Cellcom Israel Announces Third Quarter 2013 Results
Cellcom Israel presents an increase in EBITDA compared with the previous quarter despite the high level of competition in the cellular market
Cellcom Israel declares a dividend of NIS 0.85 per share (totals approx. NIS 85 million)
NETANYA, Israel, Nov. 12, 2013 /PRNewswire/ --
THIRD QUARTER 2013 HIGHLIGHTS (compared to third quarter of 2012):
- Free cash flow[1] decreased 6.0% to NIS 389 million ($110 million)
- Total Revenues decreased 15.5% to NIS 1,224 million ($346 million)
- Service revenues decreased 11.8% to NIS 1,013 million ($286 million)
- EBITDA[1] decreased 19.3% to NIS 347 million ($98 million)
- EBITDA margin 28.3%, down from 29.7%
- Operating income decreased 27.6% to NIS 173 million ($49 million)
- Net income decreased 58.1% to NIS 52 million ($15 million)
- Cellular subscriber base totaled approx. 3.156 million subscribers (at the end of September 2013)
Cellcom Israel Ltd. (NYSE: CEL TASE: CEL) ("Cellcom Israel" or the "Company" or the "Group"), announced today its financial results for the third quarter of 2013. Revenues for the third quarter of 2013 totaled NIS 1,224 million ($346 million); EBITDA for the third quarter of 2013 totaled NIS 347 million ($98 million), or 28.3% of total revenues for the quarter; and net income for the third quarter of 2013 totaled NIS 52 million ($15 million). Basic earnings per share for the third quarter of 2013 totaled NIS 0.53 ($0.15).
Commenting on the third quarter's results, Nir Sztern, the Company's Chief Executive Officer, said: "Even in this quarter of intensified competition, the Company continues to present improvement in its operational results compared with the previous quarter. EBITDA, operating profit and free cash flow increased compared with the previous quarter and service revenues were maintained at a similar level as in the previous quarter. This is the second consecutive quarter of increase in EBITDA after four quarters of decrease. The improved results are the result of our continued efficiency measures and a seasonal increase in revenues from roaming services, which were partially offset by the ongoing price erosion."
[1]Please see "Use of Non-IFRS financial measures" section in this press release.
Regarding market competition, Nir Sztern noted: "Cellcom Israel continues to follow its strategy since the merger with Netvision and bases itself as a communications group. In the last quarter we launched a significant marketing campaign offering the group's cellular customers free home landline telephony for one year. This is a significant milestone for the future competition in the landline market, which constitutes one of the Company's growth engines, and we believe in the regulator's willingness to encourage real competition in this market.
During the last year and a half we acted vigorously to strengthen the Company's equity structure and repaid approximately NIS 1.3 billion to our debentures holders. As of the end of the third quarter we had cash balances of over NIS 1.3 billion."
Shlomi Fruhling, Chief Financial Officer, commented: "Despite the improvement in operational results in the third quarter this year compared with the previous quarter, net income decreased as a result of an increase in financing expenses and in tax expenses. The increase in financing expenses resulted mainly from an increase in CPI (Consumer Price Index) linkage expenses, related to the Company's debentures, due to a higher inflation, and the increase in tax expenses resulted from a one-time deferred tax expense of approximately NIS 7 million recorded in the third quarter this year following the enactment of a law, increasing the corporate tax rate to 26.5% commencing 2014.
In the third quarter of 2013 we generated free cash flow of NIS 389 million, a 12.8% increase compared with the previous quarter. The increase in free cash flow is mainly due to the ongoing efficiency measures implemented during the past year and savings in capital expenditure.
The Company's board of directors decided to distribute a cash dividend in the aggregate amount of approximately NIS 85 million out of the Company's existing retained earnings, after five consecutive quarters in which it did not distribute dividends in order to strengthen its balance sheet. During that period, the Company reduced its debt level by over NIS 1.1 billion. This decision does not indicate on dividend distribution in future quarters, and any such decision shall be examined according to the future market conditions and the Company's needs."
MAIN CONSOLIDATED FINANCIAL RESULTS: |
||||||
Q3/2013 |
Q3/2012 |
% Change |
Q3/2013 |
Q3/2012 |
||
NIS millions |
US$ millions |
|||||
Total revenues |
1,224 |
1,448 |
(15.5%) |
346.1 |
409.4 |
|
Operating Income |
173 |
239 |
(27.6%) |
48.9 |
67.6 |
|
Net Income |
52 |
124 |
(58.1%) |
14.7 |
35.1 |
|
Free cash flow |
389 |
414 |
(6.0%) |
110.0 |
117.0 |
|
EBITDA |
347 |
430 |
(19.3%) |
98.1 |
121.6 |
|
EBITDA, as percent of total revenues |
28.3% |
29.7% |
(4.7%) |
|||
MAIN FINANCIAL DATA BY COMPANIES: |
||||
Cellcom Israel without Netvision |
Netvision (*) |
Consolidation adjustments (**) |
Consolidated results |
|
Q3/2013 |
||||
NIS millions |
||||
Total revenues |
994 |
257 |
(27) |
1,224 |
Service revenues |
789 |
251 |
(27) |
1,013 |
Equipment revenues |
205 |
6 |
- |
211 |
Operating Income |
159 |
33 |
(19) |
173 |
EBITDA |
286 |
61 |
- |
347 |
EBITDA, as percent of total revenues |
28.8% |
23.7% |
28.3% |
|
(*) Netvision Ltd. and its subsidiaries. |
||||
(**)Include inter-company revenues between Cellcom Israel and Netvision, and amortization expenses attributable to the merger. |
MAIN PERFORMANCE INDICATORS (data refers to cellular subscribers only): |
|||
Q3/2013 |
Q3/2012 |
Change (%) |
|
Cellular subscribers at the end of period (in thousands) |
3,156 |
3,338 |
(5.5%) |
Churn Rate for cellular subscribers (in %) |
8.9% |
8.6% |
3.5% |
Monthly cellular ARPU (in NIS) |
79.6 |
86.7 |
(8.2%) |
Average Monthly cellular MOU (in minutes) |
461 |
399 |
15.5% |
FINANCIAL REVIEW
Revenues for the third quarter of 2013 decreased 15.5% totaling NIS 1,224 million ($346 million), compared to NIS 1,448 million ($409 million) in the third quarter last year. The decrease in revenues is attributed mainly to an 11.8% decrease in service revenues, which totaled NIS 1,013 million ($286 million) in the third quarter of 2013 as compared to NIS 1,148 million ($325 million) in the third quarter of 2012. The decrease in revenues also resulted from a 29.7% decrease in equipment revenues, which totaled NIS 211 million ($60 million) in the third quarter of 2013 as compared to NIS 300 million ($85 million) in the third quarter of 2012. Netvision's contribution to revenues for the third quarter of 2013 totaled NIS 230 million ($65 million) (excluding inter-company revenues) compared to NIS 261 million ($74 million) in the third quarter of 2012.
