Partner Communications Reports Second Quarter 2021 Results[1]
08/18/2021 - 02:11 AM
ROSH HA'AYIN, Israel , Aug. 18, 2021 /PRNewswire/ --
Second quarter 2021 highlights (compared with second quarter 2020)
Total Revenues: NIS 840 million (US$ 258 million ), an increase of 9% Service Revenues: NIS 649 million (US$ 199 million ), an increase of 5% Equipment Revenues: NIS 191 million (US$ 59 million ), an increase of 21% Total Operating Expenses (OPEX) 2 : NIS 485 million (US$ 149 million ), an increase of 6% Adjusted EBITDA: NIS 213 million (US$ 65 million ), an increase of 6% Profit for the Period: NIS 9 million (US$ 3 million ), an increase of NIS 2 million Adjusted Free Cash Flow (before interest) 2 : NIS 8 million (US$ 2 million ), a decrease of NIS 36 million Cellular ARPU: NIS 48 (US$ 15) , a decrease of 6% Cellular Subscriber Base: approximately 2.97 million at quarter-end, an increase of 10% Fiber-Optic Subscriber Base: 173 thousand subscribers at quarter-end, an increase of 72 thousand subscribers since Q2 2020, and an increase of 18 thousand in the quarter Homes Connected (HC) to Partner's Fiber-Optic Infrastructure: 571 thousand at quarter-end, an increase of 175 thousand since Q2 2020, and an increase of 57 thousand in the quarter Infrastructure-Based Internet Subscriber Base: 354 thousand subscribers at quarter-end, an increase of 59 thousand subscribers since Q2 2020, and an increase of 15 thousand in the quarter TV Subscriber Base : 223 thousand subscribers at quarter-end, an increase of 8 thousand subscribers since Q2 2020, and a decrease of 11 thousand in the quarter. Excluding subscribers removal, as explained below, the subscriber base increased by 10 thousand in the second quarterPartner Communications Company Ltd. ( "Partner " or the "Company ") (NASDAQ: PTNR) (TASE: PTNR), a leading Israeli communications provider, announced today its results for the quarter ended June 30, 2021 .
Commenting on the results for the second quarter 2021, Mr. Avi Zvi , CEO of Partner, noted:
"In the second quarter, Partner continued to lead the Israeli communications market in innovation and in business activity growth, while maintaining profitability - even at a time when the impact of COVID-19 is still noticeable.
Since I took office in June, I've been learning how the Company works, getting to know its employees and formalizing, with the management team and board members, a new company structure that will lead Partner in the future. I have discovered a Company with human capital of the first degree and management agility that, along with its financial strength, will advance Partner towards new and significant projects.
Along with strategy building and Partner's new structure, we have begun to take steps in order to promote even further Partner's leadership in customer service and to increase the profitability in product lines and operational segments of the Company."
Mr. Tamir Amar , Partner's Deputy CEO & Chief Financial Officer, commented on the results:
"In the second quarter of 2021, growth in revenues continued while maintaining a cost structure that enabled growth in profit. A moderate return of roaming service revenues along with an increase in the subscriber base led to cellular service revenue growth compared to the corresponding period last year. The fixed-line segment's growth trajectory continued along with an improvement in Adjusted EBITDA.
Our cellular subscriber base totaled 2.97 million at quarter-end, an increase of 67 thousand in the quarter, of which 31 thousand were subscribers of data and voice packages provided to students with a fixed twelve-month package by the Ministry of Education as part of their COVID-19 program. Excluding these subscribers, the increase in Post-Paid subscribers totaled 36 thousand this quarter. The churn rate in the quarter amounted to 7.2% , compared to 7.5% in the corresponding quarter last year. ARPU in the quarter totaled NIS 48 compared to NIS 51 in the corresponding quarter last year, the decrease mainly reflecting the continued price erosion, although to a lesser extent, and the decrease in interconnect revenues, which were partially offset by a moderate increase in roaming service revenues.
In the fixed-line segment, we continued to focus on connecting buildings to the Company's fiber-optic infrastructure. The number of homes connected within buildings connected to our fiber-optic infrastructure was 571 thousand at the end of the quarter, an increase of 57 thousand in the quarter.
Partner's fiber-optic subscriber base totaled 173 thousand at the end of the quarter, an increase of 18 thousand in the quarter and of 34 thousand since the beginning of the year, reflecting a 30% penetration rate from potential customers in connected buildings. Regarding our television services, the subscriber base grew by 10 thousand in the second quarter of 2021, excluding the impact of the removal that we carried out of subscribers who had joined the Company at various times and had remained in trial periods of over six months without charge or usage. Including the impact of the removal, the reported subscriber base decreased by 11 thousand in the quarter.
The results for the second quarter of 2021 reflect the Company's budgetary discipline. The level of OPEX remained stable whilst our subscriber base increased, and television content was expanded to include the "SPORT ONE" premium channels and others. Note that the OPEX level in the corresponding quarter last year was lower than usual due to a decrease in payroll and related expenses mainly due to employees being placed on unpaid leave during the quarter as a result of COVID-19.
In addition, the results of the second quarter of 2021 include a provision for the Company's contribution to the government-mandated fiber incentive fund in an amount of NIS 6 million . The purpose of the fund, which is funded by telecoms infrastructure and service providers, is to provide an incentive for telecoms operators (excluding Bezeq and its Group members) to deploy fiber-optic infrastructure in areas which are not included in the committed areas of Bezeq's fiber-optic roll-out plan as provided to the Ministry of Communications. We estimate that a similar amount shall be provisioned for the fund during the second half of the year.
Adjusted EBITDA in the second quarter of 2021 totaled NIS 213 million , an increase of 6% compared to the corresponding quarter last year and an increase of 10% excluding the fiber incentive fund provision.
Looking ahead, the Company expects the moderate recovery in roaming service revenues, due to the continued increase in air travel, to continue in the third quarter of 2021. However, a retreat is possible in view of the possible implications of the new COVID-19 variants for air travel.
Adjusted Free Cash Flow (before interest and including lease payments) for the quarter totaled NIS 8 million, and CAPEX payments for the quarter totaled NIS 139 million .
