PARTNER COMMUNICATIONS REPORTS SECOND QUARTER 2022 RESULTS[1]

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ROSH HA'AYIN, Israel, Aug. 11, 2022 /PRNewswire/ --

QUARTERLY ADJUSTED EBITDA2 TOTALED NIS 276 MILLION

NET DEBT2 TOTALED NIS 706 MILLION

QUARTERLY CELLULAR SUBSCRIBER GROWTH TOTALED 32 THOUSAND

PARTNER'S FIBER-OPTIC SUBSCRIBER BASE TOTALS 258 THOUSAND 
AS OF TODAY

THE NUMBER OF HOUSEHOLDS IN BUILDINGS CONNECTED TO PARTNER'S FIBER-OPTIC INFRASTRUCTURE TOTALS 866 THOUSAND AS OF TODAY 

Second quarter 2022 highlights (compared with second quarter 2021)

  • Total Revenues: NIS 859 million (US$ 245 million), an increase of 2%
  • Service Revenues: NIS 706 million (US$ 202 million), an increase of 9%
  • Equipment Revenues: NIS 153 million (US$ 44 million), a decrease of 20%
  • Total Operating Expenses (OPEX)2: NIS 469 million (US$ 134 million), a decrease of 3%
  • Adjusted EBITDA: NIS 276 million (US$ 79 million), an increase of 30%
  • Profit for the Period: NIS 47 million (US$ 13 million), an increase of NIS 38 million
  • Adjusted Free Cash Flow (before interest)2: NIS 57 million (US$ 16 million), an increase of NIS 49 million
  • Cellular ARPU: NIS 49 (US$ 14), an increase of 2%
  • Cellular Subscriber Base: approximately 3.1 million subscribers at quarter-end, an increase of 4%
  • Fiber-Optic Subscriber Base: 250 thousand subscribers at quarter-end, an increase of 77 thousand since Q2 2021, and an increase of 17 thousand in the quarter
  • Homes Connected (HC) to Partner's Fiber-Optic Infrastructure: 837 thousand at quarter-end, an increase of 266 thousand since Q2 2021, and an increase of 67 thousand in the quarter
  • Infrastructure-Based Internet Subscriber Base: 395 thousand subscribers at quarter-end, an increase of 41 thousand since Q2 2021, and an increase of 8 thousand in the quarter
  • TV Subscriber Base: 224 thousand subscribers at quarter-end, an increase of 1 thousand subscribers since Q2 2021, and a decrease of 1 thousand in the quarter

Partner Communications Company Ltd. ("Partner" or the "Company") PTNR PTNR, a leading Israeli communications provider, announced today its results for the quarter ended June 30, 2022.

Commenting on the results for the second quarter 2022, Mr. Avi Gabbay, CEO of Partner, noted:

"We are pleased with the good results which reflect stability and growth. We will continue to invest in infrastructure and fiber and 5G services in order to bring more value to our customers."

Mr. Tamir Amar, Partner's Deputy CEO & Chief Financial Officer, commented on the results:

"In the second quarter of 2022 we report the highest revenues in the past six years, due to growth in both the cellular and fixed-line segments. Together with a decrease in the level of OPEX, we have succeeded in bringing about an increase in profit and profitability compared to the corresponding quarter last year.

Adjusted EBITDA presented for the second quarter of 2022 was the highest in the past seven years and totaled NIS 276 million, an increase of 30% compared to NIS 213 million in the corresponding quarter last year.

Partner continues with the expedited 5G infrastructure deployment and expects to achieve over 40% population coverage by the end of the year. The cellular subscriber base increased in the quarter by 32 thousand subscribers, of which 25 thousand were Post-Paid subscribers. Excluding the churn of Ministry of Education subscribers who joined for limited periods, the cellular churn rate in the second quarter of 2022 totaled just 6.6%. For the first time in five quarters, Partner recorded an increase in Cellular ARPU.  In the second quarter, ARPU totaled NIS 49 compared to NIS 48 in previous quarters. The increase reflected, among other things, an increase in roaming service revenues that was partially offset by the continued price erosion and by a decrease in interconnect revenues.

As we have stated before, Partner considers fiber-optic deployment to be a significant growth engine in its activity. The number of Homes Connected within buildings connected to our fiber-optic infrastructure reached 837 thousand at the end of second quarter of 2022, an increase of 67 thousand in the quarter. As of today, the number of Homes Connected within buildings connected to our fiber-optic infrastructure totals 866 thousand. The fiber-optic subscriber base totaled 250 thousand at the end of the quarter, reflecting a 30% penetration rate from potential customers in connected buildings, unchanged from the rate at the end of the previous quarter and the corresponding quarter last year. The increase in the fiber-optic subscriber base in the quarter was negatively impacted by the relatively low number of working days and totaled 17 thousand. As of today, the fiber-optic subscriber base totals 258 thousand.

Adjusted Free Cash Flow (before interest and including lease payments) for the quarter totaled NIS 57 million. CAPEX payments in the second quarter of 2022 totaled NIS 174 million. For the first half of 2022, the increase of CAPEX payments compared to first half of 2021 totaled NIS 56 million, reflecting the acceleration of the fiber-optic deployment plan, with the goal of reaching approximately one million households by the end of the year.

