Income Statement
|
Income Statement
|
2020
|
2021
|
2022
|
NIS millions
|
Q1'20
|
Q2'20
|
Q3'20
|
Q4'20
|
FY'20
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
FY'21
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
FY'22
|
Revenues
|
892
|
855
|
956
|
973
|
3,676
|
1,033
|
1,003
|
994
|
1,069
|
4,100
|
1,055
|
1,069
|
1,115
|
Cost of revenues
|
644
|
664
|
744
|
748
|
2,800
|
769
|
727
|
705
|
763
|
2,963
|
756
|
746
|
790
|
Gross profit
|
248
|
191
|
212
|
225
|
876
|
264
|
276
|
289
|
306
|
1,137
|
299
|
323
|
325
|
Gross margin
|
27.8%
|
22.3%
|
22.2%
|
23.1%
|
23.8%
|
25.6%
|
27.5%
|
29.1%
|
28.7%
|
27.7%
|
28.3%
|
30.2%
|
29.1%
|
YoY change
|
6.4%
|
-20.7%
|
-21.2%
|
-6.3%
|
-10.9%
|
6.6%
|
44.7%
|
36.5%
|
36.2%
|
29.8%
|
13.1%
|
16.9%
|
12.3%
|
Selling and marketing expenses
|
145
|
119
|
147
|
169
|
580
|
168
|
159
|
164
|
175
|
666
|
165
|
156
|
166
|
General and administrative expenses
|
79
|
90
|
76
|
85
|
330
|
74
|
74
|
78
|
75
|
301
|
68
|
74
|
73
|
Credit Loses
|
11
|
11
|
4
|
1
|
27
|
0
|
0
|
6
|
-1
|
5
|
1
|
2
|
Other expenses (income), net
|
-5
|
-7
|
-9
|
-17
|
-38
|
-28
|
10
|
-17
|
-9
|
-44
|
-8
|
-4
|
-9
|
Operating profit (loss)
|
18
|
-22
|
-6
|
-13
|
-23
|
50
|
33
|
58
|
67
|
209
|
73
|
95
|
95
|
Operating margin
|
2.0%
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
4.9%
|
3.3%
|
5.8%
|
6.3%
|
5.1%
|
6.9%
|
8.9%
|
8.5%
|
YoY change
|
100.0%
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
180.0%
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
44.8%
|
184.4%
|
63.8%
|
Financing expenses (income), net
|
64
|
34
|
32
|
42
|
172
|
38
|
49
|
39
|
39
|
165
|
35
|
43
|
39
|
Share of profit of equity accounted investees
|
5
|
2
|
2
|
5
|
14
|
2
|
0
|
2
|
1
|
5
|
3
|
-2
|
1
|
Profit before taxes on income (loss)
|
-51
|
-58
|
-40
|
-60
|
-209
|
10
|
-16
|
17
|
28
|
39
|
35
|
54
|
55
|
Taxes on income (tax benefit)
|
-8
|
-12
|
-3
|
-16
|
-39
|
3
|
-2
|
4
|
7
|
12
|
7
|
15
|
14
|
Profit for the period (loss)
|
-43
|
-46
|
-37
|
-44
|
-170
|
7
|
-14
|
13
|
21
|
27
|
28
|
39
|
41
|
Net profit margin
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
0.7%
|
-1.3%
|
1.3%
|
2.0%
|
0.7%
|
2.7%
|
3.6%
|
3.7%
|
YoY change
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
300.0%
|
215.4%
|
Key Income Statement Metrics
