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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 11/25/20 Partner Communications Co. Ltd. 6-K 11/25/20 1:1.2M Z-K Global Ltd./FA |
Document/Exhibit Description Pages Size 1: 6-K Current, Quarterly or Annual Report by a Foreign HTML 470K Issuer
• |
Total Revenues: NIS 800 million (US$ 232 million), a decrease of 3%
|
• |
Service Revenues: NIS 631 million (US$ 183 million), a decrease of 4%
|
• |
Equipment Revenues: NIS 169 million (US$ 49 million), an increase of 1%
|
• |
Total Operating Expenses (OPEX)2: NIS 475 million (US$ 138 million), approx. unchanged
|
• |
Adjusted EBITDA2: NIS 204 million (US$ 59 million), a decrease of 9%
|
• |
Adjusted EBITDA Margin2: 26% of total revenues compared with 27%
|
• |
Loss for the Period: NIS 5 million (US$ 1 million), a decrease in profit of NIS 12 million
|
• |
Net Debt: NIS 646 million (US$ 188 million), a decrease of NIS 310 million
|
• |
Adjusted Free Cash Flow (before interest)2: NIS 21 million (US$ 6 million), an increase of NIS 8 million
|
• |
Cellular ARPU: NIS 51 (US$ 15), a decrease of 14%
|
• |
Cellular Subscriber Base: approximately 2.76
million at quarter-end, an increase of 4%
|
• |
TV Subscriber Base: 224 thousand subscribers at quarter-end, an increase of 48 thousand subscribers since Q3 2019, and an increase of 9
thousand in the quarter
|
NIS Million
|
Q2’20
|
Q3’20
|
Comments
|
Service Revenues
|
616
|
631
|
The increase resulted from increases both in cellular service revenues and in fixed-line segment service revenues
|
Equipment Revenues
|
158
|
169
|
The increase mainly reflected higher sale volumes due to the closure of points of sale during the second quarter as a result of the coronavirus crisis
|
Total Revenues
|
774
|
800
|
|
Gross profit from equipment sales
|
30
|
38
|
|
OPEX
|
456
|
475
|
The increase mainly reflected the larger reduction of expenses in the second quarter
|
Adjusted EBITDA
|
200
|
204
|
|
Profit (Loss) for the Period
|
7
|
(5)
|
|
Capital Expenditures (additions)
|
121
|
179
|
|
Adjusted Free Cash Flow (before interest payments)
|
44
|
21
|
The decrease resulted mainly from an increase in cash used in capital expenditures
|
Net Debt
|
658
|
646
|
Q2’20
|
Q3’20
|
Comments
|
|
Cellular Subscribers (end of period, thousands)
|
2,708
|
2,762
|
Increase of approx. 33 thousand Post-Paid subscribers and 21 thousand Pre-Paid subscribers
|
Monthly Average Revenue per Cellular User (ARPU) (NIS)
|
51
|
51
|
|
Quarterly Cellular Churn Rate (%)
|
7.5%
|
7.3%
|
|
TV Subscribers (end of period, thousands)
|
215
|
224
|
NIS MILLION (except EPS)
|
Q3'19
|
Q3'20
|
% Change
|
Revenues
|
825
|
800
|
-3%
|
Cost of revenues
|
687
|
677
|
-1%
|
Gross profit
|
138
|
123
|
-11%
|
Operating profit
|
26
|
20
|
-23%
|
Profit (Loss) for the period
|
7
|
(5)
|
|
Earnings (Losses) per share (basic, NIS)
|
0.04
|
(0.03)
|
|
Adjusted Free Cash Flow (before interest)
|
13
|
21
|
+62%
|
Q3'19
|
Q3'20
|
Change
|
|
Adjusted EBITDA (NIS million)
|
225
|
204
|
-9%
|
Adjusted EBITDA margin (as a % of total revenues)
|
27%
|
26%
|
-1
|
Cellular Subscribers (end of period, thousands)
|
2,651
|
2,762
|
+111
|
Quarterly Cellular Churn Rate (%)
|
7.7%
|
7.3%
|
-0.4
|
Monthly Average Revenue per Cellular User (ARPU) (NIS)
|
59
|
51
|
-8
|
Cellular Segment
|
Fixed-Line Segment
|
Elimination
|
Consolidated
|
||||||||
NIS Million
|
Q3'19
|
Q3'20
|
Change %
|
Q3'19
|
Q3'20
|
Change %
|
Q3'19
|
Q3'20
|
Q3'19
|
Q3'20
|
Change %
|
Total Revenues
|
608
|
549
|
-10%
|
258
|
287
|
+11%
|
(41)
|
(36)
|
825
|
800
|
-3%
|
Service Revenues
|
466
|
415
|
-11%
|
233
|
252
|
+8%
|
(41)
|
(36)
|
658
|
631
|
-4%
|
Equipment Revenues
|
142
|
134
|
-6%
|
25
|
35
|
+40%
|
-
|
-
|
167
|
169
|
+1%
|
Operating Profit
|
24
|
20
|
-17%
|
2
|
0
|
-
|
-
|
26
|
20
|
-23%
|
|
Adjusted EBITDA
|
170
|
134
|
-21%
|
55
|
70
|
+27%
|
-
|
-
|
225
|
204
|
-9%
|
Non-GAAP Measure
|
Calculation
|
Most Comparable IFRS Financial Measure
|
Adjusted EBITDA
Adjusted EBITDA margin (%)
|
Profit (Loss)
add
Income tax expenses,
Finance costs, net,
Depreciation and amortization expenses (including amortization of intangible assets, deferred expenses-right of use and impairment charges),
Other expenses (mainly amortization of share based compensation)
Adjusted EBITDA
divided by
Total revenues
|
Profit (Loss)
|
Adjusted Free Cash Flow
|
Net cash provided by operating activities
add
Net cash used in investing activities
