NETANYA, Israel, Aug. 16, 2018 /PRNewswire/ --
Nir Sztern, Cellcom
Israel's CEO said:
- "This quarter concluded with a loss, due to several
specific events which burdened the Company's expenses, primarily a
retirement of approximately 200 employees, which resulted in an
expense of approximately NIS 26
million. The positive effect of reduction of the Company's
expenses, shall be seen from the next quarter
- Despite the fierce competition, the Company succeeded to
maintain the revenue level as compared with the first quarter of
2018, with total revenues of NIS 927
million in this quarter, compared to NIS 933 million in the first quarter (a decrease
of approximately 0.6%), among others, through a successful
marketing of the quatro packages
- Entering into the MOU for an investment in IBC, which we
recently announced, is of strategic significance to Cellcom Israel
and a ground breaking event in the field of internet services in
Israel. The cooperation between
the companies will allow offering fast and advanced internet
services over fiber-optic infrastructure also in the periphery of
Israel and to a wide population of
approximately one million households, within several
years"
Second Quarter 2018 Highlights (compared to second quarter
of 2017):
- Total Revenues totaled NIS 927
million ($254 million)
compared to NIS 962 million
($264 million) in the second quarter
last year, a decrease of 3.6%
- Service revenues totaled NIS 694
million ($190 million)
compared to NIS 731 million
($200 million) in the second quarter
last year, a decrease of 5.1%
- Operating loss totaled NIS 12
million ($3 million) compared
to operating income of NIS 102
million ($28 million) in the
second quarter last year. Operating loss for the second quarter of
2018, includes an expense for a new employee voluntary retirement
plan in the amount of approximately NIS 26
million ($7 million)
- Loss totaled NIS 37
million ($10 million) compared
to net income of NIS 45 million
($12 million) in the second quarter
last year
- EBITDA1 totaled NIS
133 million ($36 million)
compared to NIS 237 million
($65 million) in the second quarter
last year, a decrease of 43.9%. EBITDA for the second quarter of
2018, includes an expense for a new employee voluntary retirement
plan in the amount of approximately NIS 26
million ($7 million)
- Net cash from operating activities totaled NIS 179 million ($49
million) compared to NIS 278
million ($76 million) in the
second quarter last year, a decrease of 35.6%
- Free cash flow1 totaled NIS 56 million ($15
million) compared to NIS 77
million ($21 million) in the
second quarter last year, a decrease of 27.3%
[1]
|
Please see "Use of
Non-IFRS financial measures" section in this press
release.
|
Nir Sztern, the Company's
Chief Executive Officer, referred to the results of the second
quarter of 2018:
"This quarter concluded with a loss, due to several specific
events which burdened the Company's expenses, primarily a
retirement of approximately 200 employees, which resulted in an
expense of approximately NIS 26
million. The positive effect of reduction of the Company's
expenses, shall be seen from the next quarter.
Despite the fierce competition, the Company succeeded to
maintain the revenue level as compared with the first quarter of
2018, with total revenues of NIS 927
million in this quarter, compared to NIS 933 million in the first quarter (a decrease
of approximately 0.6%), among others, through a successful
marketing of the quatro packages.
We are pleased to have signed a memorandum of understanding
(MOU) with IBC, IEC and other IBC shareholders and stakeholders of
IBC, for an investment of Cellcom Israel in IBC.
Entering into the MOU, is of strategic significance to Cellcom
Israel and a ground breaking event in the field of internet
services in Israel. The
cooperation between the companies will allow offering fast and
advanced internet services over fiber-optic infrastructure also in
the periphery of Israel and to a
wide population of approximately one million households, within
several years.
We expect that our investment in IBC will place us in a
significant competitive position in the advanced fixed-line
infrastructure (fiber-optic) market as well, and will allow us, if
the transaction is completed, significant savings in payments to
Bezeq for Internet infrastructure, an ability to offer our
customers new and advanced services and furthers our activities in
the landline market.
The continued competition in the cellular segment is reflected
in the current quarter as well, with revenues from services in the
cellular sector declining by approximately 9.8% compared with the
corresponding quarter last year, mainly due to the continued price
erosion of those services as a result of the competition in the
cellular market. Alongside the ongoing competition in the cellular
segment, revenues from services in the fixed-line segment increased
by 2.7% compared with the corresponding quarter last year.
The TV revolution that we have brought to the Israeli television
market is evident; we are the leading player in the 'new
television' services over the internet, with more than 200,000
households (as of today), thanks to the continued trust from our
customers each quarter. A quality, innovative and enjoyable viewing
experience, has made Cellcom tv, which is also offered through
triple and quad-play packages, what it is - the best television
service in Israel.
We continue to offer our customers rich and varied content and
at the end of the second quarter, we launched our first original TV
series: Mashiach, exclusively for our customers, in cooperation
with Keshet Studios and starring Israeli actor Udi Kagan. In only a month since it was aired,
the series has enjoyed unprecedented popularity, achieving over one
million views by our customers.
Our success in the television market received further
recognition as we won the prestigious Platinum Award at the Effie
Awards, an international competition across 40 countries including
Israel, for the significant change
we have brought to the Israeli television market.
In the second quarter, we implemented a significant streamlining
and voluntary retirement program covering more than 200 employees,
alongside a renewal of the collective agreement with the employees'
representatives and the Histadrut until the end of 2020."
Shlomi Fruhling, Chief
Financial Officer, said:
"During the second quarter of 2018, the increased competition in
the cellular market continued, among others due to Xfone's entry
into the market as an additional cellular operator, which was
reflected in an increase in customers transferring between
operators over a short period, and a further decline in prices in
the market. As a result, we experienced a continued decline in
revenues from cellular services compared with the previous quarter,
which was partly compensated by an increase in revenues from
cellular services abroad and revenues from the network sharing
agreement with Xfone.
Revenues from services in the fixed-line segment continued to
grow due to recruitment of subscribers for television and internet
services. The growth in these revenues was partially offset by a
decrease in revenues from international call services.
Revenues from end-user equipment of the Company were similar to
those of the previous quarter, but there was a change in the sales
mix, which included growth in the fixed-line segment, mainly from
the sale of television screens and solutions to business customers,
and a decline in sales in the cellular segment. This change in mix
slightly eroded the profit margins from end-user equipment compared
to the previous quarter.
The EBITDA of the Company was negatively affected this quarter
also by an expense of NIS 26 million
for a voluntary retirement plan of employees, while we expect the
savings in associated salary costs to be seen gradually from the
third quarter of this year, from settling accounts differences in
relation to the Company's network sharing agreement with Golan, and
an update in provisions for legal proceedings.
Free cash flow in the second quarter of 2018 was NIS 56 million, a decrease of 27.3% compared with
the corresponding period last year. The decrease in free cash flow
was mainly due to an increase in payments to end user equipment
suppliers in the cellular segment, which was partially offset by an
increase in receipts from international operators. The second
quarter cash flow does not include the cost of the voluntary
retirement program that is expected to be paid out during the third
quarter.
During the quarter, the Company issued ordinary shares and
options, for an immediate net proceeds of NIS 275 million. The proceeds from the issuance
will be used for general purposes and to strengthen the Company's
balance sheet.
The Company's Board of Directors decided not to distribute
dividends for the second quarter of 2018, in view of the continued
intensified competition in the market and its negative impact on
the Company's operating results and in order to continue to
strengthen the Company's balance sheet. The Board of Directors will
review its decision in accordance with the development of market
conditions and taking into account the Company's needs."
Cellcom Israel Ltd. (NYSE: CEL; TASE: CEL) ("Cellcom Israel" or
the "Company" or the "Group") announced today its financial
results for the second quarter of 2018.
The Company reported that revenues for the second quarter of
2018 totaled NIS 927 million
($254 million); EBITDA for the second
quarter of 2018 totaled NIS 133
million ($36 million), or
14.3% of total revenues; loss for the second quarter of 2018
totaled NIS 37 million ($10 million). Basic loss per share for the second
quarter of 2018 totaled NIS 0.36
($0.10).