Net debt stood at NIS 670 million at the end of the quarter, compared with NIS 658 million at the end of the corresponding quarter last year, an increase of NIS 12 million . The financial robustness of the Company remains strong, with the Company's net debt to Adjusted EBITDA ratio at 0.8 at the end of the quarter."
Q2 2021 compared with Q2 2020
NIS Million (except EPS)
Q2'20
Q2'21
Comments
Service Revenues
616
649
The increase reflected growth in fixed-line and cellular
Equipment Revenues
158
191
The increase reflected a higher volume of equipment
Total Revenues
774
840
Gross profit from equipment sales
30
39
OPEX
456
485
The increase mainly reflects the cost-cutting measures
Operating profit
20
30
Excl. fund provision, operating profit in Q2'21 totaled NIS
Adjusted EBITDA
200
213
Excl. fund provision, Adjusted EBITDA in Q2'21 totaled
Adjusted EBITDA as a percentage
26%
25%
Profit for the period
7
9
Earnings per share (basic, NIS)
0.04
0.05
Capital Expenditures (cash)
119
139
Adjusted free cash flow (before
44
8
Net Debt
658
670
Key Performance Indicators
Q2'20
Q1'21
Q2'21
Change QoQ
Cellular Subscribers (end of
2,708
2,903
2,970
Post-Paid: Increase of 67 thousand from Q1'21
Pre-Paid: Unchanged from Q1'21
Monthly Average Revenue per
51
48
48
Quarterly Cellular Churn Rate (%)
7.5%
6.8%
7.2%
Fiber-Optic Subscribers (end of
101
155
173
Increase of 18 thousand subscribers
Homes Connected to the Fiber-
396
514
571
Increase of 57 thousand households
Infrastructure-Based Internet
295
339
354
Increase of 15 thousand subscribers
TV Subscribers (end of period,
215
234
223
Decrease of 11 thousand subscribers. An
Partner Consolidated Results
Cellular Segment
Fixed-Line Segment
Elimination
Consolidated
NIS Million
Q2'20
Q2'21
Change %
Q2'20
Q2'21
Change %
Q2'20
Q2'21
Q2'20
Q2'21
Change %
Total Revenues
539
577
+7%
272
296
+9%
(37)
(33)
774
840
+9%
Service Revenues
409
420
+3%
244
262
+7%
(37)
(33)
616
649
+5%
Equipment Revenues
130
157
+21%
28
34
+21%
-
-
158
191
+21%
Operating Profit (Loss)
13
35
+169%
7
-5
-
-
-
20
30
+50%
Adjusted EBITDA
129
139
+8%
71
74
+4%
-
-
200
213
+6%
Financial Review
In Q2 2021, total revenues were NIS 840 million (US$ 258 million ), an increase of 9% from NIS 774 million in Q2 2020.
Service revenues in Q2 2021 totaled NIS 649 million (US$ 199 million ), an increase of 5% from NIS 616 million in Q2 2020.
Service revenues for the cellular segment in Q2 2021 totaled NIS 420 million (US$ 129 million ), an increase of 3% from NIS 409 million in Q2 2020. The increase was mainly the result of higher roaming service revenues which was partially offset by a decrease in interconnect revenues.
Service revenues for the fixed-line segment in Q2 2021 totaled NIS 262 million (US$ 80 million ), an increase of 7% from NIS 244 million in Q2 2020. The increase mainly reflected higher revenues from the growth in internet and TV services, which were partially offset by a decline in revenues from international calling services.
Equipment revenues in Q2 2021 totaled NIS 191 million (US$ 59 million ), an increase of 21% from NIS 158 million in Q2 2020, mainly reflecting higher retail equipment sales in both the cellular and fixed-line segments due to the adverse impact of the COVID-19 crisis on retail customer sales in Q2 2020.
Gross profit from equipment sales in Q2 2021 was NIS 39 million (US$ 12 million ), compared with NIS 30 million in Q2 2020, an increase of 30% , mainly reflecting the recovery from COVID-19 impact on Q2 2020 and a change in the product mix which led to an increase in the average profit per sale.
Total operating expenses ('OPEX') totaled NIS 485 million (US$ 149 million ) in Q2 2021, an increase of 6% or NIS 29 million from Q2 2020. The increase mainly reflected, on the one hand, lower payroll and related expenses in Q2 2020 mainly due to employees placed on unpaid leave during the quarter as a result of the COVID-19 crisis, as well as other savings related to COVID-19, and on the other hand, a provision of NIS 6 million that was recorded (mainly in the cellular segment) in Q2 2021 for the government-mandated fiber incentive fund.
OPEX including depreciation and amortization expenses and other expenses (mainly amortization of employee share based compensation) increased in Q2 2021 by 5% compared with Q2 2020.
Operating profit for Q2 2021 was 30 million (US$ 9 million ), an increase of 50% compared with NIS 20 million in Q2 2020.
Adjusted EBITDA in Q2 2021 totaled NIS 213 million (US$ 65 million ), an increase of 6% from NIS 200 million in Q2 2020. Adjusted EBITDA margin in Q2 2021 was 25% compared with 26% in Q2 2020. Excluding the provision for the fiber incentive fund, Adjusted EBITDA in Q2 2021 totaled NIS 219 million , an increase of 10% from the corresponding quarter in 2020 and a margin of 26% of total revenues.
Adjusted EBITDA for the cellular segment was NIS 139 million (US$ 43 million ) in Q2 2021, an increase of 8% from NIS 129 million in Q2 2020. The increase largely reflected the increases in revenues and in gross profit from equipment sales, as well as a decrease in interconnect expenses, partially offset by higher payroll and related expenses (see explanation above) and the impact on the cellular segment of the provision for the fiber incentive fund . As a percentage of total cellular segment revenues, Adjusted EBITDA for the cellular segment was 24% in Q2 2021, unchanged from Q2 2020.
Adjusted EBITDA for the fixed-line segment was NIS 74 million (US$ 23 million ) in Q2 2021, an increase of 4% from NIS 71 million in Q2 2020. The increase mainly reflected the increases in revenues and in gross profit from equipment sales which were partially offset by increases in content expenses and in higher payroll and related expenses (see explanation above). As a percentage of total fixed-line segment revenues, Adjusted EBITDA for the fixed-line segment was 25% in Q2 2021, compared with 26% in Q2 2020.