deduct
Proceeds from (investment in) short-term
deposits, net
deduct
Lease principal payments
deduct
Lease interest payments
|
Net cash provided by operating activities
add
Net cash used in investing activities
|
Total Operating Expenses (OPEX)
|
Cost of service revenues
add
Selling and marketing expenses
add
General and administrative expenses
deduct
Depreciation and amortization expenses,
Other expenses (mainly amortization of employee share based compensation)
|
Sum of:
Cost of service revenues,
Selling and marketing expenses,
General and administrative expenses
|
Net Debt
|
Current maturities of notes payable and borrowings
add
Notes payable
add
Borrowings from banks
add
Advances on account of notes payables
add
Financial liability at fair value
deduct
Cash and cash equivalents
deduct
Short-term deposits
|
Sum of:
Current maturities of notes payable and borrowings,
Notes payable,
Borrowings from banks, Advances on account of notes payables,
Financial liability at fair value
Less
Sum of:
Cash and cash equivalents,
Short-term deposits
|
Chief Financial Officer
Tel: +972-54-781-4951
|
Amir Adar
Head of Investor Relations and Corporate Projects
Tel: +972-54-781-5051
E-mail: investors@partner.co.il
|
New Israeli Shekels |
Convenience translation into U.S. Dollars
|
|||||||||||
December 31,
|
September 30,
|
|||||||||||
2020
|
2020
|
|||||||||||
(Audited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||
In millions
|
||||||||||||
CURRENT ASSETS
|
||||||||||||
Cash and cash equivalents
|
299
|
364
|
106
|
|||||||||
Short-term deposits
|
552
|
658
|
191
|
|||||||||
Trade receivables
|
624
|
582
|
169
|
|||||||||
Other receivables and prepaid expenses
|
39
|
34
|
10
|
|||||||||
Deferred expenses – right of use
|
26
|
28
|
8
|
|||||||||
Inventories
|
124
|
109
|
32
|
|||||||||
1,664
|
1,775
|
516
|
||||||||||
NON CURRENT ASSETS
|
||||||||||||
Trade receivables
|
250
|
235
|
68
|
|||||||||
Deferred expenses – right of use
|
102
|
111
|
32
|
|||||||||
Lease – right of use
|
582
|
569
|
165
|
|||||||||
Property and equipment
|
1,430
|
1,455
|
424
|
|||||||||
Intangible and other assets
|
538
|
531
|
154
|
|||||||||
Goodwill
|
407
|
407
|
118
|
|||||||||
Deferred income tax asset
|
41
|
35
|
10
|
|||||||||
Prepaid expenses and other assets
|
1
|
9
|
3
|
|||||||||
3,351
|
3,352
|
974
|
||||||||||
TOTAL ASSETS
|
5,015
|
5,127
|
1,490
|
New Israeli Shekels |
Convenience translation into U.S. Dollars
|
|||||||||||
December 31,
|
September 30,
|
|||||||||||
2020
|
2020
|
|||||||||||
(Audited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||
In millions
|
||||||||||||
CURRENT LIABILITIES
|
||||||||||||
Current maturities of notes payable and borrowings
|
367
|
290
|
84
|
|||||||||
Trade payables
|
716
|
693
|
201
|
|||||||||
Payables in respect of employees
|
103
|
79
|
24
|
|||||||||
Other payables (mainly institutions)
|
23
|
25
|
7
|
|||||||||
Income tax payable
|
30
|
32
|
9
|
|||||||||
Lease liabilities
|
131
|
127
|
37
|
|||||||||
Deferred revenues from HOT mobile
|
31
|
31
|
9
|
|||||||||
Other deferred revenues
|
45
|
65
|
19
|
|||||||||
Provisions
|
43
|
33
|
10
|
|||||||||
1,489
|
1,375
|
400
|
||||||||||
NON CURRENT LIABILITIES
|
||||||||||||
Notes payable
|
1,275
|
1,265
|
368
|
|||||||||
Borrowings from banks
|
138
|
99
|
29
|
|||||||||
Financial liability at fair value
|
28
|
14
|
4
|
|||||||||
Liability for employee rights upon retirement, net
|
43
|
41
|
12
|
|||||||||
Lease liabilities
|
486
|
474
|
138
|
|||||||||
Deferred revenues from HOT mobile
|
102
|
79
|
23
|
|||||||||
Provisions and other non-current liabilities
|
37
|
66
|
18
|
|||||||||
2,109
|
2,038
|
592
|
||||||||||
TOTAL LIABILITIES
|
3,598
|
3,413
|
992
|
|||||||||
EQUITY
|
||||||||||||
Share capital - ordinary shares of NIS 0.01
par value: authorized - December 31, 2019
and September 30, 2020 - 235,000,000 shares;
issued and outstanding -
|
2
|
2
|
1
|
|||||||||
December 31, 2019 – *162,915,990 shares
|
||||||||||||
September 30, 2020 – *182,736,313 shares
|
||||||||||||
Capital surplus
|
1,077
|
1,315
|
382
|
|||||||||
Accumulated retained earnings
|
576
|
597
|
173
|
|||||||||
Treasury shares, at cost
December 31, 2019 – **8,275,837 shares
September 30, 2020 – **7,787,618 shares
|
(238
|
)
|
(200
|
)
|
(58
|
)
|
||||||
TOTAL EQUITY
|
1,417
|
1,714
|
498
|
|||||||||
TOTAL LIABILITIES AND EQUITY
|
5,015
|
5,127
|
1,490
|
New Israeli shekels
|
Convenience translation