Net debt was NIS 706 million at the end of the quarter, compared with NIS 670 million at the end of the corresponding quarter last year, an increase of NIS 36 million. The Company's net debt to Adjusted EBITDA ratio stood at 0.7 at the end of the quarter, compared to a ratio of 0.8 in the corresponding quarter last year."

 

Q2 2022 compared with Q2 2021

NIS Million (except EPS)

Q2'21

Q2'22

Comments

Service Revenues

649

706

The increase reflected growth in both cellular and fixed-line services,
due to an increase in cellular roaming services and subscriber growth
in cellular and fiber-optics

Equipment Revenues

191

153

The decrease reflected lower sales in both the cellular and fixed-line
segments

Total Revenues

840

859


Gross profit from equipment sales

39

28


OPEX

485

469

The decrease mainly reflected a decrease in credit losses, a one-time
decrease in network operating expenses and a decrease in wholesale
expenses, which were partially offset by increases in roaming expenses
and payroll and related expenses

Operating profit

30

85


Adjusted EBITDA

213

276


Adjusted EBITDA as a percentage of total revenues

25 %

32 %


Profit for the period

9

47


Earnings per share (basic, NIS)

0.05

0.26


Capital Expenditures (cash)

139

174


Adjusted free cash flow (before interest payments)

8

57


Net Debt

670

706


 

Key Performance Indicators


Q2'21

Q1'22

Q2'22

Change Q1 to Q2

Reported Cellular Subscribers (end of period, thousands)

2,970

3,063

3,095

Post-Paid: Increase of 25 thousand (including 5 thousand packages from the Ministry of Education)

Pre-Paid: Increase of 7 thousand

Cellular Subscribers (end of period, thousands) excluding packages for Ministry of Education

2,893

2,988

3,015

Post-Paid: Increase of 20 thousand

Pre-Paid: Increase of 7 thousand

Monthly Average Revenue per Cellular User (ARPU) (NIS)

48

48

49


Reported Quarterly Cellular Churn Rate (%)

7.2 %

7.0 %

6.7 %


Quarterly Cellular Churn Rate (%) excluding packages for the Ministry of Education

7.4 %

6.7 %

6.6 %


Fiber-Optic Subscribers (end of period, thousands)

173

233

250

Increase of 17 thousand subscribers

Homes Connected to the Fiber-Optic Infrastructure (HC) (end of period, thousands)

571

770

837

Increase of 67 thousand households

Infrastructure-Based Internet Subscribers (end of period, thousands)

354

387

395

Increase of 8 thousand subscribers

TV Subscribers (end of period, thousands)

223

225

224

Decrease of 1 thousand subscribers

 

Partner Consolidated Results


Cellular Segment

Fixed-Line Segment

Elimination

Consolidated

NIS Million

Q2'21

Q2'22

Change %

Q2'21

Q2'22

Change %

Q2'21

Q2'22

Q2'21

Q2'22

Change %

Total Revenues

577

592

+3 %

296

297


(33)

(30)

840

859

+2 %

Service Revenues

420

457

+9 %

262

279

+6 %

(33)

(30)

649

706

+9 %

Equipment Revenues

157

135

-14 %

34

18

-47 %

-

-

191

153

-20 %

Operating Profit (Loss)

35

82

+134 %

(5)

3


-

-

30

85

+183 %

Adjusted EBITDA

139

187

+35 %

74

89

+20 %

-

-

213

276

+30 %

 

Financial Review

In Q2 2022, total revenues were NIS 859 million (US$ 245 million), an increase of 2% from NIS 840 million in Q2 2021.

Service revenues in Q2 2022 totaled NIS 706 million (US$ 202 million), an increase of 9% from NIS 649 million in Q2 2021.

Service revenues for the cellular segment in Q2 2022 totaled NIS 457 million (US$ 131 million), an increase of 9% from NIS 420 million in Q2 2021. The increase was mainly the result of higher roaming service revenues, reflecting the return of international air travel almost to pre-COVID 19 levels, and the growth of the cellular subscriber base. These increases were partially offset by the continued price erosion, although to a lesser degree than in the past, and a decrease in interconnect revenues.

Service revenues for the fixed-line segment in Q2 2022 totaled NIS 279 million (US$ 80 million), an increase of 6% from NIS 262 million in Q2 2021. 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 2022 totaled NIS 153 million (US$ 44 million), a decrease of 20% from NIS 191 million in Q2 2021, mainly reflecting a lower average price per sale mainly due to a change in the sales mix in the cellular segment, and a decrease in sales in the fixed-line segment, largely reflecting the Company's decision in the final quarter of 2021 to move towards a leasing model of internet routers to private customers instead of a sales model.

Gross profit from equipment sales in Q2 2022 was NIS 28 million (US$ 8 million), compared with NIS 39 million in Q2 2021, a decrease of 28%, mainly reflecting the negative impact of foreign exchange rate movements, as well as the change in the sales mix in the cellular segment and the decrease in fixed-line segment sales.

