PARTNER COMMUNICATIONS COMPANY LTD Total Revenues: NIS 826 million (US$ 234 million), a decrease of 3%
Service Revenues: NIS 666 million (US$ 189 million), a decrease of 5%
Equipment Revenues: NIS 160 million (US$ 45 million), an increase of 6%
Total Operating Expenses (OPEX2): NIS 477 million (US$ 135 million), a decrease of 16%
Adjusted EBITDA: NIS 239 million (US$ 68 million), an increase of 9%
Adjusted EBITDA Margin2: 29% of total revenues compared with 26%
Profit for the Period: NIS 54 million (US$ 15 million), an increase of 184%
Net Debt: NIS 887 million (US$ 251 million), a decrease of NIS 881 million
Adjusted Free Cash Flow (before interest): NIS 202 million (US$ 57 million), a decrease of NIS 13 million
Cellular ARPU: NIS 64 (US$ 18), a decrease of 3%
Cellular Subscriber Base: approximately 2.68 million at quarter-end, a decrease of 1%
1 The quarterly financial results are unaudited.
2 For the definition of this and other Non-GAAP financial measures, see "Use of Non-GAAP Financial Measures" in this press release.
Commenting on the third quarter 2017 results, Mr. Isaac Benbenisti, CEO of Partner noted:"Our strong entrance to the TV market, together with our significant presence in the internet and cellular markets, establishes Partner as a comprehensive communications group. The customer recruitment figures for Partner TV are high compared to our preliminary forecasts. In the last month, the sales rate has increased even more and the number of daily installations has accelerated compared to the period from August through October. In less than a month, we have completed installations in 10,000 additional households and currently the number of households that are already connected to the Partner TV service is approximately 30,000. In addition, thousands of additional households have scheduled installations by the end of the month after they have already completed joining the service. Most of the customers that have joined the TV service have chosen the service as part of our bundle and triple offerings which also includes ISP and internet infrastructure.
As part of our strategic plan as a comprehensive communications group, in August we also announced the commencement of the commercial phase of our independent fiber optic infrastructure project - Partner Fiber - which provides, for the first time, a more advanced and cost-effective alternative to the existing fixed infrastructure in Israel.
Partner's optic fibers have already reached tens of thousands of households throughout the country, and we are working to deploy further at an accelerated rate in several cities simultaneously. In complete alignment with the Ministry of Communications and other regulatory bodies, we will continue to offer the most advanced technology with an attractive value offering to more and more customers.
In the cellular segment we added approximately 33 thousand net Post-Paid subscribers in the last quarter and recorded a net increase in our cellular subscriber base for the second consecutive quarter, despite a decline of approximately 18 thousand Pre-Paid subscribers."
Mr. Dudu Mizrahi, Partner's Chief Financial Officer, commented on the third quarter 2017 results:"In the third quarter, many of the activities that the Company has been engaged in during the last year were reflected, among others, in the growth of 33 thousand Post-Paid cellular subscribers, a continued single digit cellular churn rate, a significant improvement in the equipment sales gross profit margin which stood at 27%, an improvement in the EBITDA margin compared with Q3 2016, and an additional quarter with a strong free cash flow before interest which totaled NIS 202 million.
The increase in CAPEX in the quarter mainly reflected the acceleration of the Company's fiber project, which enables the Company to offer advanced services based on an independent fixed-line infrastructure both to the residential market and the business market, as well as the entrance to the TV market.
In the third quarter the Company early adopted the new International Financial Reporting Standard 15 ("IFRS 15"), retroactively as from January 1, 2017 (the standard is effective from January 1, 2018, earlier application is permitted). The total increase in operating profit and profit for the first three quarters of 2017 amounted to NIS 51 million and NIS 39 million, respectively. The increase in the operating profit and profit for the third quarter 2017 alone amounted to NIS 19 million and NIS 15 million, respectively. The increase is mainly a result of costs capitalization of obtaining contracts with customers (part of payroll expenses and selling commissions).
The financial steps which we executed in the past months, including among others, the early repayments of loans in an amount of approximately NIS 0.9 billion and the raising of a new traded bond series, are reflected in the significant decline in finance expenses compared to Q3 2016. The financial steps, together with the strong free cash flow presented by the Company in the current quarter, resulted in a decline in net debt to below NIS 1 billion - to NIS 887 million."
NIS Million | Q3'17 | Q2'17 | Comments |
Service Revenues | 666 | 646 | The increase results mainly from higher cellular seasonal roaming revenues |
Equipment Revenues | 160 | 159 | |
Total Revenues | 826 | 805 | |
Gross profit from equipment sales | 43 | 33 | |
OPEX | 477 | *472 | Q3 2017 include expenses related to the launch of the Company's TV services |
Adjusted EBITDA | 239 | *269 | Q2 2017 was the last quarter for which the Company recorded NIS 54 million income with respect to the settlement agreement with Orange. This was partially offset by an increase in service revenues and an increase in gross profit from equipment |
Profit for the Period | 54 | *46 | |
Capital Expenditures (additions) | 107 | *78 | |
Adjusted free cash flow (before interest payments) | 202 | 208 | |
Net Debt | 887 | 1,081 |
* Figures include the impact of IFRS15 retroactive implementation as from beginning of 2017.
Q3'17 | Q2'17 | Comments | |
Cellular Post-Paid Subscribers (end of period, thousands) | 2,306 | 2,273 | Increase of 33 thousand subscribers |
Cellular Pre-Paid Subscribers (end of period, thousands) | 371 | 389 | Decrease of 18 thousand subscribers |
Monthly Average Revenue per Cellular User (ARPU) (NIS) | 64 | 62 | Mainly the result of higher seasonal roaming revenues |
Quarterly Cellular Churn Rate (%) | 9.3% | 9.0% |
Key Financial Results
NIS MILLION (except EPS) | Q3'17 | Q3'16 | % Change |
Revenues | 826 | 849 | -3% |
Cost of revenues | 625 | 691 | -10% |
Gross profit | 201 | 158 | +27% |
Operating profit | 92 | 64 | +44% |
Profit for the period | 54 | 19 | +184% |
Earnings per share (basic, NIS) | 0.32 | 0.12 | +167% |
Adjusted free cash flow (before interest) | 202 | 215 | -6% |
Key Operating Indicators
Q3'17 | Q3'16 | Change | |
Adjusted EBITDA (NIS million) | 239 | 220 | +9% |
Adjusted EBITDA (as a % of total revenues) | 29% | 26% | +3 |
Cellular Subscribers (end of period, thousands) | 2,677 | 2,693 | -16 |
Quarterly Cellular Churn Rate (%) | 9.3% | 9.7% | -0.4 |
Monthly Average Revenue per Cellular User (ARPU) (NIS) | 64 | 66 | -2 |
Partner Consolidated Results
NIS Million | Cellular Segment Q3'17 Q3'16 Change % | Fixed-Line Segment Q3'17 Q3'16 Change % | Elimination Q3'17 Q3'16 | Consolidated Q3'17 Q3'16 Change % | |||||||
Total Revenues | 252 | 670 | -3% | 212 | 232 | -7% | )42( | )53( | 622 | 849 | -3% |
Service Revenues | 514 | 531 | -3% | 194 | 220 | -12% | )42( | )53( | 222 | 698 | -5% |
Equipment Revenues | 136 | 139 | -1% | 22 | 12 | +63% | 121 | 151 | +2% | ||
Operating Profit | 74 | 36 | +112% | 16 | 28 | -32% | 92 | 64 | +44% | ||
Adjusted EBITDA | 169 | 156 | +21% | 51 | 64 | -22% | 239 | 220 | +9% | ||
Financial Review
In Q3 2017, total revenues were NIS 826 million (US$ 234 million), a decrease of 3% from NIS 849 million in Q3 2016.
Service revenues in Q3 2017 totaled NIS 666 million (US$ 189 million), a decrease of 5% from NIS 698 million in Q3 2016. Service revenues for the cellular segment in Q3 2017 totaled NIS 514 million (US$ 146 million), a decrease of 3% from NIS 531 million in Q3 2016. The decrease was mainly the result of the continued price erosion of cellular services (both Post-Paid and Pre-Paid) due to the continued competitive market conditions. Service revenues for the fixed-line segment in Q3 2017 totaled NIS 194 million (US$ 55 million), a decrease of 12% from NIS 220 million in Q3 2016. The decrease reflected the continuing decrease in revenues from international calls as well as other fixed line services. Equipment revenues in Q3 2017 totaled NIS 160 million (US$ 45 million), an increase of 6% from NIS 151 million in Q3 2016, largely reflecting a change in product mix. Gross profit from equipment sales in Q3 2017 was NIS 43 million (US$ 12 million), compared with NIS 28 million in Q3 2016, an increase of 54%, mainly reflecting higher profit margins from sales due to a change in the product mix. Total operating expenses ('OPEX') totaled NIS 477 million (US$ 135 million) in Q3 2017, a decrease of 16% or NIS 93 million from Q3 2016. The decrease mainly reflected a decline in expenses related to the cellular network, the implementation of the International Financial Reporting Standard 15 ("IFRS 15"), a nonrecurring decrease in site-rental expenses as well as a decrease in other expenses reflecting the impact of various efficiency measures undertaken as part of a long-term plan to reduce the Company's cost base, partially offset by additional expenses relating to the Company's TV services which were launched in June 2017. Including depreciation and amortization expenses and other expenses (mainly amortization of employee share based compensation), OPEX in Q3 2017 decreased by 14% compared with Q3 2016. Operating profit for Q3 2017 was NIS 92 million (US$ 26 million), an increase of 44% compared with NIS 64 million in Q3 2016. Adjusted EBITDA in Q3 2017 totaled NIS 239 million (US$ 68 million), an increase of 9% from NIS 220 million in Q3 2016. As a percentage of total revenues, Adjusted EBITDA in Q3 2017 was 29% compared with 26% in Q3 2016. Adjusted EBITDA for the cellular segment was NIS 189 million (US$ 54 million), in Q3 2017, an increase of 21% from NIS 156 million in Q3 2016, reflecting the decrease in OPEX (as explained above) and the increase in gross profit from equipment sales partially offset by the decrease in service revenues and despite the fact that Q3 2017 was the first quarter (since Q2 2015) in which the Company did not record any income with respect to the settlement agreement regarding the Orange brand. As a percentage of total cellular segment revenues, Adjusted EBITDA for the cellular segment in Q3 2017 was 29% compared with 23% in Q3 2016. Adjusted EBITDA for the fixed-line segment was NIS 50 million (US$ 14 million) in Q3 2017, a decrease of 22% from NIS 64 million in Q3 2016, reflecting the decrease in service revenues, partially offset by the decrease in OPEX and the increase in gross profit from equipment sales. As a percentage of total fixed-line segment revenues, Adjusted EBITDA for the fixed-line segment in Q3 2017 was 23%, compared with 28% in Q3 2016. Finance costs, net in Q3 2017 were NIS 15 million (US$ 4 million), a decrease of 50% compared with NIS 30 million in Q3 2012. The decrease largely reflects lower interest expenses due to thelower level of debt as a result of early repayments made in June and July 2017 as well as regular maturities, in addition to lower linkage expenses due to a lower CPI level.
Income taxes for Q3 2017 were NIS 23 million (US$ 7 million), compared with NIS 15 million in Q3 2016. Profit in Q3 2017 was NIS 54 million (US$ 15 million), compared with a profit of NIS 19 million in Q3 2016, an increase of 184%.Based on the weighted average number of shares outstanding during Q3 2017, basic earnings per share or ADS, was NIS 0.32 (US$ 0.09), compared to basic earnings per share of NIS 0.12 in Q3 2016.