Finance costs, net in Q2 2021 were NIS 16 million (US$ 5 million ), an increase of 23% compared with NIS 13 million in Q2 2020.
Income tax expenses in Q2 2021 were NIS 5 million (US$ 1 million ), compared with no tax expenses in Q2 2020.
Profit in Q2 2021 was NIS 9 million (US$ 3 million ), an increase of 29% compared with a profit of NIS 7 million in Q2 2020.
Based on the weighted average number of shares outstanding during Q2 2021, basic earnings per share or ADS, was NIS 0.05 (US$ 0.0 2 ) compared with NIS 0.04 in Q2 2020.
Cellular Segment Operational Review
At the end of Q2 2021, the Company's cellular subscriber base (including mobile data, 012 Mobile subscribers and M2M subscriptions) was approximately 2.97 million, including approximately 2.62 million Post-Paid subscribers or 88% of the base, and 355 thousand Pre-Paid subscribers, or 12% of the subscriber base.
During the second quarter of 2021, the cellular subscriber base increased, net, by 67 thousand subscribers. The Post-Paid subscriber base increased, net, by 67 thousand subscribers and the Pre-Paid subscriber base remained unchanged. The increase in the Post-Paid subscriber base included approximately 30 thousand subscribers of data packages and one thousand subscribers of voice packages provided to students with a fixed twelve-month period by the Ministry of Education as part of their COVID-19 program.
Total cellular market share (based on the number of subscribers) at the end of Q2 2021 was estimated to be approximately 28% , compared with 27% at the end of Q1 2021 and 25% at the end of Q2 2020.
The quarterly churn rate for cellular subscribers in Q2 2021 was 7.2% , compared with 6.8% in Q1 2021 and 7.5% in Q2 2020.
The monthly Average Revenue per User ("ARPU") for cellular subscribers in Q2 2021 was NIS 48 (US$ 15) , a decrease of 6% from NIS 51 in Q2 2020, mainly due to the continued price erosion, although to a lesser extent, and the decrease in interconnect revenues, which were partially offset by the increase in roaming service revenues.
Fixed-Line Segment Operational Review
At the end of Q2 2021:
The Company's fiber-optic subscriber base was 173 thousand subscribers, an increase, net, of 18 thousand subscribers during the second quarter of 2021. The Company's infrastructure-based internet subscriber base (fiber subscribers and wholesale market subscribers) was 354 thousand subscribers, an increase, net, of 15 thousand subscribers during the second quarter of 2021. Households in buildings connected to our fiber-optic infrastructure (HC) totaled 571 thousand, an increase of 57 thousand during the second quarter of 2021. The Company's TV subscriber base totaled 223 thousand subscribers, a decrease, net, of 11 thousand subscribers during the second quarter of 2021. In the second quarter of 2021, the Company removed from its TV subscriber base approximately 21,000 subscribers who had joined the company at various times and had remained in trial periods of over six months without charge or usage. Excluding this removal, the subscriber base increased by 10 thousand in the second quarter. Funding and Investing Review
In Q2 2021, Adjusted Free Cash Flow (including lease payments) totaled NIS 8 million (US$ 2 million ), a decrease of NIS 36 million compared with NIS 44 million in Q2 2020.
Cash generated from operating activities totaled NIS 179 million (US$ 55 million ) in Q2 2021, a decrease of 7% from NIS 193 million in Q2 2020.
Lease payments (principal and interest) , recorded in cash flows from financing activities under IFRS 16, totaled NIS 32 million (US$ 10 million ) in Q2 2021, a decrease of 3% from NIS 33 million in Q2 2020.
Cash capital expenditures (CAPEX payments) , as represented by cash flows used for the acquisition of property and equipment and intangible assets, were NIS 139 million (US$ 43 million ) in Q2 2021, an increase of 17% from NIS 119 million in Q2 2020.
The level of net debt at the end of Q2 2021 amounted to NIS 670 million (US$ 206 million ), compared with NIS 658 million at the end of Q2 2020, an increase of NIS 12 million .
Regulatory Developments
Call for Public Comments on the incentive tenders for the deployment of FTTH networks
Further to the description in the Company's 2020 Annual Report-Item 4B -12e-vii "Amendment to the Communications law regarding the deployment of fiber-optic infrastructures in Israel ", in July 2021 the Ministry of Communications published a Call for Public Comments (the "Call") regarding the principles of the tender processes (the "Incentive Tenders") it plans to apply for incentivizing the rollout of FTTH (fiber to the home) networks in areas in which Bezeq has decided not to deploy its FTTH network.
For each statistical area in which Bezeq has decided not to deploy its FTTH network, a licensee would be chosen (by a tender process) to deploy an FTTH network to all households in said area. The winning bidder will receive a financial stimulus for such deployment from an incentive fund and will be obliged to deploy an FTTH network in this area (but will also be obliged to provide other licensees with a wholesale BSA (bit stream access) service on its FTTH network in said area). Bezeq and its subsidiaries would not allowed to deploy a fiber optic network in these areas for a period of five years.
Among other issues, the Call specified the tender mechanism for selecting the winning bidders. In order to allow for economies of scope and maximize the use of subsidy funds, the Ministry intends to apply an auction mechanism known as a "first-price package auction". This mechanism allows each bidder to submit a number of bids for one, or more, statistical areas (up to 1,000 bids per bidder). Each bid would also be required to specify the amount of money the bidder requires for deploying an FTTH network to all households in the statistical areas included in said bid.
The winning bids would be selected by an algorithm which would identify the optimal combination of bids – the combination which maximizes the number of households to be connected to an FTTH network, given the amount of money available to incentive fund for the relevant year. The Company has filed a detailed position in response to the Call.
Folkman Committee Recommendations
In September 2020 , the Minister of Communications appointed a committee assigned with re-examining the overall regulatory regime applicable to the broadcasting segment in Israel (the "Folkman Committee"). See the Company's 2020 Annual Report-Item 3D.1.f.
In July 2021 the Folkman Committee submitted its recommendations to the Minister of Communications.