Main Consolidated Financial Results:
|
Q2/2018
|
Q2/2017
|
Change%
|
Q2/2018
|
Q2/2017
|
|
NIS
million
|
US$
million
(convenience
translation)
|
Total
revenues
|
927
|
962
|
(3.6)%
|
254
|
264
|
Operating Income
(loss)
|
(12)
|
102
|
N/A
|
(3)
|
28
|
Net Income
(loss)
|
(37)
|
45
|
N/A
|
(10)
|
12
|
Free cash
flow
|
56
|
77
|
(27.3)%
|
15
|
21
|
EBITDA
|
133
|
237
|
(43.9)%
|
36
|
65
|
EBITDA, as percent of
total revenues
|
14.3%
|
24.6%
|
(41.9)%
|
|
|
Main Financial Data by Operating Segments:
|
Cellular
(*)
|
Fixed-line
(**)
|
Consolidation
adjustments (***)
|
Consolidated
results
|
NIS
million
|
Q2'18
|
Q2'17
|
Change
%
|
Q2'18
|
Q2'17
|
Change
%
|
Q2'18
|
Q2'17
|
Q2'18
|
Q2'17
|
Change
%
|
Total
revenues
|
591
|
673
|
(12.2)%
|
376
|
331
|
13.6%
|
(40)
|
(42)
|
927
|
962
|
(3.6)%
|
Service
revenues
|
434
|
481
|
(9.8)%
|
300
|
292
|
2.7%
|
(40)
|
(42)
|
694
|
731
|
(5.1)%
|
Equipment
revenues
|
157
|
192
|
(18.2)%
|
76
|
39
|
94.9%
|
-
|
-
|
233
|
231
|
0.9%
|
EBITDA
|
71
|
158
|
(55.1)%
|
62
|
79
|
(21.5)%
|
-
|
-
|
133
|
237
|
(43.9)%
|
EBITDA, as
percent of total
revenues
|
12.0%
|
23.5%
|
(48.9)%
|
16.5%
|
23.9%
|
(31.0)%
|
|
|
14.3%
|
24.6%
|
(41.9)%
|
|
(*) The segment
includes the cellular communications services, end user cellular
equipment and supplemental
services.
|
(**) The segment
includes landline telephony services, internet services, television
services, transmission services,
end user fixed-line equipment and supplemental services.
|
(***) Include
cancellation of inter-segment revenues between "Cellular" and
"Fixed-line" segments.
|
Financial Review (second quarter of 2018 compared to second
quarter of 2017):
Revenues for the second quarter of 2018 decreased 3.6%
totaling NIS 927 million
($254 million), compared to
NIS 962 million ($264 million) in the second quarter last year.
The decrease in revenues is attributed to a 5.1% decrease in
service revenues, which was partially offset by a 0.9% increase in
equipment revenues.
Service revenues totaled NIS 694
million ($190 million) in the
second quarter of 2018, a 5.1% decrease from NIS 731 million ($200
million) in the second quarter last year.
Service revenues in the cellular segment totaled
NIS 434 million ($119 million) in the second quarter of 2018, a
9.8% decrease from NIS 481 million
($132 million) in the second quarter
last year. This decrease resulted mainly from the ongoing erosion
in the prices of these services as a result of the competition in
the cellular market.
Service revenues in the fixed-line segment totaled
NIS 300 million ($82 million) in the second quarter of 2018, a
2.7% increase from NIS 292 million
($80 million) in the second quarter
last year. The increase resulted mainly from an increase in
revenues from internet and TV services. This increase was
partially offset by a decrease in revenues from international
calling services.
Equipment revenues totaled NIS 233
million ($64 million) in the
second quarter of 2018, a 0.9% increase compared to NIS 231 million ($63
million) in the second quarter last year. The increase
resulted mainly from an increase in equipment sales in the
fixed-line segment. This increase was partially offset by a
decrease in the amount of end user equipment sold in the cellular
segment.
Cost of revenues for the second quarter of 2018 totaled
NIS 675 million ($185 million), compared to NIS 665 million ($182
million) in the second quarter of 2017, a 1.5% increase.
This increase resulted mainly from an increase in the amount of end
user equipment sold in the fixed-line segment, from an increase in
costs of TV services content in the fixed-line segment, from
settling accounts differences in respect of the Company's network
sharing agreement with Golan and from an update in provisions for
legal proceedings, which were partially offset by a decrease in
depreciation expenses and a decrease in costs of extended warranty
services for end user equipment.
Gross profit for the second quarter of 2018 decreased
15.2% to NIS 252 million
($69 million), compared to
NIS 297 million ($81 million) in the second quarter of 2017. Gross
profit margin for the second quarter of 2018 amounted to
27.2%, down from 30.9% in the second quarter of 2017.
Selling, Marketing, General and Administrative Expenses
("SG&A Expenses") for the second quarter of 2018 increased
15.0% to NIS 238 million
($65 million), compared to
NIS 207 million ($57 million) in the second quarter of 2017. This
increase is primarily a result of an increase in amortization
expenses of salaries and commissions expenses which were
capitalized as part of the customer acquisition costs, as a result
of early adoption of an International Financial Reporting Standard
(IFRS 15) as of the first quarter of 2017 (the "Adoption of
IFRS15"), as well as from an increase in doubtful accounts
expenses.
Other expenses for the second quarter of 2018 totaled
NIS 26 million ($7 million), compared with other income of
NIS 12 million ($3 million) in the second quarter of 2017. Other
expenses for the second quarter of 2018 mainly include an expense
for employee voluntary retirement plan in the amount of
approximately NIS 26 million
($7 million), compared to an income
in the second quarter of 2017, which mainly included a gain from
the sale of Internet Rimon Israel 2009 Ltd. ("Internet Rimon"), an
indirect subsidiary of the Company, in the amount of approximately
NIS 10 million ($3 million) (the "Sale of Internet Rimon").
Operating loss for the second quarter of 2018 totaled
NIS 12 million ($3 million), compared with operating income of
NIS 102 million ($28 million) in the second quarter of 2017.
EBITDA for the second quarter of 2018 decreased by 43.9%
totaling NIS 133 million
($36 million) compared to
NIS 237 million ($65 million) in the second quarter of 2017.
EBITDA as a percent of revenues for the second quarter of 2018
totaled 14.3%, down from 24.6% in the second quarter of 2017.
Cellular segment EBITDA for the second quarter of 2018 totaled
NIS 71 million ($19 million), compared to NIS 158 million ($43
million) in the second quarter last year, a decrease of
55.1%, which resulted mainly from the ongoing erosion in the
service revenues, from an expense for employee voluntary retirement
plan in the second quarter of 2018, from settling accounts
differences in respect of the Company's network sharing agreement
with Golan and from an update in provisions for legal
proceedings.
Fixed-line segment EBITDA for the second quarter of 2018 totaled
NIS 62 million ($17 million), compared to NIS 79 million ($22
million) in the second quarter last year, a 21.5% decrease,
which resulted mainly from an expense for employee voluntary
retirement plan in the second quarter of 2018, as well as from a
gain from the Sale of Internet Rimon in the second quarter last
year. This decrease was partially offset by an increase in activity
in the internet and TV fields.
Financing expenses, net for the second quarter of 2018
totaled NIS 36 million ($10 million), compared with NIS 44 million ($12
million) in the second quarter of 2017, a decrease of 18.2%,
which resulted mainly from a decrease in the Company's debt
level.
Taxes on income for the second quarter of 2018 totaled
NIS 11 million ($3 million) of tax income, compared to
NIS 13 million ($4 million) of tax expenses in the second quarter
of 2017. Tax income resulted mainly from loss for tax purposes in
the second quarter of 2018, compared to taxable income in the
second quarter last year.
Loss for the second quarter of 2018 totaled NIS 37 million ($10
million), compared with net income of NIS 45 million ($12
million) in the second quarter of 2017.
Basic loss per share for the second quarter of 2018
totaled NIS 0.36 ($0.10), compared to basic earnings per share of
NIS 0.45 ($0.12) in the second quarter last year.
OPERATING REVIEW
Main Performance Indicators - Cellular
segment:
|
Q2/2018
|
Q2/2017
|
Change
(%)
|
Cellular subscribers
at the end
of period (in thousands)
|
2,809
|
2,779
|
1.1%
|
Churn Rate for
cellular
subscribers (in %)
|
12.6%
|
10.8%
|
16.7%
|
Monthly cellular ARPU
(in NIS)
|
51.8
|
57.0
|
(9.1)%
|
Cellular subscriber base - at the end of the second
quarter of 2018 the Company had approximately 2.809 million
cellular subscribers. During the second quarter of 2018, the
Company's cellular subscriber base decreased by approximately
13,000 net cellular subscribers. This decrease resulted mainly from
the removal M2M subscribers from the Company's cellular subscriber
base, according to the Company's active cellular subscriber
calculation method.
Cellular Churn Rate for the second quarter of 2018
totaled to 12.6%, compared to 10.8% in the second quarter last
year.
The monthly cellular Average Revenue per User ("ARPU")
for the second quarter of 2018 totaled NIS
51.8 ($14.2), compared to
NIS 57.0 ($15.6) in the second quarter last year. The
decrease in ARPU resulted mainly from the ongoing erosion in the
prices of cellular services, resulting from the intense competition
in the cellular market.
