|
39
|
21
|
11
|
Other income,
net
|
|
15
|
15
|
8
|
8
|
4
|
2
|
Operating profit
|
|
58
|
157
|
30
|
85
|
45
|
24
|
Finance
income
|
|
3
|
3
|
2
|
2
|
1
|
1
|
Finance
expenses
|
|
38
|
42
|
18
|
23
|
12
|
7
|
Finance costs,
net
|
|
35
|
39
|
16
|
21
|
11
|
6
|
Profit before income tax
|
|
23
|
118
|
14
|
64
|
34
|
18
|
Income tax
expenses
|
|
9
|
32
|
5
|
17
|
9
|
5
|
Profit for the period
|
|
14
|
86
|
9
|
47
|
25
|
13
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
Basic
|
|
0.08
|
0.47
|
0.05
|
0.26
|
0.13
|
0.07
|
Diluted
|
|
0.08
|
0.46
|
0.05
|
0.26
|
0.13
|
0.07
|
Weighted average number of
shares outstanding (in
thousands)
|
|
|
|
|
|
|
|
Basic
|
|
183,111
|
184,066
|
183,150
|
184,165
|
184,066
|
184,165
|
Diluted
|
|
183,706
|
186,602
|
183,767
|
186,554
|
186,602
|
186,554
|
|
|
|
|
|
|
|
|
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)
|
|
|
6 months period
ended June 30,
|
3 months period
ended June 30,
|
6 months period
ended June
30,
|
3 months period
ended June
30,
|
|
|
2021
|
2022
|
2021
|
2022
|
2022
|
2022
|
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
|
In millions
|
Profit for the
period
|
|
14
|
86
|
9
|
47
|
25
|
13
|
Other comprehensive income
(loss)
for the period, net of
income tax
|
|
|
1
|
|
1
|
*
|
*
|
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD
|
|
14
|
87
|
9
|
48
|
25
|
13
|
*
Representing an amount of less than 1 million.
|
PARTNER COMMUNICATIONS COMPANY
LTD.
|
(An Israeli
Corporation)
|
INTERIM SEGMENT
INFORMATION & ADJUSTED EBITDA RECONCILIATION
|
|
New Israeli Shekels
|
|
|
New Israeli Shekels
|
|
|
6 months period ended June
30, 2022
|
|
|
6 months period ended June
30, 2021
|
|
|
In millions (Unaudited)
|
|
|
In millions (Unaudited)
|
|
|
Cellular
segment
|
|
Fixed line
segment
|
|
Elimination
|
|
Consolidated
|
|
|
Cellular
segment
|
|
Fixed line
segment
|
|
Elimination
|
|
Consolidated
|
|
Segment revenue -
Services
|
894
|
|
502
|
|
|
|
1,396
|
|
|
826
|
|
462
|
|
|
|
1,288
|
|
Inter-segment revenue -
Services
|
6
|
|
57
|
|
(63)
|
|
|
|
|
7
|
|
60
|
|
(67)
|
|
|
|
Segment revenue -
Equipment
|
277
|
|
40
|
|
|
|
317
|
|
|
317
|
|
68
|
|
|
|
385
|
|
Total revenues
|
1,177
|
|
599
|
|
(63)
|
|
1,713
|
|
|
1,150
|
|
590
|
|
(67)
|
|
1,673
|
|
Segment cost of
revenues - Services
|
595
|
|
470
|
|
|
|
1,065
|
|
|
615
|
|
468
|
|
|
|
1,083
|
|
Inter-segment cost
of revenues - Services
|
57
|
|
6
|
|
(63)
|
|
|
|
|
60
|
|
7
|
|
(67)
|
|
|
|
Segment cost of
revenues - Equipment
|
229
|
|
27
|
|
|
|
256
|
|
|
264
|
|
40
|
|
|
|
304
|
|
Cost of revenues
|
881
|
|
503
|
|
(63)
|
|
1,321
|
|
|
939
|
|
515
|
|
(67)
|
|
1,387
|
|
Gross profit
|
296
|
|
96
|
|
|
|
392
|
|
|
211
|
|
75
|
|
|
|
286
|
|
Operating expenses
(3)
|
152
|
|
98
|
|
|
|
250
|
|
|
145
|
|
98
|
|
|
|
243
|
|
Other income,
net
|
9
|
|
6
|
|
|
|
15
|
|
|
8
|
|
7
|
|
|
|
15
|
|
Operating profit (loss)
|
153
|
|
4
|
|
|
|
157
|
|
|
74
|
|
(16)
|
|
|
|
58
|
|
Adjustments to
presentation of
segment
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
–Depreciation and amortization
|
198
|
|
166
|
|
|
|
|
|
|
205
|
|
155
|
|
|
|
|
|
–Other
(1)
|
8