The Folkman Committee's report includes, among other things, recommendations regarding the following issues:
The establishment of a single regulatory authority for commercial broadcasting (which would replace the Council for Cable and Satellite Broadcasting and the Second Authority Council); The single regulatory authority will regulate all audiovisual content providers, including TV content services which are provided over the Internet ("OTT"), such as those of the Company, and which are currently unregulated; Regulation would be applied to audiovisual content providers in a gradual manner, in accordance with their annual income: (1) all audiovisual content providers (regardless of their annual income) would be subject to rules regarding ethics and a ban on exclusivity in sports programming, rules concerning accessibility would be applied gradually (in accordance with annual income); (2) an audiovisual content provider with an annual income of more than NIS 300 million would be subject to a license and would be required to invest between 4% to 6.5% of its annual income in specific local production genres; (3) an audiovisual content provider with an annual income of more than NIS 600 million would be required to invest 6.5% of its annual income in specific local production genres. The actual implementation of the committee's recommendations is subject to adoption by the Minister of Communications and various other processes (such as amendments to legislation).
The Ministry has allowed the public to comment on the Folkman Committee's recommendations. The Company is currently studying these recommendations and their possible implications on its TV offering and intends to file a detailed position regarding the recommendations of the Folkman Committee.
Decision regarding a reform in the structure of the Internet Market
The fixed internet access market in Israel is currently divided into two tiers of services: infrastructure services and ISP service. This split was intended to allow entry of new competitors, which provide services over Bezeq's and HOT Telecom's infrastructure.
Further to the description in the Company's 2020 Annual Report-Item 4B -12e-x "Hearing regarding a reform in the structure of the Internet Market", in June 2021 the Minister of Communications published its decision regarding the abolition of the split between the infrastructure service and the ISP service.
The decision is aimed at ending the split of this segment into two tiers and allowing Bezeq and Hot Telecom to market a unified product (comprised of both infrastructure and ISP components). The decision lays out several stages for implementation, as follows:
By 20.8.2021 Bezeq and Hot Telecom are to submit an agreement containing Key Performance Indicators ("KPIs") and agreed compensation provisions with an access seeker (an ISP licensee with at least 10,000 active subscribers in the wholesale market;) By 20.9.2021 the Ministry will announce one of the following three alternatives: (1) approval of a submitted agreement; (2) approval of a submitted agreement subject to certain changes announced by the Ministry; (3) If no agreement is submitted – the Ministry will set the terms of a binding agreement. The agreement will become part of the "shelf offer" of the relevant infrastructure owner and will apply in relation to all access seekers. If Bezeq or Hot Telecom submit more than one agreement with different access seekers, then all access seekers will be offered the option of being included under one of these agreements, without discrimination;
From 20.9.2021 until 20.12.2021 a "calibration stage" will apply, during which Bezeq, Hot Telecom and access seekers shall report on the KPIs on a monthly basis. The Ministry may choose to extend the calibration period by an additional three months; At the end of the calibration period, a "preparation stage" of three months will apply during which the agreed compensation mechanism will be first implemented (alongside the KPIs;) On 20.3.2022 (if any of the previous stages have not been extended), Bezeq and Hot Telecom will be allowed to market a unified product (comprised of both infrastructure and ISP components) to household subscribers (the "Effective Date"). From the Effective Date onwards, all new subscribers (and any existing subscribers who wish to alter their existing service) may only be offered a unified product. This decision does not apply to the business sector, where the split between the infrastructure services and ISP service shall remain. At this stage, the Company is unable to evaluate the impact of the decision on the Company's business, among others, in view of the dependence on the determination of the KPIs and the compensation mechanisms and their enforcement by the Ministry of Communications.
Approval of the merger between Bezeq International and Yes
In July 2021 , the Minister of Communications approved a merger between Bezeq International and DBS Satellite Services (1998) Ltd. ("Yes"), a multi-channel pay TV provider (both are wholly-owned subsidiaries of Bezeq), subject to certain conditions which have not been published. According to Bezeq's immediate report on this matter (the "Report"), the Minister approved the transfer of Bezeq International's license to Yes as part of a full statutorial merger of Bezeq International into Yes. According to said Report, the existing structural separation provisions will be applied to the new company to which Bezeq International's integration activities will be transferred. Bezeq has announced that in light of the approval, its subsidiaries intend to continue implementing the plan for the change in the group's structure.
Conference Call Details
Partner will host a conference call to discuss its financial results on Wednesday, August 18, 2021 at 10.00 a.m. Eastern Time / 5.00 p.m. Israel Time.
Please dial the following numbers (at least 10 minutes before the scheduled time) in order to participate:
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: http://www.partner.co.il/en/Investors-Relations/lobby
If you are unavailable to join live, the replay of the call will be available from August 18, 2021 until September 1, 2021 , at the following numbers:
International: +972.3.925 .59 21
North America toll-free: +1.888.254.7270
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. In particular, this press release communicates our belief regarding (i) the scope of the Company's future contribution to the government-mandated fiber incentive fund and (ii) the continued overall impact of COVID-19 on the Company's results. 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 in particular (i) Changes in the regulation and economic conditions with respect to the government-mandated fiber incentive fund and (ii) the severity and duration of the impact on our business of the current health crisis. In light of the current unreliability of predictions as to the ultimate severity and duration of the health crisis, as well as the specific regulatory and business risks facing our business, future results may differ materially from those currently anticipated. 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 June 30, 2021: US $1.00 NIS 3.260 . 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
Adjusted EBITDA
Profit (Loss)
add
Income tax expenses,
Finance costs, net,
Depreciation and amortization expenses
Adjusted EBITDA
divided by
Total revenues
Profit (Loss)
Adjusted Free Cash Flow
Net cash provided by operating activities
add
Net cash used in investing activities
deduct
Proceeds from (investment in) deposits, net
deduct
Lease principal payments
deduct
Lease interest payments
Net cash provided by
add
Net cash used in
Total Operating Expenses (OPEX)
Cost of service revenues
add
Selling and marketing expenses
add
General and administrative expenses
deduct
Depreciation and amortization expenses,
Other expenses (mainly amortization of employee
Sum of:
Cost of service
Selling and marketing
General and
Net Debt
Current maturities of notes payable and
add
Notes payable
add
Borrowings from banks
add
Financial liability at fair value
deduct
Cash and cash equivalents
deduct
Short-term and long-term deposits
Sum of:
Current maturities of
Notes payable,
Borrowings from banks,
Financial liability at fair
Less
Sum of:
Cash and cash equivalents,
Short-term deposits,
Long-term deposits.