Cellular Segment Operational Review
At the end of Q3 2017, the Company's cellular subscriber base (including mobile data and 012 Mobile subscribers) was approximately 2.68 million including approximately 2.31 million Post-Paid subscribers or 86% of the base, and approximately 371 thousand Pre-Paid subscribers, or 14% of the subscriber base.
During the third quarter of 2017, the cellular subscriber base increased by approximately 15 thousand subscribers. The Post-Paid subscriber base increased by approximately 33 thousand subscribers, while the Pre-Paid subscriber base declined by approximately 18 thousand subscribers.
The quarterly churn rate for cellular subscribers in Q3 2017 was 9.3%, compared with 9.7% in Q3 2016.
Total cellular market share (based on the number of subscribers) at the end of Q3 2017 was estimated to be approximately 26%, unchanged from Q3 2016.
The monthly Average Revenue per User ("ARPU") for cellular subscribers in Q3 2017 was NIS 64 (US$ 18), a decrease of 3% from NIS 66 in Q3 2016. The decrease mainly reflected the continued price erosion in key cellular services due to the persistent competition in the cellular market.
Funding and Investing Review
In Q3 2017, Adjusted Free Cash Flow totaled NIS 202 million (US$ 57 million), a decrease of 6% from NIS 215 million in Q3 2016. Excluding the impact of the NIS 35 million payment received from Hot Mobile in Q3 2016, Adjusted Free Cash Flow increased by 12%.
Cash generated from operations increased by 21% to NIS 306 million (US$ 87 million) in Q3 2017 from NIS 253 million in Q3 2016. The increase mainly reflected the increase in Adjusted EBITDA and the smaller decrease in operating assets and liabilities. Cash capital expenditures ('CAPEX payments'), as represented by cash flows used for the acquisition of property and equipment and intangible assets, were NIS 105 million (US$ 30 million) in Q3 2017, an increase of 139% from NIS 44 million in Q3 2016. The increase mainly reflected theimpact of the implementation of IFRS 15 (capitalization of part of payroll and selling commission expenses) and the increase in investments related to fiber deployment and TV services.
The level of Net Debt at the end of Q3 2017 amounted to NIS 887 million (US$ 251 million), compared with NIS 1,768 million at the end of Q3 2016.
Business Developments
The Company's Board of Directors approved on November 20, 2017 the appointment of Mr. Tomer Bar Zeev as a member to the Company's Board of Directors. Mr. Tomer Bar Zeev was nominated by
Israel Telecom Ltd., the Company's principal shareholder. In accordance with the Company's Articles of Association and applicable law, Mr. Bar Zeev shall serve in office until the coming Annual General Meeting of shareholders.
Mr. Bar Zeev is the founder and CEO of ironSource since 2010, a leading digital content company that offers monetization and distribution solutions for app developers, software developers, mobile carriers, and device manufacturers. Mr. Bar Zeev holds a BA in computer science from IDC Herziliya.
An active investor in other technology startups, Mr. Bar Zeev has a deep understanding of companies in the telecommunication and technology fields.
Regulatory Developments
In August 2015, the Ministry of Communications' regulation regarding access to Bezeq's passive infrastructure came into force. The purpose of this regulation is to allow other licensees to use Bezeq's passive infrastructure (such as ducts, manholes, poles, boxes etc.) in order to deploy their own high speed fiber optical cables. According to the Ministry's temporary instructions at the time (which was in force until November 1, 2015), any work inside Bezeq's passive infrastructure was to be performed by Bezeq's employees. Although the interim period has since passed, the Ministry of Communications did not effectively enforce its abovementioned decision on Bezeq.
Following the enactment of the Economic Program Law for the years 2017-2018 (which set Bezeq's obligation to allow access to its passive infrastructure into law), Bezeq has begun to partially observe its duty to provide access to its passive infrastructures. Bezeq has deployed several fiber optic cables for licensees using its own personnel.
On October 19, 2017, the Ministry of Communications instructed Bezeq to allow other domestic operators (including Partner) to deploy fiber optic cables with their own contractors (without the need for the use of Bezeq personnel). This change has the potential to substantially increase the speed of deployment of Partner's fiber infrastructure.
IFRS 51
In the third quarter of 2017 the Company early adopted (the standard is effective from January 1, 2018, earlier application is permitted), as from January 1, 2017 (the transition date), IFRS 15, Revenue from Contracts with Customers, which outlines a single comprehensive model of accounting for
revenue arising from contracts with customers and supersedes IAS 18, Revenue, and IAS 11, Construction contracts (the "previous standards"). The model includes five steps for analyzing transactions so as to determine when to recognize revenue and at what amount:
Identifying the contract with the customer.
Identifying separate performance obligations in the contract.
Determining the transaction price.
Allocating the transaction price to separate performance obligations.
Recognizing revenue when the performance obligations are satisfied.
In accordance with the model, the Company recognizes revenue when the customer obtains control over the goods or services. Revenue is based on the consideration that the Company expects to receive for the transfer of the goods or services promised to the customer, excluding amounts collected on behalf of third parties, and where collection is probable.
The Company applied IFRS 15 using the cumulative effect approach as from the transition date, without a restatement of comparative figures. As part of the initial implementation of IFRS 15, the Company has chosen to apply the expedients in the transitional provisions, according to which the cumulative effect approach is applied only for contracts not yet complete at the transition date, and therefore there is no change in the accounting treatment for contracts completed at the transition date. The Company also applied the practical expedient of examining the aggregate effect of contracts changes that occurred before the transition date, instead of examining each change separately. Contracts that are renewed on a monthly basis and may be cancelled by the customer at any time, without penalty, were considered completed contracts at the transition date. The cumulative effect as of the transition date was immaterial and did not affect the financial statements.
The application of IFRS 15 did not have a material effect on the measurement and timing of the Company's revenue in the reporting period, compared to the provisions of the previous standards.
The main effect of the Company's application of IFRS 15 is the accounting treatment for the incremental costs of obtaining contracts with customers, which in accordance with IFRS 15, are recognized as assets when the costs are incremental to obtaining the contracts, and it is probable that the Company will recover these costs, instead of recognizing these costs in the statement of income as incurred. IFRS 15 also determines that direct costs of fulfilling a contract which the Company can specifically identify and which produce or improve the Company's resources that are used for its future performance obligation (and it is probable that the Company will recover these costs) are recognized as assets (the incremental and direct costs together: "contract costs"). Contract costs that were recognized as assets are presented in the statements of cash flows as part of cash flows used in investing activities.
Direct commissions paid to resellers and sales employees for sales and upgrades, are recognized as an asset for obtaining a contract instead of an expense in the statement of income. The assets are
amortized in accordance with the expected service period (mainly over 2 to 3 years), using the portfolio approach.
For the effect of IFRS 15 on the financial reports, see also the section, 'Effect of IFRS15 implementation' in this press release.
Conference Call Details
Partner will hold a conference call on Tuesday, November 21, 2017 at 10.00AM Eastern Time / 5.00PM Israel Time.
To join the call, please dial the following numbers (at least 10 minutes before the scheduled time): International: +972.3.918.0687
North America toll-free: +1.866.860.9642
A live webcast of the call will also be available on Partner's Investors Relations website at: www.partner.co.il/en/Investors-Relations/lobby/
If you are unavailable to join live, the replay of the call will be available from November 21, 2017 until December 12, 2017, at the following numbers:
International: +972.3.925.5940
North America toll-free: +1.877.456.0009
In addition, the archived webcast of the call will be available on Partner's Investor Relations website at the above address for approximately three months.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, Section 21E of the US Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Words such as "estimate", "believe", "anticipate", "expect", "intend", "seek", "will", "plan", "could", "may", "project", "goal", "target" and similar expressions often identify forward-looking statements but are not the only way we identify these statements. Specific statements have been made regarding the Company's anticipated acceleration of the deployment of its fiber optic infrastructure. In addition, all statements other than statements of historical fact included in this press release regarding our future performance are forward-looking statements. We have based these forward-looking statements on our current knowledge and our present beliefs and expectations regarding possible future events. These forward-looking statements are subject to risks, uncertainties and assumptions, including, as regards the anticipated acceleration of fiber cable deployment, whether the Ministry of Communications' instruction to Bezeq to allow other domestic operators (including Partner) to deploy fiber optic cables with their own contractors (without the need for the use of Bezeq personnel) will be respected or enforced and whether the Company will have the financial resources needed to continue to increase the number of customers served by its fiber optic infrastructure. The future results may differ materially from those anticipated herein. For further information regarding risks, uncertainties and assumptions about Partner, trends in the Israeli telecommunications industry in general, the impact of current global economic conditions and possible regulatory and legal developments, and other risks we face, see "Item 3. Key Information - 3D. Risk Factors", "Item 4. Information on the Company", "Item 5. Operating and Financial Review and Prospects", "Item 8. Financial Information
- 8A. Consolidated Financial Statements and Other Financial Information - 8A.1 Legal and
Administrative Proceedings" and "Item 11. Quantitative and Qualitative Disclosures about Market Risk" in the Company's Annual Reports on Form 20-F filed with the SEC, as well as its immediate reports on Form 6-K furnished to the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The quarterly financial results presented in this press release are unaudited financial results.
The results were prepared in accordance with IFRS, other than the non-GAAP financial measures presented in the section, "Use of Non-GAAP Financial Measures".
The financial information is presented in NIS millions (unless otherwise stated) and the figures presented are rounded accordingly.
The convenience translations of the New Israeli Shekel (NIS) figures into US Dollars were made at the rate of exchange prevailing at September 30, 2017: US $1.00 equals NIS 3.529. The translations were made purely for the convenience of the reader.
Use of Non-GAAP Financial Measures
The following non-GAAP measures are used in this report. These measures are not financial measures under IFRS and may not be comparable to other similarly titled measures for other companies. Further, the measures may not be indicative of the Company's historic operating results nor are meant to be predictive of potential future results.
Non-GAAP
Measure
Calculation
Most Comparable IFRS Financial Measure
Adjusted
Adjusted EBITDA:
Profit (Loss)
EBITDA*
Profit (Loss)
add
Income tax expenses,
Finance costs, net,
Depreciation and amortization expenses (including
amortization of intangible assets, deferred
expenses-right of use and impairment charges),
Other expenses (mainly amortization of share
based compensation)
Adjusted
Adjusted EBITDA margin (%):
EBITDA margin
Adjusted EBITDA
(%)
divided by
Total revenues
Adjusted Free
Adjusted Free Cash Flow:
Cash flows from
Cash Flow**
Cash flows from operating activities
operating activities
deduct
deduct
Cash flows from investing activities
Cash flows from
add
investing activities
Short-term investment in (proceeds from) deposits
Total Operating
Total Operating Expenses:
Sum of:
Expenses
Cost of service revenues
Cost of service
(OPEX)
add
revenues,
Selling and marketing expenses
Selling and marketing
add
expenses,
General and administrative expenses
General and
deduct
administrative expenses
Depreciation and amortization expenses,
Other expenses (mainly amortization of employee
share based compensation)
Net Debt
Net Debt:
Current maturities of notes payable and borrowings
add
Notes payable
add
Borrowings from banks and others
deduct
Cash and cash equivalents
deduct
Short-term deposits
Sum of:
Current maturities of notes payable and borrowings,
Notes payable, Borrowings from banks and others
* Adjusted EBITDA is fully comparable with EBITDA measure which was provided in reports for prior periods.
