◾ |
Total Revenues totaled NIS 3,708 million ($1,073 million) compared to NIS 3,688 million ($1,067 million) last year, an increase of 0.5%
|
◾ |
Service revenues totaled NIS 2,776 million ($803 million) compared to NIS 2,784 million ($806 million) last year, a decrease of 0.3%
|
◾ |
Operating income totaled NIS 24 million ($7 million) compared to NIS 101 million ($29 million) last year, a decrease of 76.2%
|
◾ |
Loss totaled NIS 107 million ($31 million) compared to a loss of NIS 64 million ($18 million) an increase of 67.2%
|
◾ |
Adjusted EBITDA1 totaled NIS 940 million ($272 million) compared to NIS 687 million ($199 million) last year, an increase of 36.8%
|
◾ |
Net cash from operating activities totaled NIS 1,036 million ($299 million) compared to NIS 770 million ($223 million) last year, an increase of 34.5%
|
◾ |
Free cash flow1 totaled NIS 391 million ($113 million) compared to NIS 181 million ($52 million) last year, an increase of 116.0%
|
◾ |
Total Revenues totaled NIS 932 million ($270 million) compared to NIS 918 million ($266 million) in the fourth quarter last year, an increase of 1.5%
|
◾ |
Service revenues totaled NIS 694 million ($201 million) compared to NIS 677 million ($196 million) in the fourth quarter last year, an increase of 2.5%
|
◾ |
Operating loss totaled NIS 27 million ($8 million) compared to Operating profit NIS 14 million ($4 million) in the fourth quarter last year.
|
◾ |
Loss totaled NIS 54 million ($16 million) compared to of NIS 35 million ($10 million) in the fourth quarter last year, an increase of 54.3%
|
◾ |
Adjusted EBITDA1 totaled NIS 212 million ($61 million) compared to NIS 169 million ($47 million) in the fourth quarter last year, an increase of 25.4%
|
◾ |
Net cash from operating activities totaled NIS 241 million ($70 million) compared to NIS 167 million ($48 million) in the fourth quarter last year, an
increase of 44.3%
|
◾ |
Free cash flow1 totaled NIS 56 million ($16 million) compared to NIS 7 million ($2 million) in the fourth quarter last
year, an increase of 700%
|
NIS millions
|
% of Revenues
|
% Change
|
US$ millions (convenience translation)
|
||||
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|
Revenues - services
|
2,776
|
2,784
|
74.9%
|
75.5%
|
(0.3)%
|
803
|
806
|
Revenues - equipment
|
932
|
904
|
25.1%
|
24.5%
|
3.1%
|
270
|
261
|
Total revenues
|
3,708
|
3,688
|
100.0%
|
100.0%
|
0.5%
|
1,073
|
1,067
|
Cost of revenues - services
|
(2,030)
|
(2,016)
|
(54.9)%
|
(54.7)%
|
1.0%
|
(587)
|
(583)
|
Cost of revenues - equipment
|
(695)
|
(645)
|
(18.6)%
|
(17.5)%
|
6.7%
|
(201)
|
(187)
|
Total cost of revenues
|
(2,725)
|
(2,661)
|
(73.5)%
|
(72.2)%
|
2.4%
|
(788)
|
(770)
|
Gross profit
|
983
|
1,027
|
26.5%
