§
|
Total Revenues from services
increased 1.1% to NIS 1,373 million ($328
million)
|
§
|
Revenues from content and value
added services (including SMS) increased 36.5%, reaching 14.7% of
services revenues
|
§
|
Total Revenues (including
revenues from end-user equipment) totaled NIS 1,561 million ($373
million), a 2.1% decrease resulting from a 20.7% decrease in handset and accessories’
revenues
|
§
|
EBITDA increased
3.0% to NIS 611 million ($146 million); EBITDA margin
39.1%, up from
37.2%
|
§
|
Operating income
increased 4.2% to NIS 442 million ($105
million)
|
§
|
Net income increased
27.5% to NIS 348 million ($83
million)
|
§
|
Subscriber base
increased approx. 21,000 during the first quarter; reaching approx.
3.208 million at the end of March
2009
|
§
|
3G subscribers reached
approx. 833,000 at the end of March 2009, net addition of approx. 102,000
in the first quarter 2009
|
§
|
The Company
Declared first
quarter dividend of NIS 3.36 per
share
|
Q1/2009
|
Q1/2008
|
%
Change
|
Q1/2009
|
Q1/2008
|
|
million
NIS
|
million
US$
(convenience
translation)
|
||||
Total
Services revenues
|
1,373
|
1,358
|
1.1%
|
327.8
|
324.3
|
Revenues from
content and value added services
|
202
|
148
|
36.5%
|
48.2
|
35.3
|
Handset and
accessories revenues
|
188
|
237
|
(20.7%)
|
44.9
|
56.6
|
Total
revenues
|
1,561
|
1,595
|
(2.1%)
|
372.7
|
380.9
|
Operating
Profit
|
442
|
424
|
4.2%
|
105.5
|
101.2
|
Net
Income
|
348
|
273
|
27.5%
|
83.1
|
65.2
|
Cash Flow
from Operating Activities, net of Investing Activities
|
393
|
71
|
453.5%
|
93.8
|
17.0
|
EBITDA
|
611
|
593
|
3.0%
|
145.9
|
141.6
|
EBITDA, as
percent of Revenues
|
39.1%
|
37.2%
|
5.1%
|
||
Subscribers
end of period
(in
thousands)
|
3,208
|
3,096
|
3.6%
|
||
Estimated
Market Share2
|
34.8%
|
34.6%
|
|||
Monthly
ARPU
|
139.9
|
144.5
|
(3.2%)
|
33.4
|
34.5
|
Average
Monthly MOU *
|
323.0
|
327.2
|
(1.3%)
|
*
|
Following the
regulatory requirement to change the basic airtime charging unit from twelve-second
to one-second units commencing January 1, 2009, MOU for the first quarter
2008 has been adjusted to the same per-one second unit basis to enable a
comparison. MOU for the first quarter of 2008 based on the former charging
units was 350.5 minutes.
|
US Dial-in
Number: 1 866 527 8676
|
UK Dial-in
Number: 0 800 917 4613
|
|
Israel
Dial-in Number: 03 918 0691
|
International
Dial-in Number: +972 3 918
0691
|
Company
Contact
Shiri
Israeli
Investor
Relations Coordinator
investors@cellcom.co.il
Tel: +972 52
998 9755
|
Investor Relations
Contact
Ehud Helft /
Ed Job
CCGK Investor
Relations
ehud@gkir.com / ed.job@ccgir.com
Tel: (US) 1
866 704 6710 / 1 646-213-1914
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
March
31,
|
March
31,
|
March
31,
|
December
31,
|
|||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Assets
|
||||||||||||||||
Cash
and cash equivalents
|
152 | 36 | 826 | 275 | ||||||||||||
Trade
receivables
|
1,518 | 362 | 1,438 | 1,478 | ||||||||||||
Other
receivables, including derivatives
|
138 | 33 | 125 | 112 | ||||||||||||
Inventory
|
128 | 31 | 236 | 119 | ||||||||||||
Total
current assets
|
1,936 | 462 | 2,625 | 1,984 | ||||||||||||
Trade
and other receivables
|
612 | 146 | 579 | 602 | ||||||||||||