**Adjusted Free Cash Flow measure is fully comparable to Free Cash Flow measure which was provided in reports for prior periods.About Partner Communications
Partner Communications Company Ltd. is a leading Israeli provider of telecommunications services (cellular, fixed-line telephony, internet services and television services). Partner's ADSs are quoted on the NASDAQ Global Select Market™ and its shares are traded on the Tel Aviv Stock Exchange (NASDAQ and TASE: PTNR).
For more information about Partner, see: http://www.partner.co.il/en/Investors-Relations/lobby
Contacts: Dudu MizrahiChief Financial Officer Tel: +972-54-781-4951
Liat Glazer ShaftHead of Investor Relations and Corporate Projects Tel: +972-54-781-5051
E-mail: investors@partner.co.il
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
New Israeli Shekels
Convenience translation into U.S. Dollars
CURRENT ASSETS
September 30, December 31, September 30,
2017 2016 2017
(Unaudited) (Audited) (Unaudited) In millions
Cash and cash equivalents
1,010
716
286
Short-term deposits
150
452
43
Trade receivables
819
990
232
Other receivables and prepaid expenses
62
57
18
Deferred expenses - right of use
40
28
11
Inventories
90
96
25
2,171
2,339
615
NON CURRENT ASSETS
Trade receivables
228
333
65
Prepaid expenses and other
2
2
1
Deferred expenses - right of use
121
75
34
Property and equipment
1,128
1,207
320
Intangible and other assets
716
793
203
Goodwill
407
407
115
Deferred income tax asset
27
41
8
2,629
2,858
746
TOTAL ASSETS 4,800 5,197 1,361
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
New Israeli Shekels
Convenience translation into
U.S. Dollars
September 30,
2017
December 31,
2016
September 30,
2017
(Unaudited)
(Audited)
(Unaudited)
In millions
CURRENT LIABILITIES
Current maturities of notes payable and borrowings
557
498
158
Trade payables
702
681
199
Payables in respect of employees
51
101
14
Other payables (mainly institutions)
28
28
8
Income tax payable
83
45
23
Deferred income with respect to settlement
agreement with Orange
108
Deferred revenues from HOT mobile
31
31
9
Other deferred revenues
42
38
12
Provisions
78
77
22
1,572
1,607
445
NON CURRENT LIABILITIES
Notes payable
899
646
255
Borrowings from banks and others
591
1,550
167
Liability for employee rights upon retirement, net
36
39
11
Dismantling and restoring sites obligation
28
35
8
Deferred revenues from HOT mobile
172
195
49
Other non-current liabilities
21
14
6
1,747
2,479
496
TOTAL LIABILITIES
3,319
4,086
941
EQUITY
Share capital - ordinary shares of NIS 0.01
par value: authorized - December 31, 2016
and September 30, 2017 - 235,000,000 shares;
issued and outstanding -
2
2
1
December 31, 2016 - *156,993,337 shares
September 30, 2017 - *167,527,166 shares
Capital surplus
1,199
1,034
340
Accumulated retained earnings
538
358
152
Treasury shares, at cost
December 31, 2016 - **3,603,578 shares
September 30, 2017 - **3,296,619 shares
(258)
(283)
(73)
TOTAL EQUITY
1,481
1,111
420
TOTAL LIABILITIES AND EQUITY
4,800
5,197
1,361
* Net of treasury shares.
** Including, restricted shares in amount of 2,008,584 and 2,061,201 as of September 30, 2017 and December 31, 2016 respectively held by trustee under the Company's Equity Incentive Plan, such shares will become outstanding upon completion of vesting conditions.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
New Israeli shekels
Convenience translation into U.S. dollars
9 month period ended September 30
3 month period ended September 30
9 month period ended September 30,
3 month period ended September 30,
2017 2016 2017 2016 2017 2017
Revenues, net
2,434
2,723
826
849
690
234
Cost of revenues
1,916
2,218
625
691
543
177
Gross profit
518
505
201
158
147
57
Selling and marketing expenses
189
330
70
98
54
20
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) In millions (except per share data)
General and administrative
expenses 146 188 46 60 41 13
Income with respect to
settlement agreement
with Orange
108
163
55
30
Other income, net
24
35
7
9
7
2
Operating profit
315
185
92
64
89
26
Finance income
4
10
5
*
1
1
Finance expenses
96
92
20
30
27
5
Finance costs, net
92
82
15
30
26
4
Profit before income tax
223
103
77
34
63
22
Income tax expenses
59
44
23
15
17
7
Profit for the period 164
59
54
19
46
15
Earnings per share
Basic
1.02
0.38
0.32
0.12
0.29
0.09
Diluted
Weighted
1.01
0.37
0.32
0.12
0.28
0.09
average number of shares outstanding
(in thousands)
Basic
161,002
156,120
167,371
156,178
161,002
167,371
Diluted
162,745
157,925
168,815
157,953
162,745
168,815
* Representing an amount of less than 1 million.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
New Israeli shekels
Convenience translation into U.S. dollars
9 month period ended September 30,
3 month period ended September 30,
9 month period ended September 30,
3 month period ended September 30,
2017 2016 2017 2016 2017 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) In millions
Profit for the period 164 59 54 19 46 15
Other comprehensive income
for the period, net of income tax - - - - - - TOTAL COMPREHENSIVE
INCOME FOR THE PERIOD 164 59 54 19 46 15
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM SEGMENT INFORMATION & ADJUSTED EBITDA RECONCILIATION
New Israeli Shekels New Israeli Shekels
Nine months ended September 30, 2017 Nine months ended September 30, 2016 In millions (Unaudited) In millions (Unaudited)
Cellular segment
Fixed line segment
Reconciliation for
consolidation Consolidated
Cellular segment
Fixed line segment
Reconciliation for
consolidation Consolidated
Segment revenue - Services 88411 464 1,952 1,586 514 2,100
Inter-segment revenue - Services 81 884 )821( 15 147 )862(
Segment revenue - Equipment 421 44 482 571 52 623
Total revenues
1,928
634
)8 21 (
2,434
2,172
713
)8 62 (
2,723
Segment cost of revenues - Services
880,1
441
88416
1,261
460
88128
Inter-segment cost of revenues- Services
884
84
)821(
146
16
)862(
Segment cost of revenues - Equipment
142
11
110
454
43
497
Cost of revenues
1,549
495
(128)
1,916
1,861
519
)8 62 (
2,218
Gross profit
11,
81,
481
311
194
505
Operating expenses (3)
261
61
114
428
90
518
Income with respect to settlement agreement with Orange
801
801
861
163
Other income, net
21
8
24
32
3
35
Operating profit
Adjustments to presentation of segment
242
11
184
78
107
185
Adjusted EBITDA
-Depreciation and amortization
121
800
338
110
-Other (1)
81
37
Segment Adjusted EBITDA (2)
416
811
453
217
Reconciliation of segment subtotal Adjusted
EBITDA to profit for the period
Segments subtotal Adjusted EBITDA (2) 14, 670
Depreciation and amortization
Finance costs, net
Income tax expenses
Other (1)
)421(
),2(
)4,(
)81(
)441(
)12(
)44(
)11(
Profit for the period 864 4,
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM SEGMENT INFORMATION & ADJUSTED EBITDA RECONCILIATION
New Israeli Shekels New Israeli Shekels
Three months ended September 30, 2017 Three months ended September 30, 2016 In millions (Unaudited) In millions (Unaudited)
Cellular segment
Fixed line segment
Reconciliation for
consolidation Consolidated
Cellular segment
Fixed line segment
Reconciliation for
consolidation Consolidated
Segment revenue - Services 480 846 666 526 172 698
Inter-segment revenue - Services 4 11
)42(
5 48 (53)
Segment revenue - Equipment 811 22 860 139 12 151
Total revenues 642 286
)42(
126 670 232 (53) 849
Segment cost of revenues - Services 141 840 401 410 158 568
Inter-segment cost of revenues- Services 11 4
)42(
48 5 (53)
Segment cost of revenues - Equipment 802 84 881 112 11 123
Cost of revenues 4,1 86,
)42(
624 570 174 (53) 691
Gross profit 844 41 208 100 58 158 Operating expenses (3) 11 2, 886 127 31 158
Income with respect to settlement
agreement with Orange 4455
Other income, net 1 * 1 8 1 9 Operating profit 14 81 ,2 36 28 64 Adjustments to presentation of segment
Adjusted EBITDA
80,
12
108
35
6
12
1
81,
40
156
64
-Depreciation and amortization
-Other (1)
Segment Adjusted EBITDA (2)
Reconciliation of segment subtotal Adjusted EBITDA to profit for the period
Segments subtotal Adjusted EBITDA (2) 21, 220
Depreciation and amortization
Finance costs, net
Income tax expenses
Other (1)
)848(
)84(
)21(
)6 (
)143(
)30)
)15(
)13)
Profit for the period 44 19
* Representing an amount of less than 1 million.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM SEGMENT INFORMATION & ADJUSTED EBITDA RECONCILIATION
) Mainly amortization of employee share based compensation.
Adjusted EBITDA as reviewed by the CODM represents Earnings Before Interest (finance costs, net), Taxes, Depreciation and Amortization (including amortization of intangible assets, deferred expenses-right of use and impairment charges) and Other expenses (mainly amortization of share based compensation). Adjusted EBITDA is not a financial measure under IFRS and may not be comparable to other similarly titled measures for other companies. Adjusted EBITDA may not be indicative of the Group's historic operating results nor is it meant to be predictive of potential future results. The usage of the term "Adjusted EBITDA" is to highlight the fact that the Amortization includes amortization of deferred expenses - right of use and amortization of employee share based compensation and impairment charges; it is fully comparable to EBITDA information which has been previously provided for prior periods.
) Operating expenses include selling and marketing expenses and general and administrative expenses.
In July 2017, the Company issued Series F Notes in a principal amount of NIS 255 million. Regarding Series F Notes, the Company is required to comply with a financial covenant that the ratio of Net Debt to Adjusted EBITDA shall not exceed 5. Compliance will be examined and reported on a quarterly basis. For the definitions of Net Debt and Adjusted EBITDA see 'Use of non-GAAP measures' section above. For the purpose of the covenant, Adjusted EBITDA is calculated as the sum total for the last 12 month period, excluding adjustable one-time items. As of September 30, 2017, the ratio of Net Debt to Adjusted EBITDA was 1.0. Additional stipulations regarding Series F Notes are as follows: shareholders' equity shall not decrease below NIS 400 million; the Company shall not create floating liens subject to certain terms; the Company has the right for early redemption under certain conditions; the Company shall pay additional annual interest of 0.5% in the case of a two-notch downgrade in the Notes rating and an additional annual interest of 0.25% for each further single-notch downgrade, up to a maximum additional interest of 1%; the Company shall pay additional annual interest of 0.25% during a period in which there is a breach of the financial covenant.
The Company has additional financial covenants regarding its borrowings from financial institutions. See note 15 to the Company's 2016 annual financial statements. In the reporting period, the Company was in compliance with all financial covenants and obligations and no cause for early repayment occurred.
In September 2017, the Company entered into an agreement with Israeli institutional investors to issue in December 2018, in the framework of a private placement, additional Series F notes, in an aggregate principal amount of NIS 150 million. S&P Maalot has rated the additional deferred issuance with an 'ilA+' rating. For additional details see the Company's press releases dated September 13 and 17, 2017.
'MAKAM' is a variable interest based on the yield of 12 month government bonds issued by the government of Israel. The interest rate is updated on a quarterly basis. (*) On these dates additional Notes of the series were issued. The information in the table refers to the full series.
In July 2017, S&P Maalot affirmed the Company's rating of "ilA+/Stable".
For details regarding the rating of the notes see the S&P Maalot report dated July 2, 2017 and July 27, 2017.
