NETANYA, Israel, May 24, 2017 /PRNewswire/ --
First Quarter 2017 Highlights (compared to first quarter of 2016):
- Total Revenues totaled NIS 959 million ($264 million)
compared to NIS 1,022 million ($281 million) in the first quarter
last year, a decrease of 6.2%
- Service revenues totaled NIS 739 million ($203 million)
compared to NIS 774 million ($213 million) in the first quarter
last year, a decrease of 4.5%
- EBITDA 1 totaled NIS 201 million ($55
million) compared to NIS 238 million ($66 million) in the
first quarter last year, a decrease of 15.5%
- EBITDA margin 21.0%, a decrease from 23.3% in the first quarter last year
- Operating income totaled NIS 67 million ($19 million)
compared to NIS 101 million ($28 million) in the first quarter last
year, a decrease of 33.7%
- Net income totaled NIS 26 million ($7 million) compared
to NIS 59 million ($16 million) in the first quarter last year, a
decrease of 55.9%
- Free cash flow 1 totaled NIS 66 million ($18
million) compared to NIS 149 million ($41 million) in the
first quarter last year, a decrease of 55.7%
- Cellular subscriber base totaled approximately 2.792 million subscribers (at the end of March
2017)
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 first
quarter of 2017:
"Revenues for the first quarter of 2017 were affected by the continued competition and price erosion in service revenues in
the cellular segment and a decrease in revenues from national roaming compared to the first quarter of last year. The decrease in
service revenues in the cellular segment was partially offset by growth in service revenues from the fixed-line segment in
respect of television and wholesale market services. In the first quarter of the year, the equipment revenues also decreased due
to postponement of new handsets launches. In the second quarter of the year, we see an increase in activity of the end-user
equipment in the cellular segment, with the cancellation of the purchase tax on this equipment and the successful launch of the
Galaxy S8.
In the first quarter of 2017 again the intensified competition is reflected in the Company's results. In this quarter, we
received all the required approvals for the network sharing agreements including the network sharing agreement with Golan which
entered into force and guarantees us aggregate consideration of approximately NIS 2 billion over
the coming decade. This is a significant achievement for the Company in the competitive market in which it operates. The effect
of the network sharing agreement with Golan will be reflected gradually from the second quarter over the term of the
agreement.
We continue the quarterly growth trend of Cellcom tv subscribers, and in the first quarter, approximately 13,000 households
who chose the best television in Israel joined the service. In the field of Internet
infrastructure we also maintained our position as significant recruiters in the market with the addition of 17,000 new
households.
I am proud of our position in the television market as an innovative and quality company which provides value to the customer.
In the recent weeks we announced that HBO content will be added to Cellcom tv at no additional cost. In addition we announced the
possibility of viewing and recording from all smart TV screens and Android TV and launched the first Quattro package in
Israel - all communications services in one package which includes television, three cellular
lines, internet (connectivity and infrastructure) and a landline telephone service at a worthwhile and attractive price to the
customer. This move is another step in our long-term strategy as a communications group that provides comprehensive service to
its customers.
We continue to develop new growth engines and recently launched Cyber 360, an advanced comprehensive security solution for the
business, that enables end-to-end protection of the enterprise through an innovative digital interface under control and
monitoring of the business owner. The cyber-attack that took place two weeks ago illustrates the need for comprehensive cyber
solutions for businesses."
Shlomi Fruhling, Chief Financial Officer, said:
"In the first quarter of 2017 we continued to recruit customers for Cellcom tv, the wholesale market service and the triple
play service. Revenues from services in the fixed-line segment continue to grow following vast recruitment of subscribers. In the
cellular segment, we experienced continued high level of competition which reflected in a continued erosion of service revenues
from customers. In addition, we recorded a decrease in revenues from national roaming services compared to the first quarter of
2016.
As of the first quarter of 2017 the Company applies International Financial Reporting Standard (IFRS 15) and capitalizes part
of the salaries expenses and commissions related to customer acquisition costs. The application of this standard is expected to
have a material positive effect on the Company's financial results for the year.
Compared to the previous quarter, we recorded an increase of 2.8% in service revenues and a 16.2% improvement in EBITDA, as a
result of the continued implementation of the growth strategy in the fixed-line segment, revenues' enhancement activity, an
increase in revenues from national roaming services in the cellular segment and the application of International Financial
Reporting Standard (IFRS 15).
Free cash flow for the first quarter of 2017 totaled NIS 66 million, a 55.7% decrease compared
to the first quarter of 2016. The decrease in free cash flow resulted mainly from a one-time tax refund received in the first
quarter of 2016 and from higher cash capital expenditures in fixed assets and intangible assets in the first quarter of 2017
compared to the first quarter of 2016.
The Company's Board of Directors decided not to distribute a dividend for the first quarter of 2017, given the continued
intensified competition in the market and its effect on the Company's operating results and in order to further strengthen the
Company's balance sheet. The Board of Directors will re-evaluate its decision as market conditions develop, and taking into
consideration 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 first quarter of 2017.