Property,
plant and equipment, net
|
2,100 | 502 | 2,265 | 2,159 | ||||||||||||
Intangible
assets, net
|
665 | 159 | 681 | 675 | ||||||||||||
Total
non- current assets
|
3,377 | 807 | 3,525 | 3,436 | ||||||||||||
Total
assets
|
5,313 | 1,269 | 6,150 | 5,420 | ||||||||||||
Liabilities
|
||||||||||||||||
Debentures
current maturities
|
327 | 78 | 280 | 329 | ||||||||||||
Trade
payables and accrued expenses
|
686 | 164 | 709 | 677 | ||||||||||||
Current
tax liabilities
|
102 | 24 | 49 | 65 | ||||||||||||
Provisions
|
52 | 13 | 91 | 47 | ||||||||||||
Other
current liabilities, including derivatives
|
318 | 76 | 341 | 385 | ||||||||||||
Dividend
declared
|
- | - | 700 | - | ||||||||||||
Total
current liabilities
|
1,485 | 355 | 2,170 | 1,503 | ||||||||||||
Debentures
|
3,213 | 767 | 3,425 | 3,401 | ||||||||||||
Provisions
|
18 | 4 | 14 | 17 | ||||||||||||
Other
long-term liabilities
|
- | - | 2 | 1 | ||||||||||||
Deferred
taxes
|
158 | 38 | 143 | 156 | ||||||||||||
Total
non- current liabilities
|
3,389 | 809 | 3,584 | 3,575 | ||||||||||||
Total
liabilities
|
4,874 | 1,164 | 5,754 | 5,078 | ||||||||||||
Shareholders’
equity
|
||||||||||||||||
Share
capital
|
1 | - | 1 | 1 | ||||||||||||
Cash
flow hedge reserve
|
8 | 2 | (51 | ) | (11 | ) | ||||||||||
Retained
earnings
|
430 | 103 | 446 | 352 | ||||||||||||
Total
shareholders’ equity
|
439 | 105 | 396 | 342 | ||||||||||||
Total
liabilities and shareholders’ equity
|
5,313 | 1,269 | 6,150 | 5,420 |
Three-
month period ended
|
Year
ended
|
|||||||||||||||
March
31,
|
December
31,
|
|||||||||||||||
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Revenues
|
1,561 | 373 | 1,595 | 6,417 | ||||||||||||
Cost
of revenues
|
806 | 193 | 879 | 3,402 | ||||||||||||
Gross
profit
|
755 | 180 | 716 | 3,015 | ||||||||||||
Selling
and marketing expenses
|
157 | 38 | 156 | 701 | ||||||||||||
General
and administrative expenses
|
154 | 37 | 154 | 659 | ||||||||||||
Other
(income) expenses, net
|
2 | - | (18 | ) | (29 | ) | ||||||||||
Operating
income
|
442 | 105 | 424 | 1,684 | ||||||||||||
Financing
income
|
60 | 14 | 62 | 83 | ||||||||||||
Financing
expenses
|
(32 | ) | (7 | ) | (107 | ) | (393 | ) | ||||||||
Financing
costs, net
|
28 | 7 | (45 | ) | (310 | ) | ||||||||||
Income
before income tax
|
470 | 112 | 379 | 1,374 | ||||||||||||
Income
tax
|
122 | 29 | 106 | 389 | ||||||||||||
Net
income
|
348 | 83 | 273 | 985 | ||||||||||||
Earnings
per share
|
||||||||||||||||
Basic
earnings per share in NIS
|
3.54 | 0.85 | 2.80 | 10.08 | ||||||||||||
Diluted
earnings per share in NIS
|
3.51 | 0.84 | 2.76 | 9.92 | ||||||||||||
Three-
month period ended
|
Year
ended
|
|||||||||||||||
March
31,
|
December
31,
|
|||||||||||||||
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Net
income for the period
|
348 | 83 | 273 | 985 | ||||||||||||
Adjustments
to reconcile net income to funds generated
from operations:
|
||||||||||||||||
Depreciation
|
121 | 29 | 144 | 570 | ||||||||||||
Amortization
|
46 | 11 | 43 | 181 | ||||||||||||
Capital
gain on sale of land
|
- | - | (9 | ) | (9 | ) | ||||||||||
Loss
(gain) on sale of assets
|
2 | 1 | (9 | ) | (9 | ) | ||||||||||
Income
tax expense
|
122 | 29 | 106 | 389 | ||||||||||||
