Bezeq Israel Telecommunication : Metrics – PDF (metrics file after restatement)

Bezeq Facts & Figures Q3 2020 - After Restatement

Three and nine months ending September 30, 2020

Index of contents

• Financials (Group, Fixed-Line and Key Subsidiaries)
• Fixed-LineCash Flow Guidance
• Key Performance Indicators (KPIs)
• Debt Terms and Repayments
• Glossary
• Dividends

For further information:

Bezeq Investor Relations

Phone [phone]

[e-mail]

https://ir.bezeq.co.il

The data in this metrics file contains partial information from the public reports of Bezeq under the Israeli Securities Law for which the Hebrew reports can be accessed at the Israeli Securities Authority's website. The metrics file is a not a substitute for a review of the detailed reports of Bezeq.

Bezeq - The Israel Telecommunication Corp. Ltd.

	FY	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3
(NIS millions)	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020

Bezeq Group

Key Income Statement Metrics

Revenues	9,789	9,321	2,256	2,224	2,247	2,202	8,929	2,187	2,155	2,178
QoQ Change				-1.4%	1.0%	-2.0%		-0.7%	-1.5%	1.1%
YoY Change		-4.8%						-4.2%	-3.1%	-3.1%	-3.1%
Depreciation, amortization & impairment	1,715	2,189	466	478	481	487	1,912	451	459	464
QoQ Change				2.6%	0.6%	1.2%		-7.4%	1.8%	1.1%
YoY Change		27.6%						-12.7%	-3.2%	-4.0%	-3.5%
Salaries	2,005	1,992	492	489	474	478	1,933	479	444	474
QoQ Change				-0.6%	-3.1%	0.8%		0.2%	-7.3%	6.8%
YoY Change		-0.6%						-3.0%	-2.6%	-9.2%	0.0%
Other operating expenses (income), net	(19)	634	(25)	(414)	39	179	(221)	(3)	(19)	(7)
Loss from impairment of assets
87	1,675	-	951	-	196	1,147	-	-	268
Operating profit (loss)	2,098	(582)	504	(102)	440	8	850	459	511	189
QoQ Change				N/M	N/M	-98.2%		5637.5%	11.3%	-63.0%
YoY Change		N/M						N/M	-8.9%	N/M	-57.0%
Finance expenses (income), net	417	435	99	136	205	109	549	34	159	80
QoQ Change				37.4%	50.7%	-46.8%		-68.8%	367.6%	-49.7%
YoY Change		4.3%						26.2%	-65.7%	16.9%	-61.0%
Income taxes	453	72	110	1,340	56		(13)	1,493	98	83	83
QoQ Change				1118.2%	-95.8%	-123.2%		-853.8%	-15.3%	0.0%
YoY Change		-84.1%						1973.6%	-10.9%	-93.8%	48.2%
Net profit (loss) - reported	1,223	(1,092)	295	(1,579)	177	(87)	(1,194)	327	269	26
QoQ Change				N/M	N/M		N/M		32700.0%	-17.7%	-90.3%
YoY Change		N/M						9.3%	10.8%	N/M	-85.3%
ADJUSTED NET PROFIT	1,296	961	286	217	207	203	913	325	252	289
EBITDA, reported	3,813	1,607	970	376	921	495	2,762	910	970	653
QoQ Change				-61.2%	144.9%	-46.3%		83.8%	6.6%	-32.7%
YoY Change		-57.9%						71.9%	-6.2%	158.0%	-29.1%
ADJUSTED EBITDA	3,881	3,916	945	913	960	870	3,688	907	951	914
QoQ Change				-3.4%	5.1%	-9.4%		4.3%	4.9%	-3.9%
YoY Change		0.9%						-5.8%	-4.0%	4.2%	-4.8%
Earnings Per Share - Diluted (NIS)	0.45	(0.39)	0.11	(0.57)	0.06	(0.03)	(0.43)	0.12	0.10	0.01
Shares Outstanding - Diluted	2,765	2,765	2,765	2,765	2,765	2,765	2,765	2,765	2,765	2,765
Operating & General Expenses
Total operating & general expenses	3,903	3,413	819	822	813	854	3,308	801	760	790
QoQ Change				0.4%	-1.1%	5.0%		-6.2%	-5.1%	3.9%
YoY Change		-12.6%						-3.1%	-2.2%	-7.5%	-2.8%
Terminal equipment & materials	867	771	191	181	202	232	806	188	176	189
QoQ Change				-5.2%	11.6%	14.9%		-19.0%	-6.4%	7.4%
YoY Change		-11.1%						4.5%	-1.6%	-2.8%	-6.4%
Interconnect & payments to telecom operators	805	789	189	194	193	181	757	185	201	199
QoQ Change				2.6%	-0.5%	-6.2%		2.2%	8.6%	-1.0%
YoY Change		-2.0%						-4.1%	-2.1%	3.6%	3.1%
Maintenance of buildings and sites	584	286	68	65	70	68	271	65	46	68
QoQ Change				-4.4%	7.7%	-2.9%		-4.4%	-29.2%	47.8%
YoY Change		-51.0%						-5.2%	-4.4%	-29.2%	-2.9%
Marketing & general	595	555	123	118	120	128	489	117	114	117
QoQ Change				-4.1%	1.7%	6.7%		-8.6%	-2.6%	2.6%
YoY Change		-6.7%						-11.9%	-4.9%	-3.4%	-2.5%
Services and maintenance by sub-contractors	260	277	70	68	63	69	270	68	71	68
QoQ Change				-2.9%	-7.4%	9.5%		-1.4%	4.4%	-4.2%
YoY Change		6.5%						-2.5%	-2.9%	4.4%	7.9%
Vehicle maintenance	156	82	18	20	16	17	71	14	9	14
QoQ Change				11.1%	-20.0%	6.3%		-17.6%	-35.7%	55.6%
YoY Change		-47.4%						-13.4%	-22.2%	-55.0%	-12.5%
Content	636	653	160	176	149	159	644	164	143	135
QoQ Change				10.0%	-15.3%	6.7%		3.1%	-12.8%	-5.6%
YoY Change		2.7%						-1.4%	2.5%	-18.8%	-9.4%
Ratios
Net margin	12.5%	-11.7%	13.1%	-71.0%	7.9%	-4.0%	-13.4%	15.0%	12.5%	1.2%
EBITDA margin	39.0%	17.2%	43.0%	16.9%	41.0%	22.5%	30.9%	41.6%	45.0%	30.0%
Capex/Sales	15.6%	18.5%	16.5%	23.6%	14.6%	14.7%	17.4%	15.5%	16.3%	20.3%