The Company reported that revenues for the first quarter of 2017 totaled NIS 959 million
($264 million); EBITDA for the first quarter of 2017 totaled NIS 201
million ($55 million), or 21.0% of total revenues; net income for the first quarter of 2017
totaled NIS 26 million ($7 million). Basic earnings per share for the
first quarter of 2017 totaled NIS 0.25 ($0.07).
MAIN CONSOLIDATED FINANCIAL RESULTS :
|
Q1/2017
|
Q1/2016
|
Change%
|
Q1/2017
|
Q1/2016
|
|
|
|
|
US$ million
|
|
NIS million
|
(convenience translation)
|
Total revenues
|
959
|
1,022
|
(6.2%)
|
264
|
281
|
Operating Income
|
67
|
101
|
(33.7%)
|
19
|
28
|
Net Income
|
26
|
59
|
(55.9%)
|
7
|
16
|
Free cash flow
|
66
|
149
|
(55.7%)
|
18
|
41
|
EBITDA
|
201
|
238
|
(15.5%)
|
55
|
66
|
EBITDA, as percent of total revenues
|
21.0%
|
23.3%
|
(9.9%)
|
|
|
MAIN FINANCIAL DATA BY OPERATING SEGMENTS :
|
Cellular (*)
|
Fixed-line (**)
|
Consolidation
adjustments
(***)
|
Consolidated results
|
NIS million
|
Q1'17
|
Q1'16
|
Change
%
|
Q1'17
|
Q1'16
|
Change
%
|
Q1'17
|
Q1'16
|
Q1'17
|
Q1'16
|
Change
%
|
Total revenues
|
692
|
778
|
(11.1%)
|
316
|
293
|
7.8%
|
(49)
|
(49)
|
959
|
1,022
|
(6.2%)
|
Service revenues
|
509
|
559
|
(8.9%)
|
279
|
264
|
5.7%
|
(49)
|
(49)
|
739
|
774
|
(4.5%)
|
Equipment revenues
|
183
|
219
|
(16.4%)
|
37
|
29
|
27.6%
|
-
|
-
|
220
|
248
|
(11.3%)
|
EBITDA
|
159
|
178
|
(10.7%)
|
42
|
60
|
(30.0%)
|
-
|
-
|
201
|
238
|
(15.5%)
|
EBITDA, as percent of total revenues
|
23.0%
|
22.9%
|
0.4%
|
13.3%
|
20.5%
|
(35.1%)
|
|
|
21.0%
|
23.3%
|
(9.9%)
|
(*)
|
The segment includes the cellular communications services, end user
cellular equipment and supplemental services.
|
(**)
|
The segment includes landline telephony services, internet infrastructure
and connectivity services, television
services, end user fixed-line equipment and supplemental services.
|
(****)
|
Include cancellation of inter-segment revenues between "Cellular" and
"Fixed-line" segments.
|
FINANCIAL REVIEW (FIRST QUARTER OF 2017 COMPARED TO FIRST QUARTER OF 2016):
Revenues for the first quarter of 2017 decreased 6.2% totaling NIS 959 million
($264 million), compared to NIS 1,022 million ($281 million) in the first quarter last year. The decrease in revenues is attributed to a 4.5% decrease in
service revenues and an 11.3% decrease in equipment revenues.
Service revenues totaled NIS 739 million ($203 million) in
the first quarter of 2017, a 4.5% decrease from NIS 774 million ($213
million) in the first quarter last year.
Service revenues in the cellular segment totaled NIS 509 million ($140 million) in the first quarter of 2017, an 8.9% decrease from NIS 559 million
($154 million) in the first quarter last year. This decrease resulted mainly from a decrease in
cellular services revenues and from a decrease in revenues from national roaming services. The decrease in cellular services
revenues resulted from the ongoing erosion in the prices of these services and churn of customers as a result of the aggressive
competition in the cellular market.
Service revenues in the fixed-line segment totaled NIS 279 million ($77 million) in the first quarter of 2017, a 5.7% increase from NIS 264 million
($73 million) in the first quarter last year. This increase resulted mainly from an increase in
revenues from Internet and TV services.
Equipment revenues totaled NIS 220 million ($61 million) in
the first quarter of 2017, an 11.3% decrease compared to NIS 248 million ($68 million) in the first quarter last year. This decrease resulted mainly from a decrease in the amount of end
user equipment sold in the cellular segment. This decrease was partially offset by an increase in equipment sales in the
fixed-line segment.
Cost of revenues for the first quarter of 2017 totaled NIS 665 million ($183 million), compared to NIS 670 million ($184
million) in the first quarter of 2016, a 0.7% decrease. This decrease resulted mainly from a decrease in the quantity of
end user equipment sold in the cellular segment. The decrease was partially offset by an increase in costs of TV services content
and in costs related to internet services in the fixed-line segment.
Gross profit for the first quarter of 2017 decreased 16.5% to NIS 294 million
($81 million), compared to NIS 352 million ($97 million) in the first quarter of 2016. Gross profit margin for the first quarter of 2017 amounted
to 30.7%, down from 34.4% in the first quarter of 2016.