The decrease in service revenues for the third quarter of 2013 resulted mainly from a decrease in cellular services revenues, due to the ongoing erosion in the price of these services as a result of the intensified competition in the cellular market. The decrease in service revenues also resulted from a decrease in revenues from international calls services, internet services (ISP) and roaming services, which was partially offset by an increase in revenues from hosting operators on the Company's communications networks. Netvision's contribution to service revenues for the third quarter of 2013 totaled NIS 224 million ($63 million) (excluding inter-company revenues) compared to NIS 246 million ($70 million) in the third quarter of 2012. The decrease in Netvision's contribution to service revenues resulted mainly from a decrease in revenues from internet services (ISP) and international calls services in the third quarter of 2013 compared with the third quarter last year.
The decrease in equipment revenues for the third quarter of 2013 resulted from an approximately 30% decrease in the number of cellular handsets sold during the third quarter of 2013 compared with the third quarter of 2012. Netvision's contribution to equipment revenues for the third quarter of 2013 totaled NIS 6 million ($2 million), compared to NIS 15 million ($4 million) in the third quarter of 2012.
Cost of revenues for the third quarter of 2013 totaled NIS 745 million ($211 million), compared to NIS 853 million ($241 million) in the third quarter of 2012, a 12.7% decrease. This decrease resulted mainly from a decrease in costs associated with the sale of cellular handsets, primarily as a result of a decrease in the number of cellular handsets sold during the third quarter of 2013 as compared with the third quarter of 2012. The decrease in cost of revenues also resulted from a decrease in the cost of content and in payroll expenses mainly as a result of efficiency measures.
Gross profit for the third quarter of 2013 decreased 19.5% to NIS 479 million ($135 million), compared to NIS 595 million ($168 million) in the third quarter of 2012. Gross profit margin for the third quarter of 2013 amounted to 39.1%, down from 41.1% in the third quarter of 2012.
Selling, Marketing, General and Administrative Expenses ("SG&A Expenses") for the third quarter of 2013 decreased 14.6% to NIS 304 million ($86 million), compared to NIS 356 million ($101 million) in the third quarter of 2012. This decrease is primarily the result of the efficiency measures implemented by the Company, which led to a decrease in payroll expenses and other expenses. The decrease in SG&A expenses also resulted from a decrease in depreciation and amortization expenses and sales commissions.
Operating income for the third quarter of 2013 decreased 27.6% to NIS 173 million ($49 million) from NIS 239 million ($68 million) in the third quarter of 2012.
EBITDA for the third quarter of 2013 decreased 19.3% totaling NIS 347 million ($98 million) compared to NIS 430 million ($122 million) in the third quarter of 2012. Netvision's contribution to the EBITDA for the third quarter of 2013 totaled NIS 61 million ($17 million), compared to NIS 75 million ($21 million) in the third quarter of 2012. EBITDA for the third quarter of 2013, as a percent of third quarter revenues, totaled 28.3%, down from 29.7% in the third quarter of 2012.
Financing expenses, net for the third quarter of 2013 increased 43.8% and totaled NIS 92 million ($26 million), compared to NIS 64 million ($18 million) in the third quarter of 2012. The increase resulted mainly from a decrease in gains on hedging transactions and an increase in Israeli Consumer Price Index (CPI) linkage expenses, associated with the Company's debentures, due to increased inflation. The increase in financing expenses, net, also resulted from a decrease in gains on the Company's investment in tradable debentures and a decrease in interest income on deposits mainly due to a decrease in the interest rate in the market during the third quarter of 2013 as compared with the third quarter of last year. These effects were partially offset by a decrease in interest expenses, associated with the Company's debentures, due to a decrease in debt level during the past year.
Net Income for the third quarter of 2013 totaled NIS 52 million ($15 million), compared to NIS 124 million ($35 million) in the third quarter of 2012, a 58.1% decrease. This decrease is primarily the result of the erosion in the price of cellular services during the past year and the significant decrease in equipment revenues, as well as the increase in financing expenses, net. The decrease in net income also resulted from a one-time deferred tax expense in the amount of approximately NIS 7 million ($2 million) following the enactment of a law in July 2013 increasing corporate tax rate to 26.5% commencing 2014.
Basic earnings per share for the third quarter of 2013 totaled NIS 0.53 ($0.15), compared to NIS 1.25 ($0.35) in the third quarter last year.
OPERATING REVIEW (data refers to cellular subscribers only)
Cellular subscriber base – at the end of the third quarter of 2013 the Company had approximately 3.156 million cellular subscribers. During the third quarter of 2013 the Company's cellular subscriber base increased by approximately 5,000 net cellular subscribers, all of them post-paid subscribers.
