1.
|
Cellcom Israel Announces First Quarter 2018 Results
|
2.
|
Cellcom Israel Ltd. and Subsidiaries - Condensed Consolidated Interim Financial Statements as at March 31, 2018 (Unaudited)
|
§ |
Total Revenues totaled NIS 933 million ($265 million) compared to NIS 959 million ($273 million) in the first quarter last year, a decrease of 2.7%
|
§ |
Service revenues totaled NIS 701 million ($199 million) compared to NIS 739 million ($210 million) in the first quarter last year, a decrease of 5.1%
|
§ |
Operating income totaled NIS 45 million ($13 million) compared to NIS 67 million ($19 million) in the first quarter last year, a decrease of 32.8%
|
§ |
Net income totaled NIS 7 million ($2 million) compared to NIS 26 million ($7 million) in the first quarter last year, a decrease of 73.1%
|
§ |
EBITDA1 totaled NIS 180 million ($51 million) compared to NIS 201 million ($57 million) in the first quarter last year, a decrease of 10.4%
|
§ |
Net cash flow from operating activities totaled NIS 230 million ($65 million) compared to NIS 77 million ($22 million) in the first quarter last year2, an increase of 198.7%
|
§ |
Free cash flow1 totaled NIS 84 million ($24 million) compared to NIS 66 million ($19 million) in the first quarter last year, an increase of 27.3%
|
Q1/2018
|
Q1/2017
|
Change%
|
Q1/2018
|
Q1/2017
|
|
NIS million
|
US$ million
(convenience translation) |
||||
Total revenues
|
933
|
959
|
(2.7)%
|
265
|
273
|
Operating Income
|
45
|
67
|
(32.8)%
|
13
|
19
|
Net Income
|
7
|
26
|
(73.1)%
|
2
|
7
|
Free cash flow
|
84
|
66
|
27.3%
|
24
|
19
|
EBITDA
|
180
|
201
|
(10.4)%
|
51
|
57
|
EBITDA, as percent of total revenues
|
19.3%
|
21.0%
|
(8.1)%
|
Cellular (*)
|
Fixed-line (**)
|
Consolidation adjustments
(***)
|
Consolidated results
|
||||||||
NIS million
|
Q1'18
|
Q1'17
|
Change
%
|
Q1'18
|
Q1'17
|
Change
%
|
Q1'18
|
Q1'17
|
Q1'18
|
Q1'17
|
Change
%
|
Total revenues
|
630
|
692
|
(9.0)%
|
343
|
316
|
8.5%
|
(40)
|
(49)
|
933
|
959
|
(2.7)%
|
Service revenues
|
437
|
509
|
(14.1)%
|
304
|
279
|
9.0%
|
(40)
|
(49)
|
701
|
739
|
(5.1)%
|
Equipment revenues
|
193
|
183
|
5.5%
|
39
|
37
|
5.4%
|
-
|
-
|
232
|
220
|
5.5%
|
EBITDA
|
112
|
159
|
(29.6)%
|
68
|
42
|
61.9%
|
-
|
-
|
180
|
201
|
(10.4)%
|
EBITDA, as percent of total revenues
|
17.8%
|
23.0%
|
(22.6)%
|
19.8%
|
13.3%
|
48.9%
|
19.3%
|
21.0%
|
(8.1)%
|
Q1/2018
|
Q1/2017
|
Change (%)
|
|
Cellular subscribers at the end of period (in thousands)
|
2,822
|
2,792
|
1.1%
|
Churn Rate for cellular subscribers (in %)
|
9.5%
|
12.0%
|
(20.8)%
|
Monthly cellular ARPU (in NIS)
|
51.8
|
60.2
|
(14.0)%
|
Q1/2018
|
Q1/2017
|
Change (%)
|
|
Internet infrastructure field subscribers - (households) at the end of period (in thousands)
|
235
|
173
|
35.8%
|
TV field subscribers - (households) at the end of period (in thousands)
|
184
|
124
|
48.4%
|
Company Contact
Shlomi Fruhling
Chief Financial Officer
investors@cellcom.co.il
Tel: +972 52 998 9735
|
Investor Relations Contact
Ehud Helft
GK Investor & Public Relations
cellcom@GKIR.com
Tel: +1 617 418 3096
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
March 31,
|
March 31,
|
March 31,
|
December 31,
|
|||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
589
|
593
|
169
|
527
|
||||||||||||
Current investments, including derivatives
|
283
|
361
|
103
|
364
|
||||||||||||
Trade receivables
|
1,293
|
1,276
|
363
|
1,280
|
||||||||||||
Current tax assets
|
47
|
3
|
1
|
4
|
||||||||||||
Other receivables
|
71
|
82
|
23
|
89
|
||||||||||||
Inventory
|
67
|
69
|
19
|
70
|
||||||||||||
Total current assets
|
2,350
|
2,384
|
678
|
2,334
|
||||||||||||
Trade and other receivables
|
914
|
881
|
251
|
895
|
||||||||||||
Property, plant and equipment, net
|
1,628
|
1,588
|
452
|
1,598
|
||||||||||||
Intangible assets and others, net
|
1,230
|
1,271
|
362
|
1,260
|
||||||||||||
Deferred tax assets
|
1
|
1
|
-
|
-
|
||||||||||||
Total non- current assets
|
3,773
|
3,741
|
1,065
|
3,753
|
||||||||||||
Total assets
|
6,123
|
6,125
|
1,743
|
6,087
|
||||||||||||
Liabilities
|
||||||||||||||||
Current maturities of debentures and of loans from financial institutions
|
709
|
565
|
161
|
618
|
||||||||||||
Trade payables and accrued expenses
|
639
|
674
|
192
|
652
|
||||||||||||
Current tax liabilities
|
1
|
-
|
-
|
4
|
||||||||||||
Provisions
|
101
|
94
|
27
|
91
|
||||||||||||
Other payables, including derivatives
|
243
|
255
|
72
|
277
|
||||||||||||
Total current liabilities
|
1,693
|
1,588
|
452
|
1,642
|
||||||||||||
Long-term loans from financial institutions
|
340
|
462
|
132
|
462
|
||||||||||||
Debentures
|
2,511
|
2,487
|
708
|
2,360
|
||||||||||||
Provisions
|
30
|
21
|
6
|
21
|
||||||||||||
Other long-term liabilities
|
33
|
18
|
5
|
15
|
||||||||||||
Liability for employee rights upon retirement, net
|
12
|
15
|
4
|
15
