Cellcom Israel Announces Third Quarter 2018 Results
NETANYA, Israel, Nov. 22, 2018 /PRNewswire/ -
Nir Sztern, Cellcom CEO said:
-- "Approximately 120,000 households are within the coverage range of
Cellcom Israel's fiber optic network (as of today)"
-- "The Company entered into a memorandum of understanding with the Israel
Infrastructure Fund ("IIF") for co-investment in IBC"
-- "Cellcom tv service continues to succeed, and we maintain our position
as the largest OTT TV player in the market with approximately 213,000
subscribing households (as of today)"
Third Quarter 2018 Highlights (compared to third quarter of 2017):
-- Total Revenues totaled NIS 910 million ($251 million) compared to NIS
975 million ($269 million) in the third quarter last year, a decrease of
6.7%
-- Service revenues totaled NIS 712 million ($196 million) compared to NIS
737 million ($203 million) in the third quarter last year, a decrease of
3.4%
-- Operating income totaled NIS 33 million ($9 million) compared to NIS 83
million ($23 million) in the third quarter last year, a decrease of
60.2%
-- Net income totaled NIS 1 million ($0.3 million) compared to NIS 32
million ($9 million) in the third quarter last year, a decrease of 96.9%
-- EBITDA(1) totaled NIS 184 million ($51 million) compared to NIS 226
million ($62 million) in the third quarter last year, a decrease of
18.6%
-- Net cash from operating activities totaled NIS 194 million ($48 million)
compared to NIS 205 million ($57 million) in the third quarter last
year, a decrease of 5.4%
-- Free cash flow(1) totaled NIS 34 million ($9 million) compared to NIS
105 million ($29 million) in the third quarter last year, a decrease of
67.6%
(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 third quarter of 2018:
"During this quarter, we continued the implementation of the Company's strategic plan by deepening our activities in the fixed-line market with continued growth in the television service and in investment in independent optic-fiber infrastructure, which are expected to facilitate future saving in costs and improvement of the fixed-line segment profitability.
We are operating to improve the results in the cellular segment despite the competitive environment in this segment.
In recent months, we substantially accelerated the Company's independent fiber optic deployment, so that as of today approximately 120,000 households are within the coverage range of Cellcom Israel's fiber optic network and are able to join the "Super Fiber" service. This is only the first step towards the provision of widely deployed internet service over fiber optic.
Simultaneously, we are preparing for the completion of the IBC (the fiber optic initiative) transaction, so that within the next three years we will offer internet services over fiber optic to more than half a million households in Israel.
We announced today that we entered into a memorandum of understanding with the Israel Infrastructure Fund ("IIF"), for IIF's co-investment in IBC, which shall be carried out in equal parts between the Company and IIF. IIF's entry as equal partner to IBC, subject to completion of the transaction, is an important step in advancing both IBC and Internet infrastructure in Israel.
IIF, established in 2007, is the first and largest infrastructure fund in Israel specializing in the infrastructure sector. IIF currently manages $1.9 billion on behalf of its managed funds and is backed by leading Israeli financial institutions as well as investors from Europe & North America.
We believe that entering IBC in partnership with IIF and alongside Israel Electricity Company, will generate - already in the near future - a real revolution in the Internet infrastructure field in Israel and will place Cellcom Israel in a leading competitive position in the advanced landline infrastructure market.
Cellcom tv service continues to succeed, and we maintain our position as the largest OTT TV player in the market with approximately 213,000 subscribing households (as of today).
In the third quarter as well we continued to invest in the viewing experience of our customers and in adding new sports content as well as content for children. We are continuing to add new customers to the TV services including through our triple and quad paly packages, and we concluded the third quarter with an increase of 6.2% in services revenues in the fixed-line segment compared to the same quarter last year.
The impact of competition in the cellular segment continues and is reflected also in the current quarter, with a decline in service revenues of 9.2% compared to the corresponding quarter of last year, which is mainly due to the ongoing erosion in the prices of these services in light of the competition in the market.
During November, we launched a number of new and simple cellular plans, which include a higher monthly rate, along with an increase in the package's contents, without a built-in price increase at the end of the first year, as was customary until now.
During the third quarter, the Company's cellular subscriber base grew by approximately 16,000 net."
Shlomi Fruhling, Chief Financial Officer, said:
"The third quarter of 2018 was characterized by continued growth in the fixed-line segment due to continued recruitment of subscribers for television and internet services and further by an increase in international calling activity compared to the previous quarter. In the cellular segment the quarter was characterized by the continued increased competitive environment, despite a decrease in the amount of transfers between operators compared to the previous quarter. The increase in the cellular segment services revenues compared with the previous quarter is mainly due to positive seasonality in revenues from calls and internet packages overseas.
The decrease in revenues from end-user equipment compared with the previous quarter was due mainly to the decrease in the number of business days in the third quarter, due to the high number of holidays in the quarter.
EBITDA amounted to NIS 184 million in the quarter, compared with NIS 133 million in the previous quarter. The improvement in EBITDA is due to expenses recorded in the previous quarter in respect of the voluntary retirement plan of employees in the amount of NIS 26 million and other expenses, as well as an increase in service revenues and a decrease in operating expenses.
Free cash flow in the third quarter of 2018 amounted to NIS 34 million, compared with NIS 56 million in the previous quarter. Most of the decrease is due to a decline in collection from customers, from payments in respect of the voluntary retirement plan of employees, and on the other hand, a decrease in payments to the tax authorities."
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 2018.
The Company reported that revenues for the third quarter of 2018 totaled NIS 910 million ($251 million); EBITDA for the third quarter of 2018 totaled NIS 184 million ($51 million), or 20.2% of total revenues; net income for the third quarter of 2018 totaled NIS 1 million ($0.3 million). Basic earnings per share for the third quarter of 2018 totaled NIS 0.01 ($0.002).