Total operating expenses ('OPEX') totaled NIS 469 million (US$ 134 million), in Q2 2022, a decrease of 3% or NIS 16 million from Q2 2021, mainly reflecting a decrease in credit loss expenses, a one-time decrease in cellular network operating expenses and a decrease in fixed-line segment wholesale expenses. The decreases were partially offset by increases in roaming expenses and payroll and related expenses. Including depreciation and amortization expenses and other expenses (mainly amortization of employee share-based compensation), OPEX in Q2 2022 decreased by 1% compared with Q2 2021.

Operating profit for Q2 2022 was NIS 85 million (US$ 24 million), an increase of 183% compared with NIS 30 million in Q2 2021.

Adjusted EBITDA in Q2 2022 totaled NIS 276 million (US$ 79 million), an increase of 30% from NIS 213 million in Q2 2021. As a percentage of total revenues, Adjusted EBITDA in Q2 2022 was 32% compared with 25% in Q2 2021.

Adjusted EBITDA for the cellular segment was NIS 187 million (US$ 53 million) in Q2 2022, an increase of 35% from NIS 139 million in Q2 2021, largely reflecting the increase in service revenues as well as the decrease in credit losses expenses, and the one-time decrease in network operating expenses, which were partially offset by the decrease in gross profit from equipment sales and the increase in payroll and related expenses. As a percentage of total cellular segment revenues, Adjusted EBITDA for the cellular segment was 32% in Q2 2022 compared with 24% in Q2 2021.

Adjusted EBITDA for the fixed-line segment was NIS 89 million (US$ 25 million) in Q2 2022, an increase of 20% from NIS 74 million in Q2 2021, mainly reflecting the increase in fixed-line segment service revenues and the decrease in wholesale expenses, which were partially offset by the decrease in gross profit from fixed-line segment equipment sales as well as the increase in payroll and related expenses. As a percentage of total fixed-line segment revenues, Adjusted EBITDA for the fixed-line segment was 30% in Q2 2022, compared with 25% in Q2 2021.

Finance costs, net in Q2 2022 were NIS 21 million (US$ 6 million), an increase of 31% compared with NIS 16 million in Q2 2021. The increase mainly reflected the negative impact of foreign exchange rate movements.

Income tax expenses in Q2 2022 were NIS 17 million (US$ 5 million), an increase of NIS 12 million compared with NIS 5 million in Q2 2021, mainly due to the increase in operating profit.

Profit in Q2 2022 was NIS 47 million (US$ 13 million), an increase of NIS 38 million compared with profit of NIS 9 million in Q2 2021.

Based on the weighted average number of shares outstanding during Q2 2022, basic earnings per share or ADS, was NIS 0.26 (US$ 0.07) compared with basic earnings per share or ADS of NIS 0.05 in Q2 2021.

Cellular Segment Operational Review

At the end of Q2 2022, the Company's cellular subscriber base (including mobile data, 012 Mobile subscribers and M2M subscriptions) was approximately 3.10 million, including approximately 2.73 million Post-Paid subscribers or 88% of the base, and 362 thousand Pre-Paid subscribers, or 12% of the subscriber base.

During the second quarter of 2022, the cellular subscriber base increased, net, by 32 thousand subscribers. The Post-Paid subscriber base increased, net, by 25 thousand subscribers and the Pre-Paid subscriber base increased, net, by 7 thousand subscribers. The subscriber base of data packages and voice packages for the Ministry of Education (MOE) increased by 5 thousand and totaled 80 thousand at the end of Q2 2022. The MOE subscribers base is expected to decrease to 12 thousand during the third quarter of 2022, following the expiration of most of the time-limited packages.

Total cellular market share (based on the number of subscribers) at the end of Q2 2022 was estimated to be approximately 28%, unchanged from the end of Q1 2022 and compared to 27% at the end of Q2 2021.

The quarterly churn rate for cellular subscribers in Q2 2022 was 6.7%, compared with 7.2% in Q2 2021 and 7.0% in Q1 2022. Excluding data and voice packages for the Ministry of Education, the churn rate in Q2 2022 was 6.6% compared with 7.4% in Q2 2021 and 6.7% in Q1 2022.

The monthly Average Revenue per User ("ARPU") for cellular subscribers in Q2 2022 was NIS 49 (US$ 14), an increase of 2% from NIS 48 in Q2 2021. This increase mainly reflected the increase in roaming services revenues, which was offset by the continued price erosion, although to a lesser degree than in the past, and by a decrease in interconnect revenues.

Fixed-Line Segment Operational Review

At the end of Q2 2022:

  • The Company's fiber-optic subscriber base was 250 thousand subscribers, an increase, net, of 17 thousand subscribers during the second quarter of 2022.
  • The Company's infrastructure-based internet subscriber base was 395 thousand subscribers, an increase, net, of 8 thousand subscribers during the second quarter of 2022.
  • Households in buildings connected to our fiber-optic infrastructure (HC) totaled 837 thousand, an increase of 67 thousand during the second quarter of 2022.
  • The Company's TV subscriber base totaled 224 thousand subscribers, a decrease of 1 thousand subscribers during the second quarter of 2022.