|
||||||||||||
Deferred tax liabilities
|
137
|
120
|
34
|
131
|
||||||||||||
Total non- current liabilities
|
3,063
|
3,123
|
889
|
3,004
|
||||||||||||
Total liabilities
|
4,756
|
4,711
|
1,341
|
4,646
|
||||||||||||
Equity attributable to owners of the Company
|
||||||||||||||||
Share capital
|
1
|
1
|
-
|
1
|
||||||||||||
Cash flow hedge reserve
|
(1
|
)
|
-
|
-
|
-
|
|||||||||||
Retained earnings
|
1,348
|
1,409
|
401
|
1,436
|
||||||||||||
Non-controlling interest
|
19
|
4
|
1
|
4
|
||||||||||||
Total equity
|
1,367
|
1,414
|
402
|
1,441
|
||||||||||||
Total liabilities and equity
|
6,123
|
6,125
|
1,743
|
6,087
|
Three-month
period ended
March 31,
|
Convenience
translation
into US dollar
March 31,
|
Year ended
December 31,
|
||||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Revenues
|
959
|
933
|
265
|
3,871
|
||||||||||||
Cost of revenues
|
(665
|
)
|
(665
|
)
|
(189
|
)
|
(2,680
|
)
|
||||||||
Gross profit
|
294
|
268
|
76
|
1,191
|
||||||||||||
Selling and marketing expenses
|
(114
|
)
|
(132
|
)
|
(37
|
)
|
(479
|
)
|
||||||||
General and administrative expenses
|
(113
|
)
|
(91
|
)
|
(26
|
)
|
(426
|
)
|
||||||||
Other income, net
|
-
|
-
|
-
|
11
|
||||||||||||
Operating profit
|
67
|
45
|
13
|
297
|
||||||||||||
Financing income
|
16
|
11
|
3
|
52
|
||||||||||||
Financing expenses
|
(47
|
)
|
(44
|
)
|
(13
|
)
|
(196
|
)
|
||||||||
Financing expenses, net
|
(31
|
)
|
(33
|
)
|
(10
|
)
|
(144
|
)
|
||||||||
Profit before taxes on income
|
36
|
12
|
3
|
153
|
||||||||||||
Taxes on income
|
(10
|
)
|
(5
|
)
|
(1
|
)
|
(40
|
)
|
||||||||
Profit for the period
|
26
|
7
|
2
|
113
|
||||||||||||
Attributable to:
|
||||||||||||||||
Owners of the Company
|
25
|
7
|
2
|
112
|
||||||||||||
Non-controlling interests
|
1
|
-
|
-
|
1
|
||||||||||||
Profit for the period
|
26
|
7
|
2
|
113
|
||||||||||||
Earnings per share
|
||||||||||||||||
Basic earnings per share (in NIS)
|
0.25
|
0.08
|
0.02
|
1.11
|
||||||||||||
Diluted earnings per share (in NIS)
|
0.25
|
0.08
|
0.02
|
1.10
|
||||||||||||
Weighted-average number of shares used in the calculation of basic earnings per share (in shares)
|
100,604,795
|
101,044,557
|
101,044,557
|
100,654,935
|
||||||||||||
Weighted-average number of shares used in the calculation of diluted earnings per share (in shares)
|
101,390,301
|
101,141,836
|
101,141,836
|
100,889,661
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three- month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Profit for the period
|
26
|
7
|
2
|
113
|
||||||||||||
Adjustments for:
|
||||||||||||||||
Depreciation and amortization
|
133
|
133
|
38
|
555
|
||||||||||||
Share based payments
|
1
|
2
|
-
|
2
|
||||||||||||
Gain on sale of property, plant and equipment
|
-
|
-
|
-
|
(1
|
)
|
|||||||||||
Gain on sale of shares in a consolidated company
|
-
|
-
|
-
|
(10
|
)
|
|||||||||||
Income tax expense
|
10
|
5
|
1
|
40
|
||||||||||||
Financing expenses, net
|
31
|
33
|
10
|
144
|
||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Change in inventory
|
(3
|
)
|
1
|
-
|
(6
|
)
|
||||||||||
Change in trade receivables (including long-term amounts)
|
60
|
15
|
5
|
132
|
||||||||||||
Change in other receivables (including long-term amounts)
|
(152
|
)
|
9
|
3
|
(191
|
)
|
||||||||||
Change in trade payables, accrued expenses and provisions
|
(11
|
)
|
31
|
8
|
(27
|
)
|
||||||||||
Change in other liabilities (including long-term amounts)
|
(6
|
)
|
5
|
1
|
28
|
|||||||||||
Payments for derivative hedging contracts, net
|
-
|
(2
|
)
|
-
|
(3
|
)
|
||||||||||
Income tax paid
|
(12
|
)
|
(9
|
)
|
(3
|
)
|
(44
|
)
|
||||||||
Income tax received
|
-
|
-
|
-
|
42
|
||||||||||||
Net cash from operating activities
|
77
|
230
|
65
|
774
|
||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Acquisition of property, plant, and equipment
|
(93
|
)
|
(99
|
)
|
(28
|
)
|
(346
|
)
|
||||||||
Additions to intangible assets and others
|
(47
|
)
|
(47
|
)
|
(13
|
)
|
(237
|
)
|
||||||||
Change in current investments, net
|
1
|
(1
|
)
|
-
|
(77
|
)
|
||||||||||
Payments for other derivative contracts, net
|
(1
|
)
|
-
|
-
|
-
|
|||||||||||
Proceeds from sale of property, plant and equipment
|
-
|
-
|
-
|
1
|
||||||||||||
Interest received
|
4
|
4
|
1
|
12
|
||||||||||||
Proceeds from sale of shares in a consolidated company, net of cash disposed
|
-
|
-
|
-
|
3
|
||||||||||||
Net cash used in investing activities
|
(136
|
)
|
(143
|
)
|
(40
|
)
|
(644
|
)
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three- month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Cash flows from financing activities
|
||||||||||||||||
Payments for derivative contracts, net
|
-
|
-
|
-
|
(3
|
)
|
|||||||||||
Receipt of long-term loans from financial institutions
|
-
|
-
|
-
|
200
|
||||||||||||
Repayment of debentures