|
27.8%
|
(4.3)%
|
285
|
297
|
Selling and marketing expenses
|
(610)
|
(567)
|
(16.5)%
|
(15.4)%
|
7.6%
|
(177)
|
(164)
|
General and administrative expenses
|
(329)
|
(360)
|
(8.9)%
|
(9.8)%
|
(8.6)%
|
(95)
|
(104)
|
Other income (expenses), net
|
(20)
|
1
|
(0.5)%
|
-
|
N/A
|
(6)
|
-
|
Operating income
|
24
|
101
|
0.6%
|
2.7%
|
(76.2)%
|
7
|
29
|
Financing expenses, net
|
(144)
|
(171)
|
(3.9)%
|
(4.6)%
|
(15.8)%
|
(42)
|
(49)
|
Share of losses of equity accounted investees
|
(10)
|
-
|
(0.3)%
|
N/A
|
N/A
|
(3)
|
-
|
Loss before taxes on income
|
(130)
|
(70)
|
(3.5)%
|
(1.9)%
|
85.7%
|
(38)
|
(20)
|
Tax benefit
|
23
|
6
|
0.6 %
|
0.2 %
|
283%
|
7
|
2
|
Loss
|
(107)
|
(64)
|
(2.9)%
|
(1.7)%
|
67.2%
|
(31)
|
(18)
|
Free cash flow
|
391
|
181
|
10.5%
|
4.9%
|
116.0%
|
113
|
52
|
Adjusted EBITDA
|
940
|
687
|
25.4%
|
18.6%
|
36.8%
|
272 |
199
|
Q4/2019
|
Q4/2018
|
Change%
|
Q4/2019
|
Q4/2018
|
|
NIS million
|
US$ million
(convenience translation) |
||||
Total revenues
|
932
|
918
|
1.5%
|
270
|
266
|
Operating Income (loss)
|
(27)
|
14
|
N/A
|
(7)
|
4
|
Loss
|
(54)
|
(35)
|
54.3%
|
(16)
|
(10)
|
Free cash flow
|
56
|
7
|
700%
|
16
|
2
|
Adjusted EBITDA
|
212
|
169
|
25.4%
|
61
|
49
|
Adjusted EBITDA, as percent of total revenues
|
22.7%
|
18.4%
|
23.4%
|
Cellular (*)
|
Fixed-line (**)
|
Inter-segment adjustments
(***)
|
Consolidated results
|
||||||||
NIS million
|
2019
|
2018
|
Change
%
|
2019
|
2018
|
Change
%
|
2019
|
2018
|
2019
|
2018
|
Change
%
|
Total revenues
|
2,340
|
2,385
|
(1.9)%
|
1,529
|
1,464
|
4.4%
|
(161)
|
(161)
|
3,708
|
3,688
|
0.5%
|
Service revenues
|
1,679
|
1,730
|
(2.9)%
|
1,258
|
1,215
|
3.5%
|
(161)
|
(161)
|
2,776
|
2,784
|
(0.3)%
|
Equipment revenues
|
661
|
655
|
0.9%
|
271
|
249
|
8.8%
|
-
|
-
|
932
|
904
|
3.1%
|
Adjusted EBITDA
|
627
|
418
|
50.0%
|
313
|
269
|
16.4%
|
-
|
-
|
940
|
687
|
36.8%
|
Adjusted EBITDA, as percent of total revenues
|
26.8%
|
17.5%
|
53.1%
|
20.5%
|
18.4%
|
11.4%
|
25.4%
|
18.6%
|
36.6%
|
Cellular (*)
|
Fixed-line (**)
|
Inter-segment adjustments
(***)
|
Consolidated results
|
||||||||
NIS million
|
Q4'19
|
Q4'18
|
Change
%
|
Q4'19
|
Q4'18
|
Change
%
|
Q4'19
|
Q4'18
|
Q4'19
|
Q4'18
|
Change
%
|
Total revenues
|
585
|
575
|
1.7%
|
387
|
383
|
1.0%
|
(40)
|
(40)
|
932
|
918
|
1.5%
|
Service revenues
|
416
|
416
|
-
|
318
|
301
|
5.6%
|
(40)
|
(40)
|
694
|
677
|
2.5%
|
Equipment revenues
|
169
|
159
|
6.3%
|
69
|
82
|
(15.9)%
|
-
|
-
|
238
|
241
|
(1.2)%
|
Adjusted EBITDA
|
133
|
103
|
29.1%
|
79
|
66
|
19.7%
|
-
|
-
|
212
|
169
|
25.4%
|
Adjusted EBITDA, as percent of total revenues
|
22.7%
|
17.9%
|
26.8%
|
20.4%
|
17.2%
|
18.6%
|
22.7%
|
18.4%
|
23.4%
|
(*)
|
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.