About Partner Communications
Partner Communications Company Ltd. is a leading Israeli provider of telecommunications services (cellular, fixed-line telephony, internet services and TV 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:
Mr. Tamir Amar
Deputy CEO & Chief Financial Officer
Tel: +972-54-781-4951
Mr. Amir Adar
Head 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
December 31,
June 30,
June 30,
2020
2021
2021
(Audited)
(Unaudited)
(Unaudited)
In millions
CURRENT ASSETS
Cash and cash equivalents
376
280
86
Short-term deposits
411
516
158
Trade receivables
560
582
179
Other receivables and prepaid expenses
46
30
9
Deferred expenses – right of use
26
27
8
Inventories
77
95
29
1,496
1,530
469
NON CURRENT ASSETS
Long-term deposits
155
Trade receivables
232
241
74
Deferred expenses – right of use
118
131
40
Lease – right of use
663
684
210
Property and equipment
1,495
1,560
479
Intangible and other assets
521
499
153
Goodwill
407
407
125
Deferred income tax asset
29
21
6
Prepaid expenses and other assets
9
10
3
3,629
3,553
1,090
TOTAL ASSETS
5,125
5,083
1,559
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
New Israeli Shekels
Convenience
December 31,
June 30,
June 30,
2020
2021
2021
(Audited)
(Unaudited)
(Unaudited)
In millions
CURRENT LIABILITIES
Current maturities of notes payable and borrowings
290
377
116
Trade payables
666
724
222
Payables in respect of employees
58
82
25
Other payables (mainly institutions)
29
13
4
Income tax payable
27
28
9
Lease liabilities
120
124
38
Deferred revenues from HOT mobile
31
31
10
Other deferred revenues
100
98
29
Provisions
13
14
4
1,334
1,491
457
NON CURRENT LIABILITIES
Notes payable
1,219
1,029
316
Borrowings from banks
86
60
18
Financial liability at fair value
4
Liability for employee rights upon retirement, net
42
44
13
Lease liabilities
582
599
184
Deferred revenues from HOT mobile
71
55
17
Provisions and other non-current liabilities
64
64
20
2,068
1,851
568
TOTAL LIABILITIES
3,402
3,342
1,025
EQUITY
Share capital - ordinary shares of NIS 0.01 par value: authorized - December 31, 2020 and June 30, 2021 - 235,000,000 shares; issued and outstanding -
2
2
1
December 31, 2020 – *182,826,973 shares
June 30, 2021 – *183,165,444 shares
Capital surplus
1,311
1,285
394
Accumulated retained earnings
606
624
191
Treasury shares, at cost December 31, 2020 – **7,741,784 shares
(196)
(170)
(52)
TOTAL EQUITY
1,723
1,741
534
TOTAL LIABILITIES AND EQUITY
5,125
5,083
1,559
* Net of treasury shares.
** Including restricted shares in amount of 1,008,735 and 801,194 as of and December 31, 2020 and June 30, 2021 , respectively, held by a trustee under the Company's Equity Incentive Plan, such shares may 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
6 months period ended
3 months period ended
6 months
June 30,
3 months
June 30,
2020
2021
2020
2021
2021
2021
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions (except per share data)
Revenues, net
1,581
1,673
774
840
513
258
Cost of revenues
1,308
1,387
653
696
425
214
Gross profit
273
286
121
144
88
44
Selling and marketing expenses
140
157
69
78
48
24
General and administrative expenses
90
86
39
44
26
13
Other income, net
13
15
7
8
5
2
Operating profit
56
58
20
30
19
9
Finance income
3
3
4
2
1
1
Finance expenses
35
38
17
18
12
6
Finance costs, net
32
35
13
16
11
5
Profit before income tax
24
23
7
14
8
4
Income tax expenses
7
9
*
5
4
1
Profit for the period
17
14
7
9
4
3
Earnings per share
Basic
0.09
0.08
0.04
0.05
0.02
0.02
Diluted
0.09
0.08
0.04
0.05
0.02
0.02
Weighted average number of shares
Basic
181,926
183,111
182,615
183,150
183,111
183,150
Diluted
182,522
183,706
183,161
183,767
183,706
183,767
* 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
6 months period ended
3 months period ended
6 months
June 30,
3 months
June 30,
2020
2021
2020
2021
2021
2021
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Profit for the period
17
14
7
9
4
3
Other comprehensive income (loss)
for the period, net of income tax
1
(1)
TOTAL COMPREHENSIVE INCOME FOR
18
14
6
9
4
3
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM SEGMENT INFORMATION & ADJUSTED EBITDA RECONCILIATION
New Israeli Shekels
New Israeli Shekels
6 months period ended June 30, 2021
6 months period ended June 30, 2020
In millions (Unaudited)
In millions (Unaudited)
Cellular segment
Fixed line
Elimination
Consolidated
Cellular segment
Fixed line segment
Elimination
Consolidated
Segment revenue - Services
826
462
1,288
824
421
1,245
Inter-segment revenue - Services
7
60
(67)
8
68
(76)
Segment revenue - Equipment
317
68
385
276
60
336
Total revenues
1,150
590
(67)
1,673
1,108
549
(76)
1,581
Segment cost of revenues - Services
615
468
1,083
640
399
1,039
Inter-segment cost of revenues - Services
60
7
(67)
68
8
(76)
Segment cost of revenues - Equipment
264
40
304
229
40
269
Cost of revenues
939
515
(67)
1,387
937
447
(76)
1,308
Gross profit
211
75
286
171
102
273
Operating expenses (3)
145
98
243
155
75
230
Other income, net
8
7
15
10
3
13
Operating profit (loss)
74
(16)
58
26
30
56
Adjustments to presentation of segment
Adjusted EBITDA
–Depreciation and amortization
205
155
229
124
–Other (1)
3
1
6
Segment Adjusted EBITDA (2)
282
140
261
154
Reconciliation of segment subtotal Adjusted
Segments subtotal Adjusted EBITDA(2)
422
415
- Depreciation and amortization
(360)
(353)
- Finance costs, net
(35)
(32)
- Income tax income (expenses)
(9)
(7)
- Other (1)
(4)
(6)
Profit for the period
14
17
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM SEGMENT INFORMATION & ADJUSTED EBITDA RECONCILIATION
New Israeli Shekels
New Israeli Shekels
3 months period ended June 30, 2021
3 months period ended June 30, 2020
In millions (Unaudited)
In millions (Unaudited)
Cellular segment
Fixed line
Elimination
Consolidated
Cellular segment
Fixed line segment
Elimination
Consolidated
Segment revenue - Services
417
232
649
405
211
616
Inter-segment revenue - Services
3
30
(33)
4
33
(37)
Segment revenue - Equipment
157
34
191
130
28
158
Total revenues
577
296
(33)
840
539
272
(37)
774
Segment cost of revenues - Services
309
235
544
318
207
525
Inter-segment cost of revenues - Services
30
3
(33)
33
4
(37)
Segment cost of revenues - Equipment
132
20
152
110
18
128
Cost of revenues
471
258
(33)
696
461
229
(37)
653
Gross profit
106
38
144
78
43
121
Operating expenses (3)
74
48
122
70
38
108
Other income, net
3
5
8
5
2
7
Operating profit (loss)
35
(5)
30
13
7
20
Adjustments to presentation of segment
Adjusted EBITDA
–Depreciation and amortization
102
79
114
64
–Other (1)
2
2
Segment Adjusted EBITDA (2)
139
74
129
71
Reconciliation of segment subtotal Adjusted
Segments subtotal Adjusted EBITDA (2)
213
200
- Depreciation and amortization
(181)
(178)
- Finance costs, net
(16)
(13)
- Income tax expenses
(5)
*
- Other (1)
(2)
(2)
Profit for the period
9
7
* Representing an amount of less than 1 million.