|
(514
|
)
|
(362
|
)
|
(103
|
)
|
(864
|
)
|
||||||||
Proceeds from issuance of debentures, net of issuance costs
|
-
|
396
|
113
|
-
|
||||||||||||
Dividend paid
|
-
|
-
|
-
|
(1
|
)
|
|||||||||||
Interest paid
|
(78
|
)
|
(55
|
)
|
(16
|
)
|
(175
|
)
|
||||||||
Net cash used in financing activities
|
(592
|
)
|
(21
|
)
|
(6
|
)
|
(843
|
)
|
||||||||
Changes in cash and cash equivalents
|
(651
|
)
|
66
|
19
|
(713
|
)
|
||||||||||
Cash and cash equivalents as at the beginning of the period
|
1,240
|
527
|
150
|
1,240
|
||||||||||||
Cash and cash equivalents as at the end of the period
|
589
|
593
|
169
|
527
|
Three-month period ended
March 31,
|
Year ended
December 31,
|
|||||||||||||||
2017
|
2018
|
Convenience
translation
into US dollar
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Profit for the period
|
26
|
7
|
2
|
113
|
||||||||||||
Taxes on income
|
10
|
5
|
1
|
40
|
||||||||||||
Financing income
|
(16
|
)
|
(11
|
)
|
(3
|
)
|
(52
|
)
|
||||||||
Financing expenses
|
47
|
44
|
13
|
196
|
||||||||||||
Other income
|
-
|
-
|
-
|
(1
|
)
|
|||||||||||
Depreciation and amortization
|
133
|
133
|
38
|
555
|
||||||||||||
Share based payments
|
1
|
2
|
-
|
2
|
||||||||||||
EBITDA
|
201
|
180
|
51
|
853
|
Three-month period ended
March 31,
|
Year ended
December 31,
|
|||||||||||||||
2017
|
2018
|
Convenience
translation
into US dollar
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
Cash flows from operating activities(*)
|
77
|
230
|
65
|
774
|
||||||||||||
Loan to Golan Telecom
|
130
|
-
|
-
|
130
|
||||||||||||
Cash flows from investing activities
|
(136
|
)
|
(143
|
)
|
(40
|
)
|
(644
|
)
|
||||||||
Sale of short-term tradable debentures and deposits (**)
|
(5
|
)
|
(3
|
)
|
(1
|
)
|
65
|
|||||||||
Free cash flow
|
66
|
84
|
24
|
325
|
NIS millions unless otherwise stated
|
Q1-2017
|
Q2-2017
|
Q3-2017
|
Q4-2017
|
Q1-2018
|
FY-2017
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cellular service revenues
|
509
|
481
|
488
|
451
|
437
|
1,929
|
||||||||||||||||||
Fixed-line service revenues
|
279
|
292
|
292
|
303
|
304
|
1,166
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cellular equipment revenues
|
183
|
192
|
191
|
204
|
193
|
770
|
||||||||||||||||||
Fixed-line equipment revenues
|
37
|
39
|
47
|
59
|
39
|
182
|
||||||||||||||||||
Consolidation adjustments
|
(49
|
)
|
(42
|
)
|
(43
|
)
|
(42
|
)
|
(40
|
)
|
(176
|
)
|
||||||||||||
Total revenues
|
959
|
962
|
975
|
975
|
933
|
3,871
|
||||||||||||||||||
Cellular EBITDA
|
159
|
158
|
160
|
118
|
112
|
595
|
||||||||||||||||||
Fixed-line EBITDA
|
42
|
79
|
66
|
71
|
68
|
258
|
||||||||||||||||||
Total EBITDA
|
201
|
237
|
226
|
189
|
180
|
853
|
||||||||||||||||||
|
||||||||||||||||||||||||
Operating profit
|
67
|
102
|
83
|
45
|
45
|
297
|
||||||||||||||||||
Financing expenses, net
|
31
|
44
|
39
|
30
|
33
|
144
|
||||||||||||||||||
Profit for the period
|
26
|
45
|
32
|
10
|
7
|
113
|
||||||||||||||||||
|
||||||||||||||||||||||||
Free cash flow
|
66
|
77
|
105
|
77
|
84
|
325
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cellular subscribers at the end of period (in 000's)
|
2,792
|
2,779
|
2,805
|
2,817
|
2,822
|
2,817
|
||||||||||||||||||
Monthly cellular ARPU (in NIS)
|
60.2
|
57.0
|
57.8
|
53.6
|
51.8
|
57.1
|
||||||||||||||||||
Churn rate for cellular subscribers (%)
|
12.0
|
%
|
10.8
|
%
|
11.5
|
%
|
11.5
|
%
|
9.5
|
%
|
45.8
|
%
|
Series
|
Original Issuance Date
|
Principal on the Date of Issuance
|
As of 31.03.2018
|
As of 29.05.2018
|
Interest Rate (fixed)
|
Principal Repayment Dates
|
Interest Repayment Dates (3)
|
Linkage
|
Trustee
Contact Details
|
||||||
Principal
Balance on Trade
|
Linked Principal Balance
|
Interest Accumulated in Books
|
Debenture Balance Value in Books (2)
|
Market Value
|
Principal Balance on Trade
|
Linked Principal Balance
|
From
|
To
|
|||||||
F (4)(5)(6)**
|
20/03/12
|
714.802
|
428.881
|
438.142
|
4.688
|
442.830
|
467.995
|
428.881
|
441.150
|
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
|
85.559
|
85.593
|
1.393
|
86.986
|
90.984
|
85.559
|
85.588
|
6.99%
|
05.01.17
|
05.01.19
|
January-5
and July-5
|
Not linked
|
Strauss Lazar Trust Company (1992) Ltd. Ori Lazar. 17 Yizhak Sadeh St., Tel Aviv. Tel: 03- 6237777.
|
H (4)(5)(7)**
|
08/07/14
03/02/15*
11/02/15*
|
949.624
|
949.624
|
874.140
|
4.379
|
878.519
|
988.463
|
949.624
|
877.565
|
1.98%
|
05.07.18
|
05.07.24
|
January-5
and July-5
|
Linked to CPI
|
Mishmeret Trust Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel: 03-6374355.
|
I (4)(5)(7)**
|
08/07/14
03/02/15*
11/02/15*
30/03/16*
|
804.010
|
804.010
|
776.532
|
7.752
|
784.284
|
882.803
|
804.010
|
777.590
|
4.14%
|
05.07.18
|
05.07.25
|
January-5
and July-5
|
Not linked
|
Mishmeret Trust Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel: 03-6374355.