into U.S. dollars
|
|||||||||||||||||||||||
9 months period ended
September 30,
|
3 months period ended
September 30,
|
9 months period ended
September 30,
|
||||||||||||||||||||||
2020
|
2019
|
2020
|
2020
|
2020
|
||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||
In millions (except per share data)
|
||||||||||||||||||||||||
Revenues, net
|
2,400
|
2,381
|
825
|
800
|
692
|
233
|
||||||||||||||||||
Cost of revenues
|
2,014
|
1,985
|
687
|
677
|
577
|
197
|
||||||||||||||||||
Gross profit
|
386
|
396
|
138
|
123
|
115
|
36
|
||||||||||||||||||
Selling and marketing expenses
|
228
|
212
|
78
|
72
|
62
|
21
|
||||||||||||||||||
General and administrative expenses
|
124
|
129
|
42
|
39
|
37
|
11
|
||||||||||||||||||
Other income, net
|
23
|
21
|
8
|
8
|
6
|
2
|
||||||||||||||||||
Operating profit
|
57
|
76
|
26
|
20
|
22
|
6
|
||||||||||||||||||
Finance income
|
4
|
4
|
1
|
1
|
1
|
*
|
||||||||||||||||||
Finance expenses
|
52
|
60
|
19
|
25
|
17
|
7
|
||||||||||||||||||
Finance costs, net
|
48
|
56
|
18
|
24
|
16
|
7
|
||||||||||||||||||
Profit (loss) before income tax
|
9
|
20
|
8
|
(4
|
)
|
6
|
(1
|
)
|
||||||||||||||||
Income tax expenses (income)
|
(3
|
)
|
8
|
1
|
1
|
2
|
*
|
|||||||||||||||||
Profit (loss) for the period
|
12
|
12
|
7
|
(5
|
)
|
4
|
(1
|
)
|
||||||||||||||||
Attributable to:
|
||||||||||||||||||||||||
Owners of the Company
|
12
|
12
|
7
|
(5
|
)
|
4
|
(1
|
)
|
||||||||||||||||
Non-controlling interests
|
*
|
|||||||||||||||||||||||
Profit (loss) for the period
|
12
|
12
|
7
|
(5
|
)
|
4
|
(1
|
)
|
||||||||||||||||
Earnings (losses) per share
|
||||||||||||||||||||||||
Basic
|
0.07
|
0.06
|
0.04
|
(0.03
|
)
|
0.02
|
(0.01
|
)
|
||||||||||||||||
Diluted
|
0.07
|
0.06
|
0.04
|
(0.03
|
)
|
0.02
|
(0.01
|
)
|
||||||||||||||||
Weighted average number of shares
outstanding (in thousands)
|
||||||||||||||||||||||||
Basic
|
162,802
|
182,183
|
162,864
|
182,688
|
182,183
|
182,688
|
||||||||||||||||||
Diluted
|
163,497
|
182,839
|
163,505
|
182,688
|
182,839
|
182,688
|
New Israeli shekels
|
Convenience translation
into U.S. dollars
|
|||||||||||||||||||||||
9 months period ended
September 30,
|
3 months period ended
September 30,
|
9 months period ended
September 30,
|
||||||||||||||||||||||
2020
|
2019
|
2020
|
2020
|
2020
|
||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||
In millions
|
||||||||||||||||||||||||
Profit (loss) for the period
|
12
|
12
|
7
|
(5
|
)
|
4
|
(1
|
)
|
||||||||||||||||
Other comprehensive income
for the period, net of income tax
|
1
|
*
|
||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD
|
12
|
13
|
7
|
(5
|
)
|
4
|
(1
|
)
|
||||||||||||||||
Total comprehensive income (loss) attributable to:
|
||||||||||||||||||||||||
Owners of the Company
|
12
|
13
|
7
|
(5
|
)
|
4
|
(1
|
)
|
||||||||||||||||
Non-controlling interests
|
*
|
|||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD
|
12
|
13
|
7
|
(5
|
)
|
4
|
(1
|
)
|
New Israeli Shekels
|
New Israeli Shekels
|
||||||||||||||||||||||||||||||
9 months period ended September 30, 2020
|
9 months period ended September 30, 2019
|
||||||||||||||||||||||||||||||
In millions (Unaudited)
|
In millions (Unaudited)
|
||||||||||||||||||||||||||||||
|
Cellular
segment
|
Fixed line segment
|
Elimination
|
Consolidated
|
Cellular
segment
|
Fixed line
segment
|
Elimination
|
Consolidated
|
|||||||||||||||||||||||
Segment revenue - Services
|
1,235
|
641
|
1,876
|
1,348
|
576
|
1,924
|
|||||||||||||||||||||||||
Inter-segment revenue - Services
|
12
|
100
|
(112
|
)
|
12
|
111
|
(123
|
)
|
|||||||||||||||||||||||
Segment revenue - Equipment
|
410
|
95
|
505
|
399
|
77
|
476
|
|||||||||||||||||||||||||
Total revenues
|
1,657
|
836
|
(112
|
)
|
2,381
|
1,759
|
764
|
(123
|
)
|
2,400
|
|||||||||||||||||||||
Segment cost of revenues - Services
|
960
|
625
|
1,585
|
1,044
|
601
|
1,645
|
|||||||||||||||||||||||||
Inter-segment cost of revenues - Services
|
100
|
12
|
(112
|
)
|
111
|
12
|
(123
|
)
|
|||||||||||||||||||||||
Segment cost of revenues - Equipment
|
339
|
61
|
400
|
321
|
48
|
369
|
|||||||||||||||||||||||||
Cost of revenues
|
1,399
|
698
|
(112
|
)
|
1,985
|
1,476
|
661
|
(123
|
)
|
2,014
|
|||||||||||||||||||||
Gross profit
|
258
|
138
|
396
|
283
|
103
|
386
|
|||||||||||||||||||||||||
Operating expenses (3)
|
227
|
114
|
341
|
253
|
99
|
352
|
|||||||||||||||||||||||||
Other income, net
|
15
|
6
|
21
|
17
|
6
|
23
|
|||||||||||||||||||||||||
Operating profit