Cellular Churn Rate for the third quarter 2013 totaled to 8.9%, compared to 8.6% in the third quarter of 2012. The cellular churn rate continues to be affected by the intensified competition in the cellular market, especially following the entry of the new operators to the cellular market during the second quarter of 2012.
Average monthly cellular Minutes of Use per subscriber ("MOU") for the third quarter 2013 totaled 461 minutes, compared to 399 minutes in the third quarter of 2012, an increase of 15.5%. The increase in MOU primarily resulted from subscribers' transition to marketing plans, which include unlimited air time minutes.
The monthly cellular Average Revenue per User ("ARPU") for the third quarter 2013 totaled NIS 79.6 ($22.5), compared to NIS 86.7 ($24.5) in the third quarter of 2012, a decrease of 8.2%. The decrease in ARPU resulted, among others, from the erosion in the price of cellular services during the past year, resulting from the intensified competition in the cellular market.
FINANCING AND INVESTMENT REVIEW
Cash Flow
Free cash flow for the third quarter of 2013, decreased 6.0% to NIS 389 million ($110 million), compared to NIS 414 million ($117 million) in the third quarter of 2012. The decrease in free cash flow mainly resulted from a decrease in proceeds from customers due to the decrease in revenues in the third quarter of 2013 compared with the third quarter of 2012, resulting from the intensified competition in the cellular market. This decrease was partially offset by a decrease in payments to vendors, among others, as a result of streamlining of various expenses, and a decrease in payments for acquisition of fixed assets.
Total Equity
Total Equity as of September 30, 2013 amounted to NIS 690 million ($195 million), primarily consisting of accumulated undistributed retained earnings of the Company.
Investment in Fixed Assets and Intangible Assets
During the third quarter of 2013, the Company invested NIS 68 million ($19 million) in fixed assets and intangible assets (including, among others, rights of use of communication lines and investments in information systems and software), compared to NIS 99 million ($28 million) in the third quarter of 2012.
Dividend
On November 12, 2013, the Company's board of directors declared a cash dividend in the amount of NIS 0.85 per share, and in the aggregate amount of approximately NIS 85 million (the equivalent of approximately $0.24 per share and approximately $24 million in the aggregate, based on the representative rate of exchange on November 8, 2013; The actual US$ amount for dividend paid in US$ will be converted from NIS based upon the representative rate of exchange published by the Bank of Israel on December 10, 2013), subject to withholding tax described below, out of the Company's existing retained earnings. The dividend will be payable to all of the Company's shareholders of record at the end of the trading day in the NYSE on November 27, 2013. The payment date will be December 12, 2013. According to the Israeli tax law, the Company will deduct at source 25% of the dividend amount payable to each shareholder, as aforesaid, subject to applicable exemptions. The dividend per share that the Company will pay does not indicate on future dividend distributions or their level, which can change at any time in accordance with the Company's dividend policy. A dividend declaration is not 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, 2012 on Form 20-F, under "Item 8 - Financial Information - A. Consolidated Statements and Other Financial Information - Dividend Policy".
In making the decision of dividend distribution, the Company's board of directors considered and determined the following: (1) the distribution complies with the Profit Test given that the Company's existing retained earnings, as such term is defined in the applicable Israeli law, as of September 30, 2013 (NIS 701 million) exceeds the amount of dividend declared (and after the reduction of the dividend declared will total approximately NIS 616 million); (2) the distribution complies with the Solvency Test after considering the Company's financial condition, including the Company's free cash flow, the Company's financial debt balance, the Company's net debt, including the Company's investment portfolio, the Company's forecasted cash flows for the years 2013-2015 and the Company's ability to raise additional debt; (3) the distribution complies with the license limitation, the Company's financial covenants and additional undertakings related to dividend distribution; (4) the distribution of the dividend shall not materially adversely affect the Company's financial condition, including the Company's capital structure, leverage level, liquidity, the fulfillment of the Company's undertakings and the Company's ability to continue the Company's operation as conducted prior to the distribution of the dividend declared, including the Company's ability to fulfill its investments plans.
In making the aforementioned determinations, which involve forecasts, the board assumed (a) the Company will continue to be leveraged at a rate complying with the Company's covenants and undertakings; and (b) market and regulation conditions will not change drastically.
Debentures
For information regarding the Company's summary of financial liabilities and details regarding the Company's outstanding debentures as of September 30, 2013, see "Disclosure for Debenture Holders" section in this press release.
OTHER DEVELOPMENTS DURING THE THIRD QUARTER OF 2013 AND SUBSEQUENT TO THE END OF THE REPORTING PERIOD
Regulation
National Roaming Agreement – Following the Anti Trust Commissionaire's issuance of an exemption from the requirement to receive an approval to restrictive arrangements in September 2013, the Company will be the exclusive provider of national roaming services to Golan Telecom Ltd. for the duration of the agreement.
Network Sharing Agreement – In November 2013, Partner Communications Ltd. announced it has entered a network sharing agreement with Hot Mobile Ltd. for a term of 15 years, according to which the two companies will create a 50%-50% joint venture, which would operate and develop a cellular network that will be shared by both companies. As an intermediate phase until no later than December 31, 2016, Partner granted Hot Mobile, when possible, rights of use of its cellular network in order to supplement Hot Mobile's network coverage. According to the announcement, the scope and terms of the agreement are subject to approvals by the Israeli authorities, including the Antitrust Authority.
For additional details regarding the national roaming agreement and network sharing agreement see the Company's most recent annual report on Form 20-F for the year ended December 31, 2012, under "Item 3. Key Information – D. Risk Factors – Risks related to our business –We face intense competition in all aspects of our business" as well as under "Item 4. Information on the Company – B. Business Overview –Competition" and "Government Regulations –– Additional UMTS Operators".