Financial
(income) costs, net
|
(28 | ) | (7 | ) | 45 | 310 | ||||||||||
Share
based payments
|
- | - | 4 | 28 | ||||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||||||
Changes
in inventories
|
(9 | ) | (2 | ) | 9 | 112 | ||||||||||
Changes
in trade receivables (including long-term
amounts)
|
(39 | ) | (9 | ) | (87 | ) | (117 | ) | ||||||||
Changes
in other receivables (including long-term
amounts)
|
(25 | ) | (6 | ) | (9 | ) | (34 | ) | ||||||||
Changes
in trade payables and accrued expenses
|
66 | 15 | (177 | ) | (271 | ) | ||||||||||
Changes
in other liabilities (including long-term
|
||||||||||||||||
amounts)
|
9 | 2 | 30 | 99 | ||||||||||||
Payments
for inventory hedging contracts, net
|
5 | 1 | (9 | ) | (38 | ) | ||||||||||
Proceeds
from (payments for) derivative
|
||||||||||||||||
contracts,
net
|
24 | 6 | (5 | ) | 18 | |||||||||||
Income
tax paid
|
(90 | ) | (21 | ) | (161 | ) | (451 | ) | ||||||||
Net
cash from operating activities
|
552 | 132 | 188 | 1,763 | ||||||||||||
Cash
flows from investing activities
|
||||||||||||||||
Acquisition
of property, plant, and equipment
|
(112 | ) | (27 | ) | (118 | ) | (429 | ) | ||||||||
Acquisition
of intangible assets
|
(47 | ) | (11 | ) | (54 | ) | (175 | ) | ||||||||
Payments
for derivative hedging contracts, net
|
- | - | (5 | ) | (17 | ) | ||||||||||
Proceeds
from sales of property, plant and
|
||||||||||||||||
equipment
|
- | - | 13 | 19 | ||||||||||||
Interest
received
|
- | - | 10 | 17 | ||||||||||||
Proceeds
from sale of long term receivables
|
- | - | 37 | 39 | ||||||||||||
Net
cash used in investing activities
|
(159 | ) | (38 | ) | (117 | ) | (546 | ) |
Three-
month period ended
|
Year
ended
|
|||||||||||||||
March
31,
|
December
31,
|
|||||||||||||||
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Cash
flows from financing activities
|
||||||||||||||||
Proceeds
from derivative
|
||||||||||||||||
contracts,
net
|
4 | 1 | 7 | 31 | ||||||||||||
Repayment
of long-term loans from banks
|
- | - | (648 | ) | (648 | ) | ||||||||||
Repayment
of Debentures
|
(164 | ) | (39 | ) | - | (125 | ) | |||||||||
Proceeds
from issuance of debentures, net of
|
||||||||||||||||
issuance
costs
|
- | - | 589 | 589 | ||||||||||||
Dividend
paid
|
(270 | ) | (64 | ) | (16 | ) | (1,525 | ) | ||||||||
Interest
paid
|
(86 | ) | (21 | ) | (88 | ) | (175 | ) | ||||||||
Net
cash used in financing activities
|
(516 | ) | (123 | ) | (156 | ) | (1,853 | ) | ||||||||
Changes
in cash and cash equivalents
|
(123 | ) | (29 | ) | (85 | ) | (636 | ) | ||||||||
Balance
of cash and cash equivalents at
|
||||||||||||||||
beginning
of the period
|
275 | 65 | 911 | 911 | ||||||||||||
Balance
of cash and cash equivalents at end of
|
||||||||||||||||
the
period
|
152 | 36 | 826 | 275 |
Three-month
period ended
March
31,
|
Year
ended
December
31,
|
|||||||||||||||
2009
NIS
millions
(Unaudited)
|
Convenience
translation
into
US dollar
2009
US$
millions
(Unaudited)
|
2008
NIS
millions
(Unaudited)
|
2008
NIS
millions
(Audited)
|
|||||||||||||
Net
income
|
348 | 83 | 273 | 985 | ||||||||||||
Income
taxes
|
122 | 29 | 106 | 389 | ||||||||||||
Financing
income
|
(60 | ) | (14 | ) | (62 | ) | (83 | ) | ||||||||
Financing
expenses
|