Selling, Marketing, General and Administrative Expenses ("SG&A Expenses") for the first quarter of 2017 decreased
9.6% to NIS 227 million ($62 million), compared to NIS 251 million ($69 million) in the first quarter of 2016. This decrease is
primarily a result of a decrease in salaries and commissions expenses due to capitalization of part of the customer acquisition
costs as a result of early adoption of a new International Financial Reporting Standard (IFRS 15) as of the first quarter of
2017.
Operating income for the first quarter of 2017 decreased by 33.7% to NIS 67 million
($19 million) from NIS 101 million ($28
million) in the first quarter of 2016. The decrease in the operating income resulted mainly from a decrease in revenues
from cellular services. The decrease was partially offset by a decrease in selling and marketing expenses in the amount of
NIS 28 million ($8 million) due to capitalization of part of the
customer acquisition costs as a result of early adoption of a new International Financial Reporting Standard (IFRS 15) as of the
first quarter of 2017.
EBITDA for the first quarter of 2017 decreased by 15.5% totaling NIS 201 million
($55 million) compared to NIS 238 million ($66
million) in the first quarter of 2016. EBITDA as a percent of revenues for the first quarter of 2017 totaled 21.0%, down
from 23.3% in the first quarter of 2016. The decrease in EBITDA resulted mainly from the ongoing erosion in service revenues. The
decrease was partially offset by a decrease in selling and marketing expenses due to capitalization of part of the customer
acquisition costs as a result of early adoption of a new International Financial Reporting Standard (IFRS 15) as of the first
quarter of 2017.
Cellular segment EBITDA for the first quarter of 2017 totaled NIS 159 million ($44 million), compared to NIS 178 million ($49
million) in the first quarter last year, a decrease of 10.7%, which resulted mainly from a decrease in service revenues as
mentioned above. Fixed-line segment EBITDA for the first quarter of 2017 totaled NIS 42 million
($12 million), compared to NIS 60 million ($17
million) in the first quarter last year, a 30.0% decrease, mainly as a result of an erosion in the internet field
profitability.
Financing expenses, net for the first quarter of 2017 increased 29.2% and totaled NIS 31
million ($9 million), compared to NIS 24 million ($7 million) in the first quarter of 2016. The increase resulted mainly from lower deflation of the Israeli
Consumer Price Index in the first quarter of 2017 compared to the first quarter of 2016.
Net Income for the first quarter of 2017 totaled NIS 26 million ($7 million), compared to NIS 59 million ($16
million) in the first quarter of 2016, a 55.9% decrease.
Basic earnings per share for the first quarter of 2017 totaled NIS 0.25 ($0.07), compared to NIS 0.59 ($0.16) in the first
quarter last year.
OPERATING REVIEW
MAIN PERFORMANCE INDICATORS - CELLULAR SEGMENT:
|
Q1/2017
|
Q1/2016
|
Change (%)
|
Cellular subscribers at the end of period (in thousands)
|
2,792
|
2,813
|
(0.7%)
|
Churn Rate for cellular subscribers (in %)
|
12.0%
|
11.1%
|
8.1%
|
Monthly cellular ARPU (in NIS)
|
60.2
|
65.2
|
(7.7%)
|
Cellular subscriber base - at the end of the first quarter of 2017 the Company had approximately 2.792 million cellular
subscribers. During the first quarter of 2017 the Company's cellular subscriber base decreased by approximately 9,000 net
cellular subscribers.
Cellular Churn Rate for the first quarter of 2017 totaled to 12.0%, compared to 11.1% in the first quarter last
year.
The monthly cellular Average Revenue per User ("ARPU") for the first quarter of 2017 totaled NIS
60.2 ($16.6), compared to NIS 65.2 ($18.0) in the first quarter last year. The decrease in ARPU resulted, among others, 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:
|
Q1/2017
|
Q1/2016
|
Change (%)
|
Internet infrastructure field- households at the end of
period (in thousands)
|
173
|
121
|
43.0%
|
TV field- households at the end of period (in
thousands)
|
124
|
75
|
65.3%
|
In the first quarter of 2017, the Company's households base in respect of the internet infrastructure field increased by
approximately 17,000 net households (in the fourth quarter of 2016 the Company's internet infrastructure households base was
156,000 and not 163,000, as previously reported), and the Company's households base in the TV field increased by 13,000 net
households.
FINANCING AND INVESTMENT REVIEW
Cash Flow
Free cash flow for the first quarter of 2017, after elimination of a loan provided to Golan Telecom in the amount of
NIS 130 million, as previously reported, totaled NIS 66 million
($18 million), compared to NIS 149 million ($41 million) in the first quarter of 2016, a 55.7% decrease. The decrease in free cash flow, resulted mainly
from a one-time tax refund received in the first quarter of 2016 and from higher cash capital expenditures in fixed assets and
intangible assets in the first quarter of 2017 compared to the first quarter of 2016.
Total Equity
Total Equity as of March 31, 2017 amounted to NIS 1,367 million
($376 million) primarily consisting of undistributed accumulated retained earnings of the
Company.
Cash Capital Expenditures in Fixed Assets and Intangible Assets
During the first quarter of 2017, the Company invested NIS 140 million ($39 million) in fixed assets and intangible assets (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 early adoption of a new International Financial Reporting Standard (IFRS 15)), compared to
NIS 90 million ($25 million) in the first quarter 2016.