Main Performance Indicators - Fixed-line segment:
|
Q2/2018
|
Q2/2017
|
Change
(%)
|
Internet
infrastructure field
subscribers - (households) at
the end of period (in thousands)
|
248
|
189
|
31.2%
|
TV field
subscribers -
(households) at the end of
period (in thousands)
|
195
|
137
|
42.3%
|
In the second quarter of 2018, the Company's subscriber base in
the internet infrastructure field increased by approximately 13,000
net households, and the Company's subscriber base in the TV field
increased by 11,000 net households.
FINANCING AND INVESTMENT REVIEW
Cash Flow
Free cash flow for the second quarter of 2018 totaled
NIS 56 million ($15 million), compared to NIS 77 million ($21
million) in the second quarter of 2017, a 27.3% decrease.
The decrease in free cash flow resulted mainly from an increase in
payments to end user equipment suppliers in the cellular segment,
which was partially offset by an increase in receipts from
international operators.
Total Equity
Total Equity as of June 30, 2018
amounted to NIS 1,653 million
($453 million) primarily consisting
of undistributed accumulated retained earnings of the Company.
For information regarding an equity offering executed in the
second quarter of 2018, see "Other Developments During the Second
Quarter of 2018 and Subsequent to the End of the Reporting Period -
Equity Offering and Controlling Shareholder Holdings" section in
this press release.
Cash Capital Expenditures in Fixed Assets and Intangible
Assets and others
During the second quarter of 2018, the Company invested
NIS 131 million ($36 million) in fixed assets and intangible
assets and others (including, among others, investments in the
Company's communications networks, information systems, software
and TV set-top boxes and capitalization of part of the customer
acquisition costs as a result of the adoption of IFRS 15), compared
to NIS 191 million ($52 million) in the second quarter 2017.
Dividend
On August 15 2018, the Company's
Board of Directors decided not to declare a cash dividend for the
second quarter of 2018. In making its decision, the board of
directors considered the Company's dividend policy and business
status and decided not to distribute a dividend at this time, given
the intensified competition and its adverse effect on the Company's
results of operations, and in order to strengthen the Company's
balance sheet. The board of directors will re-evaluate its decision
in future quarters. No future dividend declaration is guaranteed
and is subject to the Company's board of directors' sole
discretion, as detailed in the Company's annual report for the year
ended December 31, 2017 on Form 20-F
dated March 26, 2018, or the 2017
Annual Report, under "Item 8 - Financial Information – A.
Consolidated Statements and Other Financial Information - Dividend
Policy".
Debentures, Material Loans and Financial Liabilities
According to the Company's June
2017 undertaking in an agreement with certain Israeli
institutional investors for the issuance of NIS 220 million principal amount of additional
series K debentures from the Company's existing series K
debentures, on July 1, 2018, the
Company issued the additional debentures as aforesaid.
For information regarding the Company's outstanding debentures
as of June 30, 2018, see "Disclosure
for Debenture Holders" section in this press release.
For information regarding the Company's material loans as of
June 30, 2018, see "Aggregation of
the Information regarding the Company's Material Loans" section in
this press release.
For a summary of the Company's financial liabilities as of
June 30, 2018, see "Disclosure for
Debenture Holders" section in this press release.
OTHER DEVELOPMENTS DURING THE SECOND QUARTER OF 2018 AND
SUBSEQUENT TO THE END OF THE REPORTING PERIOD
Investment in IBC
In August 2018, following the
Company's previous reports regarding a possible investment in
Israel Broadband Company, or IBC,
the Company, the Israeli Electric Company, or IEC, IBC and the
other shareholders and main creditors of IBC have entered a
memorandum of understanding, or MOU, for an investment by the
Company in IBC. IBC's licenses provide IBC the exclusive right to
deploy fiber optic over IEC's infrastructure.
The MOU outlines the principles of the transaction contemplated
by the parties and in addition to standard and customary conditions
contains the following stipulations:
- The Transaction: for a total amount of approximately
NIS 100 million, or the
Consideration, Cellcom Israel (by itself or with a group of
investors it may arrange) will own 70% of IBC's issued and
outstanding share capital and the other 30% of IBC's issued and
outstanding share capital will be owned by IEC. The Consideration
shall be used to settle generally all of IBC's debts.
- The transaction is subject to entering a definitive agreement
and certain other documentation (including an updated agreement of
IBC with IEC and an IRU broadband service agreement between Cellcom
and IBC), or the Agreement, within a certain period from the MOU
execution.
- The MOU also contains certain precedent conditions to the
closing of the transaction, including regulatory approvals
(including with regards to the change of IBC's deployment
obligations) and tax arrangements.
The terms of the Agreement are subject to further negotiations
between the parties and approval of the Company's Board of
Directors. If entered, the execution of the transaction will be
subject to the said conditions, including regulatory approvals.
There is no assurance that the parties will enter the Agreement, or
that such Agreement will be approved and executed, nor as to its
timing and terms.
Further, in August 2018, the
Minister of Communication, or MOC, resolved to allow IBC to apply
for a general unique (infrastructure) license the MOC intends to
regulate, in lieu of its current license. The new license will
include, among others, a deployment requirement to at least 40% of
Israel's households in 10 years
from receipt of the license, as opposed to a universal deployment
requirement in IBC's current license.
For additional details see the Company's 2017 Annual Report
under "Item 3. Key Information – D. Risk factors – Risks related to
our business - We face intense competition in all aspects of our
business", "- Our investment in new businesses involves many risks"
and "Item 4. Information on the Company –B. Business Overview –
Competition – Fixed-Line Segment- Fixed-Line Infrastructure" and
the Company's current report on form 6-K dated August 8, 2018.
Forward looking statement
The information included in this press release contains, or may
be deemed to contain, forward-looking statements (as defined in the
U.S. Private Securities Litigation Reform Act of 1995 and the
Israeli Securities Law, 1968). Said forward-looking statements,
relating to the potential transaction and execution thereof and the
benefits therefrom, and objectives for fiber-optic deployment, are
subject to uncertainties and assumptions about the completion of
the negotiations, approval of the transaction by the Company's
board of directors, the completion of the precedent conditions
including the receipt of the necessary approvals, the ability
to carry out future plans as to IBC and the Company's, and the
Israeli telecommunication regulation and market condition. The
actual conditions the Company may face could lead to materially
different outcome than that set forth above.
Regulation
Frequencies
In July 2018, following the
Company's previous reports regarding a frequencies migration the
Company shall be required to execute to accord to European
standards, the Ministry of Communications, or MOC, notified the
Company that its 850MHZ frequencies allocation shall expire on
February 1, 2022 and replaced by
900MHZ frequencies no later than March 22,
2021. The method and schedule in which such replacement will
be executed, including interim frequencies allocations as required,
shall be formed separately. The MOC noted the Company may use an
interim leniency to the Planning and Building Law, allowing, under
certain conditions, replacement of cell sites without obtaining a
building permit. The Company is examining the implications of the
MOC's notification and possible courses of action.
For additional details see the Company's 2017 Annual Report
under "Item 3. Key Information – D. Risk factors – Risks related to
our business - We operate in a heavily regulated industry, which
can harm our results of operations, Regulation in Israel has materially adversely affected our
results", "- We may not be able to obtain permits to construct and
operate cell sites" and "-We may be adversely affected by
significant technological and other changes in the
telecommunications industry" and "Item 4. Information on the
Company –B. Business Overview – Network and Infrastructure –
Cellular Segment- Cellular Infrastructure - Spectrum allocation"
and "- Government Regulation – Cellular Segment - Permits for Cell
Site Construction" and the Company's current report on Form 6-K
dated July 5, 2018.
TV
In July 2018, a new bill for the
regulation of broadcasting was published and includes
classification of audio visual providers into four categories and
determination of the regulation applied to each, which according to
the Company's estimate does not materially change the regulation
that shall apply to the Company in the coming years.
The legislation of the bill requires legislative proceedings in
the Israeli parliament, which may include material changes to the
bill. If the legislation adopted requires the Company to make
additional investments or impose unfavorable regulation on the
Company's OTT TV service, or apply such regulation to the Company
and not to other OTT TV providers, it may adversely affect the
Company's OTT TV business.
For additional details see the Company's 2017 Annual Report
under "Item 3. Key Information – D. Risk Factors – We operate in a
heavily regulated industry, which can harm our results of
operations. Regulation in Israel
has materially adversely affected our results" and "– Item 4.
Information on the Company – B. Business Overview – Government
Regulations ― Fixed-line Segment – OTT TV".