|
2019
|
2018
|
Change (%)
|
|
Cellular subscribers at the end of the period (in thousands)
|
2,744
|
2,851
|
(3.8)%
|
Churn Rate for cellular subscribers (in %)
|
48.8%
|
43.2%
|
13.0%
|
Monthly cellular ARPU (in NIS)
|
50.7
|
51.3
|
(1.2)%
|
Q4/2019
|
Q4/2018
|
Change (%)
|
|
Churn Rate for cellular subscribers (in %)
|
11.3%
|
11.1%
|
1.8%
|
Monthly cellular ARPU (in NIS)
|
50.5
|
49.0
|
3.1%
|
2019
|
2018
|
Change (%)
|
|
Internet infrastructure field subscribers- (households) at the end of the period (in thousands)
|
278
|
269
|
3.3%
|
TV field subscribers- (households) at the end of the period (in thousands)
|
258
|
219
|
17.8%
|
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
|
Convenience
|
||||||||||||
translation into
|
||||||||||||
US dollar
|
||||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||
2018
|
2019
|
2019
|
||||||||||
NIS millions
|
NIS millions
|
US$ millions
|
||||||||||
Assets
|
||||||||||||
Cash and cash equivalents
|
1,202
|
1,006
|
291
|
|||||||||
Current investments, including derivatives
|
404
|
473
|
137
|
|||||||||
Trade receivables
|
1,152
|
1,142
|
330
|
|||||||||
Current tax assets
|
11
|
3
|
1
|
|||||||||
Other receivables
|
84
|
69
|
20
|
|||||||||
Inventory
|
94
|
66
|
19
|
|||||||||
Total current assets
|
2,947
|
2,759
|
798
|
|||||||||
Trade and other receivables
|
852
|
782
|
227
|
|||||||||
Property, plant and equipment, net
|
1,652
|
1,432
|
414
|
|||||||||
Intangible assets and others, net
|
1,298
|
1,294
|
374
|
|||||||||
Investments in equity accounted investees
|
-
|
150
|
43
|
|||||||||
Right-of-use assets, net
|
-
|
745
|
216
|
|||||||||
Total non- current assets
|
3,802
|
4,403
|
1,274
|
|||||||||
Total assets
|
6,749
|
7,162
|
2,072
|
|||||||||
Liabilities
|
||||||||||||
Current maturities of debentures and of loans from financial institutions
|
620
|
509
|
147
|
|||||||||
Current taxation liabilities
|
-
|
6
|
2
|
|||||||||
Current maturities of lease liabilities
|
-
|
226
|
65
|
|||||||||
Trade payables and accrued expenses
|
696
|
687
|
199
|
|||||||||
Provisions
|
105
|
99
|
29
|
|||||||||
Other payables, including derivatives
|
257
|
299
|
86
|
|||||||||
Total current liabilities
|
1,678
|
1,826
|
528
|
|||||||||
Long-term loans from financial institutions
|
334
|
300
|
87
|
|||||||||
Debentures
|
2,911
|
2,511
|
727
|
|||||||||
Long-term lease liabilities
|
-
|
533
|
154
|
|||||||||
Provisions
|
20
|
22
|
6
|
|||||||||
Other long-term liabilities
|
16
|
4
|
1
|
|||||||||
Liability for employee rights upon retirement, net
|
14
|
19
|
5
|
|||||||||
Deferred tax liabilities
|
99
|
60
|
17
|
|||||||||
Total non- current liabilities
|
3,394
|
3,449
|
997
|
|||||||||
Total liabilities
|
5,072
|
5,275
|
1,525
|
|||||||||
Equity attributable to owners of the Company
|
||||||||||||
Share capital
|
1
|
2
|
1
|
|||||||||
Share premium
|
325
|
623
|
180
|
|||||||||
Receipts on account of share options
|
10
|
24
|
7
|
|||||||||
Retained earnings
|
1,339
|
1,236
|
358
|
|||||||||
Non-controlling interests
|
2
|
2
|
1
|
|||||||||
Total equity
|
1,677
|
1,887
|
547
|
|||||||||
Total liabilities and equity
|
6,749
|
7,162
|
2,072
|
Convenience
|
||||||||||||||||
translation into
|
||||||||||||||||
US dollar
|
||||||||||||||||
Year ended
|
Year ended
|
Year ended
|
Year ended
|
|||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2017
|
2018
|
2019
|
2019
|
|||||||||||||
NIS millions
|
NIS millions
|
NIS millions
|
US$ millions