|
46
|
30
|
76
|
47
|
10
|
57
|
|||||||||||||||||||||||||
Adjustments to presentation of
segment Adjusted EBITDA
|
|||||||||||||||||||||||||||||||
–Depreciation and amortization
|
342
|
192
|
418
|
149
|
|||||||||||||||||||||||||||
–Other (1)
|
7
|
2
|
14
|
(2
|
)
|
||||||||||||||||||||||||||
Segment Adjusted EBITDA (2)
|
395
|
224
|
479
|
157
|
|||||||||||||||||||||||||||
Reconciliation of segment subtotal Adjusted EBITDA to profit for the period
|
|||||||||||||||||||||||||||||||
Segments subtotal Adjusted EBITDA (2)
|
619
|
636
|
|||||||||||||||||||||||||||||
- Depreciation and amortization
|
(534
|
)
|
(567
|
)
|
|||||||||||||||||||||||||||
- Finance costs, net
|
(56
|
)
|
(48
|
)
|
|||||||||||||||||||||||||||
- Income tax income (expenses)
|
(8
|
)
|
3
|
||||||||||||||||||||||||||||
- Other (1)
|
(9
|
)
|
(12
|
)
|
|||||||||||||||||||||||||||
Profit for the period
|
12
|
12
|
New Israeli Shekels
|
New Israeli Shekels
|
|||||||||||||||||||||||||||||||
3 months period ended September 30, 2020
|
3 months period ended September 30, 2019
|
|||||||||||||||||||||||||||||||
In millions (Unaudited)
|
In millions (Unaudited)
|
|||||||||||||||||||||||||||||||
|
Cellular
segment
|
Fixed line segment
|
Elimination
|
Consolidated
|
Cellular
segment
|
Fixed line
segment
|
Elimination
|
Consolidated
|
||||||||||||||||||||||||
Segment revenue - Services
|
411
|
220
|
631
|
462
|
196
|
658
|
||||||||||||||||||||||||||
Inter-segment revenue - Services
|
4
|
32
|
(36
|
)
|
4
|
37
|
(41
|
)
|
||||||||||||||||||||||||
Segment revenue - Equipment
|
134
|
35
|
169
|
142
|
25
|
167
|
||||||||||||||||||||||||||
Total revenues
|
549
|
287
|
(36
|
)
|
800
|
608
|
258
|
(41
|
)
|
825
|
||||||||||||||||||||||
Segment cost of revenues - Services
|
320
|
226
|
546
|
350
|
203
|
553
|
||||||||||||||||||||||||||
Inter-segment cost of revenues - Services
|
32
|
4
|
(36
|
)
|
37
|
4
|
(41
|
)
|
||||||||||||||||||||||||
Segment cost of revenues - Equipment
|
110
|
21
|
131
|
119
|
15
|
134
|
||||||||||||||||||||||||||
Cost of revenues
|
462
|
251
|
(36
|
)
|
677
|
506
|
222
|
(41
|
)
|
687
|
||||||||||||||||||||||
Gross profit
|
87
|
36
|
123
|
102
|
36
|
138
|
||||||||||||||||||||||||||
Operating expenses (3)
|
72
|
39
|
111
|
84
|
36
|
120
|
||||||||||||||||||||||||||
Other income, net
|
5
|
3
|
8
|
6
|
2
|
8
|
||||||||||||||||||||||||||
Operating profit
|
20
|
*
|
20
|
24
|
2
|
26
|
||||||||||||||||||||||||||
Adjustments to presentation of
segment Adjusted EBITDA
|
||||||||||||||||||||||||||||||||
–Depreciation and amortization
|
113
|
68
|
140
|
55
|
||||||||||||||||||||||||||||
–Other (1)
|
1
|
2
|
6
|
(2
|
)
|
|||||||||||||||||||||||||||
Segment Adjusted EBITDA (2)
|
134
|
70
|
170
|
55
|
||||||||||||||||||||||||||||
Reconciliation of segment subtotal Adjusted EBITDA to profit (loss) for the period
|
||||||||||||||||||||||||||||||||
Segments subtotal Adjusted EBITDA (2)
|
204
|
225
|
||||||||||||||||||||||||||||||
- Depreciation and amortization
|
(181
|
)
|
(195
|
)
|
||||||||||||||||||||||||||||
- Finance costs, net
|
(24
|
)
|
(18
|
)
|
||||||||||||||||||||||||||||
- Income tax expenses
|
(1
|
)
|
(1
|
)
|
||||||||||||||||||||||||||||
- Other (1)
|
(3
|
)
|
(4
|
)
|
||||||||||||||||||||||||||||
Profit (loss) for the period
|
(5
|
)
|
7
|
New Israeli Shekels |
Convenience translation into
U.S. Dollars |
|||||||||||
9 months period ended September 30,
|
||||||||||||
2020
|
2020
|
|||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||
In millions
|
||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Cash generated from operations (Appendix)
|
660
|
605
|
175
|
|||||||||
Income tax paid
|
(1
|
)
|
(1
|
)
|
*
|
|||||||
Net cash provided by operating activities
|
659
|
604
|
175
|
|||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Acquisition of property and equipment
|
(378
|
)
|
(293
|
)
|
(85
|
)
|
||||||
Acquisition of intangible and other assets
|
(124
|
)
|
(124
|
)
|
(36
|
)
|
||||||
Acquisition of a business, net of cash acquired
|
(3
|
)
|
||||||||||
Investment in short-term deposits, net
|
(156
|
)
|
(106
|
)
|
(31
|
)
|
||||||
Interest received
|
1
|
3
|
1
|
|||||||||
Consideration received from sales of property and equipment
|
2
|
|||||||||||
Net cash used in investing activities
|
(658
|
)
|
(520
|
)
|
(151
|
)
|
||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Lease principal payments
|
(109
|
)
|
(102
|
)
|
(30
|
)
|
||||||
Lease interest payments