|
Consolidated
|
Service revenues
|
682
|
683
|
695
|
738
|
2,798
|
721
|
728
|
739
|
751
|
2,939
|
758
|
769
|
804
|
YoY change
|
0.6%
|
-1.7%
|
-2.0%
|
6.3%
|
0.8%
|
5.7%
|
6.6%
|
6.3%
|
1.8%
|
5.0%
|
5.1%
|
5.6%
|
8.8%
|
Equipment revenues
|
210
|
172
|
261
|
235
|
878
|
312
|
275
|
255
|
318
|
1,161
|
297
|
300
|
311
|
YoY change
|
-16.0%
|
-23.6%
|
19.2%
|
-1.3%
|
-5.8%
|
48.6%
|
59.9%
|
-2.3%
|
35.3%
|
32.2%
|
-4.8%
|
9.1%
|
22.0%
|
Total revenues
|
892
|
855
|
956
|
973
|
3,676
|
1,033
|
1,003
|
994
|
1,070
|
4,100
|
1,055
|
1,069
|
1,115
|
YoY change
|
-3.9%
|
-7.1%
|
3.0%
|
4.4%
|
-0.9%
|
15.8%
|
17.3%
|
4.0%
|
10.0%
|
11.5%
|
2.1%
|
6.6%
|
12.2%
|
Adjusted EBITDA
|
244
|
222
|
231
|
221
|
918
|
271
|
297
|
277
|
288
|
1,133
|
286
|
303
|
311
|
Margin
|
27.4%
|
26.0%
|
24.2%
|
22.7%
|
25.0%
|
26.2%
|
29.6%
|
27.9%
|
26.9%
|
27.6%
|
27.1%
|
28.3%
|
27.9%
|
YoY change
|
8.9%
|
-4.7%
|
-14.8%
|
4.2%
|
-2.3%
|
11.1%
|
33.8%
|
19.9%
|
30.3%
|
23.4%
|
5.5%
|
2.0%
|
12.3%
|
Cellular
|
Service revenues
|
396
|
385
|
414
|
465
|
1,660
|
457
|
461
|
474
|
474
|
1,867
|
475
|
489
|
510
|
YoY change
|
-2.0%
|
-8.3%
|
-5.7%
|
11.8%
|
-1.1%
|
15.4%
|
19.7%
|
14.5%
|
1.9%
|
12.5%
|
3.9%
|
6.1%
|
7.6%
|
Equipment revenues
|
156
|
147
|
223
|
178
|
704
|
239
|
223
|
211
|
242
|
915
|
229
|
239
|
246
|
YoY change
|
-1.3%
|
-9.3%
|
29.7%
|
5.3%
|
6.5%
|
53.2%
|
51.7%
|
-5.4%
|
36.0%
|
30.0%
|
-4.2%
|
7.2%
|
16.6%
|
Total revenues
|
552
|
532
|
637
|
643
|
2,364
|
697
|
684
|
685
|
716
|
2,782
|
704
|
728
|
756
|
YoY change
|
-1.8%
|
-8.6%
|
4.3%
|
9.9%
|
1.0%
|
26.3%
|
28.6%
|
7.5%
|
11.4%
|
17.7%
|
1.0%
|
6.4%
|
10.4%
|
Adjusted EBITDA
|
131
|
125
|
114
|
155
|
525
|
161
|
175
|
168
|
180
|
684
|
175
|
191
|
205
|
Margin
|
23.7%
|
23.5%
|
17.9%
|
24.1%
|
22.2%
|
23.1%
|
25.6%
|
24.5%
|
25.1%
|
24.6%
|
24.9%
|
26.2%
|
27.1%
|
YoY change
|
-10.3%
|
-23.3%
|
-38.4%
|
16.5%
|
-16.3%
|
22.9%
|
40.0%
|
47.4%
|
16.1%
|
30.3%
|
8.7%
|
9.1%
|
22.0%
|
Fixed - Line
|
Service revenues
|
327
|
339
|
327
|
313
|
1,306
|
303
|
305
|
304
|
315
|
1,226
|
323
|
317
|
333
|
YoY change
|
3.2%
|
8.7%
|
5.1%
|
-1.6%
|
3.8%
|
-7.3%
|
-10.0%
|
-7.0%
|
0.6%
|
-6.1%
|
6.6%
|
3.9%
|
9.5%
|
Equipment revenues
|
54
|
25
|
38
|
57
|
174
|
73
|
52
|
44
|
77
|
246
|
67
|
62
|
65
|