Main Consolidated Financial Results:
Q3/2018 Q3/2017 Change% Q3/2018 Q3/2017
NIS million US$ million
(convenience
translation)
Total revenues 910 975 (6.7)% 251 269
---
Operating Income 33 83 (60.2)% 9 23
---
Net Income 1 32 (96.9)% 0.3 9
---
Free cash flow 34 105 (67.6)% 9 29
---
EBITDA 184 226 (18.6)% 51 62
---
EBITDA, as percent of total revenues 20.2% 23.2% (12.9)%
===
Main Financial Data by Operating Segments:
Cellular (*) Fixed-line (**) Inter-segment Consolidated results
adjustments
(***)
NIS million Q3'18 Q3'17 Change Q3'18 Q3'17 Change Q3'18 Q3'17 Q3'18 Q3'17 Change
% %
%
Total revenues 589 679 (13.3)% 362 339 6.8% (41) (43) 910 975 (6.7)%
---
Service revenues 443 488 (9.2)% 310 292 6.2% (41) (43) 712 737 (3.4)%
---
Equipment 146 191 (23.6)% 52 47 10.6% 198 238 (16.8)%
revenues
---
EBITDA 111 160 (30.6)% 73 66 10.6% 184 226 (18.6)%
---
EBITDA, as 18.8% 23.6% (20.3)% 20.2% 19.5% 3.6% 20.2% 23.2% (12.9)%
percent of total
revenues
===
(*) The segment includes the cellular
communications services, end user
cellular equipment and supplemental
services.
(**) The segment includes landline
telephony services, internet
services, television services,
transmission services, end user
fixed-line equipment and
supplemental services.
(***) Include cancellation of inter-
segment revenues between "Cellular"
and "Fixed-line" segments.
Financial Review (third quarter of 2018 compared to third quarter of 2017):
Revenues for the third quarter of 2018 decreased 6.7% totaling NIS 910 million ($251 million), compared to NIS 975 million ($269 million) in the third quarter last year. The decrease in revenues is attributed to a 16.8% decrease in equipment revenues and a 3.4% decrease in service revenues.
Service revenues totaled NIS 712 million ($196 million) in the third quarter of 2018, a 3.4% decrease from NIS 737 million ($203 million) in the third quarter last year.
Service revenues in the cellular segment totaled NIS 443 million ($122 million) in the third quarter of 2018, a 9.2% decrease from NIS 488 million ($135 million) in the third quarter last year. This decrease resulted mainly from the ongoing erosion in the prices of these services as a result of the competition in the cellular market.
Service revenues in the fixed-line segment totaled NIS 310 million ($85 million) in the third quarter of 2018, a 6.2% increase from NIS 292 million ($81 million) in the third quarter last year. This increase resulted mainly from an increase in revenues from internet and TV services. This increase was partially offset by a decrease in revenues from international calling services.
Equipment revenues totaled NIS 198 million ($55 million) in the third quarter of 2018, a 16.8% decrease compared to NIS 238 million ($66 million) in the third quarter last year. This decrease resulted mainly from a decrease in the amount of end user equipment sold in the cellular segment, which was partially offset by an increase in equipment sales in the fixed-line segment.
Cost of revenues for the third quarter of 2018 totaled NIS 645 million ($178 million), compared to NIS 670 million ($185 million) in the third quarter of 2017, a 3.7% decrease. This decrease resulted mainly from a decrease in the amount of end user equipment sold in the cellular segment and from a decrease in interconnect fees. This decrease was partially offset by an increase in fixed-line segment costs related to internet services and costs of TV services content.
Gross profit for the third quarter of 2018 decreased by 13.1% to NIS 265 million ($73 million), compared to NIS 305 million ($84 million) in the third quarter of 2017. Gross profit margin for the third quarter of 2018 amounted to 29.1%, down from 31.3% in the third quarter of 2017.
Selling, Marketing, General and Administrative Expenses ("SG&A Expenses") for the third quarter of 2018 increased by 4.5% to NIS 232 million ($64 million), compared to NIS 222 million ($61 million) in the third quarter of 2017. This increase is primarily a result of an increase in amortization expenses of salaries and commissions expenses which were capitalized as part of customer acquisition costs, as a result of early adoption of an International Financial Reporting Standard (IFRS 15) as of the first quarter of 2017 (the "Adoption of IFRS15").
Operating income for the third quarter of 2018 decreased by 60.2% to NIS 33 million ($9 million) from NIS 83 million ($23 million) in the third quarter of 2017.
EBITDA for the third quarter of 2018 decreased by 18.6% totaling NIS 184 million ($51 million) compared to NIS 226 million ($62 million) in the third quarter of 2017. EBITDA as a percent of revenues for the third quarter of 2018 totaled 20.2%, down from 23.2% in the third quarter of 2017.
Cellular segment EBITDA for the third quarter of 2018 totaled NIS 111 million ($31 million), compared to NIS 160 million ($44 million) in the third quarter last year, a decrease of 30.6%, which resulted mainly from the ongoing erosion of service revenues.
Fixed-line segment EBITDA for the third quarter of 2018 totaled NIS 73 million ($20 million), compared to NIS 66 million ($18 million) in the third quarter last year, a 10.6% increase, which result mainly from an increase in activity in the internet and TV fields.
Financing expenses, net for the third quarter of 2018 decreased by 23.1% and totaled NIS 30 million ($8 million), compared to NIS 39 million ($11 million) in the third quarter of 2017. The decrease resulted mainly from a decrease in the Company's average debt level and from a decrease in the interest rate on the Company's debt.
Net Income for the third quarter of 2018 totaled NIS 1 million ($0.3 million), compared to NIS 32 million ($9 million) in the third quarter of 2017, a decrease of 96.9%.