Notes issued to the public by the Company and held by the public, excluding such notes held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS).
Principal payments
Gross interest payments (without deduction of tax)
ILS linked to CPI
ILS not linked to CPI
Euro
Dollar
Other
First year
212,513
230,506
-
-
-
26,963
Second year
212,513
109,228
-
-
-
13,651
Third year
-
160,138
-
-
-
8,678
Fourth year
-
160,138
-
-
-
6,165
Fifth year and on
-
261,958
-
-
-
6,951
Total
425,026
921,968
-
-
-
62,408
Private notes and other non-bank credit, excluding such notes held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (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
-
115,000
-
-
-
35,036
Second year
-
152,917
-
-
-
23,548
Third year
-
163,333
-
-
-
16,592
Fourth year
-
133,333
-
-
-
9,845
Fifth year and on
-
141,667
-
-
-
6,003
Total
-
706,250
-
-
-
91,024
Credit from banks in Israel based on the Company's "Solo" financial data - None.
Credit from banks abroad based on the Company's "Solo" financial data - None.
Summary of Financial Undertakings (according to repayment dates) as of September 30, 2017 (cont.)
Total of sections a - d above, total credit from banks, non-bank credit and notes based on the Company's "Solo" financial data (in thousand NIS).
Principal payments
Gross interest payments (without deduction of tax)
ILS linked to CPI
ILS not linked to CPI
Euro
Dollar
Other
First year
212,513
345,506
-
-
-
61,999
Second year
212,513
262,145
-
-
-
37,199
Third year
-
323,471
-
-
-
25,270
Fourth year
-
293,471
-
-
-
16,010
Fifth year and on
-
403,625
-
-
-
12,954
Total
425,026
1,628,218
-
-
-
153,432
Off-balance sheet Credit exposure based on the Company's "Solo" financial data (in thousand NIS) - 50,000 (Guarantees on behalf of an associate, without expiration date).
Off-balance sheet Credit exposure of all the Company's consolidated companies, excluding companies that are reporting corporations and excluding the Company's data presented in section f above - None.
Total balances of the credit from banks, non-bank credit and notes of all the consolidated companies, excluding companies that are reporting corporations and excluding Company's data presented in sections a - d above - None.
Total balances of credit granted to the Company by the parent company or a controlling shareholder and balances of notes offered by the Company held by the parent company or the controlling shareholder - None.
Total balances of credit granted to the Company by companies held by the parent company or the controlling shareholder, which are not controlled by the Company, and balances of notes offered by the Company held by companies held by the parent company or the controlling shareholder, which are not controlled by the Company - None.
Total balances of credit granted to the Company by consolidated companies and balances of notes offered by the Company held by the consolidated companies - None.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
New Israeli Shekels
9 months ended
September 30,
Convenience translation into
U.S. Dollars
CASH FLOWS FROM OPERATING ACTIVITIES:
2017 2016 2017
(Unaudited) (Unaudited) (Unaudited)
In millions
Cash generated from operations (Appendix) | 804 | 652 | 227 |
Income tax paid | (7) | (20) | (2) |
Net cash provided by operating activities | 797 | 632 | 225 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of property and equipment | (146) | ),1( | (41) |
Acquisition of intangible and other assets | (117) | (52) | (33) |
Proceeds from (investment in) short-term deposits, net | 302 | 85 | |
Interest received | 2 | 2 | 1 |
Consideration received from sales of property and equipment | * | 4 | * |
Net cash provided by (used in) investing activities | 41 | (143) | 12 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Share issuance | 190 | 54 | |
Interest paid | (85) | )10( | (24) |
Current borrowings received | 52 | ||
Repayment of non-current borrowings | (901) | (11) | (255) |
Proceeds from issuance of notes payable, net of issuance costs | 252 | 71 | |
Repayment of notes payable | (235) | ||
Net cash used in financing activities | (544) | (274) | (154) |
INCREASE IN CASH AND CASH EQUIVALENTS | 294 | 215 | 83 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 716 | 926 | 203 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,010 | 1,141 | 286 |
* Representing an amount of less than 1 million.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Appendix - Cash generated from operations and supplemental information
New Israeli Shekels
9 months ended
September 30,
Convenience translation into
U.S. Dollars
2017 | 2016 | 2017 |
(Unaudited) | (Unaudited) | (Unaudited) |
In millions |
Cash generated from operations:
Profit for the period Adjustments for: | 164 | 59 | 46 |
Depreciation and amortization | 399 | 427 | 113 |
Amortization of deferred expenses - Right of use | 28 | 21 | 8 |
Employee share based compensation expenses | 16 | 36 | 5 |
Liability for employee rights upon retirement, net | (3) | (3) | (1) |
Finance costs, net | (3) | 2 | (1) |
Change in fair value of derivative financial instruments | (1) | * | * |
Capital loss from property and equipment | * | 1 | * |
Interest paid | 85 | 80 | 24 |
Interest received | (2) | (2) | (1) |
Deferred income taxes | 14 | 12 | 4 |
Income tax paid Changes in operating assets and liabilities: Decrease (increase)in accounts receivable: | 7 | 20 | 2 |
Trade | 276 | 122 | 78 |
Other | (5) | 8 | (1) |
Increase (decrease) in accounts payable and accruals: | |||
Trade | 45 | (3) | 13 |
Other payables | (49) | (38) | (14) |
Provisions Deferred income with respect to settlement agreement with Orange | 1 (108) | (6) (163) | * (31) |
Deferred revenues from HOT mobile | (23) | 54 | (7) |
Other deferred revenues | 5 | 6 | 1 |
Increase in deferred expenses - Right of use | (86) | (52) | (24) |
Current income tax liability | 38 | 11 | 11 |
Decrease in inventories | 6 | 60 | 2 |
Cash generated from operations | 804 | 652 | 227 |
* Representing an amount of less than 1 million.
At September 30, 2017 and 2016, trade and other payables include NIS 102 million ($29 million) and NIS 96 million, respectively, in respect of acquisition of intangible assets and property and equipment; payments in respect thereof are presented in cash flows from investing activities.
These balances are recognized in the cash flow statements upon payment.
Effect of IFRS15 implementation:
The tables below summarize the effects on the interim condensed consolidated statement of financial position as at September 30, 2017 and on the interim condensed consolidated statements of income and cash flows for the nine and three months periods ended as of the same date.
Effect of change on interim condensed consolidated statement of financial position:
New Israeli Shekels in millions As of September 30, 2017
Costs to obtain contracts recognized in intangible
Previous accounting policy
Effect of change
(Unaudited)
According to IFRS15
assets, net - non-current assets - 51 51
Deferred income tax asset 39 (12) 27
Equity 1,442 39 1,481
Effect of change on interim condensed consolidated statement of income:
New Israeli Shekels in millions
Nine months ended September 30, 2017 Three months ended September 30, 2017
Previous accounting policy
Effect of change
According to IFRS15
Previous accounting policy
Effect of change
According to IFRS15
(Unaudited) | |||||||
Selling and marketing expenses | 240 | (51) | 189 | 89 | (19) | 70 | |
Operating profit | 264 | 51 | 315 | 73 | 19 | 92 | |
Profit before income tax | 172 | 51 | 223 | 58 | 19 | 77 | |
Income tax expenses | 47 | 12 | 59 | 19 | 4 | 23 | |
Profit for the period | 125 | 39 | 164 | 39 | 15 | 54 | |
Depreciation and amortization expense | 422 | 5 | 427 | 138 | 3 | 141 | |
Effect of change on interim condensed consolidated statement cash flows:
New Israeli Shekels in millions
Nine months ended September 30, 2017 Three months ended September 30, 2017
Previous | Previous | ||||
accounting | Effect of | According | accounting | Effect of | According to |
policy | change | to IFRS15 | policy | change | IFRS15 |
Net cash provided by
(Unaudited)
operating activities Net cash provided by (used | 746 | 51 | 797 | 286 | 20 | 306 |
in) investing activities | 92 | (51) | 41 | (234) | (20) | (254) |
Reconciliation of Non-GAAP Measures:
Adjusted Free Cash Flow New IsraeliShekels
Convenience translation into
U.S. Dollars
Convenience translation into
U.S. Dollars
9 months period ended September 30,
9 months period ended September 30,
3 months period ended September 30,
3 months period ended September 30,
9 months period ended September 30,
3 months period ended September 30,
2017 2016 2017 2016 2017 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
In millions
Net cash provided by operating activities | 797 | 632 | 306 | 253 | 225 | 87 |
Net cash used in investing activities | 41 | (143) | (254) | (38) | 12 | (72) |
Proceeds from (investment in) short-term deposits | (302) | 150 | (85) | 43 | ||
Adjusted Free Cash Flow | 536 | 489 | 202 | 215 | 152 | 58 |
Interest paid | (85) | (80) | (10) | (14) | (24) | (3) |
Adjusted Free Cash Flow After Interest | 448 | 409 | 8,2 | 208 | 821 | 44 |
Total Operating Expenses (OPEX) New IsraeliShekels
Convenience translation into
U.S. Dollars
Convenience translation into
U.S. Dollars
9 months period ended September 30,
9 months period ended September 30,
3 months period ended September 30,
3 months period ended September 30,
9 months period ended September 30,
3 months period ended September 30,
2017 2016 2017 2016 2017 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
In millions
Cost of revenues - Services | 1,536 | 1,721 | 508 | 568 | 435 | 144 |
Selling and marketing expenses | 189 | 330 | 70 | 98 | 54 | 20 |
General and administrative expenses | 146 | 188 | 46 | 60 | 41 | 13 |
Depreciation and amortization | (427) | (448) | (141) | (143) | (121) | (40) |
Other (1) | (17) | (37) | (6) | (13) | (5) | (2) |
OPEX | 1,427 | 88144 | 477 | 570 | 404 | 135 |
(1) Mainly amortization of employee share based compensation |
Key Financial and Operating Indicators (unaudited)*
NIS M unless otherwise stated | Q3' 15 | Q4' 15 | Q1' 16 | Q2' 16 | Q3' 16 | Q4' 16 | Q1' 17 | Q2' 17 | Q3' 17 | 2015 | 2016 |
Cellular Segment Service Revenues | 587 | 550 | 543 | 527 | 531 | 498 | 489 | 497 | 514 | 2,297 | 2,099 |
Cellular Segment Equipment Revenues | 234 | 269 | 244 | 188 | 139 | 158 | 145 | 145 | 138 | 1,051 | 729 |
Fixed-Line Segment Service Revenues | 225 | 223 | 222 | 219 | 220 | 205 | 194 | 192 | 194 | 906 | 866 |
Fixed-Line Segment Equipment Revenues | 12 | 22 | 23 | 17 | 12 | 11 | 18 | 14 | 22 | 68 | 63 |
Reconciliation for consolidation | (52) | (57) | (55) | (54) | (53) | (51) | (43) | (43) | (42) | (211) | (213) |
Total Revenues | 1,006 | 1,007 | 977 | 897 | 849 | 821 | 803 | 805 | 826 | 4,111 | 3,544 |
Gross Profit from Equipment Sales | 52 | 61 | 56 | 42 | 28 | 18 | 26 | 33 | 43 | 239 | 144 |
Operating Profit (Loss) | 32 | (48) | 54 | 67 | 64 | 8 | **105 | **118 | 92 | 107 | 193 |
Cellular Segment Adjusted EBITDA | 137 | 152 | 142 | 155 | 156 | 109 | **187 | **210 | 189 | 597 | 562 |
Fixed-Line Segment Adjusted EBITDA | 59 | 65 | 80 | 73 | 64 | 55 | **64 | **59 | 50 | 279 | 272 |
Total Adjusted EBITDA | 196 | 217 | 222 | 228 | 220 | 164 | **251 | **269 | 239 | 876 | 834 |
Adjusted EBITDA Margin (%) | 19% | 22% | 23% | 25% | 26% | 20% | **31% | **33% | 29% | 21% | 24% |
OPEX | 650 | 608 | 612 | 572 | 570 | 570 | **478 | **472 | 477 | 2,463 | 2,324 |
Impairment charges on operating profit | 98 | 98 | |||||||||
Income with respect to settlement agreement with Orange | 23 | 38 | 54 | 54 | 55 | 54 | 54 | 54 | 61 | 217 | |
Finance costs, net | 40 | 39 | 24 | 28 | 30 | 23 | 23 | 54 | 15 | 143 | 105 |
Profit (loss) | (9) | (65) | 14 | 26 | 19 | (7) | **64 | **46 | 54 | (40) | 52 |
Capital Expenditures (cash) | 64 | 56 | 48 | 57 | 44 | 47 | **82 | **76 | 105 | 359 | 196 |
Capital Expenditures (additions) | 51 | 86 | 34 | 40 | 44 | 14 | **58 | **78 | 107 | 271 | 202 |
Adjusted Free Cash Flow | 291 | 230 | 114 | 160 | 215 | 269 | 126 | 208 | 202 | 566 | 758 |
Adjusted Free Cash Flow (After Interest) | 277 | 172 | 89 | 119 | 201 | 241 | 109 | 150 | 192 | 429 | 650 |
Net Debt | 2,355 | 2,175 | 2,079 | 1,964 | 1,768 | 1,526 | 1,415 | 1,081 | 887 | 2,175 | 1,526 |
Cellular Subscriber Base (Thousands) | 2,739 | 2,718 | 2,692 | 2,700 | 2,693 | 2,686 | 2,658 | 2,662 | 2,677 | 2,718 | 2,686 |
Post-Paid Subscriber Base (Thousands) | 2,136 | 2,156 | 2,174 | 2,191 | 2,215 | 2,241 | 2,259 | 2,273 | 2,306 | 2,156 | 2,241 |
Pre-Paid Subscriber Base (Thousands) | 603 | 562 | 518 | 509 | 478 | 445 | 399 | 389 | 371 | 562 | 445 |
Cellular ARPU (NIS) | 71 | 67 | 67 | 65 | 66 | 62 | 61 | 62 | 64 | 69 | 65 |
Cellular Churn Rate (%) | 10.8% | 11.1% | 11.2% | 9.8% | 9.7% | 9.4% | 9.8% | 9.0% | 9.3% | 46% | 40% |
Number of Employees (FTE) | 3,017 | 2,882 | 2,827 | 2,740 | 2,742 | 2,686 | 2,580 | 2,582 | 2,696 | 2,882 | 2,686 |
* See footnote 2 regarding use of non-GAAP measures.