Dividend
On May 23, 2017, the Company's Board of Directors decided not to declare a cash dividend for the
first quarter of 2017. 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, 2016 on
Form 20-F dated March 20, 2017, or the 2016 Annual Report, under "Item 8 - Financial Information –
A. Consolidated Statements and Other Financial Information - Dividend Policy".
Debentures
For information regarding a summary of the Company's financial liabilities and details regarding the Company's outstanding
debentures as of March 31, 2017, see "Disclosure for Debenture Holders" section in this press
release.
Loans from Financial Institutions
For details regarding the fulfillment of financial covenants included in the loan agreements, which are identical to those
included in the Company's Debentures Series F through K, see comment no.1 to the table of "Aggregation of the information
regarding the debenture series issued by the Company" under "Disclosure for Debenture Holders" section in this press release. For
additional details regarding the loans see the Company's 2016 Annual Report, under "Item 5B. Liquidity and Capital Resources –
Other Credit Facilities".
OTHER DEVELOPMENTS DURING THE FIRST QUARTER OF 2017 AND SUBSEQUENT TO THE END OF THE REPORTING PERIOD
Network Sharing Agreements
Following previous reports regarding the Company's network sharing and hosting services agreements with Marathon 018 Xfone
Ltd., or Xfone, and with Electra Consumer Products Ltd., or Electra, in March and April 2017,
respectively, both agreements came into effect after their respective preliminary conditions were met and the Company's agreement
with Electra was adopted by Golan Telecom Ltd., or Golan Telecom, upon completion of its share capital being purchased by
Electra. In April 2017, Xfone notified the Company that the Ministry of Communications granted
Xfone a non-exclusive general license for the provision of cellular services.
For additional details see the Company's 2016 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" and "Item 4. Information on the Company – B.
Business Overview - Networks and Infrastructure - Cellular Segment- Network Sharing Agreements", "- Competition – Cellular" and
"- Government Regulation – Cellular Segment - Additional MNOs" and the Company's current reports on Form 6-K dated March 20 2017 and April 5, 2017.
Sale of Indirect Subsidiary
In May 2017, a wholly owned indirect subsidiary of the Company, 013 Netvision Ltd., or
Netvision, has entered an agreement for the sale of its holdings in Internet Rimon Israel 2009 Ltd., or Rimon, a subsidiary of
Netvision, to the other shareholders of Rimon. The agreement is subject to regulatory approvals and contains customary terms and
conditions. The consideration shall be paid to Netvision in several installments over a period of two years from the closing of
the transaction. The Company expects to record a capital gain of approximately NIS 10-15 million
following the consummation of the agreement.
CONFERENCE CALL DETAILS
The Company will be hosting a conference call regarding its results for the first quarter of 2017 on Wednesday, May 24, 2017 at 09:30 am ET, 06:30 am
PT, 14:30 UK time, 16:30 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: 1 866 652
8972
|
UK Dial-in Number: 0 808 101 2717
|
Israel Dial-in Number: 03 918
0608
|
International Dial-in Number: +972 3 918 0608
|
at: 09:30 am Eastern Time; 06:30 am Pacific Time; 14:30 UK Time;
16:30 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 the largest Israeli cellular provider; Cellcom Israel provides its approximately
2.792 million cellular subscribers (as at March 31, 2017) with a broad range of value added
services including cellular telephony, roaming services for tourists in Israel and for its
subscribers abroad and additional 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. Through its broad customer service network
Cellcom Israel offers technical support, account information, direct to the door parcel delivery services, internet and fax
services, dedicated centers for hearing impaired, etc. 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 communications services in Israel, in addition to data communications services. 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 Annual Report for the
year ended December 31, 2016.
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 3.632 = US$ 1 as published by the Bank of Israel for March 31, 2017.