|
|||||||||||||
Revenues
|
3,871
|
3,688
|
3,708
|
1,073
|
||||||||||||
Cost of revenues
|
(2,680
|
)
|
(2,661
|
)
|
(2,725
|
)
|
(788
|
)
|
||||||||
Gross profit
|
1,191
|
1,027
|
983
|
285
|
||||||||||||
Selling and marketing expenses
|
(479
|
)
|
(567
|
)
|
(610
|
)
|
(177
|
)
|
||||||||
General and administrative expenses
|
(426
|
)
|
(360
|
)
|
(329
|
)
|
(95
|
)
|
||||||||
Other income (expenses), net
|
42
|
1
|
(20
|
)
|
(6
|
)
|
||||||||||
Operating profit
|
328
|
101
|
24
|
7
|
||||||||||||
Financing income
|
21
|
19
|
49
|
14
|
||||||||||||
Financing expenses
|
(196
|
)
|
(190
|
)
|
(193
|
)
|
(56
|
)
|
||||||||
Financing expenses, net
|
(175
|
)
|
(171
|
)
|
(144
|
)
|
(42
|
)
|
||||||||
Share in losses of equity accounted investees
|
-
|
-
|
(10
|
)
|
(3
|
)
|
||||||||||
Profit (loss) before taxes on income
|
153
|
(70
|
)
|
(130
|
)
|
(38
|
)
|
|||||||||
Tax benefit (Taxes on income)
|
(40
|
)
|
6
|
23
|
7
|
|||||||||||
Profit (loss) for the year
|
113
|
(64
|
)
|
(107
|
)
|
(31
|
)
|
|||||||||
Attributable to:
|
||||||||||||||||
Owners of the Company
|
112
|
(62
|
)
|
(107
|
)
|
(31
|
)
|
|||||||||
Non-controlling interests
|
1
|
(2
|
)
|
-
|
-
|
|||||||||||
Profit (loss) for the year
|
113
|
(64
|
)
|
(107
|
)
|
(31
|
)
|
|||||||||
Earnings (loss) per share
|
||||||||||||||||
Basic earnings (loss) per share (in NIS)
|
1.11
|
(0.58
|
)
|
(0.90
|
)
|
(0.26
|
)
|
|||||||||
Diluted earnings (loss) per share (in NIS)
|
1.10
|
(0.58
|
)
|
(0.90
|
)
|
(0.26
|
)
|
|||||||||
Weighted-average number of shares used in the calculation of basic earnings (loss) per share (in shares)
|
100,654,935
|
107,499,543
|
118,376,455
|
118,376,455
|
||||||||||||
Weighted-average number of shares used in the calculation of diluted earnings (loss) per share (in shares)
|
100,889,661
|
107,499,543
|
118,376,455
|
118,376,455
|
Convenience
|
||||||||||||||||
translation into
|
||||||||||||||||
US dollar
|
||||||||||||||||
Year ended
|
Year ended
|
Year ended
|
Year ended
|
|||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2017
|
2018
|
2019
|
2019
|
|||||||||||||
NIS millions
|
NIS millions
|
NIS millions
|
US$ millions
|
|||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Profit (loss) for the year
|
113
|
(64
|
)
|
(107
|
)
|
(31
|
)
|
|||||||||
Adjustments for:
|
||||||||||||||||
Depreciation and amortization
|
555
|
584
|
898
|
260
|
||||||||||||
Share based payments
|
2
|
2
|
8
|
2
|
||||||||||||
Gain on sale of property, plant and equipment, intangible assets and others
|
(1
|
)
|
-
|
(8
|
)
|
(2
|
)
|
|||||||||
Gain on sale of shares in a consolidated company
|
(10
|
)
|
-
|
-
|
-
|
|||||||||||
Net change in fair value of investment property
|
-
|
-
|
6
|
2
|
||||||||||||
Income tax expense (tax benefit)
|
40
|
(6
|
)
|
(23
|
)
|
(7
|
)
|
|||||||||
Financing expenses, net
|
175
|
171
|
144
|
42
|
||||||||||||
Other expenses
|
-
|
-
|
3
|
1
|
||||||||||||
Share in losses of equity accounted investees
|
-
|
-
|
10
|
3
|
||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Change in inventory
|
(6
|
)
|
(24
|
)
|
28
|
8
|
||||||||||
Change in trade receivables (including long-term amounts)
|
101
|
166
|
80
|
23
|
||||||||||||
Change in other receivables (including long-term amounts)
|
(191
|
)
|
(21
|
)
|
13
|
4
|
||||||||||
Change in trade payables, accrued expenses and provisions
|
(27
|
)
|
(26
|
)
|
(27
|
)
|
(8
|
)
|
||||||||
Change in other liabilities (including long-term amounts)