32 | 7 | 107 | 393 | ||||||||||||
Other
expenses (income)
|
2 | - | (18 | ) | (29 | ) | ||||||||||
Depreciation
and amortization
|
167 | 40 | 187 | 751 | ||||||||||||
EBITDA
|
611 | 146 | 593 | 2,406 |
Three-month
period ended
March
31,
|
Year
ended
December
31,
|
|||||||||||||||
2009
NIS
millions
(Unaudited)
|
Convenience
translation
into
US dollar
2009
US$
millions
(Unaudited)
|
2008
NIS
millions
(Unaudited)
|
2008
NIS
millions
(Audited)
|
|||||||||||||
Cash
flows from operating activities
|
552 | 132 | 188 | 1,763 | ||||||||||||
Cash
flows from investing activities
|
(159 | ) | (38 | ) | (117 | ) | (546 | ) | ||||||||
Free
Cash Flow
|
393 | 94 | 71 | 1,217 |
Cellcom
Israel Ltd.
and
Subsidiaries
Financial
Statements
As
at March 31, 2009
(Unaudited)
|
Page
|
|
Interim
Consolidated Balance Sheets
|
3
|
Interim
Consolidated Statements of Income
|
4
|
Interim
Consolidated Statements of recognized income and expense
|
5
|
Interim
Consolidated Statements of changes in shareholders' equity
|
6
|
Interim
Consolidated Statements of Cash Flows
|
7
|
Condensed
notes to the Interim Consolidated Financial Statements
|
9
|
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
(Note
2D)
|
||||||||||||||||
March
31,
|
March
31,
|
March
31,
|
December
31,
|
|||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Assets
|
||||||||||||||||
Cash
and cash equivalents
|
152 | 36 | 826 | 275 | ||||||||||||
Trade
receivables
|
1,518 | 362 | 1,438 | 1,478 | ||||||||||||
Other
receivables, including derivatives
|
138 | 33 | 125 | 112 | ||||||||||||
Inventory
|
128 | 31 | 236 | 119 | ||||||||||||
Total
current assets
|
1,936 | 462 | 2,625 | 1,984 | ||||||||||||
Trade
and other receivables
|
612 | 146 | 579 | 602 | ||||||||||||
Property,
plant and equipment, net
|
2,100 | 502 | 2,265 | 2,159 | ||||||||||||
Intangible
assets, net
|
665 | 159 | 681 | 675 | ||||||||||||
Total
non- current assets
|
3,377 | 807 | 3,525 | 3,436 | ||||||||||||
Total
assets
|
5,313 | 1,269 | 6,150 | 5,420 | ||||||||||||
Liabilities
|
||||||||||||||||
Debentures
current maturities
|
327 | 78 | 280 | 329 | ||||||||||||
Trade
payables and accrued expenses
|
686 | 164 | 709 | 677 | ||||||||||||
Current
tax liabilities
|
102 | 24 | 49 | 65 | ||||||||||||
Provisions
|
52 | 13 | 91 | 47 | ||||||||||||
Other
current liabilities, including derivatives
|
318 | 76 | 341 | 385 | ||||||||||||
Dividend
declared
|
- | - | 700 | - | ||||||||||||
Total
current liabilities
|
1,485 | 355 | 2,170 | 1,503 | ||||||||||||
Debentures
|
3,213 | 767 | 3,425 | 3,401 | ||||||||||||
Provisions
|
18 | 4 | 14 | 17 | ||||||||||||
Other
long-term liabilities
|
- | - | 2 | 1 | ||||||||||||
Deferred
taxes
|
158 | 38 | 143 | 156 | ||||||||||||
Total
non- current liabilities
|
3,389 | 809 | 3,584 | 3,575 | ||||||||||||
Total
liabilities
|
4,874 | 1,164 | 5,754 | 5,078 | ||||||||||||
Shareholders’
equity
|
||||||||||||||||
Share
capital
|
1 | - | 1 | 1 | ||||||||||||
Cash
flow hedge reserve
|
8 | 2 | (51 | ) | (11 | ) | ||||||||||
Retained
earnings
|
430 | 103 | 446 | 352 | ||||||||||||
Total
shareholders’ equity
|
439 | 105 | 396 | 342 | ||||||||||||
Total
liabilities and shareholders’ equity
|
5,313 | 1,269 | 6,150 | 5,420 |
Three-