|
(15
|
)
|
(13
|
)
|
(4
|
)
|
||||||
Interest paid
|
(21
|
)
|
(42
|
)
|
(12
|
)
|
||||||
Share issuance
|
276
|
80
|
||||||||||
Proceeds from issuance of notes payable, net of issuance costs
|
256
|
412
|
120
|
|||||||||
Proceeds from issuance of option warrants exercisable for notes payables
|
37
|
|||||||||||
Repayment of notes payable
|
(510
|
)
|
(148
|
)
|
||||||||
Repayment of non-current borrowings
|
(39
|
)
|
(39
|
)
|
(11
|
)
|
||||||
Repayment of current borrowings
|
(13
|
)
|
||||||||||
Settlement of contingent consideration
|
(1
|
)
|
*
|
|||||||||
Transactions with non-controlling interests
|
(2
|
)
|
||||||||||
Net cash provided by financing activities
|
94
|
(19
|
)
|
(5
|
)
|
|||||||
INCREASE IN CASH AND CASH EQUIVALENTS
|
95
|
65
|
19
|
|||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD
|
416
|
299
|
87
|
|||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
511
|
364
|
106
|
New Israeli Shekels |
Convenience translation into
U.S. Dollars |
|||||||||||
9 months period ended September 30,
|
||||||||||||
2020
|
2020
|
|||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||
In millions
|
||||||||||||
Cash generated from operations:
|
||||||||||||
Profit for the period
|
12
|
12
|
4
|
|||||||||
Adjustments for:
|
||||||||||||
Depreciation and amortization
|
546
|
511
|
149
|
|||||||||
Amortization of deferred expenses - Right of use
|
21
|
23
|
7
|
|||||||||
Employee share based compensation expenses
|
13
|
8
|
2
|
|||||||||
Liability for employee rights upon retirement, net
|
2
|
(1
|
)
|
*
|
||||||||
Finance costs, net
|
4
|
(1
|
)
|
(1
|
)
|
|||||||
Lease interest payments
|
15
|
13
|
4
|
|||||||||
Interest paid
|
21
|
42
|
12
|
|||||||||
Interest received
|
(1
|
)
|
(3
|
)
|
(1
|
)
|
||||||
Deferred income taxes
|
2
|
6
|
2
|
|||||||||
Income tax paid
|
1
|
1
|
*
|
|||||||||
Capital loss from property and equipment
|
(2
|
)
|
||||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Decrease (increase) in accounts receivable:
|
||||||||||||
Trade
|
71
|
57
|
16
|
|||||||||
Other
|
(2
|
)
|
3
|
1
|
||||||||
Increase (decrease) in accounts payable and accruals:
|
||||||||||||
Trade
|
28
|
(14
|
)
|
(4
|
)
|
|||||||
Other payables
|
8
|
(22
|
)
|
(7
|
)
|
|||||||
Provisions
|
(14
|
)
|
(10
|
)
|
(3
|
)
|
||||||
Deferred revenues from HOT mobile
|
(24
|
)
|
(23
|
)
|
(7
|
)
|
||||||
Other deferred revenues
|
6
|
20
|
6
|
|||||||||
Increase in deferred expenses - Right of use
|
(39
|
)
|
(34
|
)
|
(10
|
)
|
||||||
Current income tax
|
(6
|
)
|
2
|
1
|
||||||||
Decrease (increase) in inventories
|
(2
|
)
|
15
|
4
|
||||||||
Cash generated from operations
|
660
|
605
|
175
|
Adjusted Free Cash Flow
|
New Israeli Shekels
|
Convenience translation into
U.S. Dollars |
||||||||||||||||||||||
9 months period ended
September 30,
|
3 months period ended
September 30,
|
9 months period ended
September 30,
|
3 months period ended
|
|||||||||||||||||||||
2020
|
2019
|
2020
|
2020
|
2020
|
||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||
In millions
|
||||||||||||||||||||||||
Net cash provided by operating activities
|
659
|
604
|
230
|
207
|
175
|
60
|
||||||||||||||||||
Net cash used in investing activities
|
(658
|
)
|
(520
|
)
|
(90
|
)
|
(198
|
)
|
(151
|
)
|
(58
|
)
|
||||||||||||
Investment in short-term deposits, net
|
156
|
106
|
(85
|
)
|
51
|
31
|
15
|
|||||||||||||||||
Lease principal payments
|
(109
|
)
|
(102
|
)
|
(37
|
)
|
(35
|
)
|
(30
|
)
|
(10
|
)
|
||||||||||||
Lease interest payments
|
(15
|
)
|
(13
|
)
|
(5
|
)
|
(4
|
)
|
(4
|
)
|
(1
|
)
|
||||||||||||
Adjusted Free Cash Flow
|
33
|
75
|
13
|
21
|
21
|
6
|
||||||||||||||||||
Interest paid
|
(21
|
)
|
(42
|
)
|
(1
|
)
|
(9
|
)
|
(12
|
)
|
(3
|
)
|
||||||||||||
Adjusted Free Cash Flow After Interest
|
12
|
33
|
12
|
12
|
9
|
3
|
Total Operating Expenses (OPEX)
|
New Israeli Shekels
|
Convenience translation into
U.S. Dollars |
||||||||||||||||||||||
9 months period ended
September 30,
|
3 months period ended
September 30,
|
9 months period ended
September 30,
|
3 months period ended
|
|||||||||||||||||||||
2020
|
2019
|
2020
|
2020
|
2020
|
||||||||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||
In millions
|
||||||||||||||||||||||||
Cost of revenues – Services
|
1,645
|
1,585
|
553
|
546
|
461
|
159
|
||||||||||||||||||
Selling and marketing expenses
|
228
|
212
|
78
|
72
|
62
|
21
|
||||||||||||||||||
General and administrative expenses
|
124
|
129
|
42
|