Call Centers Manner of Response
In July 2019, an amendment to the
Israeli Consumer Protection Law regulating the manner of response
of call centers, will come into effect. The amendment includes
measurable parameters for response times, which are partly
incompatible with a recently reported similar amendment to the
Groups' licenses. The Company is studying the amendment and at this
stage cannot estimate the amendment's effect on its results of
operations.
For additional details see the Company's 2017 Annual Report
under "Item 3. Key Information – D. Risk Factors – Risks Related to
our Business – We operate in a heavily regulated industry, which
can harm our results of operations. Regulation in Israel has materially adversely affected our
results" and "Item 4. Information on The Company – B. Business
Overview – Government Regulations – Cellular Segment - Our Cellular
License" and the Company's current report on form 6-K dated
May 30, 2018 under " Other
developments during the first quarter of 2018 and subsequent to the
end of the reporting period – Regulation".
Wholesale Landline Telephony Services
In June 2018, the MOC resolved not
to prolong Bezeq's temporary alternative for its obligation to
provide wholesale landline telephony services (the resale telephony
services) after the lapse of the temporary alternative period and
to obligate Bezeq to provide wholesale landline telephony services
as of August 1, 2018. As of the date
of this report, Bezeq does not provide the wholesale landline
telephony services.
For additional details see the Company's 2017 Annual Report
under "Item 4. Information on The Company – B. Business Overview –
Government Regulations – Fixed-line Segment – Wholesale landline
market".
Equity Offering and Controlling Shareholder Holdings
In June 2018, The Company issued
in an offering to the public in Israel only:
- 12,121,200 ordinary shares of the Company (par value
NIS 0.01 per share, or ordinary
shares).
- 3,030,300 Series 1 Options. Each Series 1 Option entitles the
holder thereof to purchase one ordinary share at an exercise price
of NIS 19.50, until December 24, 2018.
- and 3,030,300 Series 2 Options. Each Series 2 Option entitles
the holder thereof to purchase one ordinary share at an exercise
price of NIS 20, until June 24, 2019.
The offering was made in Israel
only under the Company's Israeli 2017 shelf prospectus and the
securities were registered for trading on the Tel Aviv Stock
Exchange.
The total net consideration received by the Company from the
offering was approximately NIS 275
million.
The Company intends to use the net proceeds from the offering
for general corporate purposes, which may include financing its
operating and investment activity, payment of outstanding debt
under its debentures and other credit facilities, and dividend
distributions, subject to certain restrictions that apply to
dividend distributions made by the Company and to the decisions of
the Company's board of directors from time to time.
In addition, the Company's controlling shareholder announced
that following the completion of a swap transaction of the
Company's controlling shareholder with a financial institution, it
purchased an additional approximately 1.1% of the Company's pre
offering issued and outstanding share capital, for a period of 90
days (at the end of which it will be obligated to sell back such
swap shares).
Following such transaction and the participation of the
Company's controlling shareholder in the offering, after the
closing of the offering, the Company's controlling shareholder
holds approximately 44.2% of the Company's issued and outstanding
share capital and approximately 47.2% of the Company's voting
rights (directly and indirectly and through agreements with other
shareholders of the
Company).
The offering described in this press release was made only
in Israel and only to residents of
Israel. The said securities were
not registered under the U.S. Securities Act of 1933 and were not
offered or sold in the United
States or to U.S. persons. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy any securities.
For additional details see the Company's 2017 Annual Report
under "Item 7. Major Shareholders and related party transactions –
A. Major Shareholders" and the Company's current reports on Form
6-K dated June 21, 25, 26 and 27,
2018.
Collective Employment Agreement and Employee Voluntary
Retirement Plan
In July 2018, the Company entered
a new collective employment agreement with its employees'
representatives and the Histadrut (an Israeli union labor) for a
three year period until the end of 2020, which is similar to the
Company's previous collective employment agreement (which expired
at the end of 2017) and includes certain nonmaterial additions. The
labor dispute announced in March 2018
by the Histadrut, was cancelled.
In addition, in May 2018, the
Group, in collaboration with the employees representatives,
launched a new voluntary retirement plan for employees, following
which, the Company recorded an expense in an amount of
approximately NIS 26 million in the
second quarter of 2018 with respect to employees who joined the
plan.
For additional details including regarding the Company's
previous collective employment agreement see the Company's 2017
Annual Report under "Item 3. Key Information – D. Risk Factors –
Risks Related to our Business – The unionizing of our employees may
prevent us from executing necessary organizational and personnel
changes, result in increased costs or disruption to our operation"
and "Item 6. Directors, senior management and employees – D.
Employees" and the Company's current report on form 6-K dated
May 30, 2018 under " Other
developments during the first quarter of 2018 and subsequent to the
end of the reporting period - Negotiations regarding Collective
Employment Agreement and Voluntary Retirement Plan".
Purchase of Minority Holdings in Subsidiary
In July 2018, following an
exercise of an option of minority shareholders in an indirect
subsidiary of the Company to sell the minority shares to the
Company's subsidiary, the Company's subsidiary purchased 40% of the
issued and outstanding share capital of the said indirect
subsidiary for an amount of NIS 19
million.
CONFERENCE CALL DETAILS
The Company will be hosting a conference call regarding its
results for the second quarter of 2018 on Thursday, August 16, 2018 at 09:00 am ET, 06:00 am
PT, 14:00 UK time, 16:00 Israel time. On the call, management will
review and discuss the results, and will be available to answer
questions. To participate, please either access the live webcast on
the Company's website, or call one of the following
teleconferencing numbers below. Please begin placing your calls at
least 10 minutes before the conference call commences. If you are
unable to connect using the toll-free numbers, please try the
international dial-in number.
US Dial-in Number:
1-888-668-9141
|
UK Dial-in Number:
0-800-917-5108
|
Israel Dial-in
Number:
03-918-0610
|
International Dial-in
Number: +972-3-918-0610
|
at: 09:00 am Eastern
Time; 06:00 am Pacific Time; 14:00 UK Time; 16:00 Israel
Time
|
To access the live webcast of the conference call, please
access the investor relations section of Cellcom Israel's website:
www.cellcom.co.il. After the call, a replay of the call will
be available under the same investor relations section.
About Cellcom Israel
Cellcom Israel Ltd., established in 1994, is a leading Israeli
communications group, providing a wide range of communications
services. Cellcom Israel is the largest Israeli cellular provider,
providing its approximately 2.809 million cellular subscribers (as
at June 30, 2018) with a broad range
of services including cellular telephony, roaming services for
tourists in Israel and for its
subscribers abroad, text and multimedia messaging, advanced
cellular content and data services and other value-added services
in the areas of music, video, mobile office etc., based on Cellcom
Israel's technologically advanced infrastructure. The Company
operates an LTE 4 generation network and an HSPA 3.5 Generation
network enabling advanced high speed broadband multimedia services,
in addition to GSM/GPRS/EDGE networks. Cellcom Israel offers
Israel's broadest and largest
customer service infrastructure including telephone customer
service centers, retail stores, and service and sale centers,
distributed nationwide. Cellcom Israel further provides OTT TV
services (as of December 2014),
internet infrastructure (as of February
2015) and connectivity services and international calling
services, as well as landline telephone services in Israel. Cellcom Israel's shares are traded
both on the New York Stock Exchange (CEL) and the Tel Aviv Stock
Exchange (CEL). For additional information please visit the
Company's website http://investors.cellcom.co.il.
Forward-Looking Statements
The following information contains, or may be deemed to contain
forward-looking statements (as defined in the U.S. Private
Securities Litigation Reform Act of 1995 and the Israeli Securities
Law, 1968). In some cases, you can identify these statements by
forward-looking words such as "may," "might," "will," "should,"
"expect," "plan," "anticipate," "believe," "estimate," "predict,"
"potential" or "continue," the negative of these terms and other
comparable terminology. These forward-looking statements, which are
subject to risks, uncertainties and assumptions about the Company,
may include projections of the Company's future financial results,
its anticipated growth strategies and anticipated trends in its
business. These statements are only predictions based on the
Company's current expectations and projections about future events.
There are important factors that could cause the Company's actual
results, level of activity, performance or achievements to differ
materially from the results, level of activity, performance or
achievements expressed or implied by the forward-looking
statements. Factors that could cause such differences include, but
are not limited to: changes to the terms of the Company's license,
new legislation or decisions by the regulator affecting the
Company's operations, new competition and changes in the
competitive environment, the outcome of legal proceedings to which
the Company is a party, particularly class action lawsuits, the
Company's ability to maintain or obtain permits to construct and
operate cell sites, and other risks and uncertainties detailed from
time to time in the Company's filings with the U.S. Securities and
Exchange Commission, including under the caption "Risk Factors" in
its 2017 Annual Report.
