Washington, D.C. 20549
information contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
This Form 6-K is incorporated by reference into the Company’s Registration Statements on Form S-8 filed with the Securities and Exchange Commission on December 4, 2002
(Registration No. 333-101652), September 5, 2006 (Registration No. 333-137102), September 11, 2008 (Registration No. 333-153419), August 17, 2015 (Registration No. 333-206420), November 12, 2015 (Registration No. 333-207946), March 14, 2016
(Registration No. 333-210151) and on December 27, 2017 (Registration No. 333-222294), November 21, 2018 (Registration No. 333-228502)
PARTNER COMMUNICATIONS REPORTS
SECOND QUARTER 2022 RESULTS1
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
|
1 The quarterly financial results are unaudited.
2 For the definition of this and other Non-GAAP financial measures, see “Use of Non-GAAP Financial Measures” in this press release.
Rosh Ha’ayin, Israel, August 11, 2022 – Partner Communications Company Ltd. (“Partner” or the “Company”) (NASDAQ and TASE: PTNR), a leading Israeli communications provider, announced today its results for the quarter ended June 30, 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
| |
|
|
|
|
Convenience translation into U.S. Dollars
|
|
| |
|
December 31,
|
|
|
June 30,
|
|
|
June 30,
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
* Representing an amount of less than 1 million.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| |
|
|
|
|
Convenience translation into U.S. Dollars
|
|
| |
|
December 31,
|
|
|
June 30,
|
|
|
June 30,
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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,
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
In millions (except per share data)
|
|
|
Revenues, net
|
|
|
1,673
|
|
|
|
1,713
|
|
|
|
840
|
|
|
|
859
|
|
|
|
489
|
|
|
|
245
|
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
58
|
|
|
|
157
|
|
|
|
30
|
|
|
|
85
|
|
|
|
45
|
|
|
|
24
|
|
|
Finance income
|
|
|
3
|
|
|
|
3
|
|
|
|
2
|
|
|
|
2
|
|
|
|
1
|
|
|
|
1
|
|
|
Finance expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance costs, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax
|
|
|
23
|
|
|
|
118
|
|
|
|
14
|
|
|
|
64
|
|
|
|
34
|
|
|
|
18
|
|
|
Income tax expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
| |
|
|
|
|
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,
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Profit for the period
|
|
|
14
|
|
|
|
86
|
|
|
|
9
|
|
|
|
47
|
|
|
|
25
|
|
|
|
13
|
|
|
Other comprehensive income (loss)
for the period, net of income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Representing an amount of less than 1 million.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM SEGMENT INFORMATION & ADJUSTED EBITDA RECONCILIATION
| |
|
|
|
|
|
|
| |
|
6 months period ended June 30, 2022
|
|
|
6 months period ended June 30, 2021
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue - Services
|
|
|
894
|
|
|
|
502
|
|
|
|
|
|
|
1,396
|
|
|
|
826
|
|
|
|
462
|
|
|
|
|
|
|
1,288
|
|
|
Inter-segment revenue - Services
|
|
|
6
|
|
|
|
57
|
|
|
|
(63
|
)
|
|
|
|
|
|
|
7
|
|
|
|
60
|
|
|
|
(67
|
)
|
|
|
|
|
|
Segment revenue - Equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (3)
|
|
|
152
|
|
|
|
98
|
|
|
|
|
|
|
|
250
|
|
|
|
145
|
|
|
|
98
|
|
|
|
|
|
|
|
243
|
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to presentation of segment
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
–Depreciation and amortization
|
|
|
198
|
|
|
|
166
|
|
|
|
|
|
|
|
|
|
|
|
205
|
|
|
|
155
|
|
|
|
|
|
|
|
|
|
|
–Other (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
| |
|
|
|
|
|
|
| |
|
3 months period ended June 30, 2022
|
|
|
3 months period ended June 30, 2021
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue - Services
|
|
|
454
|
|
|
|
252
|
|
|
|
|
|
|
706
|
|
|
|
417
|
|
|
|
232
|
|
|
|
|
|
|
649
|
|
|
Inter-segment revenue - Services
|
|
|
3
|
|
|
|
27
|
|
|
|
(30
|
)
|
|
|
|
|
|
|
3
|
|
|
|
30
|
|
|
|
(33
|
)
|
|
|
|
|
|
Segment revenue - Equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (3)
|
|
|
78
|
|
|
|
48
|
|
|
|
|
|
|
|
126
|
|
|
|
74
|
|
|
|
48
|
|
|
|
|
|
|
|
122
|
|
|
Other income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to presentation of segment
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
–Depreciation and amortization
|
|
|
101
|
|
|
|
84
|
|
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|
79
|
|
|
|
|
|
|
|
|
|
|
–Other (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted EBITDA (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
| |
|
|
|
|
Convenience translation into
U.S. Dollars
(note 2a)
|
|
| |
|
6 months period ended June 30,
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations (Appendix)
|
|
|
388
|
|
|
|
501
|
|
|
|
144
|
|
|
Income tax paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(96
|
)
|
|
|
76
|
|
|
|
22
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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
| |
|
|
|
|
Convenience translation into
U.S. Dollars
(note 2a)
|
|
| |
|
6 months period ended June 30,
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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,
|
|
|
|
|
|
3 months period ended
June 30,
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Free Cash Flow After Interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
3 months period ended
June 30,
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPEX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 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.
|