Basic earnings per share for the third quarter of 2018 totaled NIS 0.01 ($0.002), compared to NIS 0.32 ($0.09) in the third quarter last year.
OPERATING REVIEW
Main Performance Indicators - Cellular segment:
Q3/2018 Q3/2017 Change (%)
Cellular subscribers at the end of 2,825 2,805 0.7%
period (in thousands)
---
Churn Rate for cellular subscribers 10.0% 11.5% (13.0)%
(in %)
---
Monthly cellular ARPU (in NIS) 52.5 57.8 (9.2)%
---
Cellular subscriber base - at the end of the third quarter of 2018 the Company had approximately 2.825 million cellular subscribers. In this quarter, the Company's counting mechanism of M2M (machine to machine) subscribers was changed, so as that M2M subscribers are added to the cellular subscriber base only upon first use instead of at the time of sale as was done until the change. This change did not have a material effect on the prior subscriber data. During the third quarter of 2018 the Company's cellular subscriber base increased by approximately 16,000 net cellular subscribers.
Cellular Churn Rate for the third quarter of 2018 totaled 10.0%, compared to 11.5% in the third quarter last year.
The monthly cellular Average Revenue per User ("ARPU") for the third quarter of 2018 totaled NIS 52.5 ($14.5), compared to NIS 57.8 ($15.9) in the third quarter last year. The decrease in ARPU resulted mainly from the ongoing erosion in the prices of cellular services, resulting from the intense competition in the cellular market.
Main Performance Indicators - Fixed-line segment:
Q3/2018 Q3/2017 Change (%)
Internet infrastructure
field 259 206 25.7%
subscribers -
(households) at
the end of period (in
thousands)
---
TV field subscribers - 206 154 33.8%
(households) at the end
of
period (in thousands)
===
In the third quarter of 2018, the Company's subscriber base in the internet infrastructure field increased by approximately 11,000 net households, and the Company's subscriber base in the TV field increased by 11,000 net households.
FINANCING AND INVESTMENT REVIEW
Cash Flow
Free cash flow for the third quarter of 2018 totaled NIS 34 million ($9 million), compared to NIS 105 million ($29 million) in the third quarter of 2017, a 67.6% decrease. The decrease in free cash flow resulted mainly from a decrease in receipts from customers and operators, from higher cash capital expenditures in fixed assets and from an increase in payments to employees due to the employee voluntary retirement plan from the second quarter of 2018. This decrease was partially offset by a decrease in purchase of end user equipment.
Total Equity
Total Equity as of September 30, 2018 amounted to NIS 1,654 million ($456 million) primarily consisting of undistributed accumulated retained earnings of the Company.
Cash Capital Expenditures in Fixed Assets and Intangible Assets and others
During the third quarter of 2018, the Company invested NIS 160 million ($44 million) in fixed assets and intangible assets and others (including, among others, investments in the Company's communications networks, investments in optic fibers deployment, information systems, software and TV set-top boxes and capitalization of part of the customer acquisition costs as a result of the Adoption of IFRS15), compared to NIS 114 million ($31 million) in the third quarter of 2017.
Dividend
On November 22, 2018, the Company's Board of Directors decided not to declare a cash dividend for the third quarter of 2018. In making its decision, the board of directors considered the Company's dividend policy and business status and decided not to distribute a dividend at this time, given the intensified competition and its continued 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 most recent annual report for the year ended December 31, 2017 on Form 20-F dated March 26, 2018, or the 2017 Annual Report, under "Item 8 - Financial Information - A. Consolidated Statements and Other Financial Information - Dividend Policy".
Debentures, Material Loans and Financial Liabilities
For information regarding the Company's outstanding debentures as of September 30, 2018, see "Disclosure for Debenture Holders" section in this press release.
For information regarding the Company's material loans as of September 30, 2018, see "Aggregation of the Information regarding the Company's Material Loans" section in this press release.
For a summary of the Company's financial liabilities as of September 30, 2018, see "Disclosure for Debenture Holders" section in this press release.
OTHER DEVELOPMENTS DURING THE THIRD QUARTER OF 2018 AND SUBSEQUENT TO THE END OF THE REPORTING PERIOD
IBC
In November 2018, following the Company's previous reports regarding the Company entering into an MOU for an investment in Israel Broadband Company, or IBC, (the "IBC MOU"), the Company entered into a memorandum of understanding with the Israel Infrastructure Fund ("IIF"), for IIF's co-investment in IBC together with the Company, which shall be carried out in equal parts between the Company and IIF through a joint investment vehicle (the "IIF MOU").
The IIF MOU includes, in addition to standard and customary conditions, principles of cooperation between the parties towards the execution of the definitive agreements for the investment in IBC, which shall be carried out in accordance with the IBC MOU, and other transaction documents and after the consummation of such investment in IBC, if and when occurs, including, among others, joint decision making processes and equal participation in costs and financing of the investment, as well as certain adjustments in case an additional strategic investor joins the Company and IIF in investing in IBC.
The terms of the definitive agreement between the Company and IIF (to be entered together with the other transaction documents) as well as the terms of the definitive agreement and other transaction documents for the investment in IBC, are subject to further negotiations between the parties and approvals of the parties' Boards of Directors. If entered, the execution of the transaction will be subject to the previously reported precedent conditions, including regulatory approvals. There is no assurance that the parties will enter any of the said agreements, or that such agreements will be approved and executed, nor as to their timing and terms.