Although the Company believes the expectations reflected in the
forward-looking statements contained herein are reasonable, it
cannot guarantee future results, level of activity, performance or
achievements. Moreover, neither the Company nor any other person
assumes responsibility for the accuracy and completeness of any of
these forward-looking statements. The Company assumes no duty to
update any of these forward-looking statements after the date
hereof to conform its prior statements to actual results or revised
expectations, except as otherwise required by law.
The Company prepares its financial statements in accordance with
International Financial Reporting Standards (IFRS), as issued by
the International Accounting Standards Board (IASB). Unless noted
specifically otherwise, the dollar denominated figures were
converted to US$ using a convenience translation based on the New
Israeli Shekel (NIS)/US$ exchange rate of NIS 3.650 = US$ 1
as published by the Bank of Israel
for June 30, 2018.
Use of non-IFRS financial measures
EBITDA is a non-IFRS measure and is defined as income
before financing income (expenses), net; other income (expenses),
net (excluding expenses related to employee voluntary retirement
plans and gain (loss) due to sale of subsidiaries); income tax;
depreciation and amortization and share based payments. This is an
accepted measure in the communications industry. The Company
presents this measure as an additional performance measure as the
Company believes that it enables us to compare operating
performance between periods and companies, net of any potential
differences which may result from differences in capital structure,
taxes, age of fixed assets and related depreciation expenses.
EBITDA should not be considered in isolation, or as a substitute
for operating income, any other performance measures, or cash flow
data, which were prepared in accordance with Generally Accepted
Accounting Principles as measures of profitability or liquidity.
EBITDA does not take into account debt service requirements, or
other commitments, including capital expenditures, and therefore,
does not necessarily indicate the amounts that may be available for
the Company's use. In addition, EBITDA as presented by the Company
may not be comparable to similarly titled measures reported by
other companies, due to differences in the way these measures are
calculated. See the reconciliation of net income to EBITDA under
"Reconciliation of Non-IFRS Measures" in the press release.
Free cash flow is a non-IFRS measure and is defined as
the net cash provided by operating activities (including the effect
of exchange rate fluctuations on cash and cash equivalents)
excluding a loan to Golan Telecom, minus the net cash used in
investing activities excluding short-term investment in tradable
debentures and deposits and proceeds from sales of such debentures
(including interest received in relation to such debentures) and
deposits. See "Reconciliation of Non-IFRS Measures" below.
Company
Contact
Shlomi
Fruhling
Chief Financial
Officer
investors@cellcom.co.il
Tel:
+972-52-998-9735
|
Investor Relations
Contact
Ehud Helft
GK Investor &
Public Relations
cellcom@GKIR.com
Tel:
+1-617-418-3096
|
|
Financial Tables Follow
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Condensed
Consolidated Interim Statements of Financial Position
(Unaudited)
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
into US
dollar
|
|
|
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
December
31,
|
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
785
|
|
831
|
|
228
|
|
527
|
Current investments,
including derivatives
|
|
360
|
|
398
|
|
109
|
|
364
|
Trade
receivables
|
|
1,263
|
|
1,215
|
|
332
|
|
1,280
|
Current tax
assets
|
|
52
|
|
12
|
|
3
|
|
4
|
Other
receivables
|
|
88
|
|
86
|
|
23
|
|
89
|
Inventory
|
|
61
|
|
68
|
|
19
|
|
70
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
2,609
|
|
2,610
|
|
714
|
|
2,334
|
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
|
915
|
|
868
|
|
238
|
|
895
|
Property, plant and
equipment, net
|
|
1,619
|
|
1,602
|
|
439
|
|
1,598
|
Intangible assets and
others, net
|
|
1,228
|
|
1,284
|
|
352
|
|
1,260
|
Deferred tax
assets
|
|
1
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Total non- current
assets
|
|
3,763
|
|
3,754
|
|
1,029
|
|
3,753
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
6,372
|
|
6,364
|
|
1,743
|
|
6,087
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current maturities of
debentures and of loans from
financial institutions
|
|
792
|
|
647
|
|
177
|
|
618
|
Trade payables and
accrued expenses
|
|
622
|
|
655
|
|
179
|
|
652
|
Current tax
liabilities
|
|
2
|
|
-
|
|
-
|
|
4
|
Provisions
|
|
108
|
|
103
|
|
28
|
|
91
|
Other payables,
including derivatives
|
|
264
|
|
327
|
|
89
|
|
277
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
1,788
|
|
1,732
|
|
473
|
|
1,642
|
|
|
|
|
|
|
|
|
|
Long-term loans from
financial institutions
|
|
462
|
|
334
|
|
92
|
|
462
|
Debentures
|
|
2,524
|
|
2,498
|
|
684
|
|
2,360
|
Provisions
|
|
19
|
|
21
|
|
6
|
|
21
|
Other long-term
liabilities
|
|
32
|
|
3
|
|
1
|
|
15
|
Liability for
employee rights upon retirement, net
|
|
12
|
|
15
|
|
4
|
|
15
|
Deferred tax
liabilities
|
|
137
|
|
108
|
|
30
|
|
131
|
|
|
|
|
|
|
|
|
|
Total non- current
liabilities
|
|
3,186
|
|
2,979
|
|
817
|
|
3,004
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
4,974
|
|
4,711
|
|
1,290
|
|
4,646
|
|
|
|
|
|
|
|
|
|
Equity
attributable to owners of the Company
|
|
|
|
|
|
|
|
|
Share
capital
|
|
1
|
|
1
|
|
-
|
|
1
|
Share
premium
|
|
-
|
|
259
|
|
71
|
|
-
|
Receipts on account
of share options
|
|
-
|
|
17
|
|
5
|
|
-
|
Cash flow hedge
reserve
|
|
(1)
|
|
-
|
|
-
|
|
-
|
Retained
earnings
|
|
1,394
|
|
1,372
|
|
376
|
|
1,436
|
|
|
|
|
|
|
|
|
|
Non-controlling
interest
|
|
4
|
|
4
|
|
1
|
|
4
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
1,398
|
|
1,653
|
|
453
|
|
1,441
|
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
6,372
|
|
6,364
|
|
1,743
|
|
6,087
|
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Condensed
Consolidated Interim Statements of Income
(Unaudited)
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
into US
dollar
|
|
|
|
|
|
into US
dollar
|
|
|
|
For the six
months ended
June 30,
|
|
For the six
months ended
June 30,
|
|
For the three
months ended
June 30,
|
|
For the three
months ended
June 30,
|
|
For the
year ended
December 31,
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
1,921
|
|
1,860
|
|
510
|
|
962
|
|
927
|
|
254
|
|
3,871
|
Cost of
revenues
|
(1,330)
|
|
(1,340)
|
|
(367)
|
|
(665)
|
|
(675)
|
|
(185)
|
|
(2,680)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
591
|
|
520
|
|
143
|
|
297
|
|
252
|
|
69
|
|
1,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
marketing
expenses
|
(226)
|
|
(276)
|
|
(76)
|
|
(112)
|
|
(144)
|
|
(39)
|
|
(479)
|
General and
administrative expenses
|
(208)
|
|
(185)
|
|
(51)
|
|
(95)
|
|
(94)
|
|
(26)
|
|
(426)
|
Other income
(expenses), net
|
12
|
|
(26)
|
|
(7)
|
|
12
|
|
(26)
|
|
(7)
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
169
|
|
33
|
|
9
|
|
102
|
|
(12)
|
|
(3)
|
|
297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
income
|
26
|
|
28
|
|
8
|
|
14
|
|
18
|
|
5
|
|
52
|
Financing
expenses
|
(101)
|
|
(97)
|
|
(27)
|
|
(58)
|
|
(54)
|
|
(15)
|
|
(196)
|
Financing expenses,
net
|
(75)
|
|
(69)
|
|
(19)
|
|
(44)
|
|
(36)
|
|
(10)
|
|
(144)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss)
before taxes
on income
|
94
|
|
(36)
|
|
(10)
|
|
58
|
|