month period ended
|
Year
ended
|
|||||||||||||||
March
31,
|
December
31,
|
|||||||||||||||
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
(Note
2D)
|
||||||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Revenues
|
1,561 | 373 | 1,595 | 6,417 | ||||||||||||
Cost
of revenues
|
806 | 193 | 879 | 3,402 | ||||||||||||
Gross
profit
|
755 | 180 | 716 | 3,015 | ||||||||||||
Selling
and marketing expenses
|
157 | 38 | 156 | 701 | ||||||||||||
General
and administrative expenses
|
154 | 37 | 154 | 659 | ||||||||||||
Other
(income) expenses, net
|
2 | - | (18 | ) | (29 | ) | ||||||||||
Operating
income
|
442 | 105 | 424 | 1,684 | ||||||||||||
Financing
income
|
60 | 14 | 62 | 83 | ||||||||||||
Financing
expenses
|
(32 | ) | (7 | ) | (107 | ) | (393 | ) | ||||||||
Financing
income (expenses), net
|
28 | 7 | (45 | ) | (310 | ) | ||||||||||
Income
before income tax
|
470 | 112 | 379 | 1,374 | ||||||||||||
Income
tax
|
122 | 29 | 106 | 389 | ||||||||||||
Net
income
|
348 | 83 | 273 | 985 | ||||||||||||
Earnings
per share
|
||||||||||||||||
Basic
earnings per share in NIS
|
3.54 | 0.85 | 2.80 | 10.08 | ||||||||||||
Diluted
earnings per share in NIS
|
3.51 | 0.84 | 2.76 | 9.92 | ||||||||||||
Three-
month period ended
|
Year
ended
|
|||||||||||||||
March
31,
|
December
31,
|
|||||||||||||||
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
(Note
2D)
|
||||||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Net
change in fair value of cash flow hedges
|
||||||||||||||||
transferred
to profit and loss
|
(1 | ) | - | 7 | 44 | |||||||||||
Changes
in fair value of cash flow hedges
|
20 | 5 | (23 | ) | (10 | ) | ||||||||||
Income
tax recognized directly in equity
|
- | - | (2 | ) | (12 | ) | ||||||||||
Income
and expenses recognized directly in equity
|
19 | 5 | (18 | ) | 22 | |||||||||||
Net
income for the period
|
348 | 83 | 273 | 985 | ||||||||||||
Total
recognized income for the period
|
367 | 88 | 255 | 1,007 |
Share
capital amount
|
Cash
flow hedge reserve
|
Retained
earnings
|
Total
|
Convenience
translation into US dollar
(Note
2D)
|
||||||||||||||||
NIS
millions
|
US$
millions
|
|||||||||||||||||||
For
the three-month period ended
March 31, 2009
(Unaudited)
|
||||||||||||||||||||
Balance
as of January 1, 2009
(Audited)
|
1 | (11 | ) | 352 | 342 | 82 | ||||||||||||||
Total
recognized income and expenses
|
- | 19 | 348 | 367 | 88 | |||||||||||||||
Cash
dividend paid
|
- | - | (270 | ) | (270 | ) | (65 | ) | ||||||||||||
Balance
as of March 31, 2009
(Unaudited)
|
1 | 8 | 430 | 439 | 105 |
Share
capital amount
|
Cash
flow hedge reserve
|
Retained
earnings
|
Total
|
Convenience
translation into US dollar
(Note
2D)
|
||||||||||||||||
NIS
millions
|
US$
millions
|
|||||||||||||||||||
For
the three-month period ended
March 31, 2008
(Unaudited)
|
||||||||||||||||||||
Balance
as of January 1, 2008
(Audited)
|
1 | (33 | ) | 869 | 837 | 200 | ||||||||||||||
Total
recognized income and expenses
|
- | (18 | ) | 273 | 255 | 61 | ||||||||||||||
Share
based payments
|
- | - | 4 | 4 | 1 | |||||||||||||||
Cash
dividend paid
|
- | - | (700 | ) | (700 | ) | (167 | ) | ||||||||||||
Balance
as of March 31, 2008
(Unaudited)
|
1 | (51 | ) | 446 | 396 | 95 |
Share
capital amount