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); 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
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
into US dollar
|
|
|
|
|
March 31,
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
681
|
|
589
|
|
162
|
|
1,240
|
Current investments, including derivatives
|
|
282
|
|
283
|
|
78
|
|
284
|
Trade receivables
|
|
1,299
|
|
1,293
|
|
356
|
|
1,325
|
Current tax assets
|
|
-
|
|
47
|
|
13
|
|
25
|
Other receivables
|
|
61
|
|
71
|
|
20
|
|
61
|
Inventory
|
|
78
|
|
67
|
|
18
|
|
64
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
2,401
|
|
2,350
|
|
647
|
|
2,999
|
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
808
|
|
914
|
|
252
|
|
796
|
Property, plant and equipment, net
|
|
1,696
|
|
1,628
|
|
448
|
|
1,659
|
Intangible assets and others, net
|
|
1,221
|
|
1,230
|
|
339
|
|
1,207
|
Deferred tax assets
|
|
8
|
|
1
|
|
-
|
|
1
|
|
|
|
|
|
|
|
|
|
Total non- current assets
|
|
3,733
|
|
3,773
|
|
1,039
|
|
3,663
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
6,134
|
|
6,123
|
|
1,686
|
|
6,662
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current maturities of debentures
|
|
858
|
|
709
|
|
195
|
|
863
|
Trade payables and accrued expenses
|
|
636
|
|
639
|
|
176
|
|
675
|
Current tax liabilities
|
|
57
|
|
1
|
|
-
|
|
-
|
Provisions
|
|
107
|
|
101
|
|
28
|
|
108
|
Other payables, including derivatives
|
|
272
|
|
243
|
|
67
|
|
279
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
1,930
|
|
1,693
|
|
466
|
|
1,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loans from financial institutions
|
|
-
|
|
340
|
|
94
|
|
340
|
Debentures
|
|
2,784
|
|
2,511
|
|
692
|
|
2,866
|
Provisions
|
|
20
|
|
30
|
|
8
|
|
30
|
Other long-term liabilities
|
|
28
|
|
33
|
|
9
|
|
31
|
Liability for employee rights upon retirement, net
|
|
12
|
|
12
|
|
3
|
|
12
|
Deferred tax liabilities
|
|
115
|
|
137
|
|
38
|
|
118
|
|
|
|
|
|
|
|
|
|
Total non- current liabilities
|
|
2,959
|
|
3,063
|
|
844
|
|
3,397
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
4,889
|
|
4,756
|
|
1,310
|
|
5,322
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the Company
|
|
|
|
|
|
|
|
|
Share capital
|
|
1
|
|
1
|
|
-
|
|
1
|
Cash flow hedge reserve
|
|
(2)
|
|
(1)
|
|
-
|
|
(1)
|
Retained earnings
|
|
1,230
|
|
1,348
|
|
371
|
|
1,322
|
|
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
16
|
|
19
|
|
5
|
|
18
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
1,245
|
|
1,367
|
|
376
|
|
1,340
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
6,134
|
|
6,123
|
|
1,686
|
|
6,662
|
Cellcom Israel Ltd.
|
(An Israeli Corporation)
|
|
Condensed Consolidated Interim Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
into US dollar
|
|
|
|
|
Three-month
|
|
Three- month
|
|
|
|
|
period ended
|
|
period ended
|
|
Year ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
1,022
|
|
959
|
|
264
|
|
4,027
|
Cost of revenues
|
|
(670)
|
|
(665)
|
|
(183)
|
|
(2,702)
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
352
|
|
294
|
|
81
|
|
1,325
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses
|
|
(148)
|
|
(114)
|
|
(31)
|
|
(574)
|
General and administrative expenses
|
|
(103)
|
|
(113)
|
|
(31)
|
|
(420)
|
Other expenses, net
|
|
-
|
|
-
|
|
-
|
|
(21)
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
101
|
|
67
|
|
19
|
|
310
|
|
|
|
|
|
|
|
|
|
Financing income
|
|
14
|
|
16
|
|
4
|
|
46
|
Financing expenses
|
|
(38)
|
|
(47)
|
|
(13)
|
|
(196)
|
Financing expenses, net
|
|
(24)
|
|
(31)
|
|
(9)
|
|
(150)
|
|
|
|
|
|
|
|
|
|
Profit before taxes on income
|
|
77
|
|
36
|
|
10
|
|
160
|
|
|
|
|
|
|
|
|
|
Taxes on income
|
|
(18)
|
|
(10)
|
|
(3)
|
|
(10)
|
Profit for the period
|
|
59
|
|
26
|
|
7
|
|
150
|
Attributable to:
|
|
|
|
|
|
|
|
|
Owners of the Company
|
|
58
|
|
25
|
|
7
|
|
148
|
Non-controlling interests
|
|
1
|
|
1
|
|
-
|
|
2
|
Profit for the period
|
|
59
|
|
26
|
|
7
|
|
150
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
Basic earnings per share (in NIS)
|
|
0.59
|
|
0.25
|
|
0.07
|
|
1.47
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (in NIS)
|
|
0.59
|
|
0.25
|
|
0.07
|
|
1.47
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares used
in the calculation of basic earnings per
share (in shares)
|
|
100,604,578
|
|
100,604,795
|
|
100,604,795
|
|
100,604,578
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares used
in the calculation of diluted earnings per
share (in shares)
|
|
100,604,578
|
|
101,390,301
|
|
101,390,301
|
|
100,698,306
|
Cellcom Israel Ltd.