|
28
|
11
|
23
|
6
|
||||||||||||
Payments for derivative hedging contracts, net
|
(3
|
)
|
-
|
(10
|
)
|
(3
|
)
|
|||||||||
Income tax paid
|
(44
|
)
|
(23
|
)
|
(12
|
)
|
(4
|
)
|
||||||||
Income tax received
|
42
|
-
|
10
|
3
|
||||||||||||
Net cash from operating activities
|
774
|
770
|
1,036
|
299
|
||||||||||||
Cash flows used in investing activities
|
||||||||||||||||
Acquisition of property, plant, and equipment
|
(346
|
)
|
(356
|
)
|
(324
|
)
|
(94
|
)
|
||||||||
Acquisition of intangible assets and others
|
(237
|
)
|
(237
|
)
|
(233
|
)
|
(67
|
)
|
||||||||
Acquisition of equity accounted investee
|
-
|
-
|
(16
|
)
|
(5
|
)
|
||||||||||
Change in current investments, net
|
(77
|
)
|
(56
|
)
|
(49
|
)
|
(14
|
)
|
||||||||
Receipts from other derivative contracts, net
|
-
|
3
|
9
|
3
|
||||||||||||
Proceeds from sale of property, plant and equipment, intangible assets and others
|
1
|
1
|
181
|
52
|
||||||||||||
Grant of long-term loans to equity accounted investees
|
-
|
-
|
(141
|
)
|
(41
|
)
|
||||||||||
Interest received
|
12
|
14
|
13
|
4
|
||||||||||||
Proceeds from sale of shares in a consolidated company, net of cash disposed
|
3
|
-
|
-
|
-
|
||||||||||||
Net cash used in investing activities
|
(644
|
)
|
(631
|
)
|
(560
|
)
|
(162
|
)
|
Convenience
|
||||||||||||||||
translation into
|
||||||||||||||||
US dollar
|
||||||||||||||||
Year ended
|
Year ended
|
Year ended
|
Year ended
|
|||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2017
|
2018
|
2019
|
2019
|
|||||||||||||
NIS millions
|
NIS millions
|
NIS millions
|
US$ millions
|
|||||||||||||
Cash flows used in financing activities
|
||||||||||||||||
Payments for derivative contracts, net
|
(3
|
)
|
(15
|
)
|
(2
|
)
|
(1
|
)
|
||||||||
Receipt of long-term loans from financial institutions
|
200
|
-
|
150
|
43
|
||||||||||||
Payments for long-term loans from financial institutions
|
-
|
(78
|
)
|
(212
|
)
|
(61
|
)
|
|||||||||
Repayment of debentures
|
(864
|
)
|
(556
|
)
|
(504
|
)
|
(145
|
)
|
||||||||
Proceeds from issuance of debentures, net of issuance costs
|
-
|
997
|
-
|
-
|
||||||||||||
Repurchase of own debentures
|
-
|
-
|
(10
|
)
|
(3
|
)
|
||||||||||
Dividend paid
|
(1
|
)
|
-
|
-
|
-
|
|||||||||||
Interest paid
|
(175
|
)
|
(126
|
)
|
(151
|
)
|
(43
|
)
|
||||||||
Acquisition of non-controlling interests
|
-
|
(19
|
)
|
-
|
-
|
|||||||||||
Equity offering
|
-
|
275
|
309
|
89
|
||||||||||||
Proceeds from exercise of share options
|
-
|
59
|
4
|
1
|
||||||||||||
Payment of principal of lease liabilities
|
-
|
-
|
(256
|
)
|
(74
|
)
|
||||||||||
Net cash from (used in) financing activities
|
(843
|
)
|
537
|
(672
|
)
|
(194
|
)
|
|||||||||
Changes in cash and cash equivalents
|
(713
|
)
|
676
|
(196
|
)
|
(57
|
)
|
|||||||||
Cash and cash equivalents as at the beginning of the year
|
1,240
|
527
|
1,202
|
348
|
||||||||||||
Effects of exchange rate changes on cash and cash equivalents
|
-
|
(1
|
)
|
-
|
-
|
|||||||||||
Cash and cash equivalents as at the end of the year
|
527
|
1,202
|
1,006
|
291
|
Year ended December 31
|
Convenience
translation
into US dollar
Year ended
December 31
|
|||||||||||||||
2017
NIS millions
|
2018
NIS millions
|
2019
NIS millions
|
2019
US$ millions
|
|||||||||||||
Net income (loss)
|
113
|
(64
|
)
|
(107
|
)
|
(31
|
)
|
|||||||||
Taxes on income (tax benefit)
|
40
|
(6
|
)
|
(23
|
)
|
(7
|
)
|
|||||||||
Financing income
|
(21
|
)
|
(19
|
)
|
(49