39
|
37
|
11
|
||||||||||||||||||
Depreciation and amortization
|
(567
|
)
|
(534
|
)
|
(195
|
)
|
(181
|
)
|
(156
|
)
|
(53
|
)
|
||||||||||||
Other
|
(12
|
)
|
(1
|
)
|
(4
|
)
|
(1
|
)
|
*
|
*
|
||||||||||||||
OPEX
|
1,418
|
1,391
|
474
|
475
|
404
|
138
|
NIS M unless otherwise stated
|
Q3' 18
|
Q4' 18
|
Q1' 19
|
Q2' 19
|
Q3' 19
|
Q4' 19
|
Q1' 20
|
Q2' 20
|
Q3' 20
|
2018
|
2019
|
|||||||||||||||||||||||||||||||||
Cellular Segment Service Revenues
|
476
|
447
|
441
|
453
|
466
|
438
|
423
|
409
|
415
|
1,843
|
1,798
|
|||||||||||||||||||||||||||||||||
Cellular Segment Equipment Revenues
|
143
|
165
|
142
|
115
|
142
|
172
|
146
|
130
|
134
|
643
|
571
|
|||||||||||||||||||||||||||||||||
Fixed-Line Segment Service Revenues
|
220
|
220
|
224
|
230
|
233
|
238
|
245
|
244
|
252
|
852
|
925
|
|||||||||||||||||||||||||||||||||
Fixed-Line Segment Equipment Revenues
|
25
|
24
|
28
|
24
|
25
|
26
|
32
|
28
|
35
|
92
|
103
|
|||||||||||||||||||||||||||||||||
Reconciliation for consolidation
|
(42
|
)
|
(42
|
)
|
(41
|
)
|
(41
|
)
|
(41
|
)
|
(40
|
)
|
(39
|
)
|
(37
|
)
|
(36
|
)
|
(171
|
)
|
(163
|
)
|
||||||||||||||||||||||
Total Revenues
|
822
|
814
|
794
|
781
|
825
|
834
|
807
|
774
|
800
|
3,259
|
3,234
|
|||||||||||||||||||||||||||||||||
Gross Profit from Equipment Sales
|
44
|
42
|
39
|
35
|
33
|
37
|
37
|
30
|
38
|
166
|
144
|
|||||||||||||||||||||||||||||||||
Operating Profit*
|
48
|
14
|
9
|
22
|
26
|
30
|
36
|
20
|
20
|
116
|
87
|
|||||||||||||||||||||||||||||||||
Cellular Segment Adjusted EBITDA*
|
145
|
119
|
150
|
159
|
170
|
156
|
132
|
129
|
134
|
524
|
635
|
|||||||||||||||||||||||||||||||||
Fixed-Line Segment Adjusted EBITDA*
|
56
|
53
|
47
|
55
|
55
|
61
|
83
|
71
|
70
|
198
|
218
|
|||||||||||||||||||||||||||||||||
Total Adjusted EBITDA*
|
201
|
172
|
197
|
214
|
225
|
217
|
215
|
200
|
204
|
722
|
853
|
|||||||||||||||||||||||||||||||||
Adjusted EBITDA Margin (%)*
|
24
|
%
|
21
|
%
|
25
|
%
|
27
|
%
|
27
|
%
|
26
|
%
|
27
|
%
|
26
|
%
|
26
|
%
|
22
|
%
|
26
|
%
|
||||||||||||||||||||||
OPEX*
|
504
|
502
|
472
|
472
|
474
|
467
|
460
|
456
|
475
|
1,996
|
1,885
|
|||||||||||||||||||||||||||||||||
Finance costs, net*
|
10
|
12
|
14
|
16
|
18
|
20
|
19
|
13
|
24
|
53
|
68
|
|||||||||||||||||||||||||||||||||
Profit (Loss)*
|
26
|
19
|
2
|
3
|
7
|
7
|
10
|
7
|
(5
|
)
|
56
|
19
|
||||||||||||||||||||||||||||||||
Capital Expenditures (cash)
|
117
|
143
|
185
|
143
|
174
|
127
|
151
|
119
|
147
|
502
|
629
|
|||||||||||||||||||||||||||||||||
Capital Expenditures (additions)
|
111
|
177
|
157
|
142
|
150
|
129
|
129
|
121
|
179
|
499
|
578
|
|||||||||||||||||||||||||||||||||
Adjusted Free Cash Flow
|
70
|
(22
|
)
|
(11
|
)
|
31
|
13
|
16
|
10
|
44
|
21
|
124
|
49
|
|||||||||||||||||||||||||||||||
Adjusted Free Cash Flow (after interest)
|
62
|
(37
|
)
|
(15
|
)
|
15
|
12
|
0
|
8
|
13
|
12
|
55
|
12
|
|||||||||||||||||||||||||||||||
Net Debt
|
898
|
950
|
977
|
965
|
956
|
957
|
673
|
658
|
646
|
950
|
957
|
|||||||||||||||||||||||||||||||||
Cellular Subscriber Base (Thousands)**
|
2,630
|
2,646
|
2,620
|
2,616
|
2,651
|
2,657
|
2,676
|
2,708
|
2,762
|
2,646
|
2,657
|
|||||||||||||||||||||||||||||||||
Post-Paid Subscriber Base (Thousands)**
|
2,333
|
2,361
|
2,340
|
2,337
|
2,366
|
2,366
|
2,380
|
2,404
|
2,437
|
2,361
|
2,366
|
|||||||||||||||||||||||||||||||||
Pre-Paid Subscriber Base (Thousands)
|
297
|
285
|
280
|
279
|
285
|
291
|
296
|
304
|
325
|
285
|
291
|
|||||||||||||||||||||||||||||||||
Cellular ARPU (NIS)
|
60
|
57
|
56
|
58
|
59
|
55
|
53
|
51
|
51
|
58
|
57
|
|||||||||||||||||||||||||||||||||
Cellular Churn Rate (%)**
|
8.0
|
%
|
8.5
|
%
|
8.5
|
%
|
7.9
|
%
|
7.7
|
%
|
7.2
|
%
|
7.5
|
%
|
7.5
|
%
|
7.3
|
%
|
35
|
%
|
31
|
%
|
||||||||||||||||||||||
Number of Employees (FTE)***
|
2,821
|
2,782
|
2,897
|
2,895
|
2,923
|
2,834
|
1,867
|
2,745
|
2,731
|
2,782
|
2,834
|
Series
|
Original issuance date
|
Principal on the date of issuance
|
As of 30.09.2020
|
Annual interest rate
|
Principal repayment dates
|
Interest repayment dates
|
Interest linkage
|
Trustee contact details
|
||||
Principal book value
|
Linked principal book value
|
Interest accumulated in books
|
Market value
|
From
|
To
|
|||||||
D
|
25.04.10
04.05.11*
|
400
146
|
218
|
218
|
**
|
219
|
1.228%
(MAKAM+1.2%)
|
30.12.17
|
30.12.21
|
30.03, 30.06, 30.09, 30.12
|
Variable interest MAKAM (4)
|
Hermetic Trust (1975) Ltd. Merav Offer. 113 Hayarkon St., Tel Aviv. Tel: 03-5544553.