** Figures include impact of IFRS15 retroactive implementation as from beginning of 2017.
Disclosure for notes holders as of September 30, 2017
Information regarding the notes series issued by the Company, in million NIS
Series | Original issuance date | Principal on the date of issuance | As of 30.09.2017 | Interest rate | Principal repayment dates | Interest repayment dates | Linkage | Trustee contact details | ||||
Principal book value | Linked principal book value | Interest accumulated in books | Market value | From | To | |||||||
C | 25.04.10 24.02.11* | 200 444 | 393 | 425 | 4 | 435 | 3.35% + CPI | 30.12.16 | 30.12.18 | 30.6, 30.12 | Linked to CPI | Hermetic Trust (1975) Ltd. Merav Offer. 113 Hayarkon St., Tel Aviv. Tel: 03-5544553. |
D | 25.04.10 04.05.11* | 400 146 | 546 | 546 | 2 | 551 | 1.328% (MAKAM+1.2%) | 30.12.17 | 30.12.21 | 30.3, 30.6, 30.9, 30.12 | Variable interest MAKAM (2) | Hermetic Trust (1975) Ltd. Merav Offer. 113 Hayarkon St., Tel Aviv. Tel: 03-5544553. |
E | 25.04.10 04.05.11* | 400 535 | 121 | 121 | 2 | 124 | 5.5% | 30.12.13 | 30.12.17 | 30.6, 30.12 | Not Linked | Mishmeret Trust Company Ltd. Rami Sebty. 48 Menachem Begin Rd. Tel Aviv.Tel:03- 6374355. |
F (1) | 20.07.17 | 255 | 255 | 255 | 1 | 260 | 2.16% | 25.06.20 | 25.06.24 | 25.6, 25.12 | Not Linked | Hermetic Trust (1975) Ltd. Merav Offer. 113 Hayarkon St., Tel Aviv. Tel: 03-5544553. |
Disclosure for Notes holders as of September 30, 2017 (cont.) Notes Rating Details*
Series | Rating Company | Rating as of 30.09.2017 and 22.11.2017 (1) | Rating assigned upon issuance of the Series | Recent date of rating as of 30.09.2017 and 22.11.2017 | Additional ratings between the original issuance date and the recent date of rating (2) | |
Date | Rating | |||||
C | S&P Maalot | ilA+ | ilAA- | 07/2017 | 07/2010, 09/2010, 10/2010, 09/2012, 12/2012, 06/2013, 07/2014, 07/2015, 07/2016, 07/2017 | ilAA-/Stable, ilAA-/Stable, ilAA-/Negative, ilAA-/Watch Neg, ilAA-/Negative, ilAA-/Stable, ilAA-/Stable, ilA+/Stable, ilA+/Stable, ilA+/Stable |
D | S&P Maalot | ilA+ | ilAA- | 07/2017 | ||
E | S&P Maalot | ilA+ | ilAA- | 07/2017 | ||
F | S&P Maalot | ilA+ | ilA+ | 07/2017 | 07/2017 | ilA+/Stable |
* 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
Summary of Financial Undertakings (according to repayment dates) as of September 30, 2017
12017 ישילשה ןועברל
₪ ןוילימ 932 -ב המכתסה 2Adjusted EBITDA ₪ ןוילימ 909 -ב םכתסה 2םאותמ ישפוח םירזת ₪ ןוילימ 888 -ל ₪ דראילימל תחתמ דרי 2וטנ בוח םויהל ןוכנ PARTNER TV תורישל םירבוחמ תיב יקשמ ףלא 30 תופיצרב ינש ןועבר הלע רלולסה ייונמ רפסמ)1026 ישילש ןועברל האוושהב( 1027 ישילש ןועבר תואצות ירקיע
3% לש הדירי ,)רלוד ןוילימ 234( ₪ ןוילימ 622 :תוסנכה ךס
5% לש הדירי ,)רלוד ןוילימ 169( ₪ ןוילימ 222 :םיתורישמ תוסנכה
2% לש היילע ,)רלוד ןוילימ 45( ₪ ןוילימ 121 :דויצמ תוסנכה
12% לש הדירי ,)רלוד ןוילימ 135( ₪ ןוילימ 477 :)2OPEX( תוילועפת תואצוה
9% לש היילע ,)רלוד ןוילימ 26( ₪ ןוילימ 239 :Adjusted EBITDA
22%-ל האוושהב תוסנכהה ךסמ 29% :2Adjusted EBITDA -ה רועיש
164% לש היילע ,)רלוד ןוילימ 15( ₪ ןוילימ 54 :הפוקתל חוור
₪ ןוילימ 661 לש הדירי ,)רלוד ןוילימ 251( ₪ ןוילימ 667 :וטנ בוח
₪ ןוילימ 13 לש הדירי ,)רלוד ןוילימ 57( ₪ ןוילימ 212 :)תיביר ינפל( םאותמ ישפוח םינמוזמ םירזת
3% לש הדירי ,)רלוד 16( ₪ 24 :)ARPU( רלולס יונמל תעצוממ תישדוח הסנכה
1% לש הדירי ,ןועברה ףוסל ןוכנ םייונמ ןוילימ 2.26 -כ :רלולס ייונמ סיסב
("הרבחה" וא "רנטרפ" ןלהל(
מ"עב תרושקת רנטרפ תרבח
- 1027
רבמבונב 12
,לארשי ,ןיעה שאר
םייתסהש ןועברל היתואצות לע םויה העידומ ,לארשיב הליבומ תרושקת תליעפמ ,(NASDAQ and TASE: PTNR)
.2017 רבמטפסב 31 -ב
:רנטרפ ל"כנמ ,יתשינבנב קיציא רמ ןייצ ,9058 ישילשה ןועברה תואצותל וסחייתהבתא תססבמ רלולסהו טנרטניאה יקוושב ונלש תיתועמשמה תוחכונה םע דחיב ,היזיוולטה קושל ונלש הקזחה הסינכה" שדוחב .ונלש תומדקומה תויזחתל סחיב םיהובג TV רנטרפל תוחוקלה סויג ינותנ .תללוכ תרושקת תצובקכ רנטרפ ךותב .רבוטקוא דע טסוגוא םישדוחל האוושהב ץאוה תוימויה תונקתהה רפסמו תוריכמה בצק רתוי דוע רבג ןורחאה
.תורקובמ ןניא וז העדוהב תוגצומה תוינועברה תויפסכה תואצותה .תילגנאה הפשב אוה בייחמה חסונה .דבלב תוחונ םוגרת וניה תירבעל םוגרתה 1
.וז העדוהב "GAAP -ל םאתהב אלש םייסנניפ םידדמב שומיש" קרפה תא האר םירחא Non-GAAP ידדמו הז Non-GAAP דדמ לש הרדגהל 2
TV רנטרפ תורישל םירבוחמ רבכש תיבה יקשמ רפסמ תעכו םיפסונ םיתב 11,111 -ב הנקתה ונמלשה ,שדוחמ תוחפ ומילשה רבכש ירחא שדוחה ףוסל דע הנקתה םיפסונ תיב יקשמ יפלא דועל המאות ,ףסונב .31,111 -כ לע דמוע
לדנאבה תועצהמ קלחכ היזיוולטה תוריש בולישב ורחב ,תורישל ופרטצהש תוחוקלה תיברמ
..תורישל תופרטצה
.טנרטניא תיתשתו קפס םג תוללוכ רשא ,ונלש לפירטהו
ירחסמה בלשל האיציה לע ונעדוה םג טסוגוא שדוחב ,תללוכ תרושקת תצובקכ ונלש תיגטרטסאה תינכותהמ קלחכ תמלתשמו רתוי תמדקתמ הפולח הנושארל רשפאמש ,Partner Fiber תיאמצעה םייטפואה םיביסה תיתשת טקיורפב
.לארשיב תומייקה תויווקה תויתשתהמ רתויתצאומ הסירפ ךשמהל םילעופ ונאו ץראה יבחרב תיב יקשמ יפלא תורשע לא רבכ םיעיגמ רנטרפ לש םייטפואה םיביסה היגולונכטה תא איבהל ךישמנ ,םינושה היצלוגרה ימרוג םעו תרושקתה דרשמ םע אלמ םואיתב .ליבקמב םירע רפסמב
.תוחוקל דועו דועל תיביטקרטא ךרע תעצה םע רתויב תמדקתמה
וטנ לודיג לש תופיצרב ינש ןועבר ונמשרו וטנ דייפ-טסופ תוחוקל 33,111 -כ ןורחאה ןועברב ונל ופסונ רלולסה רזגמב
".דייפ-ירפ תוחוקל 16,111 -כ לש ןוטיק תורמל תאזו ונלש רלולסה תוחוקל סיסבב
:2117 ישילשה ןועברה תואצותל סחייתהב ןייצ ,רנטרפ לש ישארה םיפסכה להנמ ,יחרזמ ודוד רמ
ןיב ,ואטבתה רשאו ,הנורחאה הנשב הרבחה תלמוע ןהילע תויוליעפהמ רכינ קלח יוטיב ידיל ואב ישילשה ןועברב" רועישב רכינ רופיש ,רלולסב יתרפס דח השיטנ רועיש לע הרימש ,דייפ-טסופ רלולס תוחוקל ףלא 33 לש לודיגב ,רתיה
הפוקתל סחיב
EBITDA -ה רועישב רופיש ,27%
לע ןועברב הדמע רשא דויצה תוליעפ לש תימלוגה תויחוורה
.₪ ןוילימ 212 לע דמעש קזח תיביר ינפל ישפוח םינמוזמ םירזת םע ףסונ ןועברו דקתשא הליבקמה
עיצהל הרבחל רשפאמ רשא הרבחה לש םיביסה טקיורפ תצאה תא רקיעב ףקשמ ןועברב תועקשהה ףקיה לודיגה קושל הסינכה תא םג ומכ ,יקסעה קושל ףסונב יטרפה קושל םג תיאמצע תיווק תיתשת תועצמאב םימדקתמ םיתוריש