|
)
|
(14
|
)
|
||||||||
Financing expenses
|
196
|
190
|
193
|
56
|
||||||||||||
Other expenses (income)
|
(1
|
)
|
(1
|
)
|
10
|
3
|
||||||||||
Depreciation and amortization
|
555
|
584
|
898
|
260
|
||||||||||||
Share of loss of equity accounted investees (net of income tax)
|
-
|
-
|
10
|
3
|
||||||||||||
Share based payments
|
2
|
3
|
8
|
2
|
||||||||||||
Adjusted EBITDA
|
884
|
687
|
940
|
272
|
Three-month period ended
December 31
|
||||||||||||||||
2017
NIS millions
|
2018
NIS millions
|
2019
NIS millions
|
Convenience
translation
into US dollar
2019
US$ millions
|
|||||||||||||
Net income (loss)
|
10
|
(35
|
)
|
(54
|
)
|
(16
|
)
|
|||||||||
Taxes on income (tax benefit)
|
5
|
(2
|
)
|
(13
|
)
|
(4
|
)
|
|||||||||
Financing income
|
(10
|
)
|
(7
|
)
|
(9
|
)
|
(3
|
)
|
||||||||
Financing expenses
|
47
|
58
|
43
|
13
|
||||||||||||
Other expenses
|
1
|
-
|
3
|
1
|
||||||||||||
Depreciation and amortization
|
143
|
155
|
233
|
67
|
||||||||||||
Share of loss of equity accounted investees (net of income tax)
|
-
|
-
|
6
|
2
|
||||||||||||
Share based payments
|
-
|
-
|
3
|
1
|
||||||||||||
Adjusted EBITDA
|
196
|
169
|
212
|
61
|
Year ended December 31
|
Convenience
translation
into US dollar
Year ended
December 31
|
|||||||||||||||
2017
NIS millions
|
2018
NIS millions
|
2019
NIS millions
|
2019
US$ millions
|
|||||||||||||
Cash flows from operating activities(*)
|
774
|
769
|
756
|
219
|
||||||||||||
Loan to Golan Telecom
|
130
|
-
|
-
|
-
|
||||||||||||
Cash flows from investing activities
|
(644
|
)
|
(631
|
)
|
(560
|
)
|
(162
|
)
|
||||||||
Purchase (sale) of tradable debentures(**)
|
65
|
43
|
38
|
11
|
||||||||||||
Investment in equity accounted investees
|
-
|
-
|
157
|
45
|
||||||||||||
Free cash flow
|
325
|
181
|
391
|
113
|
Three-month period ended
December 31
|
||||||||||||||||
2017
NIS millions
|
2018
NIS millions
|
2019
NIS millions
|
Convenience
translation
into US dollar
2019
US$ millions
|
|||||||||||||
Cash flows from operating activities(*)
|
214
|
165
|
165
|
48
|
||||||||||||
Cash flows from investing activities
|
(133
|
)
|
(148
|
)
|
(149
|
)
|
(43
|
)
|
||||||||
Purchase (sale) of tradable debentures(**)
|
(4
|
)
|
(10
|
)
|
37
|
11
|
||||||||||
Investment in equity accounted investees
|
-
|
-
|
3
|
1
|
||||||||||||
Free cash flow
|
77
|
7
|
56
|
17
|
NIS millions unless otherwise stated
|
Q1-2018
|
Q2-2018
|
Q3-2018
|
Q4-2018
|
Q1-2019
|
Q2-2019
|
Q3-2019
|
Q4-2019
|
FY-2018
|
FY-2019
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Cellular service revenues
|
437
|
434
|
443
|
416
|
404
|
420
|
439
|
416
|
1,730
|
1,679
|
||||||||||||||||||||||||||||||
Fixed-line service revenues
|
304
|
300
|
310
|
301
|
317
|
312
|
311
|
318
|
1,215
|
1,258
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Cellular equipment revenues
|
193
|
157
|
146
|
159
|
158
|
162
|
172
|
169
|
655
|
661
|
||||||||||||||||||||||||||||||
Fixed-line equipment revenues
|
39
|
76
|
52
|
82
|
92
|
63
|
47
|
69
|
249
|
271
|
||||||||||||||||||||||||||||||
Consolidation adjustments
|
(40
|
)
|
(40
|
)
|
(41
|
)
|
(40
|
)
|
(43
|
)
|
(37
|
)
|
(41
|
)
|
(40
|
)
|
(161
|
)
|
(161
|
)
|
||||||||||||||||||||
Total revenues
|
933
|
927
|
910
|
918
|
928
|
920
|
928
|
932
|
3,688
|
3,708
|
||||||||||||||||||||||||||||||
Cellular adjusted EBITDA
|
119
|
78
|
118
|
103
|
146
|
163
|
185
|
133
|
418
|
627
|
||||||||||||||||||||||||||||||
Fixed-line adjusted EBITDA
|
68
|
62
|
73
|