|
F
(2) (3)
|
20.07.17
12.12.17*
04.12.18*
01.12.19*
|
255
389
150
226.75
|
512
|
512
|
3
|
526
|
2.16%
|
25.06.20
|
25.06.24
|
25.06, 25.12
|
Not Linked
|
Hermetic Trust (1975) Ltd.
Merav Offer. 113 Hayarkon St., Tel Aviv. Tel: 03-5544553.
|
G
(1) (2)
|
06.01.19
01.07.19*
28.11.19*
27.02.20*
31.05.20*
01.07.20*
02.07.20*
|
225
38.5
86.5
15.1
84.8
12.2
300
|
762
|
762
|
8
|
849
|
4%
|
25.06.22
|
25.06.27
|
25.06
|
Not Linked
|
Hermetic Trust (1975) Ltd.
Merav Offer. 113 Hayarkon St., Tel Aviv. Tel: 03-5544553.
|
(1) |
In April 2019, the Company issued in a private placement 2 series of untradeable option warrants that are exercisable for the Company's Series G debentures. The exercise period of the
first series is between July 1, 2019 and May 31, 2020 and of the second series is between July 1, 2020 and May 31, 2021. The Series G debentures that will be allotted upon the exercise of an option warrant will be identical in all their
rights to the Company's Series G debentures immediately upon their allotment, and will be entitled to any payment of interest or other benefit, the effective date of which is due after the allotment date. The debentures that will be
allotted as a result of the exercise of option warrants will be registered on the TASE. The total amount received by the Company on the allotment date of the option warrants is NIS 37 million. For additional details see the Company's
press release dated April 17, 2019. Following exercise of option warrants from the first series, the Company issued Series G Notes in a total principal amount of NIS 225 million. Following exercise of option warrants from the second
series in July 2020, the Company issued Series G Notes in a principal amount of NIS 12.2 million. In November 2020 the Company received an advance of NIS 55 million, for which the Company will issue additional Series G Notes in a
principal amount of NIS 62 million by the end of November 2020. As of today, the total future considerations expected to the Company in respect of the allotment of the option warrants from the second series (after the exercises of option
warrants as described above) and in respect of their full exercise (and assuming that there will be no change to the exercise price) is approximately NIS 23 million.
In July 2020, the Company issued in a private placement additional Series G Notes in a principal amount of NIS 300 million, under the same conditions of the original series.
|
(2) |
Regarding Series F and G Notes, the Company is required to comply with a financial covenant that the ratio of Net Debt to Adjusted EBITDA shall not exceed 5. Compliance will be
examined and reported on a quarterly basis. For the purpose of the covenant, Adjusted EBITDA is calculated as the sum total for the last 12 month period, excluding adjustable one-time items. As of June 30, 2020, the ratio of Net Debt to
Adjusted EBITDA was 0.8. Additional stipulations regarding Series F and G Notes mainly include: shareholders' equity shall not decrease below NIS 400 million and NIS 600 million, respectively; the Company shall not create floating liens
subject to certain terms; the Company has the right for early redemption under certain conditions; the Company shall pay additional annual interest of 0.5% in the case of a two-notch downgrade in the Notes rating and an additional annual
interest of 0.25% for each further single-notch downgrade, up to a maximum additional interest of 1%; the Company shall pay additional annual interest of 0.25% during a period in which there is a breach of the financial covenant. In any
case, the total maximum additional interest for Series F and G, shall not exceed 1.25% or 1%, respectively. For more information see the Company’s Annual Report on Form 20-F for the year ended December 31, 2019.
In the reporting period, the Company was in compliance with all financial covenants and obligations and no cause for early repayment occurred.
|
(3) |
In July 2020, the Company executed a partial early redemption of Series F Notes in a total principal amount of NIS 305 million. The total amount paid was NIS 313 million.
|
(4) |
'MAKAM' is a variable interest based on the yield of 12 month government bonds issued by the government of Israel. The interest rate is updated on a quarterly basis.