YoY change
|
-41.3%
|
-60.3%
|
-19.1%
|
-17.4%
|
-35.8%
|
35.2%
|
108.0%
|
15.8%
|
35.1%
|
41.4%
|
-8.2%
|
19.2%
|
47.7%
|
Total revenues
|
381
|
364
|
365
|
370
|
1,480
|
375
|
357
|
348
|
392
|
1,472
|
390
|
379
|
398
|
YoY change
|
-6.8%
|
-2.9%
|
2.0%
|
-4.4%
|
-3.2%
|
-1.6%
|
-1.9%
|
-4.7%
|
5.9%
|
-0.5%
|
4.0%
|
6.2%
|
14.4%
|
Adjusted EBITDA
|
113
|
97
|
117
|
66
|
393
|
110
|
122
|
109
|
108
|
449
|
111
|
112
|
106
|
Margin
|
29.7%
|
26.6%
|
32.1%
|
17.8%
|
26.6%
|
29.3%
|
34.2%
|
31.3%
|
27.6%
|
30.5%
|
28.5%
|
29.6%
|
26.6%
|
YoY change
|
44.9%
|
38.6%
|
36.0%
|
-16.5%
|
25.6%
|
-2.7%
|
25.8%
|
-6.8%
|
63.6%
|
14.2%
|
0.9%
|
-8.2%
|
-2.8%
|
Consolidation adjustments
|
(41)
|
(37)
|
(46)
|
(44)
|
(168)
|
(39)
|
(38)
|
(39)
|
(38)
|
(154)
|
(39)
|
(38)
|
(39)
|
EBITDA for Q1'20 includes a decrease in the costs related to the internet services in the fixed line segment as a result of retrospective update of wholesale services tariffs by the MOC which resulted in one time expenses in amount of NIS 28 million
EBITDA for Q1'20 includes a decrease in the costs related to the internet services in the fixed line segment as a result of retrospective update of wholesale services tariffs by the MOC which resulted in one time expenses in amount of NIS 28 million
Consolidated results with Golan as of acquisition date
Consolidated results with Golan as of acquisition date
Consolidated results with Golan as of acquisition date
including a significant one-time profit of NIS 14 million which resulted from the consummation of HOT-Company-IBC Israel Broadband Company (2013) Ltd. ("IBC") transaction, and a decrease in the Company's holdings in IBC. In addition, the Company recorded revenues in the amount of NIS 13 million in respect of fiber deployment for IBC. These revenues are expected to significantly decline as of the second half of 2021 in light of the completion of such transaction
Consolidated results with Golan as of acquisition date
The loss in the second quarter totaled to 14 million NIS from a registration of a one-time provision of NIS 32 million as a result of a judgment given against the Company in a class action lawsuit. The Company recorded other income of NIS 15 million in respect of fiber deployment for IBC Israel Broadband (2013) Ltd. ("IBC").