For additional details see the Company's 2017 Annual Report under "Item 3. Key Information - D. Risk factors - Risks related to our business - We face intense competition in all aspects of our business", "- Our investment in new businesses involves many risks" and "Item 4. Information on the Company -B. Business Overview - Competition - Fixed-Line Segment- Fixed-Line Infrastructure" and the Company's current reports on form 6-K dated August 8, 2018 and August 16, 2018 under "-Other developments during the second quarter of 2018 and subsequent to the end of the reporting period - Investment in IBC" and November 22, 2018.
Regulation
Cell sites
In October 2018, the previously reported draft regulations setting procedures for the construction, changes and replacement of radio access devices exempt from building permits, were enacted. Though these regulations reflect existing judicial limitations placed upon the Company's ability to make changes and replace radio access devices, they also introduce a new licensing procedure that may further reduce the Company's ability to construct new radio access devices based on such exemption. This may adversely affect the Company's existing networks and networks build-outs.
In addition, following conflicting district decisions concerning the company's ability to receive building permits in reliance on the current National Zoning Plan, or Plan, for cell sites operating in frequencies not specifically detailed in the frequencies charts attached to the Plan, the matter will now be decided by the supreme court. In addition to the Company's existing frequencies not specifically detailed in the Plan, some of the frequencies to which the Company is required to transfer following the previously reported Ministry of Communication's requirement for frequency's migration, are also not specifically detailed in the Plan. Should the supreme court rule against the Company, it would have a material negative impact on the Company's ability to deploy additional cell sites or make any changes to them, and could adversely affect the Company's existing networks, which could negatively affect the extent, quality and capacity of the Company's network coverage and ability to continue to market the Company's products and services effectively.
For additional details see the Company's 2017 Annual Report under "Item 3. Key Information - D. Risk factors - Risks related to our business - We may not be able to obtain permits to construct and operate cell sites", "- We may be adversely affected by the significant technological and other changes in the telecommunications industry" and "Item 4. Information on the Company -B. Business Overview - Government Regulation - Cellular Segment - Permits for Cell Site Construction" and the Company's current report on form 6-K dated August 16, 2018 under "-Other developments during the second quarter of 2018 and subsequent to the end of the reporting period - Regulation - Frequencies".
CONFERENCE CALL DETAILS
The Company will be hosting a conference call regarding its results for the third quarter of 2018 on Thursday, November 22, 2018 at 10:00 am ET, 07:00 am PT, 15:00 UK time, 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: 1-888-668-9141 UK Dial-in Number: 0-800-917-5108
Israel Dial-in Number: 03-918-0685 International Dial-in Number: +972-3-918-0685
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 a leading Israeli communications group, providing a wide range of communications services. Cellcom Israel is the largest Israeli cellular provider, providing its approximately 2.825 million cellular subscribers (as at September 30, 2018) with a broad range of services including cellular telephony, roaming services for tourists in Israel and for its subscribers abroad, text and multimedia messaging, advanced cellular content and data services and other value-added services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an LTE 4 generation network and an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Cellcom Israel further provides OTT TV services, internet infrastructure and connectivity services and international calling services, as well as landline telephone services in Israel. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://investors.cellcom.co.il.
Forward-Looking Statements
The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Israeli Securities Law, 1968). In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about the Company, may include projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. These statements are only predictions based on the Company's current expectations and projections about future events. There are important factors that could cause the Company's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause such differences include, but are not limited to: changes to the terms of the Company's license, new legislation or decisions by the regulator affecting the Company's operations, new competition and changes in the competitive environment, the outcome of legal proceedings to which the Company is a party, particularly class action lawsuits, the Company's ability to maintain or obtain permits to construct and operate cell sites, and other risks and uncertainties detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, including under the caption "Risk Factors" in its Annual Report for the year ended December 31, 2017.
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 3.627 = US$ 1 as published by the Bank of Israel for September 30, 2018.
Use of non-IFRS financial measures
EBITDA is a non-IFRS measure and is defined as income before financing income (expenses), net; other income (expenses), net (excluding expenses related to employee voluntary retirement plans and gain (loss) due to sale of subsidiaries); income tax; depreciation and amortization and share based payments. This is an accepted measure in the communications industry. The Company presents this measure as an additional performance measure as the Company believes that it enables us to compare operating performance between periods and companies, net of any potential differences which may result from differences in capital structure, taxes, age of fixed assets and related depreciation expenses. EBITDA should not be considered in isolation, or as a substitute for operating income, any other performance measures, or cash flow data, which were prepared in accordance with Generally Accepted Accounting Principles as measures of profitability or liquidity. EBITDA does not take into account debt service requirements, or other commitments, including capital expenditures, and therefore, does not necessarily indicate the amounts that may be available for the Company's use. In addition, EBITDA as presented by the Company may not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated. See the reconciliation of net income to EBITDA under "Reconciliation of Non-IFRS Measures" in the press release.
Free cash flow is a non-IFRS measure and is defined as the net cash provided by operating activities (including the effect of exchange rate fluctuations on cash and cash equivalents) excluding a loan to Golan Telecom, minus the net cash used in investing activities excluding short-term investment in tradable debentures and deposits and proceeds from sales of such debentures (including interest received in relation to such debentures) and deposits. See "Reconciliation of Non-IFRS Measures" below.
Company Contact Investor Relations Contact
Shlomi Fruhling
Ehud Helft
Chief Financial Officer
GK Investor & Public Relations
investors@cellcom.co.il
cellcom@GKIR.com
Tel: +972-52-998-9735
Tel: +1-617-418-3096
---
Financial Tables Follow
Cellcom Israel Ltd.