(1) Mainly amortization of employee share based compensation. (2) 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. (3) Operating expenses include selling and marketing expenses and general and administrative expenses.
PARTNER COMMUNICATIONS COMPANY LTD.
(An Israeli Corporation)
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
New Israeli Shekels
Convenience
6 months period ended June 30,
2020
2021
2021
(Unaudited)
(Unaudited)
(Unaudited)
In millions
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash generated from operations (Appendix)
398
388
119
Income tax paid
(1)
(1)
*
Net cash provided by operating activities
397
387
119
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment
(192)
(208)
(64)
Acquisition of intangible and other assets
(78)
(80)
(24)
Investment in deposits, net
(55)
50
15
Interest received
3
1
*
Net cash used in investing activities
(322)
(237)
(73)
CASH FLOWS FROM FINANCING ACTIVITIES:
Lease principal payments
(67)
(64)
(19)
Lease interest payments
(9)
(9)
(3)
Interest paid
(33)
(42)
(13)
Share issuance, net of issuance costs
276
Advances on account of notes payables issuance
11
Proceeds from issuance of notes payable, net of issuance costs
88
23
7
Repayment of notes payable
(204)
(128)
(39)
Repayment of non-current borrowings
(26)
(26)
(8)
Settlement of contingent consideration
(1)
Net cash provided by financing activities
35
(246)
(75)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
110
(96)
(29)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
299
376
115
CASH AND CASH EQUIVALENTS AT END OF PERIOD
409
280
86
* 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
Convenience
6 months period ended June 30,
2020
2021
2021
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Cash generated from operations:
Profit for the period
17
14
4
Adjustments for:
Depreciation and amortization
338
345
106
Amortization of deferred expenses - Right of use
15
15
5
Employee share based compensation expenses
5
4
1
Liability for employee rights upon retirement, net
(1)
5
2
Finance costs, net
(1)
(2)
(1)
Lease interest payments
9
9
3
Interest paid
33
42
13
Interest received
(3)
(1)
*
Deferred income taxes
6
7
2
Income tax paid
1
1
*
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable:
Trade
87
(31)
(9)
Other
1
15
5
Increase (decrease) in accounts payable and accruals:
Trade
(33)
20
6
Other payables
(30)
8
2
Provisions
(7)
1
*
Deferred revenues from HOT mobile
(16)
(16)
(5)
Other deferred revenues
12
(2)
(1)
Increase in deferred expenses - Right of use
(28)
(29)
(9)
Current income tax
1
1
*
Decrease (increase) in inventories
(8)
(18)
(5)
Cash generated from operations
398
388
119
* Representing an amount of less than 1 million.
At June 30, 2021 and 2020, trade and other payables include NIS 170 million ($52 million
These balances are recognized in the cash flow statements upon payment.
Reconciliation of Non-GAAP Measures:
Adjusted Free Cash Flow
New Israeli Shekels
Convenience translation
6 months period ended
June 30,
3 months period ended
June 30,
6 months period ended
June 30,
3 months period ended
June 30,
2020
2021
2020
2021
2021
2021
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Net cash provided by operating activities
397
387
193
179
119
55
Net cash provided by (used in) investing
activities
(322)
(237)
70
(19)
(73)
(6)
Investment in short-term deposits, net
55
(50)
(186)
(120)
(15)
(37)
Lease principal payments
(67)
(64)
(29)
(28)
(19)
(9)
Lease interest payments
(9)
(9)
(4)
(4)
(3)
(1)
Adjusted Free Cash Flow
54
27
44
8
9
2
Interest paid
(33)
(42)
(31)
(41)
(13)
(12)
Adjusted Free Cash Flow After Interest
21
(15)
13
(33)
(4)
(10)
Total Operating Expenses (OPEX)
New Israeli Shekels
Convenience translation
6 months period ended
June 30,
3 months period ended
June 30,
6 months period ended
June 30,
3 months
June 30,
2020
2021
2020
2021
2021
2021
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
In millions
Cost of revenues - Services
1,039
1,083
525
544
333
168
Selling and marketing expenses
140
157
69
78
48
24
General and administrative expenses
90
86
39
44
26
13
Depreciation and amortization
(353)
(360)
(178)
(181)
(111)
(56)
Other (1)
*
(1)
1
*
*
*
OPEX
916
965
456
485
296
149
* Representing an amount of less than 1 million.