|
J (4)(5)
|
26/09/16
|
103.267
|
103.267
|
102.391
|
0.589
|
102.980
|
111.332
|
103.267
|
102.820
|
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)(8)**
|
26/09/16
|
303.971
|
303.971
|
301.318
|
2.513
|
303.831
|
327.498
|
303.971
|
301.389
|
3.55%
|
05.07.21
|
05.07.26
|
January-5 and July-5
|
Not linked
|
Mishmeret Trust Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv. Tel: 03-6374355.
|
L**
|
23/01/18
|
400.600
|
400.600
|
396.487
|
1.811
|
398.298
|
398.397
|
400.600
|
396.555
|
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
|
|
3,561.472
|
3,075.912
|
2,974.603
|
23.125
|
2,997.728
|
3,267.472
|
3,075.912
|
2,982.657
|
|
|
|
|
|
|
Series
|
Rating Company
|
Rating as of 31.03.2018 (1)
|
Rating as of 29.05.2018
|
Rating assigned upon issuance of the Series
|
Recent date of rating as of 29.05.2018
|
Additional ratings between original issuance and the recent date of rating as of 29.05.2018 (2)
|
|
|
Rating
|
||||||
F
|
S&P Maalot
|
A+
|
A+
|
AA
|
01/2018
|
05/2012, 11/2012, 06/2013, 06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018
|
AA,AA-,A+ (2)
|
G
|
S&P Maalot
|
A+
|
A+
|
AA
|
01/2018
|
05/2012, 11/2012, 06/2013, 06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018
|
AA,AA-,A+ (2)
|
H
|
S&P Maalot
|
A+
|
A+
|
A+
|
01/2018
|
06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018
|
A+ (2)
|
I
|
S&P Maalot
|
A+
|
A+
|
A+
|
01/2018
|
06/2014, 08/2014, 01/2015, 09/2015, 03/2016, 08/2016, 06/2017, 01/2018
|
A+ (2)
|
J
|
S&P Maalot
|
A+
|
A+
|
A+
|
01/2018
|
08/2016, 06/2017, 01/2018
|
A+ (2)
|
K
|
S&P Maalot
|
A+
|
A+
|
A+
|
01/2018
|
08/2016, 06/2017, 01/2018
|
A+ (2)
|
L
|
S&P Maalot
|
A+
|
A+
|
A+
|
01/2018
|
01/2018
|
A+ (2)
|
(1) |
In January 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 and January 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 22, 2017, included in the Company's Shelf offering Report filled in the Israeli Securities Authority website ('MAGNA") on January 22, 2018 .
|
Loan
|
Provision Date
|
Principal Amount as of 31.03.2018
|
Interest Rate (nominal)
|
Principal Repayment Dates (annual payments)
|
Interest Repayment Dates (semi-annual payments)
|
Linkage
|
|
From
|
To
|
||||||
Loan from financial institution
|
06/2016
|
200
|
4.60%
|
30.06.18
|
30.06.21
|
June-30
and December-31, commencing December 31, 2016 through June 30, 2021
|
Not linked
|
Loan from bank
|
12/2016
|
140
|
4.90%
|
30.06.18
|
30.06.22
|
June-30 and December 30, commencing June 30, 2017 through June 30, 2022
|
Not linked
|
Loan from financial institution
|
06/2017
|
200
|
5.10%
|
30.06.19
|
30.06.22
|
June-30
and December-31, commencing December 31, 2017 through June 30, 2022
|
Not linked
|
Total
|
|
540
|
|
|
|
|
|
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
|
331,819
|
165,418
|
-
|
-
|
-
|
97,804
|
||||||||||||||||||
Second year
|
331,819
|
80,302
|
-
|
-
|
-
|
76,751
|
||||||||||||||||||
Third year
|
113,097
|
80,302
|
-
|
-
|
-
|
61,126
|
||||||||||||||||||
Fourth year
|
166,034
|
157,334
|
-
|
-
|
-
|
53,540
|
||||||||||||||||||
Fifth year and on
|
538,733
|
1,104,645
|
-
|
-
|
-
|
117,555
|
||||||||||||||||||
Total
|
1,481,502
|
1,588,001
|
-
|
-
|
-
|
406,776
|
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
|
-
|
50,000
|
-
|
-
|
-
|
18,241
|
||||||||||||||||||
Second year
|
-
|
100,000
|
-
|
-
|
-
|
14,655
|
||||||||||||||||||
Third year
|
-
|
100,000
|
-
|
-
|
-
|
9,812
|
||||||||||||||||||
Fourth year
|
-
|
100,000
|
-
|
-
|
-
|
4,955
|
||||||||||||||||||
Fifth year and on
|
-
|
50,000
|
-
|
-
|
-
|
1,264
|
||||||||||||||||||
Total
|
-
|
400,000
|
-
|
-
|
-
|
48,927
|
c. |
Credit from banks in Israel based on the Company's "Solo" financial data (in thousand NIS).
|
Principal payments
|
Gross interest payments (without deduction of tax)
|
|||||||||||||||||||||||
ILS linked to CPI
|
ILS not linked to CPI
|
Euro
|
Dollar
|
Other
|
||||||||||||||||||||
First year
|
-
|
28,000
|
-
|
-
|
-
|
6,154
|
||||||||||||||||||
Second year
|
-
|
28,000
|
-
|
-
|
-
|
4,800
|
||||||||||||||||||
Third year
|
-
|
28,000
|
-
|
-
|
-
|
3,430
|
||||||||||||||||||
Fourth year
|
-
|
28,000
|
-
|
-
|
-
|
2,056
|
||||||||||||||||||
Fifth year and on
|
-
|
28,000
|
-
|
-
|
-
|
684
|
||||||||||||||||||
Total
|
-
|
140,000
|
-
|
-
|
-
|
17,124
|
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
|
331,819
|
243,418
|
-
|
-
|
-
|
122,198
|
||||||||||||||||||
Second year
|
331,819
|
208,302
|
-
|
-
|
-
|
96,206
|
||||||||||||||||||
Third year
|
113,097
|
208,302
|
-
|
-
|
-
|
74,367
|
||||||||||||||||||
Fourth year
|
166,034
|
285,334
|
-
|
-
|
-
|
60,551
|
||||||||||||||||||
Fifth year and on
|
538,733
|
1,182,645
|
-
|
-
|
-
|
119,504
|
||||||||||||||||||
Total
|
1,481,502
|
2,128,001
|
-
|
-
|
-
|
472,826
|
f. |
Out of the balance sheet Credit exposure based on the Company's "Solo" financial data - None.
|
g. |
Out of the balance sheet Credit exposure of all the Company's consolidated companies, excluding companies that are reporting corporations and excluding the Company's data presented in section f above (in thousand NIS) - None.