|
Cash
flow hedge reserve
|
Retained
earnings
|
Total
|
Convenience
translation into US dollar
(Note
2D)
|
||||||||||||||||
NIS
millions
|
US$
millions
|
|||||||||||||||||||
For
the year ended
December 31, 2008
(Audited)
|
||||||||||||||||||||
Balance
as of January 1, 2008
(Audited)
|
1 | (33 | ) | 869 | 837 | 200 | ||||||||||||||
Total
recognized income and expenses
|
- | 22 | 985 | 1,007 | 240 | |||||||||||||||
Share
based payments
|
- | - | 28 | 28 | 7 | |||||||||||||||
Cash
dividend paid
|
- | - | (1,530 | ) | (1,530 | ) | (365 | ) | ||||||||||||
Balance
as of December 31, 2008
(Audited)
|
1 | (11 | ) | 352 | 342 | 82 |
Three-
month period ended
|
Year
ended
|
|||||||||||||||
March
31,
|
December
31,
|
|||||||||||||||
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
(Note
2D)
|
||||||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Net
income for the period
|
348 | 83 | 273 | 985 | ||||||||||||
Adjustments
to reconcile net income to funds
|
||||||||||||||||
generated
from operations:
|
||||||||||||||||
Depreciation
|
121 | 29 | 144 | 570 | ||||||||||||
Amortization
|
46 | 11 | 43 | 181 | ||||||||||||
Capital
gain on sale of land
|
- | - | (9 | ) | (9 | ) | ||||||||||
Loss
(gain) on sale of assets
|
2 | 1 | (9 | ) | (9 | ) | ||||||||||
Income
tax expense
|
122 | 29 | 106 | 389 | ||||||||||||
Financial
(income) costs, net
|
(28 | ) | (7 | ) | 45 | 310 | ||||||||||
Share
based payments
|
- | - | 4 | 28 | ||||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||||||
Changes
in inventories
|
(9 | ) | (2 | ) | 9 | 112 | ||||||||||
Changes
in trade receivables (including long-term
amounts)
|
(39 | ) | (9 | ) | (87 | ) | (117 | ) | ||||||||
Changes
in other receivables (including long-term
amounts)
|
(25 | ) | (6 | ) | (9 | ) | (34 | ) | ||||||||
Changes
in trade payables and accrued expenses
|
66 | 15 | (177 | ) | (271 | ) | ||||||||||
Changes
in other liabilities (including long-term
amounts)
|
9 | 2 | 30 | 99 | ||||||||||||
Payments
for inventory hedging contracts, net
|
5 | 1 | (9 | ) | (38 | ) | ||||||||||
Proceeds
from (payments for) derivative contracts, net
|
24 | 6 | (5 | ) | 18 | |||||||||||
Income
tax paid
|
(90 | ) | (21 | ) | (161 | ) | (451 | ) | ||||||||
Net
cash from operating activities
|
552 | 132 | 188 | 1,763 | ||||||||||||
Cash
flows from investing activities
|
||||||||||||||||
Acquisition
of property, plant, and equipment
|
(112 | ) | (27 | ) | (118 | ) | (429 | ) | ||||||||
Acquisition
of intangible assets
|
(47 | ) | (11 | ) | (54 | ) | (175 | ) | ||||||||
Payments
for derivative hedging contracts, net
|
- | - | (5 | ) | (17 | ) | ||||||||||
Proceeds
from sales of property, plant and equipment
|
- | - | 13 | 19 | ||||||||||||
Interest
received
|
- | - | 10 | 17 | ||||||||||||
Proceeds
from sale of long term receivables
|
- | - | 37 | 39 | ||||||||||||
Net
cash used in investing activities
|
(159 | ) | (38 | ) | (117 | ) | (546 | ) |
Three-
month period ended
|
Year
ended
|
|||||||||||||||
March
31,
|
December
31,
|
|||||||||||||||
Convenience
|
||||||||||||||||
translation
|
||||||||||||||||
into
US dollar
|
||||||||||||||||
(Note
2D)
|
||||||||||||||||
2009
|
2009
|
2008
|
2008
|
|||||||||||||
NIS
millions
|
US$