Consolidated results with Golan as of acquisition date
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
Cash Flow
|
Cash Flow
|
2020
|
2021
|
2022
|
NIS millions
|
Q1'20
|
Q2'20
|
Q3'20
|
Q4'20
|
FY'20
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
FY'21
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
FY'22
|
Net income (loss)
|
(43)
|
(46)
|
(37)
|
(44)
|
(170)
|
7
|
(14)
|
13
|
21
|
27
|
28
|
39
|
41
|
Tax benefit (tax on income) income
|
(8)
|
(12)
|
(3)
|
(16)
|
(39)
|
3
|
(2)
|
4
|
7
|
12
|
7
|
15
|
14
|
Financing expense, net
|
64
|
34
|
32
|
42
|
172
|
38
|
49
|
39
|
39
|
165
|
35
|
43
|
39
|
Other expenses (income),net
|
2
|
0
|
1
|
(6)
|
(3)
|
(11)
|
32
|
(5)
|
(3)
|
13
|
1
|
(2)
|
0
|
Losses of equity
|
5
|
2
|
2
|
5
|
14
|
2
|
0
|
2
|
0
|
5
|
3
|
(2)
|
1
|
Depreciation and amortization
|
220
|
240
|
230
|
234
|
924
|
226
|
227
|
220
|
223
|
896
|
208
|
203
|
209
|
Share based payments
|
4
|
4
|
6
|
6
|
20
|
6
|
5
|
4
|
0
|
15
|
4
|
7
|
7
|
Adjusted EBITDA
|
244
|
222
|
231
|
221
|
918
|
271
|
297
|
277
|
288
|
1,133
|
286
|
303
|
311
|
Changes in Working Capital
|
10
|
(6)
|
(42)
|
157
|
119
|
(47)
|
(5)
|
12
|
63
|
23
|
(60)
|
(13)
|
53
|
Income Tax Paid, net
|
(2)
|
(4)
|
2
|
(5)
|
(9)
|
(1)
|
(5)
|
(2)
|
0
|
(8)
|
(1)
|
(3)
|
(3)
|
Other expenses (income)
|
(12)
|
(16)
|
11
|
(18)
|
(35)
|
(23)
|
(42)
|
(11)
|
(20)
|
(96)
|
(21)
|
(15)
|
(11)
|
Operating Cash Flow
|
240
|
196
|
202
|
355
|
993
|
200
|
245
|
276
|
331
|
1,052
|
204
|
272
|
350
|
Lease payments and related expenses*
|
(75)
|
(56)
|
(65)
|
(57)
|
(253)
|
(66)
|
(52)
|
(59)
|
(81)
|
(258)
|
(53)
|
(76)
|
(64)
|
Capex
|
(118)
|
(114)
|
(108)
|
(159)
|
(499)
|
(104)
|
(128)
|
(165)
|
(201)
|
(598)
|
(99)
|
(135)
|
(250)
|
Other
|
10
|
(2)
|
15
|
(14)
|
9
|
19
|
(3)
|
58
|
(3)
|
71
|
0
|
3
|
2
|
Free Cash Flow
|
57
|
24
|
44
|
125
|
250
|
49
|
62
|
110
|
46
|
267
|
52
|
64
|
38
|
*Including the effects of exchange rate fluctuations in cash and cash equivalents and lease payments.
|
Consolidated results with Golan as of acquisition date
Consolidated results with Golan as of acquisition date
Consolidated results with Golan as of acquisition date
Consolidated results with Golan as of acquisition date
The loss in the second quarter totaled to 14 million NIS from a registration of a one-time provision of NIS 32 million as a result of a judgment given against the Company in a class action lawsuit. The Company recorded other income of NIS 15 million in respect of fiber deployment for IBC Israel Broadband (2013) Ltd. ("IBC").