International Communications Services – In October 2013 the Ministry of Communications published a hearing regarding a change to the International Communications Services Regulation. The hearing proposes, among others, that such services shall be provided by the landline operators and cellular operators themselves and not through a separate company, as required today. The approval of such proposed change may also cause the annulment of structural limitations currently imposed on the Bezeq and Hot groups in relation to the International Communications services, even before the creation of a landline wholesale market. In addition, it is proposed that such services may be provided by the holders of a special license for the provision of International Communications services which will neither be obligated to provide service to anyone so requesting nor to all the countries in the world, and to annul the restrictions on the cooperation between cellular operators and international communications services operators in relation to prepaid calling cards.
For additional details see the Company's most recent annual report on form 20-F for the year ended on December 31, 2012, filed on March 4, 2013 under "Item 3. Key Information – D. Risk Factors – Risks related to our business – We operate in a heavily regulated industry, which can harm our results of operation. In recent years, regulation in Israel has materially adversely affected our results", " - We face intense competition in all aspects of our business", "- Risks related to our wholly owned subsidiary Netvision – changes in the regulatory environment could adversely affect Netvision's business", under "Item 4. Information on the Company – B. Business Overview - Competition", "– Government Regulations – Long Distance Services" and under "NETVISION – Telephony Business – Competition".
Broadband Infrastructure Services - In August 2013, I.B.C. Israel Broadband Company (2013) Ltd., a company owned by the Israeli Electric Company, or IEC, and an international group led by Via Europa, received licenses for the provision of broadband infrastructure services on the IEC's optic fibers infrastructure to other licenses holders as well as directly to large business customers.
For additional details see the Company's most recent annual report on form 20-F for the year ended on December 31, 2012, filed on March 4, 2013 under "Item 4. Information on the Company – B. Business Overview - The Telecommunications Industry in Israel - Wireline Services - Broadband and Internet services", under "Cellular Service and Products – Landline Services" and under –"- Competition".
Organization of Employees
In September 2013, following the previously reported notices received from the Histadrut, an Israeli labor union, claiming the required minimum number of employees for the recognition of a representing labor union joined the Histadrut, the Company, after verifying the joining of the minimum required by law, has recognized the Histadrut as the Company's and Netvision's employees representing labor union and has commenced negotiations regarding a collective employment agreement with the employees' representatives.
Compensation Policy
In September 2013, the Company's Extraordinary General Meeting of Shareholders, or the Meeting, approved the Company's Compensation Policy.
For more information, please see the Company's Proxy Statement relating to the Meeting, which was filed on Form 6-K on August 5, 2013 and the Company's immediate report filed on Form 6-K on September 3, 2013.
CONFERENCE CALL DETAILS
The Company will be hosting a conference call regarding its results for the third quarter on Tuesday, November 12, 2013 at 10:00 am EST, 07:00 am PST, 15:00 GMT, 17:00 Israel time. On the call, management will review and discuss the results, and will be available to answer questions. To participate, please either access the live webcast on the Company's website, or call one of the following teleconferencing numbers below. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
US Dial-in Number: 1 888 407 2553 UK Dial-in Number: 0 800 917 5108
Israel Dial-in Number: 03 918 0644 International Dial-in Number: +972 3 918 0644
at: 10:00 am Eastern Time; 07:00 am Pacific Time; 15:00 UK Time; 17:00 Israel Time
To access the live webcast of the conference call, please access the investor relations section of Cellcom Israel's website: www.cellcom.co.il. After the call, a replay of the call will be available under the same investor relations section.
About Cellcom Israel
Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.156 million subscribers (as at September 30, 2013) with a broad range of value added services including cellular and landline 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 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 through its wholly owned subsidiaries internet connectivity services and international calling services, as well as landline telephone communication services in Israel, in addition to data communication 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 www.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, 2012.
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 3.537 = US$ 1 as published by the Bank of Israel for September 30, 2013.
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; 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 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 between the net income and the EBITDA presented at the end of this Press Release.
Free cash flow is a non-IFRS measure and is defined as the net cash provided by operating activities 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 the reconciliation note in this Press Release.