|
(An Israeli Corporation)
|
|
Condensed Consolidated Interim Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
into US dollar
|
|
|
|
|
Three-month
|
|
Three- month
|
|
|
|
|
period ended
|
|
period ended
|
|
Year ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Profit for the period
|
|
59
|
|
26
|
|
7
|
|
150
|
Adjustments for:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
135
|
|
133
|
|
37
|
|
534
|
Share based payments
|
|
2
|
|
1
|
|
-
|
|
6
|
Gain on sale of property, plant and equipment
|
|
1
|
|
-
|
|
-
|
|
10
|
Income tax expense
|
|
18
|
|
10
|
|
3
|
|
10
|
Financing expenses, net
|
|
24
|
|
31
|
|
9
|
|
150
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Change in inventory
|
|
7
|
|
(3)
|
|
(1)
|
|
21
|
Change in trade receivables (including long-term amounts)
|
|
(58)
|
|
60
|
|
16
|
|
(28)
|
Change in other receivables (including long-term amounts)
|
|
32
|
|
(152)
|
|
(42)
|
|
(5)
|
Change in trade payables, accrued expenses and provisions
|
|
2
|
|
(11)
|
|
(3)
|
|
-
|
Change in other liabilities (including long-term amounts)
|
|
38
|
|
(6)
|
|
(2)
|
|
20
|
Income tax paid
|
|
(21)
|
|
(12)
|
|
(3)
|
|
(88)
|
Income tax received
|
|
-
|
|
-
|
|
-
|
|
1
|
Net cash from operating activities
|
|
239
|
|
77
|
|
21
|
|
781
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Acquisition of property, plant, and equipment
|
|
(68)
|
|
(93)
|
|
(25)
|
|
(295)
|
Additions to intangible assets and others
|
|
(22)
|
|
(47)
|
|
(13)
|
|
(73)
|
Change in current investments, net
|
|
(1)
|
|
1
|
|
-
|
|
(9)
|
Payments for other derivative contracts, net
|
|
-
|
|
(1)
|
|
-
|
|
-
|
Proceeds from sale of property, plant and equipment
|
|
-
|
|
-
|
|
-
|
|
2
|
Interest received
|
|
6
|
|
4
|
|
1
|
|
11
|
Net cash used in investing activities
|
|
(85)
|
|
(136)
|
|
(37)
|
|
(364)
|
Cellcom Israel Ltd.
|
(An Israeli Corporation)
|
|
Condensed Consolidated Interim Statements of Cash Flows
(cont'd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convenience
|
|
|
|
|
|
|
|
|
translation
|
|
|
|
|
|
|
|
|
into US dollar
|
|
|
|
|
Three-month
|
|
Three- month
|
|
|
|
|
period ended
|
|
period ended
|
|
Year ended
|
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
NIS millions
|
|
US$ millions
|
|
NIS millions
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Payments for derivative contracts, net
|
|
(6)
|
|
-
|
|
-
|
|
(13)
|
Receipt of long-term loans from financial institutions
|
|
-
|
|
-
|
|
-
|
|
340
|
Repayment of debentures
|
|
(385)
|
|
(514)
|
|
(142)
|
|
(732)
|
Proceeds from issuance of debentures, net of issuance costs
|
|
250
|
|
-
|
|
-
|
|
653
|
Dividend paid
|
|
(1)
|
|
-
|
|
-
|
|
(1)
|
Interest paid
|
|
(92)
|
|
(78)
|
|
(21)
|
|
(185)
|
|
|
|
|
|
|
|
|
|
Net cash from (used in) financing activities
|
|
(234)
|
|
(592)
|
|
(163)
|
|
62
|
|
|
|
|
|
|
|
|
|
Changes in cash and cash equivalents
|
|
(80)
|
|
(651)
|
|
(179)
|
|
479
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents as at the beginning of the period
|
|
761
|
|
1,240
|
|
341
|
|
761
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents as at the end of the period
|
|
681
|
|
589
|
|
162
|
|
1,240
|
Cellcom Israel Ltd
|
(An Israeli Corporation)
|
|
|
|
Reconciliation for Non-IFRS Measures
|
|
|
|
EBITDA
|
|
|
|
The following is a reconciliation of net income to EBITDA:
|
|
|
|
|
Three-month period ended
March 31,
|
Year ended
December 31,
|
|
2016
|
2017
|
Convenience
translation
into US dollar
2017
|
2016
|
|
NIS millions
|
US$ millions
|
NIS millions
|
Profit for the period
|
59
|
26
|
7
|
150
|
Taxes on income
|
18
|
10
|
3
|
10
|
Financing income
|
(14)
|
(16)
|
(4)
|
(46)
|
Financing expenses
|
38
|
47
|
13
|
196
|
Other expenses
|
-
|
-
|
-
|
8
|
Depreciation and amortization
|
135
|
133
|
36
|
534
|
Share based payments
|
2
|
1
|
-
|
6
|
EBITDA
|
238
|
201
|
55
|
858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
The following table shows the calculation of free cash flow:
|
|
|
|
|
Three-month period ended
March 31,
|
Year ended
December 31,
|
|
2016
|
2017
|
Convenience
translation
into US dollar
2017
|
2016
|
|
NIS millions
|
US$ millions
|
NIS millions
|
Cash flows from operating
activities(*)
|
239
|
77
|
21
|
781
|
Loan to Golan Telecom
|
-
|
130
|
36
|
-
|
Cash flows from investing
activities
|
(90)
|
(136)
|
(37)
|
(364)
|
Sale of short-term tradable
debentures and deposits (**)
|
-
|
(5)
|
(2)
|
(1)
|
Free cash flow
|