|
h. |
Total balances of the credit from banks, non-bank credit and debentures of all the consolidated companies, excluding companies that are reporting corporations and excluding Company's data presented in sections a - d above (in thousand NIS) - None.
|
i. |
Total balances of credit granted to the Company by the parent company or a controlling shareholder and balances of debentures offered by the Company held by the parent company or the controlling shareholder (in thousand NIS) - None.
|
j. |
Total balances of credit granted to the Company by companies held by the parent company or the controlling shareholder, which are not controlled by the Company, and balances of debentures offered by the Company held by companies held by the parent company or the controlling shareholder, which are not controlled by the Company (in thousand NIS).
|
Principal payments
|
Gross interest payments (without deduction of tax)
|
|||||||||||||||||||||||
ILS linked to CPI
|
ILS not linked to CPI
|
Euro
|
Dollar
|
Other
|
||||||||||||||||||||
First year
|
955
|
543
|
-
|
-
|
-
|
419
|
||||||||||||||||||
Second year
|
955
|
99
|
-
|
-
|
-
|
362
|
||||||||||||||||||
Third year
|
858
|
99
|
-
|
-
|
-
|
337
|
||||||||||||||||||
Fourth year
|
1,397
|
823
|
-
|
-
|
-
|
297
|
||||||||||||||||||
Fifth year and on
|
4,863
|
4,576
|
-
|
-
|
-
|
623
|
||||||||||||||||||
Total
|
9,028
|
6,140
|
-
|
-
|
-
|
2,038
|
k. |
Total balances of credit granted to the Company by consolidated companies and balances of debentures offered by the Company held by the consolidated companies (in thousand NIS) - None.
|
Cellcom Israel Ltd.
and Subsidiaries
Condensed Consolidated
Interim Financial Statements
As at March 31, 2018
(Unaudited)
|
Page
|
|
2
|
|
3
|
|
4
|
|
5
|
|
7
|
|
9
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
March 31,
|
March 31,
|
March 31,
|
December 31,
|
|||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited) | (Unaudited) | (Aaudited) | ||||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
589
|
593
|
169
|
527
|
||||||||||||
Current investments, including derivatives
|
283
|
361
|
103
|
364
|
||||||||||||
Trade receivables
|
1,293
|
1,276
|
363
|
1,280
|
||||||||||||
Current tax assets
|
47
|
3
|
1
|
4
|
||||||||||||
Other receivables
|
71
|
82
|
23
|
89
|
||||||||||||
Inventory
|
67
|
69
|
19
|
70
|
||||||||||||
Total current assets
|
2,350
|
2,384
|
678
|
2,334
|
||||||||||||
Trade and other receivables
|
914
|
881
|
251
|
895
|
||||||||||||
Property, plant and equipment, net
|
1,628
|
1,588
|
452
|
1,598
|
||||||||||||
Intangible assets and others, net
|
1,230
|
1,271
|
362
|
1,260
|
||||||||||||
Deferred tax assets
|
1
|
1
|
-
|
-
|
||||||||||||
Total non- current assets
|
3,773
|
3,741
|
1,065
|
3,753
|
||||||||||||
Total assets
|
6,123
|
6,125
|
1,743
|
6,087
|
||||||||||||
Liabilities
|
||||||||||||||||
Current maturities of debentures and of loans from financial institutions
|
709
|
565
|
161
|
618
|
||||||||||||
Trade payables and accrued expenses
|
639
|
674
|
192
|
652
|
||||||||||||
Current tax liabilities
|
1
|
-
|
-
|
4
|
||||||||||||
Provisions
|
101
|
94
|
27
|
91
|
||||||||||||
Other payables, including derivatives
|
243
|
255
|
72
|
277
|
||||||||||||
Total current liabilities
|
1,693
|
1,588
|
452
|
1,642
|
||||||||||||
Long-term loans from financial institutions
|
340
|
462
|
132
|
462
|
||||||||||||
Debentures
|
2,511
|
2,487
|
708
|
2,360
|
||||||||||||
Provisions
|
30
|
21
|
6
|
21
|
||||||||||||
Other long-term liabilities
|
33
|
18
|
5
|
15
|
||||||||||||
Liability for employee rights upon retirement, net
|
12
|
15
|
4
|
15
|
||||||||||||
Deferred tax liabilities
|
137
|
120
|
34
|
131
|
||||||||||||
Total non- current liabilities
|
3,063
|
3,123
|
889
|
3,004
|
||||||||||||
Total liabilities
|
4,756
|
4,711
|
1,341
|
4,646
|
||||||||||||
Equity attributable to owners of the Company
|
||||||||||||||||
Share capital
|
1
|
1
|
-
|
1
|
||||||||||||
Cash flow hedge reserve
|
(1
|
)
|
-
|
-
|
-
|
|||||||||||
Retained earnings
|
1,348
|
1,409
|
401
|
1,436
|
||||||||||||
Non-controlling interest
|
19
|
4
|
1
|
4
|
||||||||||||
Total equity
|
1,367
|
1,414
|
402
|
1,441
|
||||||||||||
Total liabilities and equity
|
6,123
|
6,125
|
1,743
|
6,087
|
Three-month
period ended
March 31,
|
Convenience
translation
into US dollar
March 31,
|
Year ended
December 31,
|
||||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited) | (Unaudited) | (Aaudited) | ||||||||||||||
Revenues
|
959
|
933
|
265
|
3,871
|
||||||||||||
Cost of revenues
|
(665
|
)
|
(665
|
)
|
(189
|
)
|
(2,680
|
)
|
||||||||
Gross profit
|
294
|
268
|
76
|
1,191