(An Israeli Corporation)
Condensed Consolidated Interim Statements of Financial Position (Unaudited)
---
Convenience
translation
into US dollar
September 30, September 30, September 30, December 31,
2017 2018 2018 2017
NIS millions
US$ millions NIS millions
Assets
Cash and cash equivalents 461 773 213 527
Current investments,
including derivatives 363 421 116 364
Trade receivables 1,265 1,172 323 1,280
Current tax assets 1 14 4 4
Other receivables 80 81 22 89
Inventory 57 64 18 70
Total current assets 2,227 2,525 696 2,334
Trade and other
receivables 912 852 235 895
Property, plant and
equipment, net 1,597 1,604 442 1,598
Intangible assets and
others, net 1,247 1,287 355 1,260
Total non- current
assets 3,756 3,743 1,032 3,753
Total assets 5,983 6,268 1,728 6,087
Liabilities
Current maturities of
debentures and of loans 617 619 171 618
from financial
institutions
Trade payables and
accrued expenses 590 609 168 652
Current tax liabilities 3 4
Provisions 113 107 29 91
Other payables, including
derivatives 219 269 74 277
Total current liabilities 1,542 1,604 442 1,642
Long-term loans from
financial institutions 462 334 92 462
Debentures 2,353 2,531 698 2,360
Provisions 20 20 6 21
Other long-term
liabilities 34 4 1 15
Liability for employee
rights upon retirement,
net 12 15 4 15
Deferred tax liabilities 129 106 29 131
Total non- current
liabilities 3,010 3,010 830 3,004
Total liabilities 4,552 4,614 1,272 4,646
Equity attributable to
owners of the Company
Share capital 1 1 1
Share premium 259 71
Receipts on account of
share options 17 5
Retained earnings 1,426 1,374 379 1,436
Non-controlling
interests 4 3 1 4
Total equity 1,431 1,654 456 1,441
Total liabilities and
equity 5,983 6,268 1,728 6,087
Cellcom Israel Ltd.
(An Israeli Corporation)
Condensed Consolidated Interim Statements of Income (Unaudited)
---
Convenience
Convenience
translation
translation
into US dollar into US dollar
For the nine
For the nine For the three For the three
For the
months ended months ended months ended months ended year ended
September 30, September 30, September 30, September 30, December 31,
2017 2018 2018 2017 2018 2018 2017
NIS millions
US$ millions NIS millions
US$ millions NIS millions
Revenues 2,896 2,770 764 975 910 251 3,871
Cost of revenues (2,000) (1,985) (547) (670) (645) (178) (2,680)
Gross profit 896 785 217 305 265 73 1,191
Selling and marketing (343) (419) (116) (117) (143) (39) (479)
expenses
General and administrative (313) (274) (76) (105) (89) (25) (426)
expenses
Other income (expenses), net 12 (26) (7) 11
Operating profit 252 66 18 83 33 9 297
Financing income 38 38 11 12 14 4 52
Financing expenses (152) (137) (38) (51) (44) (12) (196)
Financing expenses, net (114) (99) (27) (39) (30) (8) (144)
Profit (loss) before taxes on 138 (33) (9) 44 3 1 153
income
Tax benefit (taxes on income) (35) 4 1 (12) (2) (1) (40)
Profit (loss) for the period 103 (29) (8) 32 1 113
Attributable to:
Owners of the Company 102 (28) (8) 32 2 112
Non-controlling interests 1 (1) (1) 1
Profit (loss) for the period 103 (29) (8) 32 1 113
Earnings (loss) per share
Basic earnings (loss) per 1.02 (0.28) (0.08) 0.32 0.01 0.002 1.11
share (in NIS)
Diluted earnings (loss) per 1.02 (0.28) (0.08) 0.32 0.01 0.002 1.10
share (in NIS)
Weighted-average number of 100,609,241 105,395,757 105,395,757 100,616,595 113,165,757 113,165,757 100,654,935
shares used in the calculation
of basic earnings (loss) per
share (in shares)
Weighted-average number of 101,225,178 105,395,757 105,395,757 101,083,971 113,165,757 113,165,757 100,889,661
shares used in the calculation
of diluted earnings (loss) per
share (in shares)
Cellcom Israel Ltd.
(An Israeli Corporation)
Condensed Consolidated Interim Statements of Cash Flows (Unaudited)
---
Convenience
Convenience
translation
translation
into US dollar into US dollar
For the nine
For the nine For the three For the three
For the
months ended months ended months ended months ended year ended
September 30, September 30, September 30, September 30, December 31,
2017 2018 2018 2017 2018 2018 2017
NIS millions
US$ millions NIS millions
US$ millions NIS millions
Cash flows from operating activities
Profit (loss) for the period 103 (29) (8) 32 1 113
Adjustments for:
Depreciation and amortization 412 429 118 143 151 42 555
Share based payments 2 2 2
Gain on sale of property, plant and (2) (1)
equipment
Gain on sale of shares in a (10) (10)
consolidated company
Income tax expense (tax benefit) 35 (4) (1) 12 2 1 40
Financing expenses, net 114 99 27 39 30 8 144
Changes in operating assets and
liabilities:
Change in inventory 7 6 2 4 4 1 (6)
Change in trade receivables (including 118 171 48 14 75 20 132
long-term amounts)
Change in other receivables (including (185) (17) (5) (19) (1) (191)
long-term amounts)
Changes in trade payables, accrued (34) (54) (15) (59) (43) (12) (27)
expenses and provisions
Change in other liabilities (including (3) 20 6 10 (21) (6) 28
long-term amounts)
Receipts from (payments for) (3) (3) 2 1 (3)
derivative instruments, net
Income tax paid (35) (20) (6) (9) (6) (2) (44)
Income tax received 41 41 42
Net cash from operating activities 560 603 166 205 194 53 774
Cash flows from investing activities
Acquisition of property, plant, and (274) (270) (74) (37) (102) (28) (346)
equipment
Additions to intangible assets and (171) (167) (46) (77) (58) (16) (237)
others
Acquisition of subsidiary, net of cash (2) (1) (2) (1)
acquired
Change in current investments, net (79) (62) (17) (3) (25) (7) (77)
Receipts from other derivative 3 1 3
contracts, net
Proceeds from sale of property, plant 1 1 1
and equipment
Interest received 10 9 3 2 2 1 12
Proceeds from sale of shares in a 3 5 1 11 3
consolidated company, net of cash
disposed
Net cash used in investing activities (511) (483) (133) (101) (184) (51) (644)
Cellcom Israel Ltd.