(1) Mainly amortization of employee share based compensation and other adjustments.
Key Financial and Operating Indicators (unaudited)
NIS M unless otherwise stated
Q2' 19
Q3' 19
Q4' 19
Q1' 20
Q2' 20
Q3' 20
Q4' 20
Q1' 21
Q2' 21
2019
2020
Cellular Segment Service Revenues
453
466
438
423
409
415
416
413
420
1,798
1,663
Cellular Segment Equipment Revenues
115
142
172
146
130
134
135
160
157
571
545
Fixed-Line Segment Service Revenues
230
233
238
245
244
252
252
260
262
925
993
Fixed-Line Segment Equipment Revenues
24
25
26
32
28
35
41
34
34
103
136
Reconciliation for consolidation
(41)
(41)
(40)
(39)
(37)
(36)
(36)
(34)
(33)
(163)
(148)
Total Revenues
781
825
834
807
774
800
808
833
840
3,234
3,189
Gross Profit from Equipment Sales
35
33
37
37
30
38
40
42
39
144
145
Operating Profit
22
26
30
36
20
20
20
28
30
87
96
Cellular Segment Adjusted EBITDA
159
170
156
132
129
134
138
143
139
635
533
Fixed-Line Segment Adjusted EBITDA
55
55
61
83
71
70
65
66
74
218
289
Total Adjusted EBITDA
214
225
217
215
200
204
203
209
213
853
822
Adjusted EBITDA Margin (%)
27%
27%
26%
27%
26%
26%
25%
25%
25%
26%
26%
OPEX
472
474
467
460
456
475
480
481
485
1,885
1,871
Finance costs, net
16
18
20
19
13
24
13
19
16
68
69
Profit (Loss)
3
7
7
10
7
(5)
5
5
9
19
17
Capital Expenditures (cash)
143
174
127
151
119
147
156
149
139
629
573
Capital Expenditures (additions)
142
150
129
129
121
179
166
142
182
578
595
Adjusted Free Cash Flow
31
13
16
10
44
21
(3)
19
8
49
72
Adjusted Free Cash Flow (after interest)
15
12
0
8
13
12
(10)
18
(33)
12
23
Net Debt
965
956
957
673
658
646
657
639
670
957
657
Cellular Subscriber Base (Thousands)
2,616
2,651
2,657
2,676
2,708
2,762
2,836
2,903
2,970
2,657
2,836
Post-Paid Subscriber Base (Thousands)
2,337
2,366
2,366
2,380
2,404
2,437
2,495
2,548
2,615
2,366
2,495
Pre-Paid Subscriber Base (Thousands)
279
285
291
296
304
325
341
355
355
291
341
Cellular ARPU (NIS)
58
59
55
53
51
51
49
48
48
57
51
Cellular Churn Rate (%)
7.9%
7.7%
7.2%
7.5%
7.5%
7.3%
7.2%
6.8%
7.2%
31%
30%
Infrastructure-Based Internet Subscribers (Thousands)
268
281
295
311
329
339
354
268
329
Fiber-Optic Subscribers (Thousands)
76
87
101
120
139
155
173
76
139
Homes connected to fiber-optic infrastructure
324
361
396
432
465
514
571
324
465
TV Subscriber Base (Thousands)
160
176
188
200
215
224
232
234
223**
188
232
Number of Employees (FTE)
2,895
2,923
2,834
1,867
2,745
2,731
2,655
2,708
2,628
2,834
2,655
* See footnote 2 regarding use of non-GAAP measures.
** In Q2'21, the Company removed from its TV subscriber base approximately 21,000 subscribers who had joined the company at various different times and had remained in trial periods of over six months without charge or usage.
Disclosure for notes holders as of June 30, 2021
Information regarding the notes series issued by the Company, in million NIS
Series
Original
Principal on
issuance
As of 30.06.2021
Annual interest
Principal
Interest
Interest linkage
Trustee contact details
Principal
Linked principal
Interest
Market
From
To
D
25.04.10
04.05.11*
400
146
109
109
**
110
1.187%
(MAKAM+1.2% )
30.12.17
30.12.21
30.03, 30.06,
Variable interest
Hermetic Trust (1975) Ltd.
F
(2)
20.07.17
12.12.17*
04.12.18*
01.12.19*
255
389
150
226.75
384
384
**
394
2.16%
25.06.20
25.06.24
25.06, 25.12
Not Linked
Hermetic Trust (1975) Ltd.
Merav Offer. 113 Hayarkon St.,
G
(1) (2)
06.01.19
01.07.19*
28.11.19*
27.02.20*
31.05.20*
01.07.20*
02.07.20*
26.11.20*
31.05.21*
225
38.5
86.5
15.1
84.8
12.2
300
62.2
26.5
851
851
1
938
4%
25.06.22
25.06.27
25.06
Not Linked
Hermetic Trust (1975) Ltd.
Merav Offer. 113 Hayarkon St.,
(1) In April 2019 , the Company issued in a private placement 2 series of untradeable option warrants that are exercisable for the Company's Series G debentures. The exercise period of the first series is between July 1, 2019 and May 31, 2020 and of the second series is between July 1, 2020 and May 31, 2021 . The Series G debentures that will be allotted upon the exercise of an option warrant will be identical in all their rights to the Company's Series G debentures immediately upon their allotment, and will be entitled to any payment of interest or other benefit, the effective date of which is due after the allotment date. The debentures that will be allotted as a result of the exercise of option warrants will be registered on the TASE. The total amount received by the Company on the allotment date of the option warrants is NIS 37 million . For additional details see the Company's press release dated April 17, 2019 . Following exercise of option warrants from the first series, the Company issued Series G Notes in a total principal amount of NIS 225 million . Following exercise of option warrants from the second series in July 2020 , November 2020 and May 2021 , the Company issued Series G Notes in a principal amount of NIS 12.2 million , NIS 62.2 million and NIS 26.5 million , respectively. The issuance in May 2021 was the final exercise of option warrants from the second series.