Company Contact Shlomi Fruhling Chief Financial Officer Tel: +972 52 998 9755 |
IR Contacts Porat Saar CCG Investor Relations Israel & US Tel: +1 646 233 2161 |
Financial Tables Follow
Cellcom Israel Ltd. |
||||||||
(An Israeli Corporation) |
||||||||
Condensed Consolidated Interim Statements of Financial Position |
||||||||
Convenience |
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translation |
||||||||
into US dollar |
||||||||
September 30, |
September 30, |
September 30, |
December 31, |
|||||
2012 |
2013 |
2013 |
2012 |
|||||
NIS millions |
US$ millions |
NIS millions |
||||||
Assets |
||||||||
Cash and cash equivalents |
1,139 |
827 |
234 |
1,414 |
||||
Current investments, including derivatives |
493 |
511 |
145 |
493 |
||||
Trade receivables |
1,912 |
1,790 |
506 |
1,856 |
||||
Other receivables |
87 |
76 |
21 |
67 |
||||
Inventory |
125 |
89 |
25 |
112 |
||||
Total current assets |
3,756 |
3,293 |
931 |
3,942 |
||||
Trade and other receivables |
1,291 |
904 |
256 |
1,219 |
||||
Property, plant and equipment, net |
2,084 |
1,907 |
539 |
2,077 |
||||
Intangible assets, net |
1,552 |
1,418 |
401 |
1,515 |
||||
Deferred tax assets |
60 |
25 |
7 |
34 |
||||
Total non- current assets |
4,987 |
4,254 |
1,203 |
4,845 |
||||
Total assets |
8,743 |
7,547 |
2,134 |
8,787 |
||||
Liabilities |
||||||||
Current maturities of debentures and long term loans and short term credit |
1,142 |
1,101 |
311 |
1,129 |
||||
Trade payables and accrued expenses |
859 |
608 |
172 |
827 |
||||
Current tax liabilities |
114 |
69 |
20 |
87 |
||||
Provisions |
169 |
181 |
51 |
175 |
||||
Other payables, including derivatives |
424 |
361 |
102 |
492 |
||||
Total current liabilities |
2,708 |
2,320 |
656 |
2,710 |
||||
Long-term loans from banks |
10 |
5 |
2 |
10 |
||||
Debentures |
5,399 |
4,337 |
1,226 |
5,368 |
||||
Provisions |
21 |
21 |
6 |
21 |
||||
Other long-term liabilities |
35 |
12 |
3 |
21 |
||||
Liability for employee rights upon retirement, net |
13 |
16 |
5 |
12 |
||||
Deferred tax liabilities |
157 |
146 |
41 |
145 |
||||
Total non- current liabilities |
5,635 |
4,537 |
1,283 |
5,577 |
||||
Total liabilities |
8,343 |
6,857 |
1,939 |
8,287 |
||||
Equity attributable to owners of the Company |
||||||||
Share capital |
1 |
1 |
- |
1 |
||||
Cash flow hedge reserve |
3 |
(15) |
(4) |
(12) |
||||
Retained earnings |
395 |
701 |
198 |
509 |
||||
Non-controlling interests |
1 |
3 |
1 |
2 |
||||
Total equity |
400 |
690 |
195 |
500 |
||||
Total liabilities and equity |
8,743 |
7,547 |
2,134 |
8,787 |
||||
Cellcom Israel Ltd. |
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(An Israeli Corporation) |
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Condensed Consolidated Interim Statements of Income |
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Convenience |
Convenience |
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translation |
translation |
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into US dollar |
into US dollar |
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For the nine |
For the nine |
For the three |
For the three months ended |
For the |
||||||||||
2012 |
2013 |
2013 |
2012 |
2013 |
2013 |
2012 |
||||||||
NIS millions |
US$millions |
NIS millions |
US$millions |
NIS millions |
||||||||||
Revenues |
4,531 |
3,718 |
1,051 |
1,448 |
1,224 |
346 |
5,938 |
|||||||
Cost of revenues |
(2,590) |
(2,278) |
(644) |
(853) |
(745) |
(211) |
(3,463) |
|||||||
Gross profit |
1,941 |
1,440 |
407 |
595 |
479 |
135 |
2,475 |
|||||||
Selling and marketing expenses |
(671) |
(522) |
(148) |
(215) |
(166) |
(47) |
(865) |
|||||||
General and administrative expenses |
(474) |
(438) |
(124) |
(141) |
(138) |
(39) |
(629) |
|||||||
Other income (expenses), net |
- |
1 |
- |
- |
(2) |
- |
4 |
|||||||
Operating profit |
796 |
481 |
135 |
239 |
173 |
49 |
985 |
|||||||
Financing income |
149 |
118 |
33 |
66 |
36 |
10 |
181 |
|||||||
Financing expenses |
(366) |
(334) |
(94) |
(130) |
(128) |
(36) |
(440) |
|||||||
Financing expenses, net |
(217) |
(216) |
(61) |
(64) |
(92) |
(26) |
(259) |
|||||||
Profit before taxes on income |
579 |
265 |
75 |
175 |
81 |
23 |
726 |
|||||||
Taxes on income |
(161) |
(79) |
(22) |
(51) |
(29) |
(8) |
(195) |
|||||||
Profit for the period |
418 |
186 |
53 |
124 |
52 |
15 |
531 |
|||||||
Attributable to: |
||||||||||||||
Owners of the Company |
418 |
185 |
53 |
124 |
52 |
15 |
530 |
|||||||
Non-controlling interests |
- |
1 |
- |
- |
- |
- |
1 |
|||||||
Profit for the period |
418 |
186 |
53 |
124 |
52 |
15 |
531 |
|||||||
Earnings per share |
||||||||||||||
Basic earnings per share (in NIS) |
4.20 |
1.87 |
0.53 |
1.25 |
0.53 |
0.15 |
5.34 |
|||||||
Diluted earnings per share (in NIS) |
4.20 |
1.85 |
0.52 |
1.25 |
0.52 |
0.15 |
5.33 |
|||||||
Cellcom Israel Ltd. |
||||||||||||||
(An Israeli Corporation) |
||||||||||||||
Condensed Consolidated Interim Statements of Cash Flows |
||||||||||||||
Convenience |
Convenience |
|||||||||||||
translation |
translation |
|||||||||||||
into US dollar |
into US dollar |
|||||||||||||
For the nine |
For the nine |
For the three |
For the three |
For the |
||||||||||
2012 |
2013 |
2013 |