(An Israeli Corporation)
Condensed Consolidated Interim Statements of Cash Flows (cont'd) (Unaudited)
---
Convenience
Convenience
translation
translation
into US dollar into US dollar
For the nine
For the nine For the three For the three
For the
months ended months ended months ended months ended year ended
September 30, September 30, September 30, September 30, December 31,
2017 2018 2018 2017 2018 2018 2017
---
NIS millions
US$ millions NIS millions
US$ millions NIS millions
Cash flows from financing activities
Payments for derivative contracts, net (3) (3) (3)
Long term loans from financial 200 (78) (21) (28) (7) 200
institutions
Repayment of debentures (864) (556) (153) (350) (194) (53) (864)
Proceeds from issuance of debentures, 618 170 222 61 -
net of issuance costs
Dividend paid (1) (1) (1)
Interest paid (160) (115) (32) (74) (50) (14) (175)
Acquisition of non-controlling interests (19) (5) (19) (5) -
Equity offering 275 76 -
Net cash from (used in) financing (828) 125 35 (428) (69) (18) (843)
activities
---
Changes in cash and cash equivalents (779) 245 68 (324) (59) (16) (713)
Cash and cash equivalents as at the 1,240 527 145 785 831 229 1,240
beginning of the period
Effect of exchange rate fluctuations on 1 1 -
cash and cash equivalents
Cash and cash equivalents as at the 461 773 213 461 773 213 527
end of the period
===
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 Year ended
September 30, December 31,
---
2017 2018
Convenience 2017
translation
into US dollar
2018
---
NIS millions
US$ millions NIS millions
---
Profit for the period......................... 32 1 113
Taxes on income............................. 12 2 1 40
Financing income............................ (12) (14) (4) (52)
Financing expenses........................ 51 44 12 196
Other income .................................. (1)
Depreciation and amortization......... 143 151 42 555
Share based payments................... 2
EBITDA............................................ 226 184 51 853
===
Free cash flow
The following tables shows the calculation of free flow:
Three-month period ended Year ended
September 30, December 31,
---
2017 2018
Convenience 2017
translation
into US dollar
2018
---
NIS millions
US$ millions NIS millions
---
Cash flows from operating 205 195 54 774
activities(*)......................................
Loan to Golan
Telecom......................... 130
Cash flows from investing activities.... (101) (184) (51) (644)
Sale of short-term tradable 1 23 6 65
debentures and deposits(**)..........
---
Free cash
flow.................................... 105 34 9 325
===
(*) Including the effects of
exchange rate fluctuations in
cash and cash equivalents.
(**) Net of interest received
in relation to tradable
debentures.
Cellcom Israel Ltd.
(An Israeli Corporation)
Key financial and operating indicators
---
NIS millions unless otherwise Q1-2017 Q2-2017 Q4-2017 Q1-2018 Q2-2018 FY-2017
stated
Q3-2017 Q3-2018
--- ---
Cellular service revenues 509 481 488 451 437 434 443 1,929
Fixed-line service revenues 279 292 292 303 304 300 310 1,166
Cellular equipment revenues 183 192 191 204 193 157 146 770
Fixed-line equipment revenues 37 39 47 59 39 76 52 182
Consolidation adjustments (49) (42) (43) (42) (40) (40) (41) (176)
---
Total revenues 959 962 975 975 933 927 910 3,871
Cellular EBITDA 159 158 160 118 112 71 111 595
Fixed-line EBITDA 42 79 66 71 68 62 73 258
---
Total EBITDA 201 237 226 189 180 133 184 853
Operating profit (loss) 67 102 83 45 45 (12) 33 297
Financing expenses, net 31 44 39 30 33 36 30 144
Profit (loss) for the period 26 45 32 10 7 (37) 1 113
Free cash flow 66 77 105 77 84 56 34 325
Cellular subscribers at the end of 2,792 2,779 2,805 2,817 2,822 2,809 2,825 2,817
period (in 000's)
Monthly cellular ARPU (in NIS) 60.2 57.0 57.8 53.6 51.8 51.8 52.5 57.1
Churn rate for cellular subscribers 12.0% 10.8% 11.5% 11.5% 9.5% 12.6% 10.0% 45.8%
(%)
Cellcom Israel Ltd.
Disclosure for debenture holders as of September 30, 2018
---
Aggregation of the information regarding the debenture series issued by the Company (1), in million NIS
---
Series Original Issuance Date Principal on the Date of
As of 30.09.2018 As of 22.11.2018 Interest Rate (fixed) Principal Repayment
Issuance Dates Interest Repayment Dates (3)
Linkage
Trustee
Contact Details
--- ---
Principal Linked Principal Balance Interest Accumulated in Books Debenture Balance Value in
Books (2)
Market Value Principal Balance on Trade Linked Principal Balance
From
To
Balance on Trade
--- ---
F
20/03/12 714.802 428.881 444.065 4.866 448.931 464.178 428.881 445.756 4.60%
05.01.17
05.01.20
January-5 Linked to CPI Strauss Lazar Trust Company
(4)(5)(6)** (1992) Ltd. Ori Lazar. 17
Yizhak Sadeh St., Tel Aviv.