Funding and Investing Review

In Q2 2022, Adjusted Free Cash Flow (including lease payments) totaled NIS 57 million (US$ 16 million), an increase of NIS 49 million compared with NIS 8 million in Q2 2021.

Cash generated from operating activities totaled NIS 263 million (US$ 75 million) in Q2 2022, an increase of 47% from NIS 179 million in Q2 2021.

Lease payments (principal and interest), recorded in cash flows from financing activities under IFRS 16, totaled NIS 34 million (US$ 10 million) in Q2 2022, an increase of 6% from NIS 32 million in Q2 2021.

Cash capital expenditures (CAPEX payments), as represented by cash flows used for the acquisition of property and equipment and intangible assets, were NIS 174 million (US$ 50 million) in Q2 2022, an increase of 25% from NIS 139 million in Q2 2021.

The level of net debt at the end of Q2 2022 amounted to NIS 706 million (US$ 202 million), compared with NIS 670 million at the end of Q2 2021, an increase of NIS 36 million.

Regulatory Developments

Further to the Company's immediate report dated September 14, 2021 with respect to a hearing process regarding the potential reduction of the interconnect tariff, on June 23, 2022 the Ministry of Communications published its decision regarding a change in the interconnection tariff regime. According to this decision there will be a gradual reduction of the interconnection tariffs over a period of three years (ending on the 15th of June 2025). After this period, each operator will bear its own call completion costs and there will no longer be payment transfers for interconnection with respect to call minutes (both on MRT networks and on fixed-line networks). The Ministry has also decided that the maximum tariff for completion of incoming international calls will be cancelled (effective on the 28th of July 2022), which is expected to increase the company's revenues from incoming international calls. The overall outcome of this decision is not expected to have a material effect on our business and results of operations.

Conference Call Details

Partner will host a conference call to discuss its financial results on Thursday, August 11, 2022 at 10.00 a.m. Eastern Time / 5.00 p.m. Israel Time.

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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: +1.888.407.2553
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 11, 2022 until August 25, 2022, at the following numbers:
International: +972.3.925.5921
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 Company's continued investment in infrastructure and fiber and 5G services; (ii) the expedited deployment of the Company's fiber-optic infrastructure by the end of 2022 and (iii) the fiber-optic deployment as a significant growth engine for the Company. 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) the remaining impact on our business of the Covid-19 health crisis, (ii) unexpected technical or commercial issues which may arise as we continue to deploy and expand the use of our fiber optic infrastructure; and (iii) unexpected technical or financial constraints which undermine the pursuit of such strategy.  In light of the current unreliability of predictions as to the ultimate severity and duration of the Covid-19 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 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, 2022: US $1.00 equals NIS 3.500. 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 EBITDA

 

 

 

Adjusted EBITDA margin (%)

Profit

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 EBITDA

divided by

Total revenues

Profit

Adjusted Free Cash Flow

Cash flows from operating activities

add

Cash flows from investing activities

deduct

Investment in deposits, net

deduct

Lease principal payments

deduct

Lease interest payments

Cash flows from
operating activities

add

Cash flows from
investing activities

Total Operating

Expenses (OPEX)

Cost of service revenues

add

Selling and marketing expenses

add

General and administrative expenses

add

Credit losses

deduct

Depreciation and amortization expenses,

Other expenses (mainly amortization of
employee share based compensation)

Sum of:

Cost of service revenues,

Selling and marketing
expenses,

General and administrative
expenses,

Credit losses

 

 

Net Debt

Current maturities of notes payable and borrowings

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 and borrowings,

Notes payable,

Borrowings from banks,

Financial liability at fair value

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
translation into
U.S. Dollars



December 31,

June 30,

June 30,



2021

2022

2022



(Audited)

(Unaudited)

(Unaudited)



In millions

CURRENT ASSETS





Cash and cash equivalents


308

384

110

Short-term deposits


344

346

99

Trade receivables


571

564

161

Other receivables and prepaid expenses


152

116

33

Deferred expenses – right of use


27

31

9

Inventories


87

123

35



1,489

1,564

447






NON CURRENT ASSETS





Long-term deposits


280



Trade receivables


245

225

64

Deferred expenses – right of use


142

158

45

Lease – right of use


679

682

195

Property and equipment


1,644

1,724

492

Intangible and other assets


472

448

128

Goodwill


407

407

116

Deferred income tax asset


34

22

6

Other non-current receivables


1

*

*



3,904

3,666

1,046






TOTAL ASSETS


5,393

5,230

1,493

*   Representing an amount of less than 1 million. 

 

 

 

PARTNER COMMUNICATIONS COMPANY LTD.