millions
|
NIS
millions
|
NIS
millions
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Cash
flows from financing activities
|
||||||||||||||||
Proceeds
from derivative contracts, net
|
4 | 1 | 7 | 31 | ||||||||||||
Repayment
of long-term loans from banks
|
- | - | (648 | ) | (648 | ) | ||||||||||
Repayment
of Debentures
|
(164 | ) | (39 | ) | - | (125 | ) | |||||||||
Proceeds
from issuance of debentures, net of issuance
costs
|
- | - | 589 | 589 | ||||||||||||
Dividend
paid
|
(270 | ) | (64 | ) | (16 | ) | (1,525 | ) | ||||||||
Interest
paid
|
(86 | ) | (21 | ) | (88 | ) | (175 | ) | ||||||||
Net
cash used in financing activities
|
(516 | ) | (123 | ) | (156 | ) | (1,853 | ) | ||||||||
Changes
in cash and cash equivalents
|
(123 | ) | (29 | ) | (85 | ) | (636 | ) | ||||||||
Balance
of cash and cash equivalents at beginning of the
period
|
275 | 65 | 911 | 911 | ||||||||||||
Balance
of cash and cash equivalents at end of the
period
|
152 | 36 | 826 | 275 |
A.
|
Statement
of compliance
|
B.
|
Functional
and presentation currency
|
C.
|
Basis
of measurement
|
D.
|
Convenience
translation into U.S. dollars (“dollars” or
“$”)
|
E.
|
Use
of estimates and judgments
|
F.
|
Exchange
rates and Consumer Price Indexes are as
follows:
|
Exchange
rates
of
US$
|
Consumer
Price
Index
(points)
|
|||||||
As
of March 31, 2009
|
4.188 | 198.2 | ||||||
As
of March 31, 2008
|
3.553 | 191.3 | ||||||
As
of December 31, 2008
|
3.802 | 198.4 | ||||||
Increase
(decrease) during the period:
|
||||||||
Three
months ended March 31, 2009
|
10.2 | % | (0.1 | %) | ||||
Three
months ended March 31, 2008
|
(7.6 | %) | 0.1 | % | ||||
Year
ended December 31, 2008
|
(1.1 | %) | 3.8 | % |
|
A.
|
First
adoption of new standards
and interpretations
|
|
1.
|
Revised
IAS 23 Borrowing Costs. Starting January 1, 2009, the Company applies
IAS23 revised. The revised standard is applied for qualifying assets for
which the commencement of capitalization started on January 1, 2009 or
after. The revised standard had no material impact on the Company's
financial statements.
|
|
2.
|
Revised
IAS 1 Presentation of Financial Statements. Starting January 1, 2009, the
Company applies IAS1 revised. The revised standard allows presentation of
total comprehensive income in either a single statement of comprehensive
income (effectively combining both the income statement and all non-owner
changes in equity in single statement), or in an income statement and a
separate statement comprehensive income. The Company elected to present a
separate statement on comprehensive income. In addition, the Company
presents statement of changes in shareholders' equity as part of its
financial statement, rather than in the note of the financial statement as
was presented prior to the adoption of the revised standard. The revised
standard was applied
retrospectively.
|
|
3.
|
IFRIC
13 Customers Loyalty Programs. Starting January 1, 2009, the Company
applies IFRIC 13 which addresses how companies, that grant their customers
loyalty award credits (often called ‘points’) when buying goods or
services, should account for their obligation to provide free or
discounted goods or services if and when the customers redeem the points.