(48)
|
|
(13)
|
|
153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit (taxes
on
income)
|
(23)
|
|
6
|
|
2
|
|
(13)
|
|
11
|
|
3
|
|
(40)
|
Profit (loss) for
the period
|
71
|
|
(30)
|
|
(8)
|
|
45
|
|
(37)
|
|
(10)
|
|
113
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners
of the Company
|
70
|
|
(30)
|
|
(8)
|
|
45
|
|
(37)
|
|
(10)
|
|
112
|
Non-controlling interests
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
Profit (loss) for
the period
|
71
|
|
(30)
|
|
(8)
|
|
45
|
|
(37)
|
|
(10)
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per
share (in NIS)
|
0.70
|
|
(0.29)
|
|
(0.08)
|
|
0.45
|
|
(0.36)
|
|
(0.10)
|
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per
share (in NIS)
|
0.69
|
|
(0.29)
|
|
(0.08)
|
|
0.45
|
|
(0.36)
|
|
(0.10)
|
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in the
calculation of basic earnings (loss) per share (in
shares)
|
100,605,503
|
|
101,446,365
|
|
101,446,365
|
|
100,606,203
|
|
101,843,757
|
|
101,843,757
|
|
100,654,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares used in the
calculation of diluted earnings (loss) per share (in
shares)
|
101,340,873
|
|
101,446,365
|
|
101,446,365
|
|
101,265,547
|
|
101,843,757
|
|
101,843,757
|
|
100,889,661
|
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Condensed
Consolidated Interim Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
into US
dollar
|
|
|
|
|
|
into US
dollar
|
|
|
|
For the six
months ended
June 30,
|
|
For the six
months ended
June 30,
|
|
For the three
months ended
June 30,
|
|
For the three
months ended
June 30,
|
|
For the
year ended
December 31,
|
|
|
|
|
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
US$millions
|
|
NIS
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the
period
|
71
|
|
(30)
|
|
(8)
|
|
45
|
|
(37)
|
|
(10)
|
|
113
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
269
|
|
278
|
|
76
|
|
136
|
|
145
|
|
40
|
|
555
|
Share based
payments
|
2
|
|
2
|
|
-
|
|
1
|
|
-
|
|
-
|
|
2
|
Gain on sale of
property, plant and
equipment
|
(2)
|
|
-
|
|
-
|
|
(2)
|
|
-
|
|
-
|
|
(1)
|
Gain on sale of
shares in
a
consolidated company
|
(10)
|
|
-
|
|
-
|
|
(10)
|
|
-
|
|
-
|
|
(10)
|
Income tax expenses
(tax benefit)
|
23
|
|
(6)
|
|
(2)
|
|
13
|
|
(11)
|
|
(3)
|
|
40
|
Financing expenses,
net
|
75
|
|
69
|
|
19
|
|
44
|
|
36
|
|
10
|
|
144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
operating assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in
inventory
|
3
|
|
2
|
|
-
|
|
6
|
|
1
|
|
-
|
|
(6)
|
Change in trade
receivables (including
long-term amounts)
|
104
|
|
96
|
|
27
|
|
44
|
|
81
|
|
22
|
|
132
|
Change in other
receivables (including
long-term amounts)
|
(166)
|
|
(16)
|
|
(4)
|
|
(14)
|
|
(25)
|
|
(7)
|
|
(191)
|
Changes in trade
payables, accrued
expenses and provisions
|
25
|
|
(11)
|
|
(3)
|
|
36
|
|
(42)
|
|
(12)
|
|
(27)
|
Change in other
liabilities (including
long-term amounts)
|
(13)
|
|
41
|
|
11
|
|
(7)
|
|
36
|
|
10
|
|
28
|
Payments for
derivative hedging
contracts, net
|
-
|
|
(2)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3)
|
Income tax
paid
|
(26)
|
|
(14)
|
|
(4)
|
|
(14)
|
|
(5)
|
|
(1)
|
|
(44)
|
Income tax
received
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
42
|
Net cash from
operating activities
|
355
|
|
409
|
|
112
|
|
278
|
|
179
|
|
49
|
|
774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and
equipment
|
(237)
|
|
(168)
|
|
(46)
|
|
(144)
|
|
(69)
|
|
(19)
|
|
(346)
|
Acquisition of
intangible assets and others
|
(94)
|
|
(109)
|
|
(30)
|
|
(47)
|
|
(62)
|
|
(17)
|
|
(237)
|
Change in current
investments, net
|
(76)
|
|
(37)
|
|
(10)
|
|
(77)
|
|
(36)
|
|
(10)
|
|
(77)
|
Receipts (payments)
for other
derivative contracts, net
|
(3)
|
|
3
|
|
1
|
|
(2)
|
|
3
|
|
1
|
|
-
|
Proceeds from sale of
property, plant
and equipment
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
Interest
received
|
8
|
|
7
|
|
2
|
|
4
|
|
3
|
|
1
|
|
12
|
Proceeds from sale of
shares in
a
consolidated company, net
of
cash disposed
|
(8)
|
|
5
|
|
1
|
|
(8)
|
|
5
|
|
1
|
|
3
|
Net cash used in
investing activities
|
(410)
|
|
(299)
|
|
(82)
|
|
(274)
|
|
(156)
|
|
(43)
|
|
(644)
|
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Condensed
Consolidated Interim Statements of Cash Flows (cont'd)
(Unaudited)
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
into US
dollar
|
|
|
|
|
|
into US
dollar
|
|
|
|
For the six
months ended
June 30,
|
|
For the six
months ended
June 30,
|
|
For the three
months ended
June 30,
|
|
For the three
months ended
June 30,
|
|
For the
year ended
December 31,
|
|
|
|
|
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
NIS
millions
|
|
US$
millions
|
|
NIS
millions
|
|
US$millions
|
|
NIS
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for
derivative contracts, net
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3)
|
Long term loans from
financial institutions
|
200
|
|
(50)
|
|
(14)
|
|
200
|
|
(50)
|
|
(14)
|
|
200
|
Repayment of
debentures
|
(514)
|
|
(362)
|
|
(99)
|
|
-
|
|
-
|
|
-
|
|
(864)
|
Proceeds from
issuance of debentures, net
of issuance costs
|
-
|
|
396
|
|
108
|
|
-
|
|
-
|
|
-
|
|
-
|
Dividend
paid
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1)
|
Interest
paid
|
(86)
|
|
(65)
|
|
(18)
|
|
(8)
|
|
(10)
|
|
(3)
|
|
(175)
|
Equity
offering
|
-
|
|
275
|
|
76
|
|
-
|
|
275
|
|
76
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from
(used in) financing
activities
|
(400)
|
|
194
|
|
53
|
|
192
|
|
215
|
|
59
|
|
(843)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in cash
and cash equivalents
|
(455)
|
|
304
|
|
83
|
|
196
|
|
238
|
|
65
|
|
(713)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents as at the
beginning of the period
|
1,240
|
|
527
|
|
145
|
|
589
|
|
593
|
|
163
|
|
1,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents as at the end
of the period
|
785
|
|
831
|
|
228
|
|
785
|
|
831
|
|
228
|
|
527
|
Cellcom Israel
Ltd
|
(An Israeli
Corporation)
|
|
Reconciliation for
Non-IFRS Measures
|
|
EBITDA
|
|
The following is a
reconciliation of net income (loss) to EBITDA:
|
|
|
Three-month period
ended
June
30,
|
Year
ended
December
31,
|
|
2017
|
2018
|
Convenience
translation
into US
dollar
2018
|
2017
|
|
NIS
millions
|
US$
millions
|
NIS
millions
|
Profit (loss) for the
period
|
45
|
(37)
|
(10)
|
113
|
Taxes on income (tax
benefit)
|
13
|
(11)
|
(3)
|
40
|
Financing
income
|
(14)
|
(18)
|
(5)
|
(52)
|
Financing
expenses
|
58
|
54
|
15
|
196
|
Other expenses
(*)
|
(2)
|
-
|
-
|
(1)
|
Depreciation and
amortization
|
136
|
145
|
39
|
555
|
Share based
payments
|
1
|
-
|
-
|
2
|
EBITDA
|
237
|
133
|
36
|
853
|
|
|
|
|
|
(*) Excluding
expenses related to employee voluntary retirement plan in the
second quarter of 2018 and gain from the Sale of Internet Rimon in
the second quarter of 2017.
|
|
Free cash
flow
|
|
|
|
|
|
The following table
shows the calculation of free cash flow:
|
|
|
|
|
|
Three-month period
ended
June
30,
|
Year
ended
December
31,
|
|
2017
|
2018
|
Convenience
translation
into US
dollar
2018
|
2017
|
|
NIS
millions
|
US$
millions
|
NIS
millions
|
Cash flows from
operating
activities(*)
|
278
|
179
|
49
|
774
|
Loan to Golan
Telecom
|
-
|
-
|
-
|
130
|
Cash flows from
investing activities
|
(274)
|
(156)
|
(43)
|
(644)
|
Sale of short-term
tradable
debentures and deposits (**)
|
73
|
33
|
9
|
65
|
Free cash
flow
|
77
|
56
|
15
|
325
|
|
(*)
Including the effects of exchange rate fluctuations in cash
and cash equivalents.
|
(**) Net of interest
received in relation to tradable debentures.
|
Cellcom Israel
Ltd.