149
|
66
|
18
|
416
|
|
|
|
|
|
|
|
|
|
|
(*) 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
|
Q1-2016
|
Q2-2016
|
Q3-2016
|
Q4-2016
|
Q1-2017
|
FY-2016
|
|
|
|
|
|
|
|
Cellular service revenues
|
559
|
567
|
534
|
502
|
509
|
2,162
|
Fixed-line service revenues
|
264
|
264
|
276
|
267
|
279
|
1,071
|
|
|
|
|
|
|
|
Cellular equipment revenues
|
219
|
217
|
195
|
205
|
183
|
836
|
Fixed-line equipment revenues
|
29
|
30
|
39
|
60
|
37
|
158
|
|
|
|
|
|
|
|
Consolidation adjustments
|
(49)
|
(49)
|
(52)
|
(50)
|
(49)
|
(200)
|
Total revenues
|
1,022
|
1,029
|
992
|
984
|
959
|
4,027
|
|
|
|
|
|
|
|
Cellular EBITDA
|
178
|
181
|
149
|
117
|
159
|
625
|
Fixed-line EBITDA
|
60
|
57
|
60
|
56
|
42
|
233
|
Total EBITDA
|
238
|
238
|
209
|
173
|
201
|
858
|
|
|
|
|
|
|
|
Operating profit
|
101
|
104
|
73
|
32
|
67
|
310
|
Financing expenses, net
|
24
|
44
|
42
|
40
|
31
|
150
|
Profit for the period
|
59
|
44
|
33
|
14
|
26
|
150
|
|
|
|
|
|
|
|
Free cash flow
|
149
|
103
|
81
|
83
|
66
|
416
|
|
|
|
|
|
|
|
Cellular subscribers at the end
of period (in 000's)
|
2,813
|
2,812
|
2,822
|
2,801
|
2,792
|
2,801
|
Monthly cellular ARPU (in NIS)
|
65.2
|
66.0
|
62.8
|
59.3
|
60.2
|
63.3
|
Churn rate for cellular
subscribers (%)
|
11.1%
|
10.6%
|
10.5%
|
10.4%
|
12.0%
|
42.4%
|
Cellcom Israel Ltd.
|
|
Disclosure for debenture holders as of March 31, 2017
|
|
Aggregation of the information regarding the debenture series issued by
the Company (1), in million NIS
|
|
Series(8)
|
Original Issuance Date
|
Principal on the Date of Issuance
|
As of 31.03.2017
|
As of 23.05.2017
|
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
|
D (7)**
|
07/10/07
03/02/08*
06/04/09*
30/03/11*
18/08/11*
|
2,423.075
|
299.602
|
347.668
|
13.479
|
361.147
|
364.795
|
299.602
|
349.120
|
5.19%
|
01.07.13
|
01.07.17
|
July-1
|
Linked to CPI
|
Hermetic Trust (1975) Ltd. Meirav Ofer Oren. 113 Hayarkon St., Tel Aviv.
Tel: 03-5274867.
|
F (4)(5)(6) **
|
20/03/12
|
714.802
|
643.322
|
656.197
|
7.018
|
663.215
|
703.279
|
643.322
|
659.398
|
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
|
228.158
|
228.307
|
3.714
|
232.021
|
247.232
|
228.158
|
228.293
|
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
|
830.022
|
4.379
|
834.401
|
968.711
|
949.624
|
834.062
|
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*
30/03/16*
|
804.010
|
804.010
|
754.941
|
7.752
|
762.693
|
872.914
|
804.010
|
756.360
|
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)
|
26/09/16
|
103.267
|
103.267
|
102.257
|
0.589
|
102.846
|
107.078
|
103.267
|
102.280
|
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)**
|
26/09/16
|
303.971
|
303.971
|
300.926
|
2.513
|
303.439
|
313.637
|
303.971
|
300.995
|
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.
|
Total
|
|
5,583.947
|
3,331.954
|
3,220.318
|
39.444
|
3,259.762
|
3,577.646
|
3,331.954
|
3,230.508
|
|
|
|
|
|
|
Comments :
(1) In the reporting period, the Company fulfilled all terms of the debentures. The Company also fulfilled all terms of the
Indentures and loan agreements. Debentures Series F through K financial and loan agreements covenants - as of March 31, 2017 the net leverage (net debt to EBITDA excluding one time events ratio- see definition in the
Company's annual report for the year ended December 31, 2016 on Form 20-F, under "Item 5. Operating
and Financial Review and Prospects – B. Liquidity and Capital Resources – Debt Service– Public Debentures") was 3.30. In the
reporting period, no cause for early repayment occurred. (2) Including interest accumulated in the books. (3) Semi annual
payments, excluding Series D debentures in which the payments are annual. (4) Regarding debenture Series F through K and loan
agreements, 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 debenture Series F through K and loan agreements - the Company has the right for
early redemption under certain terms (see the Company's annual report for the year ended December 31,
2016 on Form 20-F, under "Item 5. Operating and Financial Review and Prospects– B. Liquidity and Capital Resources – Debt
Service– Public Debentures" and "-Other Credit Facilities". (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 2016, 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 (Series E debentures were fully repaid in January 2017), 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. (8) In January 2017, debentures Series B and E were fully repaid.