2012 |
2013 |
2013 |
2012 |
||||||||
NIS millions |
US$ millions |
NIS millions |
US$millions |
NIS millions |
||||||||||
Cash flows from operating activities |
||||||||||||||
Profit for the period |
418 |
186 |
53 |
124 |
52 |
15 |
531 |
|||||||
Adjustments for: |
||||||||||||||
Depreciation and amortization |
579 |
513 |
145 |
190 |
171 |
48 |
765 |
|||||||
Share based payment |
4 |
7 |
2 |
1 |
1 |
- |
7 |
|||||||
Loss (gain) on sale of property, plant and equipment |
- |
2 |
1 |
(1) |
1 |
- |
2 |
|||||||
Gain on sale of shares in an associate |
- |
- |
- |
- |
- |
- |
(6) |
|||||||
Income tax expense |
161 |
79 |
22 |
51 |
29 |
8 |
195 |
|||||||
Financing expenses, net |
217 |
216 |
61 |
64 |
92 |
26 |
259 |
|||||||
Other expenses (income) |
- |
(3) |
(1) |
(1) |
- |
- |
2 |
|||||||
Changes in operating assets and liabilities: |
||||||||||||||
Change in inventory |
41 |
22 |
6 |
3 |
11 |
3 |
52 |
|||||||
Change in trade receivables (including long-term amounts) |
64 |
434 |
123 |
98 |
160 |
45 |
183 |
|||||||
Change in other receivables (including long-term amounts) |
(42) |
(29) |
(8) |
- |
19 |
6 |
6 |
|||||||
Changes in trade payables, accrued expenses and provisions |
(30) |
(141) |
(40) |
59 |
(38) |
(11) |
(89) |
|||||||
Change in other liabilities (including long-term amounts) |
(13) |
(15) |
(4) |
(29) |
(8) |
(2) |
(92) |
|||||||
Proceeds from (payments for) derivative hedging contracts, net |
17 |
(10) |
(3) |
9 |
(4) |
(1) |
20 |
|||||||
Income tax paid |
(165) |
(87) |
(25) |
(48) |
(26) |
(7) |
(209) |
|||||||
Income tax received |
15 |
6 |
2 |
- |
- |
- |
15 |
|||||||
Net cash from operating activities |
1,266 |
1,180 |
334 |
520 |
460 |
130 |
1,641 |
|||||||
- |
||||||||||||||
Cash flows from investing activities |
||||||||||||||
Acquisition of property, plant, and equipment |
(376) |
(228) |
(64) |
(92) |
(57) |
(16) |
(457) |
|||||||
Acquisition of intangible assets |
(82) |
(64) |
(18) |
(30) |
(16) |
(4) |
(97) |
|||||||
Change in current investments, net |
(204) |
(16) |
(5) |
468 |
(6) |
(2) |
(212) |
|||||||
Proceeds from (payments for) other derivative contracts, net |
11 |
(7) |
(2) |
8 |
(2) |
(1) |
9 |
|||||||
Proceeds from sale of property, plant and equipment |
3 |
12 |
3 |
2 |
2 |
1 |
7 |
|||||||
Interest received |
24 |
24 |
7 |
16 |
5 |
1 |
35 |
|||||||
Loan to equity accounted investee |
- |
- |
- |
1 |
- |
- |
- |
|||||||
Proceeds from sale of shares in a consolidated company |
7 |
- |
- |
- |
- |
- |
7 |
|||||||
Dividend received |
- |
1 |
- |
- |
- |
- |
- |
|||||||
Net cash from (used in) investing activities |
(617) |
(278) |
(79) |
373 |
(74) |
(21) |
(708) |
|||||||
Cellcom Israel Ltd. |
|||||||||||||
(An Israeli Corporation) |
|||||||||||||
Condensed Consolidated Interim Statements of Cash Flows (cont'd) |
|||||||||||||
Convenience |
Convenience |
||||||||||||
translation |
translation |
||||||||||||
into US dollar |
into US dollar |
||||||||||||
For the nine |
For the nine |
For the three |
For the three |
For the |
|||||||||
2012 |
2013 |
2013 |
2012 |
2013 |
2013 |
2012 |
|||||||
NIS millions |
US$ millions |
NIS millions |
US$millions |
NIS millions |
|||||||||
Cash flows from financing activities |
|||||||||||||
Payments for derivative contracts, net |
(11) |
(5) |
(1) |
(5) |
(1) |
- |
(12) |
||||||
Repayment of long term loans from banks |
(9) |
(6) |
(2) |
(5) |
(6) |
(2) |
(16) |
||||||
Repayment of debentures |
(661) |
(1,124) |
(318) |
(182) |
(563) |
(159) |
(660) |
||||||
Proceeds from issuance of debentures, net of issuance costs |
992 |
- |
- |
- |
- |
- |
992 |
||||||
Dividend paid |
(391) |
- |
- |
(130) |
- |
- |
(391) |
||||||
Interest paid |
(350) |
(354) |
(100) |
(168) |
(174) |
(49) |
(352) |
||||||
Net cash used in financing activities |
(430) |
(1,489) |
(421) |
(490) |
(744) |
(210) |
(439) |
||||||
Changes in cash and cash equivalents |
219 |
(587) |
(166) |
403 |
(358) |
(101) |
494 |
||||||
Cash and cash equivalents as at the beginning of the period |
920 |
1,414 |
400 |
736 |
1,185 |
335 |
920 |
||||||
Cash and cash equivalents as at the end of the period |
1,139 |
827 |
234 |
1,139 |
827 |
234 |
1,414 |
||||||
Cellcom Israel Ltd. |
||||
(An Israeli Corporation) |
||||
Reconciliation for Non-IFRS Measures |
||||
EBITDA |
||||
The following is a reconciliation of net income to EBITDA: |
||||
Three-month period ended September 30, |
Year ended December 31, |
|||
2012 NIS millions
|
2013 NIS millions
|
Convenience translation into US dollar 2013 US$ millions
|
2012 NIS millions
|
|
Profit for the period |
124 |
52 |
15 |
531 |
Taxes on income |
51 |
29 |
8 |
195 |
Financing income |
(66) |
(36) |
(10) |
(181) |
Financing expenses |
130 |
128 |
36 |
440 |
Other expenses (income) |
- |
2 |
- |
(4) |
Depreciation and amortization |
190 |
171 |
49 |
765 |
Share based payments |
1 |
1 |
- |
7 |
EBITDA |
430 |
347 |
98 |
1,753 |
Free cash flow |
||||
The following table shows the calculation of free cash flow: |
||||
Three-month period ended September 30, |
Year ended December 31, |
|||
2012 NIS millions
|
2013 NIS millions
|
Convenience translation into US dollar 2013 US$ millions
|
2012 NIS millions
|
|