|
|
4
|
|
|
|
|
|
|
3
|
|
1
|
|
|
|
|
|
Segment Adjusted EBITDA (2)
|
359
|
|
174
|
|
|
|
|
|
|
282
|
|
140
|
|
|
|
|
|
Reconciliation of
segment subtotal Adjusted EBITDA to
profit for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments subtotal Adjusted EBITDA
(2)
|
|
|
|
|
|
|
533
|
|
|
|
|
|
|
|
|
422
|
|
- Depreciation
and amortization
|
|
|
|
|
|
|
(364)
|
|
|
|
|
|
|
|
|
(360)
|
|
- Finance costs,
net
|
|
|
|
|
|
|
(39)
|
|
|
|
|
|
|
|
|
(35)
|
|
- Income tax
expenses
|
|
|
|
|
|
|
(32)
|
|
|
|
|
|
|
|
|
(9)
|
|
- Other
(1)
|
|
|
|
|
|
|
(12)
|
|
|
|
|
|
|
|
|
(4)
|
|
Profit for the period
|
|
|
|
|
|
|
86
|
|
|
|
|
|
|
|
|
14
|
|
(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 and general and
administrative expenses.
|
PARTNER COMMUNICATIONS COMPANY
LTD.
|
(An Israeli
Corporation)
|
INTERIM SEGMENT
INFORMATION & ADJUSTED EBITDA RECONCILIATION
|
|
New Israeli Shekels
|
|
|
New Israeli Shekels
|
|
|
3 months period ended June
30, 2022
|
|
|
3 months period ended June
30, 2021
|
|
|
In millions (Unaudited)
|
|
|
In millions (Unaudited)
|
|
|
Cellular
segment
|
|
Fixed line
segment
|
|
Elimination
|
|
Consolidated
|
|
|
Cellular
segment
|
|
Fixed line
segment
|
|
Elimination
|
|
Consolidated
|
|
Segment revenue -
Services
|
454
|
|
252
|
|
|
|
706
|
|
|
417
|
|
232
|
|
|
|
649
|
|
Inter-segment revenue -
Services
|
3
|
|
27
|
|
(30)
|
|
|
|
|
3
|
|
30
|
|
(33)
|
|
|
|
Segment revenue -
Equipment
|
135
|
|
18
|
|
|
|
153
|
|
|
157
|
|
34
|
|
|
|
191
|
|
Total revenues
|
592
|
|
297
|
|
(30)
|
|
859
|
|
|
577
|
|
296
|
|
(33)
|
|
840
|
|
Segment cost of
revenues - Services
|
297
|
|
234
|
|
|
|
531
|
|
|
309
|
|
235
|
|
|
|
544
|
|
Inter-segment cost
of revenues - Services
|
27
|
|
3
|
|
(30)
|
|
|
|
|
30
|
|
3
|
|
(33)
|
|
|
|
Segment cost of
revenues - Equipment
|
113
|
|
12
|
|
|
|
125
|
|
|
132
|
|
20
|
|
|
|
152
|
|
Cost of revenues
|
437
|
|
249
|
|
(30)
|
|
656
|
|
|
471
|
|
258
|
|
(33)
|
|
696
|
|
Gross profit
|
155
|
|
48
|
|
|
|
203
|
|
|
106
|
|
38
|
|
|
|
144
|
|
Operating expenses
(3)
|
78
|
|
48
|
|
|
|
126
|
|
|
74
|
|
48
|
|
|
|
122
|
|
Other income,
net
|
5
|
|
3
|
|
|
|
8
|
|
|
3
|
|
5
|
|
|
|
8
|
|
Operating profit (loss)
|
82
|
|
3
|
|
|
|
85
|
|
|
35
|
|
(5)
|
|
|
|
30
|
|
Adjustments to
presentation of
segment
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
–Depreciation and
amortization
|
101
|
|
84
|
|
|
|
|
|
|
102
|
|
79
|
|
|
|
|
|
–Other
(1)
|
4
|
|
2
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA (2)
|
187
|
|
89
|
|
|
|
|
|
|
139
|
|
74
|
|
|
|
|
|
Reconciliation of
segment subtotal Adjusted EBITDA
to profit for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments subtotal Adjusted EBITDA
(2)
|
|
|
|
|
|
|
276
|
|
|
|
|
|
|
|
|
213
|
|
- Depreciation
and amortization
|
|
|
|
|
|
|
(185)
|
|
|
|
|
|
|
|
|
(181)
|
|
- Finance costs,
net
|
|
|
|
|
|
|
(21)
|
|
|
|
|
|
|
|
|
(16)
|
|
- Income tax
expenses
|
|
|
|
|
|
|
(17)
|
|
|
|
|
|
|
|
|
(5)
|
|
- Other
(1)
|
|
|
|
|
|
|
(6)
|
|
|
|
|
|
|
|
|
(2)
|
|
Profit for the period
|
|
|
|
|
|
|
47
|
|
|
|
|
|
|
|
|
9
|
|
(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 and general and