(2) Regarding Series F and G Notes, the Company is required to comply with a financial covenant that the ratio of Net Debt to Adjusted EBITDA shall not exceed 5. Compliance will be examined and reported on a quarterly basis. For the purpose of the covenant, Adjusted EBITDA is calculated as the sum total for the last 12 month period, excluding adjustable one-time items. As of June 30, 2021 , the ratio of Net Debt to Adjusted EBITDA was 0.8. Additional stipulations regarding Series F and G Notes mainly include: shareholders' equity shall not decrease below NIS 400 million and NIS 600 million , respectively; the Company shall not create floating liens subject to certain terms; the Company has the right for early redemption under certain conditions; the Company shall pay additional annual interest of 0.5% in the case of a two-notch downgrade in the Notes rating and an additional annual interest of 0.25% for each further single-notch downgrade, up to a maximum additional interest of 1% ; the Company shall pay additional annual interest of 0.25% during a period in which there is a breach of the financial covenant. In any case, the total maximum additional interest for Series F and G, shall not exceed 1.25% or 1% , respectively. For more information see the Company's Annual Report on Form 20-F for the year ended December 31, 2020 .
In the reporting period, the Company was in compliance with all financial covenants and obligations and no cause for early repayment occurred.
(3) '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.
** Representing an amount of less than NIS 1 million .
Disclosure for Notes holders as of June 30, 2021 (cont.)
Notes Rating Details*
Series
Rating Company
Rating as of
Rating assigned upon issuance of
Recent date of rating
Additional ratings between the original issuance date and the recent date of rating (2)
Date
Rating
D
S&P Maalot
ilA+
ilAA-
08/2021
07/2010, 09/2010, 10/2010, 09/2012, 12/2012,
06/2013, 07/2014, 07/2015, 07/2016, 07/2017,
08/2018, 11/2018, 12/2018, 01/2019, 04/2019,
08/2019, 02/2020, 05/2020, 06/2020, 07/2020,
08/2020, 11/2020, 05/2021, 08/2021
ilAA-, ilAA-, ilAA-, ilAA-, ilAA-,
ilAA-, ilAA-, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+
F
S&P Maalot
ilA+
ilA+
08/2021
07/2017, 09/2017, 12/2017, 01/2018, 08/2018,
11/2018, 12/2018, 01/2019, 04/2019, 08/2019,
02/2020, 05/2020, 06/2020, 07/2020, 08/2020,
11/2020, 05/2021, 08/2021
ilA+, ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+
G (3)
S&P Maalot
ilA+
ilA+
08/2021
12/2018, 01/2019, 04/2019, 08/2019, 02/2020,
05/2020, 06/2020, 07/2020, 08/2020, 11/2020,
05/2021, 08/2021
ilA+, ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+, ilA+, ilA+, ilA+,
ilA+, ilA+
(1) In August 2021 , S&P Maalot reaffirmed the Company's rating of "ilA+/Stable".
(2) For details regarding the rating of the notes see the S&P Maalot reports dated August 11, 2021 .
(3) In January 2019 , the Company issued Series G Notes in a principal amount of NIS 225 million . In July 2019 , November 2019 , February 2020 , May 2020 , July 2020 , November 2020 and May 2021 the Company issued additional Series G Notes in a principal amount of NIS 38.5 million , NIS 86.5 million , NIS 15.1 million , NIS 84.8 million , NIS 12.2 million , NIS 62.2 million and NIS 26.5 million , respectively.
* 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 June 30, 2021
a. Notes issued to the public by the Company and held by the public, excluding such notes held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data (in thousand NIS).
Principal payments
Gross interest
ILS linked
ILS not linked
Euro
Dollar
Other
First year
-
322,213
-
-
-
42,988
Second year
-
212,985
-
-
-
36,155
Third year
-
212,985
-
-
-
30,064
Fourth year
-
85,083
-
-
-
23,823
Fifth year and on
-
510,501
-
-
-
34,033
Total
-
1,343,767
-
-
-
167,063
b. Private notes and other non-bank credit, excluding such notes held by the Company's parent company, by a controlling shareholder, by companies controlled by them, or by companies controlled by the Company, based on the Company's "Solo" financial data – None.
c. Credit from banks in Israel based on the Company's "Solo" financial data (in thousand NIS).
Principal payments
Gross interest
ILS linked
ILS not linked
Euro
Dollar
Other
First year
-
52,132
-
-
-
2,282
Second year
-
37,426
-
-
-
1,055
Third year
-
22,760
-
-
-
357
Fourth year
-
-
-
-
-
-
Fifth year and on
-
-
-
-
-
-
Total
-
112,318
-
-
-
3,694
Summary of Financial Undertakings (according to repayment dates) as of June 30, 2021 (cont.)
d. Credit from banks abroad based on the Company's "Solo" financial data – None.
e. Total of sections a - d above, total credit from banks, non-bank credit and notes based on the Company's "Solo" financial data (in thousand NIS).
Principal payments
Gross interest
ILS linked
ILS not linked
Euro
Dollar
Other
First year
-
374,345
-
-
-
45,270
Second year
-
250,411
-
-
-
37,210
Third year
-
235,745
-
-
-
30,421
Fourth year
-
85,083
-
-
-
23,823
Fifth year and on
-
510,501
-
-
-
34,033
Total
-
1,456,085
-
-
-
170,757
f. Off-balance sheet Credit exposure based on the Company's "Solo" financial data (in thousand NIS) – 50,000 (Guarantees on behalf of a joint arrangement, without expiration date).
g. Off-balance sheet Credit exposure of all the Company's consolidated companies, excluding companies that are reporting corporations and excluding the Company's data presented in section f above - None.
h. Total balances of the credit from banks, non-bank credit and notes of all the consolidated companies, excluding companies that are reporting corporations and excluding Company's data presented in sections a - d above - None.
i. Total balances of credit granted to the Company by the parent company or a controlling shareholder and balances of notes offered by the Company held by the parent company or the controlling shareholder - None.
j. Total balances of credit granted to the Company by companies held by the parent company or the controlling shareholder, which are not controlled by the Company, and balances of notes offered by the Company held by companies held by the parent company or the controlling shareholder, which are not controlled by the Company – None.
k. Total balances of credit granted to the Company by consolidated companies and balances of notes offered by the Company held by the consolidated companies - None.
[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.
https://www.prnewswire.com/news-releases/partner-communications-reports-second-quarter-2021-results1-301357608.html
SOURCE Partner Communications Company Ltd.