.היזיוולטה
לחה תיביטקאורטר םשוימה )IFRS 15( שדח ימואלניב יפסכ חוויד ןקת םדקומ ץומיאב הצמיא הרבחה ישילשה ןועברב ילועפתה חוורב לודיגה .)םדקומ ץומיאב וצמאל ןתינ ,2116 ראוניב 1 -המ לחה ףקותב ןקתה( 2117 ראוניב 1 -המ לודיגה .המאתהב ,₪ ןוילימ 39 -ו ₪ ןוילימ 51 -ב םכתסה 2117 לש םינושארה םינועברה תשולשב הפוקתל חוורבו
אוה לודיגה .המאתהב ,₪ ןוילימ 15 -ו ₪ ןוילימ 19
-ב םכתסה 2117 ישילשה ןועברב הפוקתל חוורבו ילועפתה חוורב
.)הריכמה תולמעו רכשה תויולעמ קלח( תוחוקל םע םיזוח תגשה לש תויולע ןוויהמ האצותכ ורקיעב
-כ לש תואוולה לש םימדקומ תונועריפ רתיה ןיב ,םהב ,םינורחאה םישדוחה ךלהמב ונעציב םתוא םיסנניפה םיכלהמה תמועל ןומימה האצוהב תיתועמשמה הדיריב יוטיב ידיל םיאב ,השדח תרחסנ ח"גא תרדס סויגו ₪ דראילימ 1.9
,הזה ןועברב הרבחה הגיצה ותוא קזחה םינמוזמה םירזת םע בולישב םיסנניפה םיכלהמה .דקתשא הליבקמה הפוקתה ".₪ ןוילימ 667 -ל - ₪ דראילימל תחתמ לא דרי ןועברב הרבחה לש וטנ בוחהש ךכל ואיבה
תורעה | Q2'17 | Q3'17 | ₪ ינוילימ |
תוסנכהב יתנוע לודיגמ רקיעב תעבונ היילעה רלולסב הדידנ יתורישמ | 242 | 222 | םיתוריש תוסנכה |
159 | 121 | דויצ תוסנכה | |
615 | 622 | תוסנכה ךס | |
33 | 43 | דויצ תריכממ ימלוג חוור | |
תקשהמ תועבונה תואצוה ללוכ 2117 ישילש ןועבר הרבחה לש היזיוולטה תוליעפ | *472 | 477 | )OPEX( תוילועפת תואצוה |
המשר וב ןורחאה ןועברה היה 2117 ינש ןועבר םכסהל עגונב רדסה םע רשקב תוסנכה הרבחה ₪ ןוילימ 54 לש ףקיהב Orange גתומב שומישה םיתורישמ תוסנכהב לודיג ידי לע תיקלח זזוק רשא דויצ תריכממ ימלוגה חוורב היילעו | *229 | 239 | Adjusted EBITDA |
*42 | 54 | הפוקתל חוור | |
*76 | 117 | )ינזאמ( םיישחומ יתלב םיסכנו עובק שוכרל תופסות | |
216 | 212 | )תיביר ינפל( םאותמ ישפוח םירזת | |
1,161 | 667 | וטנ בוח |
2117 תנש תליחתמ לחה 15 רפסמ ימואלניב תואנובשח ןקת םושיי לש תיביטקאורטר העפשה םיללוכ םירפסמה *
תורעה | Q2'17 | Q3'17 | |
םייונמ ףלא 33 לש היילע | 2,273 | 2,306 | )םיפלא ,הפוקתה ףוסל( Post-Paid רלולס ייונמ |
םייונמ ףלא 16 לש הדירי | 369 | 371 | )םיפלא ,הפוקתה ףוסל( Pre-Paid רלולס ייונמ |
יתורישמ תוסנכהב תיתנוע היילעמ האצותכ רקיעב הדידנ | 22 | 64 | )ARPU( רלולס יונמל תעצוממ תישדוח הסנכה )₪( |
9.1% | 9.3% | )%( ינועבר רלולס השיטנ רועיש |
םיירקיע םיסנניפ םיד ד מ
יוניש % | Q3'16 | Q3'17 | )הינמל חוור טעמל( ₪ ינוילימ |
-3% | 849 | 622 | תוסנכה |
-11% | 691 | 225 | רכמה תולע |
+27% | 158 | 211 | ימלוג חוור |
+44% | 64 | 92 | ילועפת חוור |
+164% | 19 | 54 | הפוקתל חוור |
+127% | 0.12 | 1.32 | )₪ ,יסיסב( הינמל חוור |
-2% | 215 | 212 | )תיביר ינפל( םאותמ ישפוח םינמוזמ םירזת |
םיירקיע םיילועפת םיד ד מ
יוניש | Q3'16 | Q3'17 | |
+9% | 220 | 239 | )₪ ינוילימ( Adjusted EBITDA |
+3 | 26% | 29% | )תוסנכהה ךסמ %-כ( Adjusted EBITDA רועיש |
-12 | 2,693 | 2,277 | )םיפלא ,הפוקתה ףוסל( רלולס ייונמ רפסמ |
-1.4 | 9.7% | 9.3% | )%( ינועבר רלולס השיטנ רועיש |
-2 | 66 | 24 | )₪( )ARPU( רלולס יונמל תעצוממ תישדוח הסנכה |
רנט רפ ל ש תוד חואמה תוא צותה
דחואמ | ירזגמ ןיב | יווק רזגמ | ירלולס רזג | מ | ₪ ינוילימ | ||||||
יוניש % | Q3'16 | Q3'17 | Q3'16 | Q3'17 | יוניש % | Q3'16 | Q3'17 | יוניש % | Q3'16 | Q3'17 | |
-3% | 649 | 622 | )53( | )42( | -7% | 232 | 212 | -3% | 271 | 252 | תוסנכה ךס |
-5% | 296 | 222 | )53( | )42( | -12% | 221 | 194 | -3% | 531 | 514 | תוסנכה םיתוריש |
+2% | 151 | 121 | +63% | 12 | 22 | -1% | 139 | 136 | דויצ תוסנכה | ||
+44% | 24 | 92 | -32% | 26 | 16 | +112% | 32 | 74 | ילועפת חוור | ||
+9% | 221 | 239 | -22% | 24 | 51 | +21% | 152 | 169 | Adjusted EBITDA | ||
תיסנניפ הריקס
₪ ןוילימ 649 -מ 3% לש הדירי ,)רלוד ןוילימ 234( ₪ ןוילימ 622 -ב ומכתסה 2117 ישילש ןועברב תוסנכהה ךס
.2112 ישילש ןועברמ
ןוילימ 296 -מ 5% לש הדירי ,)רלוד ןוילימ 169( ₪ ןוילימ 222 -ב ומכתסה 2117 ישילש ןועברב םיתורישמ תוסנכה
.2112 ישילש ןועברמ ₪
לש הדירי ,)רלוד ןוילימ 142( ₪ ןוילימ 514 -ב ומכתסה 2117 ישילש ןועברב ירלולסה רזגמב םיתורישמ תוסנכה
-ב ןה( רלולס יתוריש לש םיריחמ תקיחש ךשמהמ הרקיעב העבנ הדיריה .2112 ישילש ןועברב ₪ ןוילימ 531 -מ 3%
.רלולסה קושב תכשמתמה תורחתהמ האצותכ ,)Pre-Paid -בו Post-Paid
12% לש הדירי ,)רלוד ןוילימ 55( ₪ ןוילימ 194 -ב ומכתסה 2117 ישילש ןועברב יווקה רזגמב םיתורישמ תוסנכה
ומכ תוימואלניב תוחישמ תוסנכהב ךשמתמ ןוטיק תפקשמ הדיריה .2112 ישילש ןועברב ₪ ןוילימ 221 -ל האוושהב
.םיפסונ םייווק םיתורישב םג
₪ ןוילימ 151 -מ 2% לש היילע ,)רלוד ןוילימ 45( ₪ ןוילימ 121 -ב ומכתסה ,2117 ישילש ןועברב דויצמ תוסנכהה
.םירצומה ליהמתב יונישמ ורקיעב עבנש לודיגה ,2112 ישילש ןועברמ
ןוילימ 26 -ל האוושהב ,)רלוד ןוילימ 12( ₪ ןוילימ 43 -ב םכתסה 2117 ישילש ןועברב דויצ תוריכממ ימלוגה חוורה
ליהמתב יונישמ האצותכ תוריכממ תויחוורה רועישב רופיש רקיעב תפקשמה 54% לש היילע ,2112 ישילש ןועברמ ₪
.תוריכמה
וא 12% לש הדירי ,)רלוד ןוילימ 135( ₪ ןוילימ 477 -ב ומכתסה ,2117 ישילש ןועברב )OPEX( תוילועפת תואצוה
,רלולסה תשר לועפתל תורושקה תואצוהב ןוטיקמ הרקיעב תעבונ הדיריה .2112 ישילש ןועברל האוושהב ₪ ןוילימ 93 הדירי םג ומכ ,םירתא ןיגב תוריכש תואצוהב ימעפ דח ןוטיק ,)IFRS 15( 15 רפסמ ימואלניב יסנניפ חוויד ןקת םושיי הרבחה לש חווטה תכורא תינכותמ קלחכ וטקננ רשא םינושה תולעייתהה יכילהת תא תופקשמה תופסונ תואצוהב היזיוולטה יתוריש תקשהל תורושקה תופסונ תואצוהב לודיג ידי לע יקלח ןפואב הזזוק רשא ,תויולעה סיסב תא תיחפהל לומגת ןיגב תואצוה רקיעב( תורחא תואצוהו תותחפהו תחפ תואצוה ללוכ תוילועפת תואצוה .2117 ינויב הרבחה לש
.2112 ישילש ןועברל האוושהב 14% -ב ודרי 2117 ישילש ןועברב ,)תוינמ ססובמ
ןוילימ 24 -ל האוושהב 44% לש היילע ,)רלוד ןוילימ 22( ₪ ןוילימ 92 -ב םכתסה 2117 ישילש ןועברב ילועפת חוור
.2112 ישילש ןועברב ₪
ןוילימ 221 -מ 9% לש הילע ,)רלוד ןוילימ 26( ₪ ןוילימ 239 -ב םכתסה 2117 ישילש ןועברב Adjusted EBITDA -ה ןועברב 22% -ל האוושהב 29% -ב םכתסה תוסנכהה ךותמ Adjusted EBITDA -ה רועיש .2112 ישילש ןועברמ ₪
.2112 ישילש
הילע ,2117 ישילש ןועברב )רלוד ןוילימ 54( ₪ ןוילימ 189 -ב םכתסה ירלולסה רזגמה לש Adjusted EBITDA -ה לודיגהו )ליעל רבסומכ( תוילועפתה תואצוהב הדיריה תא ףקשמ ,2112 ישילש ןועברמ ₪ ןוילימ 152 -מ 21% לש וניה 2117 ישילש ןועברש תורמלו םיתורישמ תוסנכהב הדירי ידי לע תיקלח הזזוק רשא דויצ תוריכממ ימלוגה חוורב שומישה םכסהל עגונב רדסה םע רשקב הסנכה לכ המשר אל הרבחה וב )2115 ינש ןועבר זאמ( ןושארה ןועברה 29% -ב םכתסה ירלולסה רזגמה תוסנכה ךותמ רלולסה רזגמ לש Adjusted EBITDA -ה רועיש .Orange גתומב