administrative expenses.
|
PARTNER COMMUNICATIONS COMPANY
LTD.
|
(An Israeli
Corporation)
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
New Israeli Shekels
|
Convenience
translation into
U.S. Dollars
(note 2a)
|
|
6 months period ended June 30,
|
|
2021
|
2022
|
2022
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
In millions
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
Cash generated from
operations (Appendix)
|
388
|
501
|
144
|
Income tax
paid
|
(1)
|
(1)
|
*
|
Net cash provided by
operating activities
|
387
|
500
|
144
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
Acquisition of
property and equipment
|
(208)
|
(271)
|
(78)
|
Acquisition of
intangible and other assets
|
(80)
|
(73)
|
(21)
|
Investment in
deposits, net
|
50
|
278
|
79
|
Interest
received
|
1
|
2
|
1
|
Net cash used in
investing activities
|
(237)
|
(64)
|
(19)
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
Lease principal
payments
|
(64)
|
(67)
|
(19)
|
Lease interest
payments
|
(9)
|
(9)
|
(3)
|
Interest
paid
|
(42)
|
(44)
|
(13)
|
Proceeds from issuance
of notes payable, net of issuance costs
|
23
|
(1)
|
*
|
Repayment of notes
payable
|
(128)
|
(213)
|
(61)
|
Repayment of non-current
borrowings
|
(26)
|
(26)
|
(7)
|
Net cash used in
financing activities
|
(246)
|
(360)
|
(103)
|
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
|
(96)
|
76
|
22
|
CASH AND CASH EQUIVALENTS AT
BEGINNING
OF PERIOD
|
376
|
308
|
88
|
CASH AND CASH EQUIVALENTS AT END OF
PERIOD
|
280
|
384
|
110
|
*
Representing an amount of less than 1 million.
|
PARTNER COMMUNICATIONS COMPANY
LTD.
|
(An Israeli
Corporation)
|
INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Appendix – Cash
generated from operations and supplemental statements
|
|
New Israeli Shekels
|
Convenience
translation into
U.S. Dollars
(note 2a)
|
|
6 months period ended June 30,
|
|
2021
|
2022
|
2022
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
In millions
|
|
|
|
|
Cash generated from operations:
|
|
|
|
Profit for the
period
|
14
|
86
|
25
|
Adjustments for:
|
|
|
|
Depreciation and
amortization
|
345
|
349
|
100
|
Amortization of
deferred expenses - Right of use
|
15
|
15
|
4
|
Employee share based
compensation expenses
|
4
|
12
|
3
|
Liability for employee
rights upon retirement, net
|
5
|
|
|
Finance costs
(income), net
|
(2)
|
(1)
|
*
|
Lease interest
payments
|
9
|
9
|
3
|
Interest
paid
|
42
|
44
|
13
|
Interest
received
|
(1)
|
(2)
|
(1)
|
Deferred income
taxes
|
7
|
12
|
3
|
Income tax
paid
|
1
|
1
|
*
|
Changes in operating
assets and liabilities:
|
|
|
|
Decrease (increase) in
accounts receivable:
|
|
|
|
Trade
|
(31)
|
27
|
8
|
Other
|
15
|
36
|
10
|
Increase (decrease) in
accounts payable and accruals:
|
|
|
|
Trade
|
20
|
(10)
|
(2)
|
Other payables and provisions
|
9
|
(21)
|
(5)
|
Deferred revenues and other
|
(18)
|
(4)
|
(2)
|
Increase in deferred
expenses - Right of use
|
(29)
|
(35)
|
(10)
|
Current income
tax
|
1
|
19
|
5
|
Increase in
inventories
|
(18)
|
(36)
|
(10)
|
Cash generated from operations
|
388
|
501
|
144
|
*
Representing an amount of less than 1 million.