The interpretation is based on a view that customers are implicitly paying
for the points they receive when they buy other goods or services, and
hence that some revenue should be allocated to the points. IFRIC 13
requires companies to estimate the value of the points to the customer and
defer this amount of revenue as a liability until they have fulfilled
their obligations to supply awards. The interpretation is mandatory for
the Company’s 2009 consolidated financial statements. IFRIC 13 had no
material impact on the Company's financial
statement.
|
|
4.
|
IFRS
8 Operating Segments introduces the “management approach” to segment
reporting. IFRS 8, which becomes mandatory for the Company's 2009
consolidated financial statements, requires the disclosure of segment
information based on the internal reports regularly reviewed by the
Company's Chief Operating Decision Maker in order to assess each segment’s
performance and to allocate resources to them. Currently, the Company does
not present segment information.
|
Three-month
period ended
|
||||
March
31, 2009
|
||||
NIS
millions
|
||||
(Unaudited)
|
||||
2.75
NIS per share
|
270 | |||
|
270 |
1.
|
In
March 2009, a purported class action lawsuit was filed against the
Company, its chief executive officer and some of its directors, in the
District Court of Central Region, by a plaintiff alleging to be a
subscriber of the Company in connection with allegations that the Company
unlawfully sent its subscribers commercial messages. If the lawsuit is
certified as a class action, the total amount claimed from the Company is
estimated by the plaintiff to be approximately NIS 800
million.
|
2.
|
In
November 2007, a purported class action lawsuit was filed against the
Company in the District Court of Central Region, by a plaintiff alleging
to be a subscriber of the Company in connection with allegations that the
Company charged its subscribers for content services without obtaining
their specific consent in a manner which complies with the provisions of
its general license. In April 2009, subsequent to the balance sheet date,
the motion for certification as a class action was dismissed without
prejudice and the lawsuit was dismissed with prejudice, at the plaintiffs'
request. Had the lawsuit been certified as a class action, the amount
claimed was estimated by the plaintiff to be NIS 432
million.
|
3.
|
In
November 2006, a purported class action lawsuit was filed against the
Company, a third party that had provided services to customers of the
Company (“the Supplier”) and other parties allegedly related to the
Supplier, in the District Court of Tel-Aviv–Jaffa by a subscriber of the
Company. The lawsuit is in connection with sums allegedly charged by the
Company in respect of content services of the Supplier without the
subscriber’s consent. The request to certify the lawsuit as a class action
was approved in March 2009, and the claim will be considered as a class
action. The total amount claimed from the Company, the Supplier and other
parties is estimated by the plaintiffs as approximately NIS 18 million, in
addition to another NIS 10 million for mental
anguish.
|
4.
|
In
May 2009, subsequent to the balance sheet date, a purported class action
lawsuit was filed against the Company, in the District Court of
Tel-Aviv-Jaffa, by a plaintiff alleging to be a subscriber of the
Company, in connection with allegations that the Company has misled its subscribers whose
calling plan includes certain reduced tariff calls, by failing to specify
certain limitations in relation thereof. The plaintiff did not specify the
amount claimed if the lawsuit is certified as a class
action.
|
5.
|
In
May 2009, subsequent to the balance sheet date, a purported class action
was filed against the Company in the District Court of Tel-Aviv-Jaffa, by
two plaintiffs alleging to be the Company's subscribers, in connection
with allegations that the Company unlawfully charged its subscribers
for cellular internet "surfing packages" without
obtaining their consent. If the lawsuit is certified as a class action,
the total amount claimed from the Company is estimated by the plaintiffs
to be approximately NIS 1.2 billion. A similar purported class action for
a total amount of approximately NIS 15 million, was filed against the
Company in August 2008.
|
CELLCOM
ISRAEL LTD.
|
|||||||
Date:
|
May
26, 2009
|
By:
|
/s/ Liat
Menahemi Stadler
|
||||
Name:
|
Liat
Menahemi Stadler
|
||||||
Title:
|
General
Counsel
|