(An Israeli Corporation)

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION



 



New Israeli Shekels

 

Convenience
translation into
U.S. Dollars



December 31,

June 30,

June 30,



2021

2022

2022



(Audited)

(Unaudited)

(Unaudited)



In millions

CURRENT LIABILITIES





 Current maturities of notes payable and borrowings


268

253

72

Trade payables


705

690

196

Other payables and provisions


185

186

54

Current maturities of lease liabilities


125

126

36

Deferred revenues and other


139

151

43



1,422

1,406

401

NON CURRENT LIABILITIES





Notes payable


1,224

1,010

289

Borrowings from banks


184

173

49

Liability for employee rights upon retirement, net


35

33

9

 Lease liabilities


595

594

170

       Deferred revenues from HOT mobile


39

23

7

 Non-current liabilities and provisions


35

33

9



2,112

1,866

533






TOTAL LIABILITIES


3,534

3,272

934






EQUITY





Share capital - ordinary shares of NIS 0.01

   par value: authorized - December 31, 2021

   and June 30, 2022 - 235,000,000 shares;

   issued and outstanding -                                  

2

2

1

December 31, 2021 – *183,678,220 shares




June 30, 2022 – ­*184,286,996 shares




Capital surplus


1,279

1,244

355

Accumulated retained earnings


742

841

240

Treasury shares, at cost

   December 31, 2021 – **7,337,759 shares                                      
   June 30, 2022
– *­*6,094,812 shares


(164)

(129)

(37)

TOTAL EQUITY


1,859

1,958

559

TOTAL LIABILITIES AND EQUITY


5,393

5,230

1,493

*    Net of treasury shares.   

** Including restricted shares in amount of 1,349,119 and 791,661 as of and  December 31, 2021 and
June 30, 2022, 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 into
U.S. dollars
(note 2a)



6 months period ended 
June 30,

3 months period ended
June 30,

6 months period
ended
June 30,

3 months period
ended 
June 30,



2021

2022

2021

2022

2022

2022



(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)



In millions (except per share data)

Revenues, net


1,673

1,713

840

859

489

245

Cost of revenues


1,387

1,321

696

656

377

187

Gross profit


286

392

144

203

112

58









Selling and marketing expenses


157

175

78

87

50

25

General and administrative expenses


86

75

44

39

21

11

Other income, net


15

15

8

8

4

2

Operating profit


58

157

30

85

45

24

Finance income


3

3

2

2

1

1

Finance expenses


38

42

18

23

12

7

Finance costs, net


35

39

16

21

11

6

Profit before income tax


23

118

14

64

34

18

Income tax expenses


9

32

5

17

9

5

Profit for the period


14

86

9

47

25

13









Earnings per share








         Basic   


0.08

0.47

0.05

0.26

0.13

0.07

         Diluted


0.08

0.46

0.05

0.26

0.13

0.07

Weighted average number of shares
outstanding (in thousands)








         Basic   


183,111

184,066

183,150

184,165

184,066

184,165

         Diluted


183,706

186,602

183,767

186,554

186,602

186,554









 

 

 

PARTNER COMMUNICATIONS COMPANY LTD.

(An Israeli Corporation)

INTERIM CONDENSED CONSOLIDATED STATEMENTS

OF COMPREHENSIVE INCOME



New Israeli shekels

Convenience translation

into U.S. dollars (note 2a)



6 months period
ended June 30,

3 months period
ended June 30,

6 months period
ended 
June 30,

3 months period
ended 
June 30,



2021

2022

2021

2022

2022

2022



(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)



In millions

 

Profit for the period


14

86

9

47

25

13

Other comprehensive income (loss)

     for the period, net of income tax



1


1

*

*

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD


14

87

9

48

25

13

*   Representing an amount of less than 1 million. 

 

 

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, 2022



6 months period ended June 30, 2021



In millions (Unaudited)



In millions (Unaudited)



Cellular

 segment


Fixed line

segment


Elimination


Consolidated



Cellular

 segment


Fixed line

 segment


Elimination


Consolidated


Segment revenue - Services

894


502




1,396



826


462




1,288


Inter-segment revenue - Services

6


57


(63)





7


60


(67)




Segment revenue - Equipment

277


40




317



317


68




385


Total revenues

1,177


599


(63)


1,713



1,150


590


(67)


1,673


Segment cost of revenues - Services

595


470




1,065



615


468




1,083


Inter-segment cost of revenues - Services

57


6


(63)





60


7


(67)




Segment cost of revenues - Equipment

229


27




256



264


40




304


Cost of revenues

881


503


(63)


1,321



939


515


(67)


1,387


Gross profit

296


96




392



211


75




286


Operating expenses (3)

152


98




250



145


98




243


Other income, net

9


6




15



8


7




15


Operating profit (loss)

153


4




157



74


(16)




58


Adjustments to presentation of segment       

   Adjusted EBITDA 


















   –Depreciation and amortization

198


166







205


155






   –Other (1)

8


4







3


1






Segment Adjusted EBITDA (2)

359


174







282


140






 Reconciliation of segment subtotal Adjusted EBITDA to
   profit for the period


















Segments subtotal Adjusted EBITDA (2)







533









422


 - Depreciation and amortization







(364)









(360)


 - Finance costs, net







(39)









(35)


 - Income tax expenses







(32)









(9)


 - Other (1)







(12)









(4)


Profit for the period







86









14


 

(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 SEGMENT INFORMATION & ADJUSTED EBITDA RECONCILIATION


New Israeli Shekels



New Israeli Shekels



3 months period ended June 30, 2022



3 months period ended June 30, 2021



In millions (Unaudited)



In millions (Unaudited)