.2112 ישילש ןועברב 23% -ל האוושהב
לש הדירי ,)רלוד ןוילימ 14( ₪ ןוילימ 51 -ב םכתסה 2117 ישילש ןועברב יווקה רזגמה לש Adjusted EBITDA -ה הזזוק רשא םיתורישמ תוסנכהב הדיריה תעפשה תא רקיעב תפקשמה ,2112 ישילש ןועברמ ₪ ןוילימ 24 -מ 22% יווקה רזגמה לש Adjusted EBITDA-ה רועיש .דויצמ ימלוגה חוורב היילעו תוילועפתה תואצוהב הדיריה ידי לע תיקלח
.2112 ישילש ןועברב 26% -ל האוושהב 23% -ב םכתסה יווקה רזגמה תוסנכה ךותמ
31 -ל האוושהב 51% לש הדירי ,)רלוד ןוילימ 4( ₪ ןוילימ 15 -ב ומכתסה 2117 ישילש ןועברב ,וטנ ,ןומימה תואצוה
רתוי הכומנ בוח תמרמ האצותכ רתוי תוכומנ תיביר תואצוה הרקיעב תפקשמ הדיריה .2112 ישילש ןועברב ₪ ןוילימ
ןיקוליסה חול יפל ועצבתהש תונועריפמו
2117 ילוי-ינוי םישדוחב עצבתהש תואוולה לש םדקומ ןועריפמ תעבונה
.רתוי ךומנ ןכרצל םיריחמ דדממ תועבונה רתוי תוכומנ דדמ תודומצ תואצוהמ םג ומכ ,הרבחה לש ןנכותמה
ישילש ןועברב ₪ ןוילימ 15 -ל האוושהב ,)רלוד ןוילימ 7( ₪ ןוילימ 23 -ב ומכתסה 2117 ישילש ןועברב סמ תואצוה
.2112
ישילש ןועברב ₪ ןוילימ 19 לש חוורל האוושהב ,)רלוד ןוילימ 15( ₪ ןוילימ 54 -ב םכתסה 2117 ישילש ןועברב חוורה
.164% לש הילע 2112
וא הינמל חוודמה יסיסבה חוורה ,2117 ישילש ןועברב ךלהמב ערפנו קפנומה ןוהה לש ללקושמ עצוממ לע ססבתהב
.2112 ישילש ןועברב ₪ 1.12 לש חוורל האוושהב ,)רלוד 1.19( ₪ 1.32 -ב םכתסה ADS -ל
ירל ולסה רזגמ ה - תילועפת הריקס
-כב םכתסה )לייבומ 112 -ו ירלולס םדומ ייונמ ללוכ( הרבחה לש רלולסה ייונמ סיסב ,2117 ישילש ןועבר ףוסל ןוכנ Pre- ייונמ ףלא 371 -כו ,םייונמה סיסבמ 62% םיווהמה Post-Paid ייונמ ןוילימ 2.31 -כ ללוכה ,םייונמ ןוילימ 2.26
.םייונמה סיסבמ 14% םיווהמה Paid
ףלא 33 -כב הלע Post-Paid -ה ייונמ סיסב .םייונמ ףלא 15 -כב רלולסה ייונמ סיסב הלע 2117 ישילש ןועבר ךלהמב
.ףלא 16 -כב דרי Pre-Paid-ה ייונמ סיסבש דועב םייונמ
ןועברב 9.7%-ל האוושהב ,9.3% -ב םכתסה 2117 ישילש ןועברב רלולס ייונמ לש )Churn( ינועברה השיטנה רועיש
.2112 ישילש
אלל ,22% -ב ךרעומ 2117 ישילש ןועבר ףוסל ןוכנ )םייונמ רפסמ לע ססבתהב( הרבחה לש ירלולסה קושה חתנ
.2112 ישילש ןועברמ יוניש
22 -מ 3% לש הדירי ,)רלוד 16( ₪ 64 -ב )ARPU( רלולס ייונמל תעצוממה הסנכהה המכתסה 2117 ישילש ןועברב תורחתהמ האצותכ םייזכרמ רלולס יתורישב תכשמתמה הקיחשה תא רקיעב תפקשמ הדיריה .2112 ישילש ןועברב ₪
.רלולסה קושב תכשמתמה
תועקש הו ןומימ תריק ס
2% לש הדירי ,)רלוד ןוילימ 57( ₪ ןוילימ 212 -ב םאותמה ישפוחה םינמוזמה םירזת םכתסה 2117 ישילש ןועברב םוכסב 2112 ישילש ןועברב לייבומ טוהמ לבקתהש םולשתה לורטנב .2112 ישילש ןועברב ₪ ןוילימ 215 -ל האוושהב
.12% -ב הלע םאותמה ישפוחה םירזתה ,₪ ןוילימ 35 לש₪ ןוילימ 253 -מ ,2117 ישילש ןועברב )רלוד ןוילימ 67( ₪ ןוילימ 312 -ל 21%-ב הלע תפטוש תוליעפמ םירזת
םיסכנב
רתוי
הנטק
הדיריו
Adjusted EBITDA -ב
לודיגה
תא רקיעב
תפקשמ
היילעה
.2112
ישילש
ןועברב
.תוילועפתה תויובייחתההו
₪ ןוילימ 115 -ב םכתסה 2117 ישילש ןועברב )CAPEX( םיישחומ יתלב םיסכנבו עובק שוכרב תימירזת העקשה
IFRS15 םושיי תא רקיעב תאטבמ היילעה .2112 ישילש ןועברב ₪ ןוילימ 44 -מ 139% לש היילע ,)רלוד ןוילימ 31(
.היזיוולטה יתורישו םיביס תסירפל תורושקה תועקשהב היילעו )הריכמה תולמעו רכשה תואצוהמ קלח לש ןוויה(
₪ ןוילימ 1,726 -ל האוושהב ,)רלוד ןוילימ 251( ₪ ןוילימ 667 -ב םכתסה ,2117 ישילש ןועבר ףוסב וטנ בוחה ףקיה
.2112 ישילש ןועבר ףוסב
תויקסע תויוח תפתה
לש ותדמעומ .2117 רבמבונב 21 םויב הרבחב רוטקרידכ באז רב רמות רמ לש ויונימ תא רשיא הרבחה ןוירוטקריד ןידלו הרבחה ןונקתל םאתהב .הרבחב תירקיעה תוינמה תלעב ,מ"עב םוקלט לארשי .ב.ס ידי לע העצוה באז רב רמ
.תוינמה ילעב לש תיתנשה תיללכה הפיסאל דע רוטקרידכ ודיקפתב ןהכי באז רב רמ ,הילע לחה
ילטיגידה ןכותה םוחתב הליבומ הרבח ,2111 תנש זאמ ironSource תרבח לש ל"כנמהו דסיימה וניה באז רב רמ רב רמ .םירישכמ ינרציו םיירלולס םיליעפמ ,הנכות יחתפמ ,תויצקילפא יחתפמל הצפהו היצזיטנומ תונורתפ העיצמה
.הילצרה ימוחתניבה זכרמהמ בשחמה יעדמב ןושאר ראות לעב אוה באז
תרושקתה םוחתמ תורבח םע הקימעמ תורכה
לעבו תורחא פא-טראטס תורבחב ליעפ עיקשמ
וניה
באז רב רמ
.היגולונכטהו
תויר וט ל וגר תויוח תפתה
תרטמ .ףקותל הסנכנ קזב לש תיביסאפה תיתשתה שומישל עגונב תרושקתה דרשמ לש היצלוגר ,2115 טסוגואב
,םידומע ,םיבוג ,תולעת ,ןוגכ( קזב לש תויביסאפה תויתשתב שומיש םירחא םיליעפמל רשפאל הניה וזה היצלוגרה
.תוהובג השילג תויוריהמ תרשפאמה תיאמצע םייטפוא םיביס תיתשת סורפל םיליעפמל רשפאל תנמ לע )'וכו תואספוק ךותב הדובע לכ ,)2115 רבמבונב 1 -ה דע ףקותב ויה רשא( תעה התואב דרשמה לש תוינמזה תוארוהה יפ לע ףכא אל תרושקתה דרשמ ,הרבע םייניבה תפוקתש ףא לע .קזב ידבוע ידי לע עצבתת קזב לש תיביסאפה תיתשתה
.ליעל םושרה תא קזב לע יביטקפא ןפואב
תויביסאפה תויתשתל השיג רשפאל קזב תויוביוחמ תא עבק רשא( 2117-2116 םינשל םירדסהה קוח תקיקח תובקעב הסרפ קזב .הלש תויביסאפה תויתשתל השיג רשפאל התוביוחמ תא יקלח ןפואב םייקל הלחה קזב ,)קוחה תרגסמב
.הלש םדאה חוכב שומיש ךות םיליעפמל םייטפוא םיביס ילבכ רפסמ
סורפל )רנטרפ ללוכ( םירחא םייצרא םינפ םיליעפמל רשפאל קזבל הרוה תרושקתה דרשמ ,2117 רבוטקואב 19 -ב לעב וניה הז יוניש .)קזב לש םדא חוכב שומיש ךות אלו( םהלש םינלבקב שומיש תועצמאב םייטפוא םיביס ילבכ
.רנטרפ לש םיביסה תיתשת לש הסירפה תוריהמ תא יתועמשמ ןפואב ץיאהל לאיצנטופ
IFRS 15
ץומיאב וצמאל ןתינ ,2116 ראוניב 1 -המ לחה ףקותב ןקתה( םדקומ ץומיאב הצמיא הרבחה ,2117 לש ישילשה ןועברב םע םיזוחמ תוסנכה ,15 רפסמ ימואלניב תואנובשח ןקת תא )"רבעמה דעומ" :ןלהל( 2117 ראוניב 1 -המ לחה )םדקומ תואנובשחה ינקת תא ףילחמ רשא ,תוחוקל םע םיזוחמ הסנכהב הרכהל ףיקמו דיחא לדומ עבוק רשא ,תוחוקל םיבלש השימח ללוכ לדומה .)"םימדוקה םינקתה" :ןלהל( המקה יזוח ,11 רפסמו ,תוסנכה ,16 רפסמ םיימואלניבה
:םוכס הזיאבו הסנכהב ריכהל שי יתמ עובקל ידכ תואקסע חותינל
חוקלה םע הזוחה יוהיז )1
הזוחב תודרפנ עוציב תויוביוחמ יוהיז )2
הזוחה תרומת יוהיז )3
תודרפנה עוציבה תויוביוחמל הזוחה תרומת תאצקה )4
חוקלל עוציבה תויוביוחמ תא תקפסמ הרבחה רשאכ הסנכהב הרכה )5
תססובמ הסנכהב הרכהה .םיתוריש וא תורוחסב הטילש גישמ חוקלה רשאכ הסנכהב הריכמ הרבחה ,לדומל םאתהב תוסנכה טעמל ,חוקלל הזוחב וחטבוהש םיתורישה וא תורוחסה תקפסא תרומת לבקל הפוצ הרבחהש הרומתה לע
.היופצ היבגה רשאכו ישילש דצ רובע תובגנש
.האוושהה ירפסמ תא ןקתל ילבמ ,רבעמה דעומל תרבטצמה העפשהה תטיש יפל
IFRS15 תא המשיי הרבחה