Tel: 03-6237777.
and July-5
--- ---
G (4)(5)(6)
20/03/12 285.198 85.559 85.563 1.426 86.989 88.289 85.559 85.557 6.99%
05.01.17
05.01.19
January-5
Not linked Strauss Lazar Trust Company
(1992) Ltd. Ori Lazar. 17
Yizhak Sadeh St., Tel Aviv.
Tel: 03-6237777.
and July-5
--- ---
H
08/07/14 949.624 835.669 772.020 3.955 775.975 882.717 835.669 778.106 1.98%
05.07.18
05.07.24
January-5 Linked to CPI Mishmeret Trust Company Ltd.
(4)(5)(7)** Rami Sebty. 48 Menachem
Begin Rd. Tel Aviv. Tel:
03-6374355.
03/02/15*
and July-5
11/02/15*
--- ---
I
08/07/14 804.010 723.609 699.095 7.141 706.236 781.425 723.609 700.051 4.14%
05.07.18
05.07.25
January-5
Not linked Mishmeret Trust Company Ltd.
(4)(5)(7)** Rami Sebty. 48 Menachem
Begin Rd. Tel Aviv. Tel:
03-6374355.
03/02/15*
and July-5
11/02/15*
28/03/16*
--- ---
J (4)(5)
25/09/16 103.267 103.267 103.570 0.610 104.180 109.463 103.267 104.003 2.45%
05.07.21
05.07.26 January-5 and July-5 Linked to CPI Mishmeret Trust Company Ltd.
Rami Sebty. 48 Menachem
Begin Rd. Tel Aviv. Tel:
03-6374355.
--- ---
K (4)(5)**
25/09/16 523.971 523.971 520.628 4.519 525.147 538.066 523.971 520.729 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.
01/07/18*
--- ---
L**
24/01/18 400.600 400.600 396.723 6.832 403.555 375.402 400.600 396.819 2.50%
05.01.23
05.01.28
January-5
Not linked Strauss Lazar Trust Company
(1992) Ltd. Ori Lazar. 17
Yizhak Sadeh St., Tel Aviv.
Tel: 03-6237777.
--- ---
Total 3,781.472 3,101.556 3,021.664 29.349 3,051.013 3,239.540 3,101.556 3,031.021
---
Comments
:
---
(1) For a summary of the terms of
the Company's outstanding
debentures see the Company's 2017
Annual Report under "Item 5.
Operating and Financial Review
and Prospects - B. Liquidity and
Capital Resources - Debt Service
- Public Debentures". In the
reporting period, the Company
fulfilled all terms of the
debentures and Indentures.
Debentures financial covenants -
as of September 30, 2018 the net
leverage (net debt to EBITDA
excluding one time events ratio-
see definition in the reference
above to the Company's 2017
Annual Report) was 3.35. In the
reporting period, no cause for
early repayment occurred. (2)
Including interest accumulated in
the books. (3) Semi annual
payments. (4) Regarding the
debentures, the Company undertook
not to create any pledge on its
assets, as long as debentures or
loans are not fully repaid,
subject to certain exclusions.
(5) Regarding the debentures -
the Company has the right for
early redemption under certain
terms. (6) Regarding debenture
Series F and G - in June 2013,
following a second decrease of
the Company's debenture rating
since their issuance, the annual
interest rate has been increased
by 0.25% to 4.60% and 6.99%,
respectively, beginning July 5,
2013. (7) In February 2015,
pursuant to an exchange offer of
the Company's Series H and I
debentures for a portion of the
Company's outstanding Series D
and E debentures, respectively,
the Company exchanged
approximately NIS 555 million
principal amount of Series D
debentures with approximately NIS
844 million principal amount of
Series H debentures, and
approximately NIS 272 million
principal amount of Series E
debentures with approximately NIS
335 million principal amount of
Series I debentures. Series D and
E debentures were fully repaid in
July 2017 and in January 2017,
respectively.
(*) On these dates additional
debentures of the series were
issued, the information in the
table refers to the full series.
(**) As of September 30, 2018,
debentures Series F, H, I, K and
L are material, which represent
5% or more of the total
liabilities of the Company, as
presented in the financial
statements.
Cellcom Israel Ltd.
Disclosure for debenture holders as of September 30, 2018 (cont'd)
---
Debentures Rating Details*
---
Rating assigned upon Recent date of rating as of Additional ratings
issuance of the Series 22.11.2018 between original
issuance and the
recent date of
rating as of
Series
Rating Company Rating as of 30.09.2018 (1) Rating as of 22.11.2018 22.11.2018 (2)
--- ---
Rating
05/2012, 11/2012,
06/2013, 06/2014,
08/2014, 01/2015,
09/2015, 03/2016,
08/2016, 06/2017,
01/2018, 06/2018,
F
S&P Maalot
A+
A+
AA
08/2018 08/2018 AA,AA-,A+ (2)
--- ---
05/2012, 11/2012,
06/2013, 06/2014,
08/2014, 01/2015,
09/2015, 03/2016,
08/2016, 06/2017,
01/2018, 06/2018,
G
S&P Maalot
A+
A+
AA
08/2018 08/2018 AA,AA-,A+ (2)
--- ---
06/2014, 08/2014,
01/2015, 09/2015,
03/2016, 08/2016,
06/2017, 01/2018,
H
S&P Maalot
A+
A+
A+
08/2018 06/2018, 08/2018
A+ (2)
--- ---
06/2014, 08/2014,
01/2015, 09/2015,
03/2016, 08/2016,
06/2017, 01/2018,
I
S&P Maalot
A+
A+
A+
08/2018 06/2018, 08/2018
A+ (2)
--- ---
J
S&P Maalot
A+
A+
A+
08/2018 08/2016, 06/2017,
01/2018, 06/2018,
08/2018
A+ (2)
--- ---
K
S&P Maalot
A+
A+
A+
08/2018 08/2016, 06/2017,
01/2018, 06/2018,
08/2018
A+ (2)
--- ---
L
S&P Maalot
A+
A+
A+
08/2018 08/2016, 06/2017,
01/2018, 06/2018,
08/2018
A+ (2)
--- ---
(1) In
August 2018,
S&P Maalot
affirmed the
Company's
rating of
"ilA+/stable".