Consolidated results with Golan as of acquisition date
Operational Metrics
|
Operational Metrics
|
2020
|
2021
|
2022
|
Thousand
|
Q1'20
|
Q2'20
|
Q3'20
|
Q4'20
|
FY'20
|
Q1'21
|
Q2'21
|
Q3'21
|
Q4'21
|
FY'21
|
Q1'22
|
Q2'22
|
Q3'22
|
Q4'22
|
FY'22
|
Cellular
|
Cellular subscribers
|
2,747
|
2,734
|
3,641
|
3,204
|
3,204
|
3,232
|
3,226
|
3,246
|
3,275
|
3,275
|
3,306
|
3,346
|
3,410
|
YoY Change
|
-3.7%
|
-0.4%
|
31.6%
|
16.8%
|
16.8%
|
17.7%
|
18.0%
|
-10.8%
|
2.2%
|
2.2%
|
2.3%
|
3.7%
|
5.1%
|
Net adds
|
3
|
-13
|
907
|
-437
|
460
|
28
|
-6
|
20
|
29
|
71
|
31
|
40
|
64
|
ARPU (in NIS)
|
48.1
|
46.9
|
45.7
|
48.6
|
47.3
|
47.4
|
47.7
|
48.6
|
48.4
|
48.0
|
47.7
|
49.0
|
50.3
|
YoY Change
|
1.9%
|
-9.6%
|
-14.1%
|
-3.8%
|
-6.7%
|
-1.5%
|
1.7%
|
6.4%
|
-0.4%
|
1.5%
|
0.6%
|
2.7%
|
3.4%
|
Churn rate (%)
|
8.8%
|
8.7%
|
8.7%
|
8.4%
|
40.2%
|
7.8%
|
8.6%
|
7.2%
|
7.4%
|
31.0%
|
7.5%
|
7.0%
|
7.0%
|
Fixed - Line
|
Internet infrastructure field subscribers
|
279
|
283
|
289
|
293
|
293
|
297
|
296
|
300
|
305
|
305
|
311
|
316
|
319
|
Fiber Optic Subs
|
80
|
93
|
93
|
106
|
113
|
123
|
135
|
135
|
150
|
162
|
175
|
Net adds
|
1
|
4
|
6
|
4
|
15
|
4
|
-1
|
4
|
5
|
12
|
6
|
5
|
3
|
TV subscribers
|
246
|
245
|
251
|
252
|
252
|
254
|
250
|
250
|
252
|
252
|
254
|
255
|
256
|
YoY Change
|
8.4%
|
2.5%
|
1.6%
|
-2.5%
|
-2.5%
|
3.3%
|
2.0%
|
-0.4%
|
0.2%
|
0.2%
|
0.0%
|
2.0%
|
2.4%
|
Net adds
|
-12
|
-1
|
6
|
1
|
-6
|
2
|
-4
|
0
|
2
|
0
|
2
|
1
|
1
|
As of the first quarter of 2020, the churn rate includes only the negative net churn of M2M subscribers, in order to eliminate changes that do not change the amount of lines held by the customers.
As of the first quarter of 2020, the Company changed the counting method in the way that does not include subscribers who own the Cellcom tv light application who did not activate the service. As a result, the company erased 14 thousands subscribers from its active customer base.
The decrease in the subscriber base in the TV field was due to a change in the counting method. During this quarter, the Company changed the way of counting TV subscribers by advancing the date of withdrawal from its subscriber base, from the date of returning the equipment to the Company to the date in which the subscriber's request to disconnect from the service was received. The Company applied the change retroactively and as a result deleted approximately 5,000 subscribers.
Cellular subscriber base of the company at the end of the third quarter of 2020 stands at 3.641 million subscribers. As a result of completion of Golan's acquisition during the third quarter of 2020, a 927 thousands subscribers added to the subscribers base.
Cellular subscriber base of the company at the end of the fourth quarter of 2020 stands at 3.204 million subscribers. The number of subscribers decreased following a change in the counting mechanizem which led to a write-off of approximately 427,000 data subscribers
Consolidated results with Golan as of acquisition date
Consolidated results with Golan as of acquisition date
Consolidated results with Golan as of acquisition date
The number of subscribers decreased in 2020 following a change in the counting mechanizem which led to a write-off of approximately 427,000 data subscribers
The number of subscribers decreased in 2020 following a change in the counting mechanizem which led to a write-off of approximately 427,000 data subscribers
The number of subscribers decreased in 2020 following a change in the counting mechanizem which led to a write-off of approximately 427,000 data subscribers
The number of subscribers decreased in 2020 following a change in the counting mechanizem which led to a write-off of approximately 427,000 data subscribers
The number of subscribers decreased in 2020 following a change in the counting mechanizem which led to a write-off of approximately 427,000 data subscribers