|
||||||||||||
Selling and marketing expenses
|
(114
|
)
|
(132
|
)
|
(37
|
)
|
(479
|
)
|
||||||||
General and administrative expenses
|
(113
|
)
|
(91
|
)
|
(26
|
)
|
(426
|
)
|
||||||||
Other income, net
|
-
|
-
|
-
|
11
|
||||||||||||
Operating profit
|
67
|
45
|
13
|
297
|
||||||||||||
Financing income
|
16
|
11
|
3
|
52
|
||||||||||||
Financing expenses
|
(47
|
)
|
(44
|
)
|
(13
|
)
|
(196
|
)
|
||||||||
Financing expenses, net
|
(31
|
)
|
(33
|
)
|
(10
|
)
|
(144
|
)
|
||||||||
Profit before taxes on income
|
36
|
12
|
3
|
153
|
||||||||||||
Taxes on income
|
(10
|
)
|
(5
|
)
|
(1
|
)
|
(40
|
)
|
||||||||
Profit for the period
|
26
|
7
|
2
|
113
|
||||||||||||
Attributable to:
|
||||||||||||||||
Owners of the Company
|
25
|
7
|
2
|
112
|
||||||||||||
Non-controlling interests
|
1
|
-
|
-
|
1
|
||||||||||||
Profit for the period
|
26
|
7
|
2
|
113
|
||||||||||||
Earnings per share
|
||||||||||||||||
Basic earnings per share (in NIS)
|
0.25
|
0.08
|
0.02
|
1.11
|
||||||||||||
Diluted earnings per share (in NIS)
|
0.25
|
0.08
|
0.02
|
1.10
|
||||||||||||
Weighted-average number of shares used in the calculation of basic earnings per share (in shares)
|
100,604,795
|
101,044,557
|
101,044,557
|
100,654,935
|
||||||||||||
Weighted-average number of shares used in the calculation of diluted earnings per share (in shares)
|
101,390,301
|
101,141,836
|
101,141,836
|
100,889,661
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
Three- month
period ended
March 31,
|
(Note 2D)
Three- month period ended
March 31,
|
Year ended
December 31, |
||||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||||
Profit for the period
|
26
|
7
|
2
|
113
|
||||||||||||
Other comprehensive income items that after initial recognition in
comprehensive income were or will be transferred to profit or loss
|
||||||||||||||||
Changes in fair value of cash flow hedges transferred to profit or loss, net
|
-
|
-
|
-
|
1
|
||||||||||||
Total other comprehensive income for the period that after initial recognition in
comprehensive income was or will be transferred to profit or loss, net of tax
|
-
|
-
|
-
|
1
|
||||||||||||
Total other comprehensive income for the period, net of tax
|
-
|
-
|
-
|
1
|
||||||||||||
Total comprehensive income for the period
|
26
|
7
|
2
|
114
|
||||||||||||
Total comprehensive income attributable to:
|
||||||||||||||||
Owners of the Company
|
25
|
7
|
2
|
113
|
||||||||||||
Non-controlling interests
|
1
|
-
|
-
|
1
|
||||||||||||
Total comprehensive income for the period
|
26
|
7
|
2
|
114
|
Attributable to owners of the
Company
|
Non-controlling
interests
|
Total equity
|
Convenience translation into US dollar (Note 2D)
|
|||||||||||||||||||||
Share capital
|
Retained earnings
|
Total
|
||||||||||||||||||||||
NIS millions
|
US$ millions
|
|||||||||||||||||||||||
For the three-month period ended March 31, 2018 (Unaudited) | ||||||||||||||||||||||||
Balance as of January 1, 2018 (Audited)
|
1
|
1,436
|
1,437
|
4 | 1,441 | 410 | ||||||||||||||||||
Effect of initial application of IFRS 9*
|
-
|
(36
|
)
|
(36
|
)
|
-
|
(36
|
)
|
(10
|
)
|
||||||||||||||
Balance as of January 1, 2018
after initial application
|
1
|
1,400
|
1,401
|
4
|
1,405
|
400
|
||||||||||||||||||
Comprehensive income for the period
|
||||||||||||||||||||||||
Profit for the period
|
-
|
7
|
7
|
-
|
7
|
2
|
||||||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||||||
Share based payments
|
-
|
2
|
2
|
-
|
2
|
-
|
||||||||||||||||||
Balance as of March 31, 2018 (Unaudited)
|
1
|
1,409
|
1,410
|
4
|
1,414
|
402
|
Attributable to owners of the
Company
|
Non-controlling
interests
|
Total
equity
|
||||||||||||||||||||||
Share capital
|
Capital reserve
|
Retained earnings
|
Total
|
|||||||||||||||||||||
NIS millions
|
||||||||||||||||||||||||
For the three-month period ended March 31, 2017 (Unaudited) | ||||||||||||||||||||||||
Balance as of January 1, 2017 (Audited)
|
1
|
(1
|
)
|
1,322
|
1,322
|
18 | 1,340 | |||||||||||||||||
Comprehensive income for the period
|
||||||||||||||||||||||||
Profit for the period
|
-
|
-
|
25
|
25
|
1
|
26
|
||||||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||||||
Share based payments
|
-
|
-
|
1
|
1
|
-
|
1
|
||||||||||||||||||
Balance as of March 31, 2017 (Unaudited)
|
1
|
(1
|
)
|
1,348
|
1,348
|
19
|
1,367
|
* |
See Note 3, regarding Significant Accounting Policies - Application of a new standard effective January 1, 2018 - International Financial Reporting Standard 9 (2014), Financial Instruments ("IFRS 9” or “the standard”). According to the transitional method that was elected, comparative data were not restated.