Cash flows from operating activities |
520 |
460 |
130 |
1,641 |
Cash flows from investing activities |
373 |
(74) |
(21) |
(708) |
Short-term Investment in (sale of) tradable debentures and deposits (*) |
(479) |
3 |
1 |
197 |
Free cash flow |
414 |
389 |
110 |
1,130 |
(*) Net of interest received in relation to tradable debentures. |
Cellcom Israel Ltd. |
|||||||||
(An Israeli Corporation) |
|||||||||
Key financial and operating indicators (unaudited) |
|||||||||
NIS millions unless otherwise stated |
Q1-2012 |
Q2-2012 |
Q3-2012 |
Q4-2012 |
Q1-2013 |
Q2-2013 |
Q3-2013 |
FY-2011 |
FY-2012 |
Cellcom service revenues |
945 |
942 |
902 |
828 |
758 |
790 |
789 |
4,420 |
3,617 |
Netvision service revenues |
258 |
258 |
276 |
260 |
254 |
246 |
251 |
365 |
1,052 |
Cellcom equipment revenues |
382 |
297 |
285 |
310 |
256 |
213 |
205 |
1,712 |
1,274 |
Netvision equipment revenues |
17 |
19 |
15 |
31 |
17 |
13 |
6 |
35 |
82 |
Consolidation adjustments |
(17) |
(18) |
(30) |
(22) |
(27) |
(26) |
(27) |
(26) |
(87) |
Total revenues |
1,585 |
1,498 |
1,448 |
1,407 |
1,258 |
1,236 |
1,224 |
6,506 |
5,938 |
Cellcom EBITDA |
410 |
399 |
355 |
306 |
251 |
271 |
286 |
2,084 |
1,470 |
Netvision EBITDA |
65 |
75 |
75 |
68 |
63 |
68 |
61 |
83 |
283 |
Total EBITDA |
475 |
474 |
430 |
374 |
314 |
339 |
347 |
2,167 |
1,753 |
Operating profit |
275 |
282 |
239 |
189 |
139 |
169 |
173 |
1,422 |
985 |
Financing expenses, net |
36 |
117 |
64 |
42 |
46 |
78 |
92 |
293 |
259 |
Profit for the period |
173 |
121 |
124 |
113 |
67 |
67 |
52 |
825 |
531 |
Free cash flow |
144 |
284 |
414 |
288 |
168 |
345 |
389 |
937 |
1,130 |
Cellular subscribers at the end of period (in 000's) |
3,362 |
3,333 |
3,338 |
* 3,199 |
3,166 |
3,151 |
3,156 |
3,349 |
3,199 |
Monthly cellular ARPU (in NIS) |
90.5 |
90.3 |
86.7 |
82.4 |
75.9 |
79.7 |
79.6 |
106 |
87.5 |
Average monthly cellular MOU (in minutes) |
365 |
375 |
399 |
428 |
432 |
468 |
461 |
346 |
390 |
Churn rate for cellular subscribers (%) |
6.3% |
8.1% |
8.6% |
8.7% |
9.4% |
9.0% |
8.9% |
25.1% |
31.5% |
* After removal of approximately 138,000 data applications subscribers (M2M) from the Company's cellular subscriber base. |
Cellcom Israel Ltd. |
|||||||||||||||
Disclosure for debenture holders as of September 30, 2013 |
|||||||||||||||
Aggregation of the information regarding the debenture series issued by the company (1), in million NIS |
|||||||||||||||
Series |
Original Issuance Date |
Principal on the Date of Issuance |
As of 30.09.2013 |
As of 12.11.2013
|
Interest Rate(fixed) |
Principal Repayment Dates (3) |
Interest Repayment Dates |
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 |
|||||||
B(4) ** |
22/12/05 02/01/06* 05/01/06* 10/01/06* 31/05/06* |
925.102 |
740.081 |
893.320 |
34.764 |
928.084 |
994.966 |
740.081 |
893.320 |
5.30% |
05.01.13 |
05.01.17 |
January 5 |
Linked to CPI |
Hermetic Trust (1975) Ltd. Meirav Ofer Oren. 113 Hayarkon St., Tel Aviv. Tel: 03-5274867. |
D ** |
07/10/07 03/02/08* 06/04/09* 30/03/11* 18/08/11* |
2,423.075 |
1,938.460 |
2,282.927 |
29.540 |
2,312.467 |
2,525.813 |
1,938.460 |
2,282.927 |
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. |
E ** |
06/04/09 30/03/11* 18/08/11* |
1,798.962 |
1,199.308 |
1,199.308 |
55.037 |
1,254.345 |
1,333.750 |
1,199.308 |
1,199.308 |
6.25% |
05.01.12 |
05.01.17 |
January 5 |
Not linked |
Hermetic Trust (1975) Ltd. Meirav Ofer Oren. 113 Hayarkon St., Tel Aviv. Tel: 03-5274867. |
F(4)(5) (6) **
|
20/03/12 |
714.802 |
714.802 |
739.680 |
8.110 |
747.790 |
848.899 |
714.802 |
739.680 |
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 |
285.198 |
285.198 |
4.751 |
289.949 |
330.003 |
285.198 |
285.198 |
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 |
Total |
6,147.139 |
4,877.849 |
5,400.433 |
132.202 |
5,532.635 |
6,033.432 |
4,877.849 |
5,400.433 |
Comments:
(1) In the reported period, the company fulfilled all terms of the debentures. The company also fulfilled all terms of the Indentures. Debentures F and G financial covenants - as of September 30, 2013 the net leverage (net debt to EBITDA ratio- see definition in the Company's annual report for the year ended December 31, 2012 on Form 20-F, under "Item 5. Operating and Financial Review and Prospects – B. Liquidity and Capital Resources – Debt Service – Shelf prospectus") was 2.99. In the reported period, no cause for early repayment occurred. (2) Including interest accumulated in the books and excluding net balance of premium on debentures and deferred issuance expenses. (3) Annual payments, excluding series F and G debentures in which the payments are semi annual. (4) Regarding Debenture series B, F and G- the company undertook not to create any pledge on its assets, as long as debentures are not fully repaid, subject to certain exclusions. (5) Regarding Debenture series F and G - the company has the right for early redemption under certain terms (see the Company's annual report for the year ended December 31, 2012 on Form 20-F, under "Item 5. Operating and Financial Review and Prospects– B. Liquidity and Capital Resources – Debt Service – Shelf prospectus"). (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.