|
At June 30, 2022 and 2021, trade
and other payables include NIS 170
million ($49 million) and
NIS 170 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 period ended
June 30,
|
3 months period ended
June 30,
|
6 months period ended
June 30,
|
3 months period ended
June 30,
|
|
2021
|
2022
|
2021
|
2022
|
2022
|
2022
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
In millions
|
Net cash provided by
operating activities
|
387
|
500
|
179
|
263
|
144
|
76
|
Net cash provided by
(used in) investing
activities
|
(237)
|
(64)
|
(19)
|
162
|
(19)
|
46
|
Investment in
short-term deposits,
net
|
(50)
|
(278)
|
(120)
|
(334)
|
(79)
|
(95)
|
Lease principal
payments
|
(64)
|
(67)
|
(28)
|
(30)
|
(19)
|
(9)
|
Lease interest
payments
|
(9)
|
(9)
|
(4)
|
(4)
|
(3)
|
(1)
|
Adjusted Free Cash
Flow
|
27
|
82
|
8
|
57
|
24
|
17
|
Interest
paid
|
(42)
|
(44)
|
(41)
|
(43)
|
(13)
|
(13)
|
Adjusted Free Cash Flow
After Interest
|
(15)
|
38
|
(33)
|
14
|
11
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses
(OPEX)
|
New Israeli Shekels
|
Convenience translation into
U.S. Dollars
|
|
6 months period ended
June 30,
|
3 months period ended
June 30,
|
6 months period ended
June 30,
|
3 months period ended
June 30,
|
|
2021
|
2022
|
2021
|
2022
|
2022
|
2022
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
In millions
|
Cost of revenues -
Services
|
1,083
|
1,065
|
544
|
531
|
304
|
152
|
Selling and marketing
expenses
|
157
|
175
|
78
|
87
|
50
|
25
|
General and
administrative expenses
|
86
|
75
|
44
|
39
|
21
|
11
|
Depreciation and
amortization
|
(360)
|
(364)
|
(181)
|
(185)
|
(104)
|
(53)
|
Other (1)
|
(1)
|
(5)
|
*
|
(3)
|
(1)
|
(1)
|
OPEX
|
965
|
946
|
485
|
469
|
270
|
134
|
*
Representing an amount of less than 1 million.
|
(1) Mainly
amortization of employee share based compensation and other
adjustments.