|
Attributable to owners of the
Company
|
Non-controlling
interests
|
Total
equity
|
||||||||||||||||||||||
Share capital
|
Capital reserve
|
Retained earnings
|
Total
|
|||||||||||||||||||||
NIS millions
|
||||||||||||||||||||||||
For the year ended December 31, 2017 (Audited) | ||||||||||||||||||||||||
Balance as of January 1, 2017 (Audited)
|
1
|
(1
|
)
|
1,322
|
1,322
|
18 | 1,340 | |||||||||||||||||
Comprehensive income for the year
|
|
|||||||||||||||||||||||
Profit for the year
|
-
|
-
|
112
|
112
|
1
|
113
|
||||||||||||||||||
Other comprehensive income for the year, net of tax
|
-
|
1
|
-
|
1
|
-
|
1
|
||||||||||||||||||
Transactions with owners, recognized directly in equity
|
||||||||||||||||||||||||
Share based payments
|
-
|
-
|
2
|
2
|
-
|
2
|
||||||||||||||||||
Derecognition of non-controlling interests due to loss
of control in a consolidated company
|
-
|
-
|
-
|
-
|
(15
|
)
|
(15
|
)
|
||||||||||||||||
Balance as of December 31, 2017 (Audited)
|
1
|
-
|
1,436
|
1,437
|
4
|
1,441
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into US dollar
|
||||||||||||||||
(Note 2D)
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three- month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Profit for the period
|
26
|
7
|
2
|
113
|
||||||||||||
Adjustments for:
|
||||||||||||||||
Depreciation and amortization
|
133
|
133
|
38
|
555
|
||||||||||||
Share based payments
|
1
|
2
|
-
|
2
|
||||||||||||
Gain on sale of property, plant and equipment
|
-
|
-
|
-
|
(1
|
)
|
|||||||||||
Gain on sale of shares in a consolidated company
|
-
|
-
|
-
|
(10
|
)
|
|||||||||||
Income tax expense
|
10
|
5
|
1
|
40
|
||||||||||||
Financing expenses, net
|
31
|
33
|
10
|
144
|
||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Change in inventory
|
(3
|
)
|
1
|
-
|
(6
|
)
|
||||||||||
Change in trade receivables (including long-term amounts)
|
60
|
15
|
5
|
132
|
||||||||||||
Change in other receivables (including long-term amounts)
|
(152
|
)
|
9
|
3
|
(191
|
)
|
||||||||||
Change in trade payables, accrued expenses and provisions
|
(11
|
)
|
31
|
8
|
(27
|
)
|
||||||||||
Change in other liabilities (including long-term amounts)
|
(6
|
)
|
5
|
1
|
28
|
|||||||||||
Payments for derivative hedging contracts, net
|
-
|
(2
|
)
|
-
|
(3
|
)
|
||||||||||
Income tax paid
|
(12
|
)
|
(9
|
)
|
(3
|
)
|
(44
|
)
|
||||||||
Income tax received
|
-
|
-
|
-
|
42
|
||||||||||||
Net cash from operating activities
|
77
|
230
|
65
|
774
|
||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Acquisition of property, plant, and equipment
|
(93
|
)
|
(99
|
)
|
(28
|
)
|
(346
|
)
|
||||||||
Additions to intangible assets and others
|
(47
|
)
|
(47
|
)
|
(13
|
)
|
(237
|
)
|
||||||||
Change in current investments, net
|
1
|
(1
|
)
|
-
|
(77
|
)
|
||||||||||
Payments for other derivative contracts, net
|
(1
|
)
|
-
|
-
|
-
|
|||||||||||
Proceeds from sale of property, plant and equipment
|
-
|
-
|
-
|
1
|
||||||||||||
Interest received
|
4
|
4
|
1
|
12
|
||||||||||||
Proceeds from sale of shares in a consolidated company, net of cash disposed
|
-
|
-
|
-
|
3
|
||||||||||||
Net cash used in investing activities
|
(136
|
)
|
(143
|
)
|
(40
|
)
|
(644
|
)
|
Convenience
translation |
||||||||||||||||
into US dollar
|
||||||||||||||||
(Note 2D)
|
||||||||||||||||
Three-month
period ended
March 31,
|
Three- month
period ended
March 31,
|
Year ended
December 31,
|
||||||||||||||
2017
|
2018
|
2018
|
2017
|
|||||||||||||
NIS millions
|
US$ millions
|
NIS millions
|
||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||||
Cash flows from financing activities
|
||||||||||||||||
Payments for derivative contracts, net
|
-
|
-
|
-
|
(3
|
)
|
|||||||||||
Receipt of long-term loans from financial institutions
|
-
|
-
|
-
|
200
|
||||||||||||
Repayment of debentures
|
(514
|
)
|
(362
|
)
|
(103
|
)
|
(864
|
)
|
||||||||
Proceeds from issuance of debentures, net of issuance costs
|
-
|
396
|
113
|
-
|
||||||||||||
Dividend paid
|
-
|
-
|
-
|
(1
|
)
|
|||||||||||
Interest paid
|
(78
|
)
|
(55
|
)
|
(16
|
)
|
(175
|
)
|
||||||||
Net cash used in financing activities
|
(592
|
)
|
(21
|
)
|
(6
|
)
|
(843
|
)
|
||||||||
Changes in cash and cash equivalents
|
(651
|
)
|
66
|
19
|
(713
|
)
|
||||||||||
Cash and cash equivalents as at the beginning of the period
|
1,240
|
527
|
150
|
1,240
|
||||||||||||
Cash and cash equivalents as at the end of the period
|
589
|
593
|
169
|
527
|
F. |
Exchange rates and known Consumer Price Indexes are as follows:
|
Exchange rates
of US$
|
Consumer Price
Index (points)*
|
|||||||
As of March 31, 2018
|
3.514
|
220.68
|
||||||
As of March 31, 2017
|
3.632
|
220.24
|
||||||
As of December 31, 2017
|
3.467
|
221.35
|
||||||
Increase (decrease) during the period:
|
||||||||
Three months ended March 31, 2018
|
1.36
|
%
|
(0.30
|
)%
|
||||
Three months ended March 31, 2017
|
(5.54
|
)%
|
(0.20
|
)%
|
||||
Year ended December 31, 2017
|
(9.83
|
)%
|
0.30
|
%
|
- |
Debt instruments that are determined to have low credit risk at the reporting date; and
|
- |
Other debts instruments and deposits, for which credit risk has not increased significantly since initial recognition.
|
According to the previous policy
|
Effect of the standard*
|
According to IFRS 9
|
||||||||||
NIS millions
|
||||||||||||
(Unaudited)
|
||||||||||||
Trade and other receivables (including long-term amounts)*
|
2,175
|
(12
|
)
|
2,163
|
||||||||
Debentures, including current maturities**
|
(2,900
|
)
|
(34
|
)
|
(2,934
|
)
|
||||||
Deferred tax liabilities
|
(131
|
)
|
10
|
(121
|
)
|
|||||||
Retained earnings
|
(1,436
|
)
|
36
|
(1,400
|
)
|
*
|
As a result of applying IFRS 9, the allowance for doubtful debts increased due to measurement of expected credit losses for the full lifetime of the trade and other receivables.
|
**
|
As a result of applying IFRS 9, the carrying amount of debentures whose terms were changed and for which a new effective interest rate was calculated at the time of the change in terms according to IAS 39, was recalculated from the date of the change in terms using the original effective interest rate.
|
— |
Cellular segment - the segment includes the cellular communications services, cellular equipment and supplemental services.
|
— |
Fixed-line segment - the segment includes landline telephony services, internet services, television services, transmission services, landline equipment and supplemental services.