|
(An Israeli
Corporation)
|
|
Key financial and
operating indicators
|
|
NIS millions
unless otherwise
stated
|
Q1-2017
|
Q2-2017
|
Q3-2017
|
Q4-2017
|
Q1-2018
|
Q2-2018
|
FY-2017
|
|
|
|
|
|
|
|
|
Cellular service
revenues
|
509
|
481
|
488
|
451
|
437
|
434
|
1,929
|
Fixed-line service
revenues
|
279
|
292
|
292
|
303
|
304
|
300
|
1,166
|
|
|
|
|
|
|
|
|
Cellular equipment
revenues
|
183
|
192
|
191
|
204
|
193
|
157
|
770
|
Fixed-line equipment
revenues
|
37
|
39
|
47
|
59
|
39
|
76
|
182
|
|
|
|
|
|
|
|
|
Consolidation
adjustments
|
(49)
|
(42)
|
(43)
|
(42)
|
(40)
|
(40)
|
(176)
|
Total
revenues
|
959
|
962
|
975
|
975
|
933
|
927
|
3,871
|
|
|
|
|
|
|
|
|
Cellular
EBITDA
|
159
|
158
|
160
|
118
|
112
|
71
|
595
|
Fixed-line
EBITDA
|
42
|
79
|
66
|
71
|
68
|
62
|
258
|
Total
EBITDA
|
201
|
237
|
226
|
189
|
180
|
133
|
853
|
|
|
|
|
|
|
|
|
Operating profit
(loss)
|
67
|
102
|
83
|
45
|
45
|
(12)
|
297
|
Financing expenses,
net
|
31
|
44
|
39
|
30
|
33
|
36
|
144
|
Profit (loss) for
the period
|
26
|
45
|
32
|
10
|
7
|
(37)
|
113
|
|
|
|
|
|
|
|
|
Free cash
flow
|
66
|
77
|
105
|
77
|
84
|
56
|
325
|
|
|
|
|
|
|
|
|
Cellular subscribers
at the end of
period (in 000's)
|
2,792
|
2,779
|
2,805
|
2,817
|
2,822
|
2,809
|
2,817
|
Monthly cellular ARPU
(in NIS)
|
60.2
|
57.0
|
57.8
|
53.6
|
51.8
|
51.8
|
57.1
|
Churn rate for
cellular subscribers
(%)
|
12.0%
|
10.8%
|
11.5%
|
11.5%
|
9.5%
|
12.6%
|
45.8%
|
Cellcom Israel Ltd.
Disclosure for debenture holders as of June 30,
2018
Aggregation of the information regarding the debenture series
issued by the Company (1), in million NIS
Series
|
Original Issuance
Date
|
Principal on the Date
of Issuance
|
As of
30.06.2018
|
As of
14.08.2018
|
Interest Rate
(fixed)
|
Principal Repayment
Dates
|
Interest Repayment
Dates (3)
|
Linkage
|
Trustee
Contact
Details
|
Principal
Balance on
Trade
|
Linked Principal
Balance
|
Interest Accumulated
in Books
|
Debenture
Balance Value in Books (2)
|
Market
Value
|
Principal Balance on
Trade
|
Linked Principal
Balance
|
From
|
To
|
F
(4)(5)(6)**
|
20/03/12
|
714.802
|
428.881
|
443.320
|
9.824
|
453.144
|
464.049
|
428.881
|
443.712
|
4.60%
|
05.01.17
|
05.01.20
|
January-5 and
July-5
|
Linked to
CPI
|
Strauss Lazar Trust
Company (1992) Ltd. Ori Lazar. 17 Yizhak Sadeh St., Tel Aviv. Tel:
03- 6237777.
|
G
(4)(5)(6)
|
20/03/12
|
285.198
|
85.559
|
85.589
|
2.884
|
88.473
|
87.998
|
85.559
|
85.579
|
6.99%
|
05.01.17
|
05.01.19
|
January-5 and
July-5
|
Not linked
|
Strauss Lazar Trust
Company (1992) Ltd. Ori Lazar. 17 Yizhak Sadeh St., Tel Aviv. Tel:
03- 6237777.
|
H
(4)(5)(7)**
|
08/07/14
03/02/15*
11/02/15*
|
949.624
|
949.624
|
880.032
|
9.074
|
889.106
|
866.923
|
835.669
|
768.278
|
1.98%
|
05.07.18
|
05.07.24
|
January-5 and
July-5
|
Linked to
CPI
|
Mishmeret Trust
Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel:
03-6374355.
|
I
(4)(5)(7)**
|
08/07/14
03/02/15*
11/02/15*
28/03/16*
|
804.010
|
804.010
|
778.132
|
16.050
|
794.182
|
766.953
|
723.609
|
698.192
|
4.14%
|
05.07.18
|
05.07.25
|
January-5 and July-5
|
Not linked
|
Mishmeret Trust
Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel:
03-6374355.
|
J
(4)(5)
|
25/09/16
|
103.267
|
103.267
|
103.343
|
1.231
|
104.574
|
110.568
|
103.267
|
103.446
|
2.45%
|
05.07.21
|
05.07.26
|
January-5 and
July-5
|
Linked to
CPI
|
Mishmeret Trust
Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel:
03-6374355.
|
K
(4)(5)**
|
25/09/16
|
303.971
|
303.971
|
301.428
|
5.203
|
306.631
|
316.221
|
523.971
|
520.548
|
3.55%
|
05.07.21
|
05.07.26
|
January-5 and
July-5
|
Not linked
|
Mishmeret Trust
Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel:
03-6374355.
|
L**
|
24/01/18
|
400.600
|
400.600
|
396.594
|
4.308
|
400.902
|
380.370
|
400.600
|
396.635
|
2.50%
|
05.01.23
|
05.01.28
|
January-5
|
Not linked
|
Strauss Lazar Trust
Company (1992) Ltd. Ori Lazar. 17 Yizhak Sadeh St., Tel Aviv. Tel:
03- 6237777.
|
Total
|
|
3,561.472
|
3,075.912
|
2,988.438
|
48.574
|
3,037.012
|
2,993.082
|
3,101.556
|
3,016.390
|
|
|
|
|
|
|
|
Comments:
|
|
(1) For a summary of
the terms of the Company's outstanding debentures see the Company's
2017 Annual Report under "Item 5. Operating and Financial Review
and Prospects - B. Liquidity and Capital Resources - Debt Service -
Public Debentures". In the reporting period, the Company fulfilled
all terms of the debentures and Indentures. Debentures financial
covenants - as of June 30, 2018 the net leverage (net debt to
EBITDA excluding one time events ratio- see definition in the
reference above to the Company's 2017 Annual Report) was 3.11. In
the reporting period, no cause for early repayment occurred. (2)
Including interest accumulated in the books. (3) Semi annual
payments. (4) Regarding the debentures, the Company undertook not
to create any pledge on its assets, as long as debentures or loans
are not fully repaid, subject to certain exclusions. (5) Regarding
the debentures - the Company has the right for early redemption
under certain terms. (6) Regarding debenture Series F and G - in
June 2013, following a second decrease of the Company's debenture
rating since their issuance, the annual interest rate has been
increased by 0.25% to 4.60% and 6.99%, respectively, beginning July
5, 2013. (7) In February 2015, pursuant to an exchange offer of the
Company's Series H and I debentures for a portion of the Company's
outstanding Series D and E debentures, respectively, the Company
exchanged approximately NIS 555 million principal amount of Series
D debentures with approximately NIS 844 million principal amount of
Series H debentures, and approximately NIS 272 million principal
amount of Series E debentures with approximately NIS 335 million
principal amount of Series I debentures. Series D and E debentures
were fully repaid in July 2017 and in January 2017, respectively.
(8) In July 1, 2018, after the end of the reporting period, the
Company issued NIS 220 million principal amount of additional
series K debentures according to its undertaking from June 2017.
See the Company's 2017 Annual Report, under "Item 5. Operating and
Financial Review and Prospects - B. Liquidity and Capital Resources
- Debt Service - Public Debentures".
|
|
(*) On these dates
additional debentures of the series were issued, the information in
the table refers to the full series.
|
|
(**)As of June 30,
2018, debentures Series F,H, I, K and L are material, which
represent 5% or more of the total liabilities of the Company, as
presented in the financial statements.
|
Cellcom Israel Ltd.