|
Key Financial and Operating Indicators
(unaudited) *
NIS M unless otherwise
stated
|
Q1' 20
|
Q2' 20
|
Q3' 20
|
Q4' 20
|
Q1' 21
|
Q2' 21
|
Q3' 21
|
Q4' 21
|
Q1' 22
|
Q2' 22
|
|
2020
|
2021
|
Cellular Segment
Service Revenues
|
423
|
409
|
415
|
416
|
413
|
420
|
435
|
431
|
443
|
457
|
|
1,663
|
1,699
|
Cellular Segment
Equipment Revenues
|
146
|
130
|
134
|
135
|
160
|
157
|
136
|
149
|
142
|
135
|
|
545
|
602
|
Fixed-Line Segment
Service Revenues
|
245
|
244
|
252
|
252
|
260
|
262
|
270
|
274
|
280
|
279
|
|
993
|
1,066
|
Fixed-Line Segment
Equipment Revenues
|
32
|
28
|
35
|
41
|
34
|
34
|
29
|
29
|
22
|
18
|
|
136
|
126
|
Reconciliation for
consolidation
|
(39)
|
(37)
|
(36)
|
(36)
|
(34)
|
(33)
|
(33)
|
(30)
|
(33)
|
(30)
|
|
(148)
|
(130)
|
Total
Revenues
|
807
|
774
|
800
|
808
|
833
|
840
|
837
|
853
|
854
|
859
|
|
3,189
|
3,363
|
Gross Profit from
Equipment Sales
|
37
|
30
|
38
|
40
|
42
|
39
|
37
|
34
|
33
|
28
|
|
145
|
152
|
Operating
Profit
|
36
|
20
|
20
|
20
|
28
|
30
|
49
|
56
|
72
|
85
|
|
96
|
163
|
Cellular Segment
Adjusted EBITDA
|
132
|
129
|
134
|
138
|
143
|
139
|
172
|
162
|
172
|
187
|
|
533
|
616
|
Fixed-Line Segment
Adjusted EBITDA
|
83
|
71
|
70
|
65
|
66
|
74
|
78
|
88
|
85
|
89
|
|
289
|
306
|
Total Adjusted
EBITDA
|
215
|
200
|
204
|
203
|
209
|
213
|
250
|
250
|
257
|
276
|
|
822
|
922
|
Adjusted EBITDA Margin
(%)
|
27 %
|
26 %
|
26 %
|
25 %
|
25 %
|
25 %
|
30 %
|
29 %
|
30 %
|
32 %
|
|
26 %
|
27 %
|
OPEX
|
460
|
456
|
475
|
480
|
481
|
485
|
467
|
469
|
476
|
469
|
|
1,871
|
1,901
|
Finance costs,
net
|
19
|
13
|
24
|
13
|
19
|
16
|
15
|
14
|
18
|
21
|
|
69
|
64
|
Profit
(Loss)
|
10
|
7
|
(5)
|
5
|
5
|
9
|
24
|
77
|
39
|
47
|
|
17
|
115
|
Capital Expenditures
(cash)
|
151
|
119
|
147
|
156
|
149
|
139
|
172
|
212
|
170
|
174
|
|
573
|
672
|
Capital Expenditures
(additions)
|
129
|
121
|
179
|
166
|
142
|
182
|
112
|
244
|
166
|
174
|
|
595
|
680
|
Adjusted Free Cash
Flow
|
10
|
44
|
21
|
(3)
|
19
|
8
|
9
|
(79)
|
25
|
57
|
|
72
|
(43)
|
Adjusted Free Cash Flow
(after interest)
|
8
|
13
|
12
|
(10)
|
18
|
(33)
|
8
|
(84)
|
24
|
14
|
|
23
|
(91)
|
Net Debt
|
673
|
658
|
646
|
657
|
639
|
670
|
662
|
744
|
720
|
706
|
|
657
|
744
|
Cellular Subscriber
Base (Thousands)
|
2,676
|
2,708
|
2,762
|
2,836
|
2,903
|
2,970
|
3,019
|
3,023
|
3,063
|
3,095
|
|
2,836
|
3,023
|
Post-Paid Subscriber
Base (Thousands)
|
2,380
|
2,404
|
2,437
|
2,495
|
2,548
|
2,615
|
2,664
|
2,671
|
2,708
|
2,733
|
|
2,495
|
2,671
|
Pre-Paid Subscriber
Base (Thousands)
|
296
|
304
|
325
|
341
|
355
|
355
|
355
|
352
|
355
|
362
|
|
341
|
352
|
Cellular ARPU
(NIS)
|
53
|
51
|
51
|
49
|
48
|
48
|
48
|
48
|
48
|
49
|
|
51
|
48
|
Cellular Churn Rate
(%)
|
7.5 %
|
7.5 %
|
7.3 %
|
7.2 %
|
6.8 %
|
7.2 %
|
6.4 %
|
7.9 %
|
7.0 %
|
6.7 %
|
|
30 %
|
28 %
|
Infrastructure-Based
Internet Subscribers (Thousands)
|
281
|
295
|
311
|
329
|
339
|
354
|
365
|
374
|
387
|
395
|
|
329
|
374
|
Fiber-Optic Subscribers
(Thousands)
|
87
|
101
|
120
|
139
|
155
|
173
|
192
|
212
|
233
|
250
|
|
139
|
212
|
Homes connected to
fiber-optic infrastructure (Thousands)
|
361
|
396
|
432
|
465
|
514
|
571
|
624
|
700
|
770
|
837
|
|
465
|
700
|
TV Subscriber Base
(Thousands)
|
200
|
215
|
224
|
232
|
234
|
223**
|
226
|
226
|
225
|
224
|
|
232
|
226**
|
Number of Employees
(FTE)
|
1,867
|
2,745
|
2,731
|
2,655
|
2,708
|
2,628
|
2,627
|
2,574
|
2,536
|
2,588
|
|
2,655
|
2,574
|
* See footnote 2
regarding use of non-GAAP measures.