|
Three-month period ended March 31, 2018
|
||||||||||||||||||||
NIS millions
|
||||||||||||||||||||
(Unudited)
|
||||||||||||||||||||
Cellular
|
Fixed-line
|
Reconciliation for consolidation
|
Consolidated
|
Reconciliation of subtotal Segment EBITDA to profit for the period
|
||||||||||||||||
External revenues
|
626
|
307
|
-
|
933
|
||||||||||||||||
Inter-segment revenues
|
4
|
36
|
(40
|
)
|
-
|
|||||||||||||||
Segment EBITDA*
|
112
|
68
|
180
|
|||||||||||||||||
Depreciation and amortization
|
(133
|
)
|
||||||||||||||||||
Taxes on income
|
(5
|
)
|
||||||||||||||||||
Financing income
|
11
|
|||||||||||||||||||
Financing expenses
|
(44
|
)
|
||||||||||||||||||
Share based payments
|
(2
|
)
|
||||||||||||||||||
Profit for the period
|
7
|
Three-month period ended March 31, 2017
|
||||||||||||||||||||
NIS millions
|
||||||||||||||||||||
(Unudited)
|
||||||||||||||||||||
Cellular
|
Fixed-line
|
Reconciliation for consolidation
|
Consolidated
|
Reconciliation of subtotal Segment EBITDA to profit for the period
|
||||||||||||||||
External revenues
|
688
|
271
|
-
|
959
|
||||||||||||||||
Inter-segment revenues
|
4
|
45
|
(49
|
)
|
-
|
|||||||||||||||
Segment EBITDA*
|
159
|
42
|
201
|
|||||||||||||||||
Depreciation and amortization
|
(133
|
)
|
||||||||||||||||||
Taxes on income
|
(10
|
)
|
||||||||||||||||||
Financing income
|
16
|
|||||||||||||||||||
Financing expenses
|
(47
|
)
|
||||||||||||||||||
Share based payments
|
(1
|
)
|
||||||||||||||||||
Profit for the period
|
26
|
Year ended December 31, 2017
|
||||||||||||||||||||
NIS millions
|
||||||||||||||||||||
(Audited)
|
||||||||||||||||||||
Cellular
|
Fixed-line
|
Reconciliation for consolidation
|
Consolidated
|
Reconciliation of subtotal Segment EBITDA to profit for the year
|
||||||||||||||||
External revenues
|
2,685
|
1,186
|
-
|
3,871
|
||||||||||||||||
Inter-segment revenues
|
14
|
162
|
(176
|
)
|
-
|
|||||||||||||||
Segment EBITDA*
|
595
|
258
|
853
|
|||||||||||||||||
Depreciation and amortization
|
(555
|
)
|
||||||||||||||||||
Taxes on income
|
(40
|
)
|
||||||||||||||||||
Financing income
|
52
|
|||||||||||||||||||
Financing expenses
|
(196
|
)
|
||||||||||||||||||
Other income
|
1
|
|||||||||||||||||||
Share based payments
|
(2
|
)
|
||||||||||||||||||
Profit for the year
|
113
|
(1) |
Financial instruments measured at fair value for disclosure purposes only
|
March 31,
|
December 31,
|
|||||||||||||||||||||||
2017
|
2018
|
2017
|
||||||||||||||||||||||
Book value
|
Fair value
|
Book value
|
Fair value
|
Book value
|
Fair value*
|
|||||||||||||||||||
NIS millions
|
NIS millions
|
NIS millions
|
||||||||||||||||||||||
Debentures including current maturities and accrued interest
|
(3,260
|
)
|
(3,578
|
)
|
(2,998
|
)
|
(3,267
|
)
|
(2,954
|
)
|
(3,288
|
)
|
||||||||||||
Long-term loans from financial institutions including current maturities and accrued interest
|
(344
|
)
|
(360
|
)
|
(546
|
)
|
(586
|
)
|
(540
|
)
|
(574
|
)
|
(2) |
Fair value hierarchy of financial instruments measured at fair value
|
March 31, 2018
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
NIS millions
|
||||||||||||||||
Financial assets at fair value through profit or loss
|
||||||||||||||||
Current investments in debt securities and shares
|
356
|
-
|
-
|
356
|
||||||||||||
Derivatives
|
-
|
5
|
-
|
5
|
||||||||||||
Total assets
|
356
|
5
|
-
|
361
|
||||||||||||
Financial liabilities at fair value
|
||||||||||||||||
Derivatives
|
-
|
(16
|
)
|
-
|
(16
|
)
|
||||||||||
Total liabilities
|
-
|
(16
|
)
|
-
|
(16
|
)
|
March 31, 2017
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
NIS millions
|
||||||||||||||||
Financial assets at fair value through profit or loss
|
||||||||||||||||
Current investments in debt securities
|
279
|
-
|
-
|
279
|
||||||||||||
Derivatives
|
-
|
4
|
-
|
4
|
||||||||||||
Total assets
|
279
|
4
|
-
|
283
|
||||||||||||
Financial liabilities at fair value
|
||||||||||||||||
Derivatives
|
-
|
(21
|
)
|
-
|
(21
|
)
|
||||||||||
Total liabilities
|
-
|
(21
|
)
|
-
|
(21
|
)
|
(2) |
Fair value hierarchy of financial instruments measured at fair value (cont'd)
|
December 31, 2017
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
NIS millions
|
||||||||||||||||
Financial assets at fair value through profit or loss
|
||||||||||||||||
Current investments in debt securities and shares
|
361
|
-
|
-
|
361
|
||||||||||||
Derivatives
|
-
|
3
|
-
|
3
|
||||||||||||
Total assets
|
361
|
3
|
-
|
364
|
||||||||||||
Financial liabilities at fair value
|
||||||||||||||||
Derivatives
|
-
|
(18
|
)
|
-
|
(18
|
)
|
||||||||||
Total liabilities
|
-
|
(18
|
)
|
-
|
(18
|
)
|
(3) |
Valuation methods to determine fair value
|
Three months ended
March 31,
|
Year ended
December 31,
|
|||||||||||
2017
|
2018
|
2017
|
||||||||||
(Unaudited)
|
(Audited)
|
|||||||||||
NIS millions
|
||||||||||||
Revenues from equipment
|
220
|
232
|
952
|
|||||||||
Revenues from services:
|
||||||||||||
Cellular services
|
469
|
400
|
1,777
|
|||||||||
Land-line communications services
|
234
|
267
|
1,004
|
|||||||||
Other services
|
36
|
34
|
138
|
|||||||||
Total revenues from services
|
739
|
701
|
2,919
|
|||||||||
Total revenues
|
959
|
933
|
3,871
|
CELLCOM ISRAEL LTD.
|
||||||
Date:
|
May 30, 2018
|
By:
|
/s/ Liat Menahemi Stadler
|
|||
Name:
|
Liat Menahemi Stadler
|
|||||
Title:
|
VP Legal and Corporate Secretary
|