66
|
78
|
70
|
86
|
79
|
269
|
313
|
||||||||||||||||||||||||||||||
Total adjusted EBITDA
|
187
|
140
|
191
|
169
|
224
|
233
|
271
|
212
|
687
|
940
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Operating profit (loss)
|
52
|
(5
|
)
|
40
|
14
|
9
|
6
|
36 |
(27
|
)
|
101
|
24
|
||||||||||||||||||||||||||||
Financing expenses, net
|
40
|
43
|
37
|
51
|
27
|
52
|
31
|
34
|
171
|
144
|
||||||||||||||||||||||||||||||
Profit (loss) for the period
|
7
|
(37
|
)
|
1
|
(35
|
)
|
(16
|
)
|
(35
|
)
|
(2
|
)
|
(54
|
)
|
(64
|
)
|
(107
|
)
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Free cash flow
|
84
|
56
|
34
|
7
|
46
|
55
|
234
|
56
|
181
|
391
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Cellular subscribers at the end of period (in 000's)
|
2,822
|
2,809
|
2,825
|
2,851
|
2,853
|
2,745
|
2,767
|
2,744
|
2,851
|
2,744
|
||||||||||||||||||||||||||||||
Monthly cellular ARPU (in NIS)
|
51.8
|
51.8
|
52.5
|
49
|
47.2
|
51.9
|
53.2
|
50.5
|
51.3
|
50.7
|
||||||||||||||||||||||||||||||
Churn rate for cellular subscribers (%)
|
9.5
|
%
|
12.6
|
%
|
10.0
|
%
|
11.1
|
%
|
11.0
|
%
|
11.3
|
%
|
11.4
|
%
|
11.3
|
%
|
43.2
|
%
|
48.8
|
%
|
Series
|
Original Issuance Date
|
Principal on the Date of Issuance
|
As of 31.12.2019
|
As of 23.03.2020
|
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)(8)**
|
20/03/12
|
714.802
|
214.441
|
222.777
|
5.026
|
227.803
|
227.736
|
0.000
|
0.000
|
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.
|
H (4)(5)(7)**
|
08/07/14
03/02/15* 11/02/15* |
949.624
|
721.714
|
682.285
|
7.056
|
689.341
|
728.859
|
721.714
|
682.930
|
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
|
643.208
|
625.616
|
13.059
|
638.675
|
663.855
|
643.208
|
626.892
|
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
|
104.167
|
1.259
|
105.426
|
101.811
|
103.267
|
103.695
|
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
01/07/18* 10/12/18* |
710.634
|
710.634
|
705.779
|
12.372
|
718.151
|
688.746
|
710.634
|
706.121
|
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 (4)(5)(9)**
|
24/01/18
10/12/18* |
613.937
|
602.979
|
579.040
|
14.868
|
593.908
|
543.308
|
602.979
|
579.936
|
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
|
|
3,896.274
|
2,996.243
|
2,919.664
|
53.640
|
2,973.304
|
2,954.315
|
2,781.802
|
2,699.574
|
|
|
|
|
|
Series
|
Rating Company
|
Rating as of 31.12.2019 (1)
|
Rating as of 23.03.2020
|
Rating assigned upon issuance of the Series
|
Recent date of rating as of 23.03.2020
|
Additional ratings between original issuance and the recent date of rating as of 23.03.2020 (2)
|
|
|
Rating
|
||||||
F
|
S&P Maalot
|
A
|
A
|
AA
|
08/2019
|
05/2012, 11/2012, 06/2013, 06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019
|
AA,AA-,A+,A(2)
|
H
|
S&P Maalot
|
A
|
A
|
A+
|
08/2019
|
06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019
|
A+,A(2)
|
I
|
S&P Maalot
|
A
|
A
|
A+
|
08/2019
|
06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019
|
A+,A(2)
|
J
|
S&P Maalot
|
A
|
A
|
A+
|
08/2019
|
08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019
|
A+,A(2)
|
K
|
S&P Maalot
|
A
|
A
|
A+
|
08/2019
|
08/2016, 06/2017, 01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019
|
A+,A(2)
|
L
|
S&P Maalot
|
A
|
A
|
A+
|
08/2019
|
01/2018, 06/2018, 08/2018, 12/2018, 03/2019, 08/2019
|
A+,A(2)
|
(1) |
In August 2019, S&P Maalot updated the Company's rating outlook from an "“ilA+/negative” to an “ilA-/negative”.