Cellular

 segment


Fixed line

segment


Elimination


Consolidated



Cellular

 segment


Fixed line

 segment


Elimination


Consolidated


Segment revenue - Services

454


252




706



417


232




649


Inter-segment revenue - Services

3


27


(30)





3


30


(33)




Segment revenue - Equipment

135


18




153



157


34




191


Total revenues

592


297


(30)


859



577


296


(33)


840


Segment cost of revenues - Services

297


234




531



309


235




544


Inter-segment cost of revenues - Services

27


3


(30)





30


3


(33)




Segment cost of revenues - Equipment

113


12




125



132


20




152


Cost of revenues

437


249


(30)


656



471


258


(33)


696


Gross profit

155


48




203



106


38




144


Operating expenses (3)

78


48




126



74


48




122


 Other income, net

5


3




8



3


5




8


Operating profit (loss)

82


3




85



35


(5)




30


Adjustments to presentation of segment       

   Adjusted EBITDA 


















 –Depreciation and amortization

101


84







102


79






 –Other (1)

4


2







2








Segment Adjusted EBITDA (2)

187


89







139


74






Reconciliation of segment subtotal Adjusted EBITDA
 to profit for the period


















Segments subtotal Adjusted EBITDA (2)







276









213


  - Depreciation and amortization







(185)









(181)


  - Finance costs, net







(21)









(16)


  - Income tax expenses







(17)









(5)


  - Other (1)







(6)









(2)


Profit for the period







47









9


 

(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
translation into
U.S. Dollars

(note 2a)


6 months period ended June 30,


2021

2022

2022


(Unaudited)

(Unaudited)

(Unaudited)


In millions

CASH FLOWS FROM OPERATING ACTIVITIES:




Cash generated from operations (Appendix)

388

501

144

Income tax paid

(1)

(1)

*

Net cash provided by operating activities

387

500

144

 

CASH FLOWS FROM INVESTING ACTIVITIES:




Acquisition of property and equipment

(208)

(271)

(78)

Acquisition of intangible and other assets

(80)

(73)

(21)

Investment in deposits, net

50

278

79

Interest received

1

2

1

Net cash used in investing activities

(237)

(64)

(19)

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:




Lease principal payments

(64)

(67)

(19)

Lease interest payments

(9)

(9)

(3)

Interest paid

(42)

(44)

(13)

Proceeds from issuance of notes payable, net of issuance costs

23

(1)

*

Repayment of notes payable

(128)

(213)

(61)

     Repayment of non-current borrowings

(26)

(26)

(7)

Net cash used in financing activities

(246)

(360)

(103)

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(96)

76

22

 

CASH AND CASH EQUIVALENTS AT BEGINNING

          OF PERIOD

376

308

88

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

280

384

110

*   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 statements


 



New Israeli Shekels

Convenience
translation into
U.S. Dollars

(note 2a)


6 months period ended June 30,


2021

2022

2022


(Unaudited)

(Unaudited)

(Unaudited)


In millions





Cash generated from operations:




     Profit for the period

14

86

25

    Adjustments for:




Depreciation and amortization

345

349

100

Amortization of deferred expenses - Right of use

15

15

4

Employee share based compensation expenses

4

12

3

Liability for employee rights upon retirement, net

5



Finance costs (income), net 

(2)

(1)

*

Lease interest payments

9

9

3

Interest paid

42

44

13

Interest received

(1)

(2)

(1)

Deferred income taxes

7

12

3

Income tax paid

1

1

*

Changes in operating assets and liabilities:




Decrease (increase) in accounts receivable:




         Trade

(31)

27

8

               Other

15

36

10

Increase (decrease) in accounts payable and accruals:




               Trade

20

(10)

(2)

         Other payables and provisions

9

(21)

(5)

         Deferred revenues and other

(18)

(4)

(2)

Increase in deferred expenses - Right of use

(29)

(35)

(10)

Current income tax

1

19

5

Increase in inventories

(18)

(36)

(10)

Cash generated from operations

388

501

144

*    Representing an amount of less than 1 million.

At June 30, 2022 and 2021, trade and other payables include NIS 170 million ($49 million) and NIS 170 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.

 

 

Reconciliation of Non-GAAP Measures:


Adjusted Free Cash Flow

 

 

New Israeli Shekels

Convenience translation into
U.S. Dollars


6 months period ended

June 30,

3 months period ended

June 30,

6 months period ended

June 30,

3 months period ended

June 30,


2021

2022

2021

2022

2022

2022


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)


In millions

Net cash provided by operating activities

387

500

179

263

144

76

Net cash provided by (used in) investing  

     activities

(237)

(64)

(19)

162

(19)

46

Investment in short-term deposits, net

(50)

(278)

(120)

(334)

(79)

(95)

Lease principal payments

(64)

(67)

(28)

(30)

(19)

(9)

Lease interest payments

(9)

(9)

(4)

(4)

(3)

(1)

Adjusted Free Cash Flow

27

82

8

57

24

17

Interest paid

(42)

(44)

(41)

(43)

(13)

(13)

Adjusted Free Cash Flow After Interest

(15)

38

(33)

14

11

4
















 