|
** In Q2'21, the
Company removed from its TV subscriber base approximately 21,000
subscribers who had joined at various different times and had
remained in trial periods of over six months without charge or
usage
|
Disclosure for notes holders as of June
30, 2022
Information regarding the notes series issued by the Company, in
million NIS
Series
|
Original
issuance
date
|
Principal on
the date of
issuance
|
As of
30.06.2022
|
Annual interest
rate
|
Principal repayment
dates
|
Interest repayment
dates
|
Interest
linkage
|
Trustee contact
details
|
Principal
book value
|
Linked principal
book value
|
Interest
accumulated
in books
|
Market
value
|
From
|
To
|
|
|
Principal book
value
|
F
(2)
|
20.07.17
12.12.17*
04.12.18*
01.12.19*
|
255
389
150
226.75
|
256
|
256
|
**
|
255
|
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
(1) (2)
|
06.01.19
01.07.19*
28.11.19*
27.02.20*
31.05.20*
01.07.20*
02.07.20*
26.11.20*
31.05.21*
|
225
38.5
86.5
15.1
84.8
12.2
300
62.2
26.5
|
766
|
766
|
**
|
785
|
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.
|
H
(2)
|
26.12.21
|
198.4
|
198
|
198
|
**
|
181
|
2.08 %
|
25.06.25
|
25.06.30
|
25.06
|
Not Linked
|
Hermetic Trust (1975)
Ltd.
Merav Offer. 113
Hayarkon St.,
Tel Aviv. Tel:
03-5544553.
|
(1) In April 2019, the
Company issued in a private placement 2 series of untradeable
option warrants that were 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 were
allotted upon the exercise of an option warrant were identical in
all their rights to the Company's Series G debentures immediately
upon their allotment, and are entitled to any payment of interest
or other benefit, the effective date of which is due after the
allotment date. The debentures that were allotted as a result of
the exercise of option warrants were 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. Following exercise of
option warrants from the first series, the Company issued Series G
Notes in a total principal amount of NIS 225
million. Following exercise of option warrants from the
second series, the Company issued Series G Notes in a total
principal amount of NIS 101 million.
The issuance in May 2021 was the
final exercise of option warrants from the second series.
(2) Regarding Series F Notes, Series G Notes, Series H
Notes and borrowing P, borrowing Q and borrowing R 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
June 30, 2022, the ratio of Net Debt
to Adjusted EBITDA was 0.7. Additional stipulations mainly include:
Shareholders' equity shall not decrease below NIS 400 million and no dividends will be declared
if shareholders' equity will be below NIS
650 million regarding Series F notes, borrowing P and
borrowing Q. Shareholders' equity shall not decrease below
NIS 600 million and no dividends will
be declared if shareholders' equity will be below NIS 750 million regarding Series G notes and
borrowing R. Shareholders' equity shall not decrease below
NIS 700 million and no dividends will
be declared if shareholders' equity will be below NIS 850 million regarding Series H notes. The
Company shall not create floating liens subject to certain terms.
The Company has the right for early redemption under certain
conditions. With respect to notes payable series F, series G and
series H: 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; debt rating will
not decrease below BBB- for a certain period. In any case, the
total maximum additional interest for Series F, Series G and Series
H, shall not exceed 1.25%, 1% or 1.25%, respectively. For more
information see the Company's Annual Report on Form 20-F for the
year ended December 31, 2021.