(*)
|
On these dates additional debentures of the series were issued, the
information in the table refers to the full series.
|
(**)
|
As of March 31, 2017, debentures Series D, F, H, I and K 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 March 31, 2017 (cont.)
|
|
Debentures Rating Details *
|
|
Series
|
Rating Company
|
Rating as of 31.03.2017 (1)
|
Rating as of 23.05.2017
|
Rating assigned upon issuance of the Series
|
Recent date of rating as of 23.05.2017
|
Additional ratings between original issuance and the recent date of rating
as of 23.05.2017 (2)
|
|
Rating
|
D
|
S&P Maalot
|
A+
|
A+
|
AA-
|
08/2016
|
1/2008, 10/2008, 3/2009, 9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012,
6/2013, 6/2014, 8/2014, 01/2015, 9/2015, 3/2016, 08/2016
|
AA-, AA,AA-,
A+ (2)
|
F
|
S&P Maalot
|
A+
|
A+
|
AA
|
08/2016
|
5/2012, 11/2012, 6/2013, 6/2014, 8/2014, 1/2015, 9/2015, 3/2016,
08/2016
|
AA,AA-,A+ (2)
|
G
|
S&P Maalot
|
A+
|
A+
|
AA
|
08/2016
|
5/2012, 11/2012, 6/2013, 6/2014, 8/2014, 1/2015, 9/2015, 3/2016,
08/2016
|
AA,AA-,A+ (2)
|
H
|
S&P Maalot
|
A+
|
A+
|
A+
|
08/2016
|
6/2014, 8/2014, 1/2015, 9/2015, 3/2016, 08/2016
|
A+ (2)
|
I
|
S&P Maalot
|
A+
|
A+
|
A+
|
08/2016
|
6/2014, 8/2014, 1/2015, 9/2015, 3/2016, 08/2016
|
A+ (2)
|
J
|
S&P Maalot
|
A+
|
A+
|
A+
|
08/2016
|
08/2016
|
A+ (2)
|
K
|
S&P Maalot
|
A+
|
A+
|
A+
|
08/2016
|
08/2016
|
A+ (2)
|
(1) In August 2016, S&P Maalot affirmed the Company's rating of
"ilA+/stable".
(2) In October 2008, S&P Maalot issued a notice that the AA- rating
for debentures issued by the Company is in the process of recheck with stable implications (Credit Watch Stable). This process
was withdrawn upon assignment of AA rating in March 2009. In August
2011, S&P Maalot issued a notice that the AA rating for debentures issued by the Company is in the process of recheck
with negative implications (Credit Watch Negative). 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 and August 2016, 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 23, 2016.
* 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.
Summary of Financial Undertakings (according to repayment dates) as of March 31,
2017
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
|
563,709
|
142,029
|
-
|
-
|
-
|
128,875
|
Second year
|
330,901
|
165,457
|
-
|
-
|
-
|
88,196
|
Third year
|
330,901
|
80,240
|
-
|
-
|
-
|
66,658
|
Fourth year
|
113,043
|
80,240
|
-
|
-
|
-
|
51,076
|
Fifth year and on
|
703,066
|
861,701
|
-
|
-
|
-
|
123,970
|
Total
|
2,041,620
|
1,329,667
|
-
|
-
|
-
|
458,775
|
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
|
-
|
-
|
-
|
-
|
-
|
16,060
|
Second year
|
-
|
78,000
|
-
|
-
|
-
|
14,213
|
Third year
|
-
|
78,000
|
-
|
-
|
-
|
10,541
|
Fourth year
|
-
|
78,000
|
-
|
-
|
-
|
6,874
|
Fifth year and on
|
-
|
106,000
|
-
|
-
|
-
|
3,881
|
Total
|
-
|
340,000
|
-
|
-
|
-
|
51,569
|
c. Credit from banks in Israel based on the Company's "Solo" financial data
(in thousand NIS) - None.
d. Credit from banks abroad based on the Company's "Solo" financial data (in thousand NIS) - None.
Cellcom Israel Ltd.
Summary of Financial Undertakings (according to repayment dates) as of March 31,
2017 (cont.)
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
|
563,709
|
142,029
|
-
|
-
|
-
|
144,935
|
Second year
|
330,901
|
243,457
|
-
|
-
|
-
|
102,409
|
Third year
|
330,901
|
158,240
|
-
|
-
|
-
|
77,199
|
Fourth year
|
113,043
|
158,240
|
-
|
-
|
-
|
57,950
|
Fifth year and on
|
703,066
|
967,701
|
-
|
-
|
-
|
127,851
|
Total
|
2,041,620
|
1,669,667
|
-
|
-
|
-
|
510,344
|
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
|
1,913
|
570
|
-
|
-
|
-
|
641
|
Second year
|
1,436
|
503
|
-
|
-
|
-
|
493
|
Third year
|
1,436
|
161
|
-
|
-
|
-
|
420
|
Fourth year
|
912
|
161
|
-
|
-
|
-
|
371
|
Fifth year and on
|
7,960
|
5,077
|
-
|
-
|
-
|
975
|
Total
|
13,657
|
6,472
|
-
|
-
|
-
|
2,900
|
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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cellcom-israel-announces-first-quarter-2017-results-300462987.html
SOURCE Cellcom Israel Ltd.