Total Operating Expenses (OPEX)

 

 

New Israeli Shekels

Convenience translation into
U.S. Dollars


6 months period ended

June 30,

3 months period ended

June 30,

6 months period ended

June 30,

3 months period ended

June 30,


2021

2022

2021

2022

2022

2022


(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)


In millions

Cost of revenues - Services

1,083

1,065

544

531

304

152

Selling and marketing expenses                          

157

175

78

87

50

25

General and administrative expenses

86

75

44

39

21

11

Depreciation and amortization

(360)

(364)

(181)

(185)

(104)

(53)

Other (1)

(1)

(5)

*

(3)

(1)

(1)

OPEX

965

946

485

469

270

134

 

*    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

Q1' 20

Q2' 20

Q3' 20

Q4' 20

Q1' 21

Q2' 21

Q3' 21

Q4' 21

Q1' 22

Q2' 22


2020

2021

Cellular Segment Service Revenues

423

409

415

416

413

420

435

431

443

457


1,663

1,699

Cellular Segment Equipment Revenues

146

130

134

135

160

157

136

149

142

135


545

602

Fixed-Line Segment Service Revenues

245

244

252

252

260

262

270

274

280

279


993

1,066

Fixed-Line Segment Equipment Revenues

32

28

35

41

34

34

29

29

22

18


136

126

Reconciliation for consolidation

(39)

(37)

(36)

(36)

(34)

(33)

(33)

(30)

(33)

(30)


(148)

(130)

Total Revenues

807

774

800

808

833

840

837

853

854

859


3,189

3,363

Gross Profit from Equipment Sales

37

30

38

40

42

39

37

34

33

28


145

152

Operating Profit

36

20

20

20

28

30

49

56

72

85


96

163

Cellular Segment Adjusted EBITDA

132

129

134

138

143

139

172

162

172

187


533

616

Fixed-Line Segment Adjusted EBITDA

83

71

70

65

66

74

78

88

85

89


289

306

Total Adjusted EBITDA

215

200

204

203

209

213

250

250

257

276


822

922

Adjusted EBITDA Margin (%)

27 %

26 %

26 %

25 %

25 %

25 %

30 %

29 %

30 %

32 %


26 %

27 %

OPEX

460

456

475

480

481

485

467

469

476

469


1,871

1,901

Finance costs, net

19

13

24

13

19

16

15

14

18

21


69

64

Profit (Loss)

10

7

(5)

5

5

9

24

77

39

47


17

115

Capital Expenditures (cash)

151

119

147

156

149

139

172

212

170

174


573

672

Capital Expenditures (additions)

129

121

179

166

142

182

112

244

166

174


595

680

Adjusted Free Cash Flow

10

44

21

(3)

19

8

9

(79)

25

57


72

(43)

Adjusted Free Cash Flow (after interest)

8

13

12

(10)

18

(33)

8

(84)

24

14


23

(91)

Net Debt

673

658

646

657

639

670

662

744

720

706


657

744

Cellular Subscriber Base (Thousands)

2,676

2,708

2,762

2,836

2,903

2,970

3,019

3,023

3,063

3,095


2,836

3,023

Post-Paid Subscriber Base (Thousands)

2,380

2,404

2,437

2,495

2,548

2,615

2,664

2,671

2,708

2,733


2,495

2,671

Pre-Paid Subscriber Base (Thousands)

296

304

325

341

355

355

355

352

355

362


341

352

Cellular ARPU (NIS)

53

51

51

49

48

48

48

48

48

49


51

48

Cellular Churn Rate (%)

7.5 %

7.5 %

7.3 %

7.2 %

6.8 %

7.2 %

6.4 %

7.9 %

7.0 %

6.7 %


30 %

28 %

Infrastructure-Based Internet Subscribers (Thousands)

281

295

311

329

339

354

365

374

387

395


329

374

Fiber-Optic Subscribers (Thousands)

87

101

120

139

155

173

192

212

233

250


139

212

Homes connected to fiber-optic infrastructure (Thousands)

361

396

432

465

514

571

624

700

770

837


465

700

TV Subscriber Base (Thousands)

200

215

224

232

234

223**

226

226

225

224


232

226**

Number of Employees (FTE)

1,867

2,745

2,731

2,655

2,708

2,628

2,627

2,574

2,536

2,588


2,655

2,574

* 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 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, 2022

Information regarding the notes series issued by the Company, in million NIS

Series

Original
issuance
date

Principal on
the date of
issuance

As of 30.06.2022

Annual interest
rate

Principal repayment
dates

Interest repayment
dates

Interest
linkage

Trustee contact details

Principal
book value

Linked principal
book value

Interest accumulated
in books

Market
value

From

To



Principal book value

F

(2)

20.07.17

12.12.17*

04.12.18*

01.12.19*

255

389

150

226.75

256

256

**

255

2.16 %

25.06.20

25.06.24

25.06, 25.12

Not Linked

Hermetic Trust (1975) Ltd.

Merav Offer. 113 Hayarkon St.,

Tel Aviv. Tel: 03-5544553.

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

766

766

**

785

4 %

25.06.22

25.06.27

25.06

Not Linked

Hermetic Trust (1975) Ltd.