(2) In May
2012, S&P
Maalot updated
the Company's
rating from an
"ilAA/
negative" to
an "ilAA-/
negative". In
November 2012,
S&P Maalot
affirmed the
Company's
rating of
"ilAA-/
negative". In
June 2013, S&P
Maalot updated
the Company's
rating from an
"ilAA-/
negative" to
an "ilA+/
stable". In
June 2014,
August 2014,
January 2015,
September
2015, March
2016, August
2016, June
2017, January
2018, June
2018 and
August 2018
S&P Maalot
affirmed the
Company's
rating of
"ilA+/
stable". For
details
regarding the
rating of the
debentures see
the S&P Maalot
report dated
August 23,
2018, included
in the
Company's
current report
filled in the
Israeli
Securities
Authority
website
("MAGNA") on
August 23,
2018.
* A securities
rating is not
a
recommendation
to buy, sell
or hold
securities
.
Ratings
may be subject
to suspension,
revision or
withdrawal at
any time, and
each rating
should be
evaluated
independently
of any other
rating
.
Cellcom Israel Ltd.
Aggregation of the information regarding the Company's Material Loans (1), in million NIS
---
Loan
Provision
Principal
Interest Principal Repayment
Interest Repayment Dates (semi-annual payments)
Linkage
Date Amount as Rate Dates (annual
of (nominal) payments)
30.09.2018
--- ---
From
To
---
Loan
06/2016 150 4.60%
30.06.18
30.06.21
June-30
and December-31, commencing December 31, 2016 through June
Not
from 30, 2021 linked
financial institution
--- ---
Loan
12/2016 112 4.90%
30.06.18
30.06.22
June-30 and December-30, commencing June 30, 2017 through June 30,
Not
from 2022 linked
bank
--- ---
Loan
06/2017 200 5.10%
30.06.19
30.06.22
June-30
and December-31, commencing December 31, 2017 through June
Not
from 30, 2022 linked
financial
institution
--- ---
Total 462
---
Comments
:
---
(1) For a summary of the terms of
the Company's loan agreements
see the Company's 2017 Annual
Report under "Item 5. Operating
and Financial Review and
Prospects - B. Liquidity and
Capital Resources - Other
Credit Facilities" and the
reference therein to "- Debt
Service - Public Debentures".
(2) In the reporting period, the
Company fulfilled all terms of
the loan agreements. (3) Loan
agreements financial covenants -
as of September 30, 2018 the
net leverage (net debt to EBITDA
excluding one-time events
ratio- see definition in the
reference above to the Company's
2017 Annual Report) was 3.35.
(4) In the reporting period, no
cause for early repayment
occurred. (5) In the loan
agreements, the Company
undertook not to create any
pledge on its assets, as long as
the loans are not fully repaid,
subject to certain exclusions.
(6) According to the loan
agreements the Company may
prepay the loans, subject to a
prepayment fee. (7) In June
2017, the Company entered into
an additional loan agreement
with the lender of the Company's
existing bank loan for the
provision of a deferred loan in
a principal amount of NIS 150
million in March 2019. See more
information in the reference
above to the Company's 2017
Annual Report.
Cellcom Israel Ltd.
Summary of Financial Undertakings (according to repayment dates) as of September 30, 2018
a. Debentures issued to the public by the Company and held by the public, excluding such debentures held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS).
Principal payments Gross interest
payments
(without
deduction of
tax)
ILS linked
to CPI ILS not linked to CPI Euro Dollar Other
---
First
year 335,801 165,362 95,235
---
Second
year 335,801 80,237 79,998
---
Third
year 167,562 190,345 66,318
---
Fourth
year 167,562 190,345 55,506
---
Fifth
year
and on 367,825 1,101,659 112,865
---
Total 1,383,551 1,727,948 406,922
---
b. Private debentures and other non-bank credit, excluding such debentures held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS).
Principal payments Gross interest
payments
(without
deduction of
tax)
ILS
linked
to
CPI ILS not linked to CPI Euro Dollar Other
---
First
year 100,000 17,100
---
Second
year 100,000 12,267
---
Third
year 100,000 7,390
---
Fourth
year 50,000 2,550
---
Fifth
year
and
on
---
Total 350,000 39,307
---
c. Credit from banks in Israel based on the Company's "Solo" financial data (in thousand NIS).
Principal payments Gross interest
payments
(without
deduction of
tax)
ILS
linked
to ILS not Euro Dollar Other
CPI linked to CPI
---
First
year 28,000 5,488
---
Second
year 28,000 4,122
---
Third
year 28,000 2,740
---
Fourth
year 28,000 1,372
---
Fifth
year
and on
---
Total 112,000 13,722
---
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 September 30, 2018 (cont'd)
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 ILS not Euro Dollar Other
CPI linked to CPI
---
First
year 335,801 293,362 117,823
---
Second
year 335,801 208,237 93,387
---
Third
year 167,562 318,345 76,448
---
Fourth
year 167,562 268,345 59,428
---
Fifth
year
and on 376,825 1,101,659 112,865
---
Total 1,383,551 2,189,948 459,951
---
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 ILS not Euro Dollar Other
CPI linked to CPI
---
First
year 361 598 268
---
Second
year 361 164 238
---
Third
year 470 812 224
---
Fourth
year 470 812 185
---
Fifth
year
and on 996 3,405 345
---
Total 2,658 5,791 1,260
---
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.
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SOURCE Cellcom Israel Ltd.