Disclosure for debenture holders as of June 30, 2018 (cont`d)
Debentures Rating Details*
Series
|
Rating
Company
|
Rating as of
30.06.2018 (1)
|
Rating as of
14.08.2018
|
Rating assigned upon
issuance of the Series
|
Recent date of rating
as of 14.08.2018
|
Additional ratings
between original issuance and the recent date of rating as of
14.08.2018 (2)
|
|
Rating
|
F
|
S&P
Maalot
|
A+
|
A+
|
AA
|
06/2018
|
05/2012, 11/2012,
06/2013, 06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016,
06/2017, 01/2018, 06/2018
|
AA,AA-,A+
(2)
|
G
|
S&P
Maalot
|
A+
|
A+
|
AA
|
06/2018
|
05/2012, 11/2012,
06/2013, 06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016,
06/2017, 01/2018, 06/2018
|
AA,AA-,A+
(2)
|
H
|
S&P
Maalot
|
A+
|
A+
|
A+
|
06/2018
|
06/2014, 08/2014,
01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018,
06/2018
|
A+
(2)
|
I
|
S&P
Maalot
|
A+
|
A+
|
A+
|
06/2018
|
06/2014, 08/2014,
01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018,
06/2018
|
A+
(2)
|
J
|
S&P
Maalot
|
A+
|
A+
|
A+
|
06/2018
|
08/2016, 06/2017,
01/2018, 06/2018
|
A+
(2)
|
K
|
S&P
Maalot
|
A+
|
A+
|
A+
|
06/2018
|
08/2016, 06/2017,
01/2018, 06/2018
|
A+
(2)
|
L
|
S&P
Maalot
|
A+
|
A+
|
A+
|
06/2018
|
01/2018,
06/2018
|
A+
(2)
|
|
(1) In January 2018, S&P
Maalot affirmed the Company's rating of "ilA+/stable".
|
|
(2) In May 2012, S&P
Maalot updated the Company's rating from an "ilAA/negative" to an
"ilAA-/negative". In November 2012, S&P Maalot affirmed the
Company's rating of "ilAA-/negative". In June 2013, S&P Maalot
updated the Company's rating from an "ilAA-/negative" to an
"ilA+/stable". In June 2014, August 2014, January 2015, September
2015, March 2016, August 2016, June 2017, January 2018 and June
2018 S&P Maalot affirmed the Company's rating of "ilA+/stable".
For details regarding the rating of the debentures see the S&P
Maalot report dated August 22, 2017, included in the Company's
current report filled in the Israeli Securities Authority website
('MAGNA") on June 25, 2018.
|
|
* 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.
|
Cellcom Israel Ltd.
Aggregation of the information regarding the Company's
Material Loans (1), in million NIS
Loan
|
Provision
Date
|
Principal
Amount as of
30.06.2018
|
Interest Rate
(nominal)
|
Principal
Repayment
Dates (annual
payments)
|
Interest
Repayment
Dates (semi-
annual
payments)
|
Linkage
|
From
|
To
|
|
|
Loan from
financial
institution
|
06/2016
|
150
|
4.60%
|
30.06.18
|
30.06.21
|
June-30
and December-31,
commencing
December 31,
2016 through
June 30, 2021
|
Not linked
|
Loan from
bank
|
12/2016
|
140
|
4.90%
|
30.06.18
|
30.06.22
|
June-30 and
December 30,
commencing
June 30, 2017
through June
30, 2022
|
Not linked
|
Loan from
financial
institution
|
06/2017
|
200
|
5.10%
|
30.06.19
|
30.06.22
|
June-30
and
December-31,
commencing
December 31,
2017 through
June 30, 2022
|
Not linked
|
Total
|
|
490
|
|
|
|
|
|
|
Comments:
|
|
(1) For a summary of
the terms of the Company's loan agreements see the Company's 2017
Annual Report under "Item 5. Operating and Financial Review and
Prospects - B. Liquidity and Capital Resources - Other Credit
Facilities" and the reference therein to "- Debt Service - Public
Debentures". (2) In the reporting period, the Company fulfilled all
terms of the loan agreements. (3) Loan agreements financial
covenants - as of June 30, 2018 the net leverage (net debt to
EBITDA excluding one-time events ratio- see definition in the
reference above to the Company's 2017 Annual Report) was 3.11. (4)
In the reporting period, no cause for early repayment occurred. (5)
In the loan agreements, the Company undertook not to create any
pledge on its assets, as long as the loans are not fully repaid,
subject to certain exclusions. (6) According to the loan agreements
the Company may prepay the loans, subject to a prepayment fee. (7)
In June 2017, the Company entered into an additional loan agreement
with the lender of the Company's existing bank loan for the
provision of a deferred loan in a principal amount of NIS 150
million in March 2019. See more information in the reference above
to the Company's 2017 Annual Report.
|
|
Cellcom Israel Ltd.
Summary of Financial Undertakings (according to repayment
dates) as of June 30, 2018
a. Debentures issued to the
public by the Company and held by the public, excluding such
debentures 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
|
334,587
|
165,423
|
-
|
-
|
-
|
98,100
|
Second
year
|
334,587
|
80,308
|
-
|
-
|
-
|
76,922
|
Third
year
|
113,198
|
80,308
|
-
|
-
|
-
|
61,172
|
Fourth
year
|
166,349
|
157,352
|
-
|
-
|
-
|
53,581
|
Fifth year and
on
|
540,162
|
1,104,778
|
-
|
-
|
-
|
117,647
|
Total
|
1,488,883
|
1,588,169
|
-
|
-
|
-
|
407,422
|
b. Private debentures and other
non-bank credit, excluding such debentures 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
|
-
|
100,000
|
-
|
-
|
-
|
17,100
|
Second
year
|
-
|
100,000
|
-
|
-
|
-
|
12,267
|
Third
year
|
-
|
100,000
|
-
|
-
|
-
|
7,390
|
Fourth
year
|
-
|
50,000
|
-
|
-
|
-
|
2,550
|
Fifth year and
on
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
-
|
350,000
|
-
|
-
|
-
|
39,307
|
c. Credit from banks in
Israel based on the Company's
"Solo" financial data (in thousand NIS) - None.
|
Principal
payments
|
Gross interest
payments
(without
deduction of
tax)
|
ILS linked to
CPI
|
ILS not
linked to CPI
|
Euro
|
Dollar
|
Other
|
First
year
|
-
|
56,000
|
-
|
-
|
-
|
8,894
|
Second
year
|
-
|
28,000
|
-
|
-
|
-
|
4,122
|
Third
year
|
-
|
28,000
|
-
|
-
|
-
|
2,740
|
Fourth
year
|
-
|
28,000
|
-
|
-
|
-
|
1,372
|
Fifth year and
on
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
-
|
140,000
|
-
|
-
|
-
|
17,128
|
Cellcom Israel Ltd.
Summary of Financial Undertakings (according to repayment
dates) as of June 30, 2018
(cont`d)
d. Credit from banks abroad based
on the Company's "Solo" financial data (in thousand NIS) -
None.
e. Total of sections a - d
above, total credit from banks, non-bank credit and debentures
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
|
334,587
|
321,423
|
-
|
-
|
-
|
124,094
|
Second
year
|
334,587
|
208,308
|
-
|
-
|
-
|
93,311
|
Third
year
|
113,198
|
208,308
|
-
|
-
|
-
|
71,302
|
Fourth
year
|
166,349
|
235,352
|
-
|
-
|
-
|
57,503
|
Fifth year and
on
|
540,162
|
1,104,778
|
-
|
-
|
-
|
117,647
|
Total
|
1,488,883
|
2,078,169
|
-
|
-
|
-
|
463,857
|
f. Out of the balance sheet
Credit exposure based on the Company's "Solo" financial data -
None.
g. Out of the 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 (in thousand NIS) -
None.
h. Total balances of the credit
from banks, non-bank credit and debentures of all the consolidated
companies, excluding companies that are reporting corporations and
excluding Company's data presented in sections a - d above (in
thousand NIS) - None.
i. Total balances of
credit granted to the Company by the parent company or a
controlling shareholder and balances of debentures offered by the
Company held by the parent company or the controlling shareholder
(in thousand NIS) - 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 debentures offered by the Company held
by companies held by the parent company or the controlling
shareholder, which are not controlled by the Company (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
|
912
|
537
|
-
|
-
|
-
|
402
|
Second
year
|
912
|
93
|
-
|
-
|
-
|
348
|
Third
year
|
856
|
93
|
-
|
-
|
-
|
324
|
Fourth
year
|
1,351
|
805
|
-
|
-
|
-
|
285
|
Fifth year and
on
|
4,615
|
4,443
|
-
|
-
|
-
|
595
|
Total
|
8,646
|
5,971
|
-
|
-
|
-
|
1,954
|
k. Total balances of credit
granted to the Company by consolidated companies and balances of
debentures offered by the Company held by the consolidated
companies (in thousand NIS) - None.
View original
content:http://www.prnewswire.com/news-releases/cellcom-israel-announces-second-quarter-2018-results-300698147.html
SOURCE Cellcom Israel Ltd.