In the reporting period, the Company was in
compliance with all financial covenants and obligations and no
cause for early repayment occurred.
* 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, 2022 (cont.)
Notes Rating Details*
Series
|
Rating
Company
|
Rating as of
30.06.2022
and 11.08.2022 (1)
|
Rating assigned
upon
issuance of the Series
|
Recent date of rating
as of
30.06.2022 and
11.08.2022
|
Additional ratings
between the original issuance date and the recent date of rating
(2)
|
Date
|
Rating
|
F
|
S&P
Maalot
|
ilA+
|
ilA+
|
08/2022
|
07/2017, 09/2017,
12/2017, 01/2018, 08/2018,
11/2018, 12/2018,
01/2019, 04/2019, 08/2019,
02/2020, 05/2020,
06/2020, 07/2020, 08/2020,
11/2020, 05/2021,
08/2021, 12/2021, 08/2022
|
ilA+, ilA+, ilA+, ilA+,
ilA+,
ilA+, ilA+,
ilA+, ilA+,
ilA+,
ilA+, ilA+,
ilA+, ilA+,
ilA+,
ilA+, ilA+, ilA+,
ilA+, ilA+
|
G
|
S&P
Maalot
|
ilA+
|
ilA+
|
08/2022
|
12/2018, 01/2019,
04/2019, 08/2019, 02/2020,
05/2020, 06/2020,
07/2020, 08/2020, 11/2020,
05/2021, 08/2021,
12/2021, 08/2022
|
ilA+, ilA+, ilA+, ilA+,
ilA+,
ilA+, ilA+, ilA+, ilA+,
ilA+,
ilA+, ilA+,
ilA+, ilA+
|
H
|
S&P
Maalot
|
ilA+
|
ilA+
|
08/2022
|
12/2021,
08/2022
|
ilA+,
ilA+
|
(1) In August 2022, S&P Maalot
reaffirmed the Company's rating of "ilA+/Stable".
(2) For details regarding the rating of the notes see the S&P
Maalot reports dated August 7,
2022.
* 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, 2022
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
|
-
|
212,985
|
-
|
-
|
-
|
40,282
|
Second year
|
-
|
212,985
|
-
|
-
|
-
|
34,191
|
Third year
|
-
|
124,765
|
-
|
-
|
-
|
27,950
|
Fourth year
|
-
|
190,008
|
-
|
-
|
-
|
23,722
|
Fifth year and
on
|
-
|
479,219
|
-
|
-
|
-
|
22,692
|
Total
|
-
|
1,219,962
|
-
|
-
|
-
|
148,837
|
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
|
-
|
37,426
|
-
|
-
|
-
|
4,880
|
Second year
|
-
|
22,760
|
-
|
-
|
-
|
4,187
|
Third year
|
-
|
30,000
|
-
|
-
|
-
|
3,820
|
Fourth year
|
-
|
15,000
|
-
|
-
|
-
|
3,060
|
Fifth year and
on
|
-
|
105,000
|
-
|
-
|
-
|
8,416
|
Total
|
-
|
210,186
|
-
|
-
|
-
|
24,363
|
Summary of Financial Undertakings (according to repayment
dates) as of June 30, 2022
(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
|
-
|
250,411
|
-
|
-
|
-
|
45,162
|
Second year
|
-
|
235,745
|
-
|
-
|
-
|
38,378
|
Third year
|
-
|
154,765
|
-
|
-
|
-
|
31,770
|
Fourth year
|
-
|
205,008
|
-
|
-
|
-
|
26,782
|
Fifth year and
on
|
-
|
584,219
|
-
|
-
|
-
|
31,108
|
Total
|
-
|
1,430,148
|
-
|
-
|
-
|
173,200
|
f. Off-balance sheet credit exposure based on the
Company's "Solo" financial data– As of June
30, 2022, the Company provided financial guarantees in a
total amount of NIS 85
million.
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
- The quarterly financial results are unaudited.
- For the definition of this and other Non-GAAP financial
measures, see "Use of Non-GAAP Financial Measures" in
this press release.
View original
content:https://www.prnewswire.com/news-releases/partner-communications-reports-second-quarter-2022-results1-301604088.html
SOURCE Partner Communications Company Ltd.