|
Series
|
Rating Company
|
Rating as of 30.09.2020 and 25.11.2020 (1)
|
Rating assigned upon issuance of the Series
|
Recent date of rating as of 30.09.2020 and 25.11.2020
|
Additional ratings between the original issuance date and the recent date of rating (2)
|
|
Date
|
Rating
|
|||||
D
|
S&P Maalot
|
ilA+
|
ilAA-
|
08/2020
|
07/2010, 09/2010, 10/2010, 09/2012,
12/2012, 06/2013, 07/2014, 07/2015,
07/2016, 07/2017, 08/2018, 11/2018,
12/2018, 01/2019, 04/2019, 08/2019,
02/2020, 05/2020, 06/2020, 07/2020
08/2020
|
ilAA-, ilAA-, ilAA-, ilAA-,
ilAA-, ilAA-, ilAA-, ilA+,
ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+
ilA+
|
F
|
S&P Maalot
|
ilA+
|
ilA+
|
08/2020
|
07/2017, 09/2017, 12/2017, 01/2018,
08/2018, 11/2018, 12/2018, 01/2019,
04/2019, 08/2019, 02/2020, 05/2020,
06/2020, 07/2020, 08/2020
|
ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+
ilA+, ilA+, ilA+
|
G (3)
|
S&P Maalot
|
ilA+
|
ilA+
|
08/2020
|
12/2018, 01/2019, 04/2019, 08/2019,
02/2020, 05/2020, 06/2020, 07/2020
08/2020
|
ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+
ilA+
|
a. |
Notes issued to the public by the Company and held by the public, excluding such notes held by the Company's parent company, by a controlling shareholder, by companies controlled by
them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS).
|
Principal payments
|
Gross interest payments (without deduction of tax)
|
|||||
ILS linked to CPI
|
ILS not linked to CPI
|
Euro
|
Dollar
|
Other
|
||
First year
|
-
|
237,130
|
-
|
-
|
-
|
43,244
|
Second year
|
-
|
313,342
|
-
|
-
|
-
|
39,115
|
Third year
|
-
|
204,114
|
-
|
-
|
-
|
32,962
|
Fourth year
|
-
|
204,114
|
-
|
-
|
-
|
27,217
|
Fifth year and on
|
-
|
533,487
|
-
|
-
|
-
|
51,824
|
Total
|
-
|
1,492,187
|
-
|
-
|
-
|
194,362
|
b. |
Private notes and other non-bank credit, excluding such notes held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies
controlled by the Company, based on the Company's "Solo" financial data – None.
|
c. |
Credit from banks in Israel based on the Company's "Solo" financial data (in thousand NIS).
|
Principal payments
|
Gross interest payments (without deduction of tax)
|
|||||
ILS linked to CPI
|
ILS not linked to CPI
|
Euro
|
Dollar
|
Other
|
||
First year
|
-
|
52,132
|
-
|
-
|
-
|
3,229
|
Second year
|
-
|
52,132
|
-
|
-
|
-
|
1,959
|
Third year
|
-
|
30,073
|
-
|
-
|
-
|
825
|
Fourth year
|
-
|
17,080
|
-
|
-
|
-
|
213
|
Fifth year and on
|
-
|
-
|
-
|
-
|
-
|
-
|
Total
|
-
|
151,417
|
-
|
-
|
-
|
6,226
|
d. |
Credit from banks abroad based on the Company's "Solo" financial data – None.
|
e. |
Total of sections a - d above, total credit from banks, non-bank credit and notes based on the Company's "Solo" financial data (in thousand NIS).
|
Principal payments
|
Gross interest payments (without deduction of tax)
|
|||||
ILS linked to CPI
|
ILS not linked to CPI
|
Euro
|
Dollar
|
Other
|
||
First year
|
-
|
289,262
|
-
|
-
|
-
|
46,473
|
Second year
|
-
|
365,474
|
-
|
-
|
-
|
41,074
|
Third year
|
-
|
234,187
|
-
|
-
|
-
|
33,787
|
Fourth year
|
-
|
221,194
|
-
|
-
|
-
|
27,430
|
Fifth year and on
|
-
|
533,487
|
-
|
-
|
-
|
51,824
|
Total
|
-
|
1,643,604
|
-
|
-
|
-
|
200,588
|
f. |
Off-balance sheet Credit exposure based on the Company's "Solo" financial data (in thousand NIS) – 50,000 (Guarantees on behalf of a joint arrangement, without expiration date).
|
g. |
Off-balance sheet Credit exposure of all the Company's consolidated companies, excluding companies that are reporting corporations and excluding the Company's data presented in
section f above - None.
|
h. |
Total balances of the credit from banks, non-bank credit and notes of all the consolidated companies, excluding companies that are reporting corporations and excluding Company's data
presented in sections a - d above - None.
|
i. |
Total balances of credit granted to the Company by the parent company or a controlling shareholder and balances of notes offered by the Company held by the parent company or the
controlling shareholder - None.
|
j. |
Total balances of credit granted to the Company by companies held by the parent company or the controlling shareholder, which are not controlled by the Company, and balances of notes
offered by the Company held by companies held by the parent company or the controlling shareholder, which are not controlled by the Company – None.
|
k. |
Total balances of credit granted to the Company by consolidated companies and balances of notes offered by the Company held by the consolidated companies - None.
|
Partner Communications Company Ltd.
|
|||
|
By:
|
/s/ Tamir Amar | |
Name: | Tamir Amar | ||
Title: |
Chief Financial Officer
|
||
This ‘6-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
1/1/22 | ||||
5/31/21 | ||||
3/1/21 | ||||
12/9/20 | ||||
Filed on / For Period end: | 11/25/20 | |||
11/9/20 | 6-K | |||
11/1/20 | ||||
10/26/20 | ||||
10/4/20 | ||||
9/30/20 | ||||
8/25/20 | ||||
8/10/20 | 6-K | |||
7/12/20 | ||||
7/1/20 | 6-K, 6-K/A | |||
6/30/20 | ||||
5/31/20 | ||||
3/31/20 | 6-K | |||
12/31/19 | 20-F, 6-K | |||
11/12/19 | 6-K, SC 13D/A | |||
9/30/19 | ||||
7/1/19 | 6-K | |||
4/17/19 | 6-K | |||
12/31/18 | 20-F | |||
11/21/18 | 6-K, S-8 | |||
12/27/17 | 6-K, S-8 | |||
3/14/16 | 20-F, 6-K, S-8 | |||
11/12/15 | 6-K, S-8 | |||
8/17/15 | S-8 | |||
9/11/08 | S-8 | |||
9/5/06 | S-8 | |||
12/4/02 | S-8 | |||
List all Filings |