Merav Offer. 113 Hayarkon St.,

Tel Aviv. Tel: 03-5544553.

H

 (2)

26.12.21

 

198.4

 

198

198

**

181

2.08 %

25.06.25

25.06.30

25.06

Not Linked

Hermetic Trust (1975) Ltd.

Merav Offer. 113 Hayarkon St.,

Tel Aviv. Tel: 03-5544553.

(1)  In April 2019, the Company issued in a private placement 2 series of untradeable option warrants that were 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 were allotted upon the exercise of an option warrant were identical in all their rights to the Company's Series G debentures immediately upon their allotment, and are entitled to any payment of interest or other benefit, the effective date of which is due after the allotment date. The debentures that were allotted as a result of the exercise of option warrants were 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, the Company issued Series G Notes in a total principal amount of NIS 101 million. The issuance in May 2021 was the final exercise of option warrants from the second series.

(2)  Regarding Series F Notes, Series G Notes, Series H Notes and borrowing P, borrowing Q and borrowing R 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, 2022, the ratio of Net Debt to Adjusted EBITDA was 0.7. Additional stipulations mainly include: Shareholders' equity shall not decrease below NIS 400 million and no dividends will be declared if shareholders' equity will be below NIS 650 million regarding Series F notes, borrowing P and borrowing Q. Shareholders' equity shall not decrease below NIS 600 million and no dividends will be declared if shareholders' equity will be below NIS 750 million regarding Series G notes and borrowing R. Shareholders' equity shall not decrease below NIS 700 million and no dividends will be declared if shareholders' equity will be below NIS 850 million regarding Series H notes. The Company shall not create floating liens subject to certain terms. The Company has the right for early redemption under certain conditions. With respect to notes payable series F, series G and series H: 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; debt rating will not decrease below BBB- for a certain period. In any case, the total maximum additional interest for Series F, Series G and Series H, shall not exceed 1.25%, 1% or 1.25%, respectively. For more information see the Company's Annual Report on Form 20-F for the year ended December 31, 2021.

    In the reporting period, the Company was in compliance with all financial covenants and obligations and no cause for early repayment occurred.

*    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, 2022 (cont.)

Notes Rating Details*

Series

Rating Company

Rating as of
30.06.2022
and 11.08.2022 (1)

Rating assigned upon 
issuance of the Series

Recent date of rating as of
30.06.2022 and
11.08.2022

Additional ratings between the original issuance date and the recent date of rating (2)

Date

Rating

F

S&P Maalot

ilA+

ilA+

08/2022

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, 12/2021, 08/2022

ilA+, ilA+, ilA+, ilA+, ilA+,

ilA+, ilA+, ilA+, ilA+, ilA+,

ilA+, ilA+, ilA+, ilA+, ilA+,

ilA+, ilA+, ilA+, ilA+,  ilA+

G

S&P Maalot

ilA+

ilA+

08/2022

12/2018, 01/2019, 04/2019, 08/2019, 02/2020,

 05/2020, 06/2020, 07/2020, 08/2020, 11/2020,

05/2021, 08/2021, 12/2021, 08/2022

ilA+, ilA+, ilA+, ilA+, ilA+,

ilA+, ilA+, ilA+, ilA+, ilA+,

ilA+, ilA+,  ilA+,  ilA+

H

S&P Maalot

ilA+

ilA+

08/2022

12/2021, 08/2022

ilA+,  ilA+

(1) In August 2022, 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 7, 2022.
* 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, 2022

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
payments (without
deduction of tax)


ILS linked
to CPI

ILS not linked
to CPI

Euro 

Dollar

Other

First year

-

212,985

-

-

-

40,282

Second year

-

212,985

-

-

-

34,191

Third year

-

124,765

-

-

-

27,950

Fourth year

-

190,008

-

-

-

23,722

Fifth year and on

-

479,219

-

-

-

22,692

Total

-

1,219,962

-

-

-

148,837

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
payments (without
deduction of tax)


ILS linked
to CPI

ILS not linked
to CPI

Euro  

Dollar

Other

First year

-

37,426

-

-

-

4,880

Second year

-

22,760

-

-

-

4,187

Third year

-

30,000

-

-

-

3,820

Fourth year

-

15,000

-

-

-

3,060

Fifth year and on

-

105,000

-

-

-

8,416

Total

-

210,186

-

-

-

24,363

Summary of Financial Undertakings (according to repayment dates) as of June 30, 2022 (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
payments (without
deduction of tax)


ILS linked
to CPI

ILS not linked
to CPI

Euro    

Dollar

Other

First year

-

250,411

-

-

-

45,162

Second year

-

235,745

-

-

-

38,378

Third year

-

154,765

-

-

-

31,770

Fourth year

-

205,008

-

-

-

26,782

Fifth year and on

-

584,219

-

-

-

31,108

Total

-

1,430,148

-

-

-

173,200

f.  Off-balance sheet credit exposure based on the Company's "Solo" financial data– As of June 30, 2022, the Company provided financial guarantees in a total amount of NIS 85 million

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.

SOURCE Partner Communications Company Ltd.

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