(*) On these dates additional debentures of the series were issued, the information in the table refers to the full series.
(**) Series B, D, E and F 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 September 30, 2013 (cont.) |
||||||||
Debentures Rating Details* |
||||||||
Series |
Rating Company |
Rating as of |
Rating as of 12.11.2013 |
Rating assigned upon issuance |
Recent date of rating as of 12.11.2013 |
Additional ratings between original issuance and the recent date of rating as of 12.11.2013 (2) |
||
Rating |
||||||||
B |
S&P Maalot |
A+ |
A+ |
AA- |
06/2013 |
5/2006, 9/2007, 1/2008, 10/2008, 3/2009, 9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012, 6/2013 |
AA-, AA, AA-, A+ (2) |
|
D |
S&P Maalot |
A+ |
A+ |
AA- |
06/2013 |
1/2008, 10/2008, 3/2009, 9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012, 6/2013 |
AA-, AA, AA-, A+ (2) |
|
E |
S&P Maalot |
A+ |
A+ |
AA |
06/2013 |
9/2010, 8/2011, 1/2012, 3/2012, 5/2012, 11/2012, 6/2013 |
AA, AA-, A+ (2) |
|
F |
S&P Maalot |
A+ |
A+ |
AA |
06/2013 |
5/2012, 11/2012, 6/2013 |
AA, AA-, A+ (2) |
|
G |
S&P Maalot |
A+ |
A+ |
AA |
06/2013 |
5/2012, 11/2012, 6/2013 |
AA, AA-, A+ (2) |
(1) In June 2013, S&P Maalot updated the Company's rating from an "ilAA-/negative" to an "ilA+/stable".
(2) In September 2007, S&P Maalot issued a notice that the AA- rating for debentures issued by the Company was in the process of recheck with positive implications (Credit Watch Positive). 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". For details regarding the rating of the debentures see the S&P Maalot report dated June 20, 2013.
* 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 September 30, 2013 |
||||||
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 |
757,299 |
292,693 |
- |
- |
- |
284,134 |
Second year |
757,299 |
292,693 |
- |
- |
- |
226,301 |
Third year |
757,299 |
292,693 |
- |
- |
- |
168,469 |
Fourth year |
829,020 |
349,382 |
- |
- |
- |
107,006 |
Fifth year and on |
645,485 |
226,757 |
- |
- |
- |
58,407 |
Total |
3,746,402 |
1,454,216 |
- |
- |
- |
844,317 |
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) – None |
||||||
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 |
||||||
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 |
757,299 |
292,693 |
- |
- |
- |
284,134 |
Second year |
757,299 |
292,693 |
- |
- |
- |
226,301 |
Third year |
757,299 |
292,693 |
- |
- |
- |
168,469 |
Fourth year |
829,020 |
349,382 |
- |
- |
- |
107,006 |
Fifth year and on |
645,485 |
226,757 |
- |
- |
- |
58,407 |
Total |
3,746,402 |
1,454,216 |
- |
- |
- |
844,317 |
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). |
Cellcom Israel Ltd. |
||||||
Summary of Financial Undertakings (according to repayment dates) as of September 30, 2013 (cont.) |
||||||
Principal payments |
Gross interest payments (without deduction of tax) |
|||||
ILS linked to CPI |
ILS not linked to CPI |
Euro
|
Dollar |
Other |
||
First year |
- |
7,380 |
- |
- |
- |
725 |
Second year |
- |
5,000 |
- |
- |
- |
300 |
Third year |
- |
- |
- |
- |
- |
- |
Fourth year |
- |
- |
- |
- |
- |
- |
Fifth year and on |
- |
- |
- |
- |
- |
- |
Total |
- |
12,380 |
- |
- |
- |
1,025 |
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). |
Principal payments |
Gross interest payments (without deduction of tax) |
|||||
ILS linked to CPI |
ILS not linked to CPI |
Euro
|
Dollar |
Other |
||
First year |
- |
12 |
- |
- |
- |
3 |
Second year |
- |
12 |
- |
- |
- |
2 |
Third year |
- |
12 |
- |
- |
- |
1 |
Fourth year |
- |
12 |
- |
- |
- |
1 |
Fifth year and on |
- |
- |
- |
- |
- |
- |
Total |
- |
46 |
- |
- |
- |
7 |
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 |
36,763 |
7,123 |
- |
- |
- |
10,611 |
Second year |
36,763 |
7,123 |
- |
- |
- |
8,247 |
Third year |
36,763 |
7,123 |
- |
- |
- |
5,884 |
Fourth year |
39,010 |
7,473 |
- |
- |
- |
3,456 |
Fifth year and on |
20,227 |
1,402 |
- |
- |
- |
1,481 |
Total |
169,526 |
30,243 |
- |
- |
- |
29,679 |
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 |
SOURCE Cellcom Israel Ltd.
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