|
(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, June 2018, August 2018 and December 2018 S&P Maalot affirmed the
Company's rating of “ilA+/stable”. In March 2019, S&P Maalot updated the Company's rating outlook from an "ilA+/stable" to an “ilA+/negative”. In August 2019, S&P Maalot updated the Company's rating outlook from an "ilA+/negative"
to an “ilA/negative”. For details regarding the rating of the debentures see the S&P Maalot report dated August 5, 2019, included in the Company's current report filled in the Israeli Securities Authority website ("MAGNA") on August 5,
2019
|
Loan
|
Provision Date
|
Principal Amount as of 31.12.2019
|
Interest Rate (nominal)
|
Principal Repayment Dates (annual payments)
|
Interest Repayment Dates (semi-annual payments)
|
Linkage
|
|
From
|
To
|
||||||
Loan from financial institution (2)(3)(4)(5)(6)
|
06/2016
|
100
|
4.60%
|
30.06.18
|
30.06.21
|
Jun-30 and December-31, commencing December 31, 2016 through June 30, 2021
|
Not linked
|
Loan from financial institution(2)(3)(4)(5)(6)
|
06/2017
|
150
|
5.10%
|
30.06.19
|
30.06.22
|
June-30
and December-31, commencing December 31, 2017 through June 30, 2022 |
Not linked
|
Loan from bank(2)(3)(4)(5)(6)
|
03/2019
|
150
|
4.00%
|
31.03.21
|
31.03.24
|
March-31 and September 30, commencing September 30, 2019 through March 31, 2024
|
Not linked
|
Total
|
|
400
|
|
|
|
|
|
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
|
336,705
|
80,401
|
-
|
-
|
-
|
88,719
|
||||||||||||||||||
Second year
|
168,288
|
218,668
|
-
|
-
|
-
|
78,013
|
||||||||||||||||||
Third year
|
168,288
|
218,668
|
-
|
-
|
-
|
66,182
|
||||||||||||||||||
Fourth year
|
168,288
|
308,564
|
-
|
-
|
-
|
54,351
|
||||||||||||||||||
Fifth year and on
|
209,176
|
1,123,590
|
-
|
-
|
-
|
89,220
|
||||||||||||||||||
Total
|
1,050,745
|
1,949,891
|
-
|
-
|
-
|
376,485
|
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
|
-
|
-
|
-
|
9,812
|
||||||||||||||||||
Second year
|
-
|
100,000
|
-
|
-
|
-
|
4,955
|
||||||||||||||||||
Third year
|
-
|
50,000
|
-
|
-
|
-
|
1,264
|
||||||||||||||||||
Fourth year
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Fifth year and on
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total
|
-
|
250,000
|
-
|
-
|
-
|
16,031
|
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
|
-
|
-
|
-
|
-
|
-
|
5,984
|
||||||||||||||||||
Second year
|
-
|
37,500
|
-
|
-
|
-
|
5,248
|
||||||||||||||||||
Third year
|
-
|
37,500
|
-
|
-
|
-
|
3,748
|
||||||||||||||||||
Fourth year
|
-
|
37,500
|
-
|
-
|
-
|
2,248
|
||||||||||||||||||
Fifth year and on
|
-
|
37,500
|
-
|
-
|
-
|
750
|
||||||||||||||||||
Total
|
-
|
150,000
|
-
|
-
|
-
|
17,978
|
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
|
336,705
|
180,401
|
-
|
-
|
-
|
104,514
|
||||||||||||||||||
Second year
|
168,288
|
356,168
|
-
|
-
|
-
|
88,216
|
||||||||||||||||||
Third year
|
168,288
|
306,168
|
-
|
-
|
-
|
71,195
|
||||||||||||||||||
Fourth year
|
168,288
|
346,064
|
-
|
-
|
-
|
56,599
|
||||||||||||||||||
Fifth year and on
|
209,176
|
1,161,090
|
-
|
-
|
-
|
89,970
|
||||||||||||||||||
Total
|
1,050,745
|
2,349,891
|
-
|
-
|
-
|
410,494
|
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
|
809
|
-
|
-
|
-
|
-
|
292
|
||||||||||||||||||
Second year
|
419
|
488
|
-
|
-
|
-
|
273
|
||||||||||||||||||
Third year
|
419
|
488
|
-
|
-
|
-
|
246
|
||||||||||||||||||
Fourth year
|
419
|
1,039
|
-
|
-
|
-
|
218
|
||||||||||||||||||
Fifth year and on
|
1,458
|
4,914
|
-
|
-
|
-
|
455
|
||||||||||||||||||
Total
|
3,524
|
6,929
|
-
|
-
|
-
|
1,484
|
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.
|
CELLCOM ISRAEL LTD.
|
|||
Date: March 23, 2020
|
By:
|
/s/ Liat Menahemi Stadler | |
Name: Liat Menahemi Stadler | |||
Title: VP Legal and Corporate Secretary |