ןהיפל ,ולש רבעמה תוארוהב ועבקנש תולקהה תא םשייל הרחב הרבחה ,ןקתה לש הנושארל םושייה תרגסמב יבגל יאנובשחה לופיטב יוניש ןיא ןכלו ,רבעמה דעומב ומלשוה םרטש םיזוח יבגל קר בשוחת תרבטצמה העפשהה ועריאש םיזוח ייוניש ץבוקמב ונחבנ היפל רבעמה תוארוהב הלקה המשיי םג הרבחה .רבעמה דעומל ומלשוהש םיזוח אלל תע לכב םלטבל יאשר חוקלה רשאו שדוח ידימ םישדחתמש םיזוח .דרפנב םתוא ןוחבל םוקמב ,רבעמה דעומ ינפל לע העיפשה אלו תיתוהמ אל התייה רבעמה דעומל תרבטצמה העפשהה .רבעמה דעומב ומלשוהש םיזוחכ ובשחנ סנק
.םייפסכה תוחודה
תוארוהל האוושהב חווידה תפוקתב הסנכהב הרכהה ידעומו הדידמה לע תיתוהמ העפשה התייה אל ןקתה םושייל
.םימדוקה םינקתה
רשא ,תוחוקל םע םיזוח תגשהל תויתפסותה תויולעב יאנובשחה לופיטה איה ןקתה םושיי לש תירקיעה העפשהה
,תויולעה ןתוא תא בישהל לכות הרבחהש יופצ ןכו תוחוקל םע םיזוח תגשהל תויתפסות ןה םא סכנכ ורכוי ,ןקתל םאתהב
תורישי תואצוהב סכנכ ריכהל שיש עבוק םג ןקתה .ןתווהתה םע דספהו חוור חודב הלא תואצוהב הרכה
םוקמב
םישמשמש ,הרבחה לש םיבאשמ תוחיבשמ וא תורציימ רשאו הזוחה עוציבל תורושקכ תיפיצפס תוהזל הלוכי הרבחהש תויתפסות תויולע( )הלא תויולע בישהל לכות הרבחהש יופצו( תוידיתע עוציב תויוביוחמ תקפסא ךרוצל הרבחה תא
ימירזתמ קלחכ םינמוזמה ימירזת לע חודב תוגצומ םיסכנכ ורכוהש הזוח תויולע .)"הזוח תויולע" :דחיב
תורישיו
.העקשה תוליעפל ושמישש םינמוזמה
תואצוהכ םוקמב הזוח תגשה ןיגב םיסכנכ ורכוה םיגורדשו תוריכמ ןיגב תורישי םידבועלו םיקוושמל ומלושש תולמע תטישב שומיש ךות ,)םינש 3 דע 2 רקיעב( היופצה תורישה תפוקתל םאתהב םיתחפומ הלא םיסכנ .דספהו חוור חודב
.וילופטרופה
.תילגנאה הפשב חסונב "Effect of IFRS15 implementation" םג האר ,םייפסכה תוחודה לע IFRS 51 תעפשהל
הדיעו תחיש יט רפ
רקובב 11:11( לארשי ןועש 17:11 העשב 2117 רבמבונב 21 ישילש םויב הדיעו תחיש םייקת תרושקת רנטרפ תרבח
.)קרוי וינ ןועש
:החישב ףתתשהל תנמ לע )החישה תליחת ינפל תוקד 11 תוחפל( ןלהל םירפסמל וגייח אנא
+972.3.918.0687 :ימואלניב ;+1.866.860.9642 :)םניח רפסמ( הקירמא ןופצ רנטרפ לש םיעיקשמה ירשק רתא ךרד הל ןיזאהל לכוי ןיינועמה לכו ,טנרטניאב יח רודישב רבעות ,הדיעוה תחיש
/http://www.partner.co.il/en/Investors-Relations/lobby :ב
היהתש החישה לש תרזוח העמשהל ןופלטה ירפסמה םה ולא ,יח רודישב החישל ןיזאהל םילוכי םניאש הלא ןעמל
:ןלהלש םירפסמב 2117 רבמצדב 12 -ה דעו 2117 רבמבונב 21 -המ הנימז
+972.3.925.5940 :ימואלניב ,+1.877.456.0009 :הקירמא ןופצ
.םישדוח השולשכ ךשמל יחה רודישה םייקתמ וב רתא ותואב טנרטניאב ןימז היהי החישה לש רזוחה רודישה ,ףסונב
די תע י נפ תו פוצ תו רי מא
,5311 תנשמ תירבה תוצראב ךרע תוריינ קוחל 72A ףיעסב ןתועמשמכ דיתע ינפ תופוצ תורימא תללוכ תאז העדוה Safe-ה תוארוה פ"עו ,ןקותש יפכ ,5311 תנשמ תירבה תוצראב ךרע תוריינל תוסרובה קוחל 75E ףיעסבו ,ןקותש יפכ
,"ןימאמ" ,"ךירעמ" ןוגכ םילמ .5331 תנשמ US Private Securities Litigation Reform Act -ה קוחב ,Harbor ךרדב םימוד םייוטיבו םהיתויטהו "הרטמ" ,"דעי" ,"הפוצ" ,"יושע" ,"ןכתיי" ,"ןנכתמ" ,"הצור" ,"ףאוש" ,"ןווכתמ" ,"הפצמ" תוינטרפ תורימא .הלא תורימא תוראתמה תודיחיה םילימה ןניא הלא םילימ ךא ,דיתע ינפ תופוצ תורימא םיראתמ ללכ הדבוע ןויצ טעמל ,הרימא לכ ,ףסונב .תיטפואה םיביסה תיתשת תסירפל הרבחה לש היופצה הצאהל סחיב ורמאנ
.דיתע ינפ הפוצ הרימא איה ,ונלש םיידיתע םיעוציבל עגונב ,וז העדוהב תללכנה ,תירוטסיה םיעוריא רבדב ונלש תויחכונה תויפיצהו תונומאה לעו ונלש יחכונה עדיה לע הלא דיתע ינפ תופוצ תורימא ונססיב לש היופצה הצאהה תוברל תוחנהבו תויואדוו יא ,םינוכיסב תוכורכ הלא דיתע ינפ תופוצ תורימא .םיירשפא םיידיתע
)רנטרפ ללוכ( םירחא םייצרא םינפ יליעפמל רשפאל קזבל תרושקתה דרשמ תארוה םאה ,םייטפואה םיביסה תסירפ םאה וא ףכאית וא דבוכת )קזב ידבועב שומישב ךרוצ אלל( םהלשמ םינלבק תועצמאב םייטפוא םיביס ילבכ סורפל םיביסה תיתשתמ םינהנה תוחוקלה רפסמ תא לידגהל ךישמהל תנמ לע םישורדה םייסנניפה םיבאשמה ויהי הרבחל סחיב ףסונ עדימל .ןאכ תויופצה הלאמ יתוהמ ןפואב תונוש תויהל תולוכי תוידיתעה תואצותה .הרבחה לש םייטפואה םיאנתה תעפשה ,יללכ ןפואב תילארשיה תרושקתה תיישעתב תומגמ ,רנטרפ יבגל תוחנהו תויואדוו יא ,םינוכיסל
,םידדומתמ ונא םתיא םיפסונ םינוכיסו תוירשפא תויטפשמו תוירוטלוגר תויוחתפתהו םייוושכעה םיילבולגה םיילכלכה םיילועפת םייוכיסו הריקס .1 ףיעס" ,"הרבחה יבגל עדימ .1 ףיעס" ,"ןוכיס ימרוג .1D - ירקיע עדימ .1 ףיעס" ואר אנא םייטפשמ םיכילהת 8A.1 - רחא יסנניפ עדימו םידחואמ םייפסכ תוחוד .8A - יסנניפ עדימ .8 ףיעס" ,"םייסנניפו תוריינל תושרל ושגוה רשא )20-F( םייתנשה תוח"ודב "קוש ינוכיס לש יתוכיאו יתומכ יוליג .55 ףיעס"-ו "םייתלהנמו ןיא .6-K ספוט יבג לע תירבה תוצראב ךרע תוריינל תושרל ושגוה רשא םידיימ םיחוויד םג ומכ ,תירבה תוצראב ךרע הביס לכמ וא םיידיתע םיעוריאמ ,שדח עדיממ האצותכ ,דיתע ינפ תופוצ תורימא ןקתל וא יבמופב ןכדעל םיבייחתמ ונא
.תרחא
.תורקובמ אל תויסנניפ תואצות ןה וז העדוהב תוגצומה תוינועברה תויסנניפה תואצותה
Use " האר( GAAP -ל םאתהב אלש םיסנניפ םידדמ דבלמ ,)IFRS( םיאנובשחה תונורקעל םאתהב ונכוה תואצותה
.)תילגנאה הפשב חסונב "of Non-GAAP Financial Measures
.םאתהב םילגועמ םיגצומה םינותנהו )תרחא ןיוצ םא טעמל( ₪ ינוילימב גצומ יסנניפה עדימה
10 םויל ןוכנ רלודה רעש יפל התשענ םיאקירמא םירלודל
)₪(
םישדח םילקשמ םינותנה תרמה ,תוחונ ימעטמ
.ארוקה תוחונ ןעמל קרו ךא ושענ תורמהה לכ .₪ 1.173 הווש דחא יאקירמא רלוד :7052 רבמטפסב
GAAP - ל םא תה ב אל ש םייסנניפ םיד ד מב שומיש IFRS -ה יפל םייסנניפ םידדמ םניא הלא םידדמ .GAAP -ל םאתהב אלש םייסנניפ םידדמב שומיש השענ וז העדוהב תווהל אלש םילוכי םידדמה ,ןכ-ומכ .תורחא תורבחב םימוד תומש ילעב םידדמל האוושה ירב תויהל אלש םילוכיו
םידדמה לש תורדגהל
.דיתעב תוירשפא תואצות תופצל םירומא םניאו הרבחה לש רבעה יעוציב יבגל היצקידניא
הפשב חסונב "Use of Non-GAAP Financial Measures" האר ,וז העדוהב שומיש השענ םהבש םייסנניפה
.תילגנאה
תרוש קת רנט רפ תוד וא
הינופלט ,תדיינ( תרושקת יתוריש תקפסמה לארשיב הליבומ תרושקת תליעפמ איה מ"עב תרושקת רנטרפ תרבח (Global Select Market) ק"דסאנב תורחסנ רנטרפ לש ADS-ה תודועת .)היזיוולט יתורישו טנרטניא יתוריש ,תחיינ
.)PTNR :TASE -ו NASDAQ( ביבא-לת תסרובב תורחסנ הרבחה לש היתוינמו
.www.partner.co.il/en/Investors-Relations/lobby/ :רנטרפ לע םיפסונ םיטרפל
:ףסונ עדימל טפש רזלג תאילםיטקיורפו םיעיקשמ ירשק תלהנמ
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Partner Communications Company Ltd. published this content on 21 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 November 2017 08:08:09 UTC.
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