2 of 24 Group financial metrics

			Bezeq - The Israel Telecommunication Corp. Ltd.
		FY	FY	Q1	Q2	Q3	Q4	FY	Q1		Q2	Q3
	(NIS millions)	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020
	Bezeq Group
	Key Cash Flow Metrics
	Operating cash flow	3,525	3,512	765	624	787	748	2,924	879	561	830
	QoQ Change				-18.4%	26.1%	-5.0%		17.5%	-36.2%	48.0%
	YoY Change		-0.4%					-16.7%	14.9%	-10.1%	5.5%
	Capital expenditures, gross (cash flow)	1,530	1,727	373	525	329	324	1,551	338	351	442
	QoQ Change				40.8%	-37.3%	-1.5%		4.3%	3.8%	25.9%
	YoY Change		12.9%					-10.2%	-9.4%	-33.1%	34.3%
	Proceeds from sale of assets	98	235	41	341	15	12	409	8	20	3
	QoQ Change				731.7%	-95.6%	-20.0%		-33.3%	150.0%	-85.0%
	YoY Change		139.8%					74.0%	-80.5%	-94.1%	-80.0%
	Capital expenditures, net	1,432	1,492	332	184	314	312	1,142	330	331	439
	QoQ Change				-44.6%	70.7%	-0.6%		5.8%	0.3%	32.6%
	YoY Change		4.2%					-23.5%	-0.6%	79.9%	39.8%
	Lease payments (IFRS 16)		422	117	90	115	92	414	113	86	106
	Free cash flow	2,093	1,598	316	350	358	344	1,368	436	144	285
	QoQ Change				10.8%	2.3%	-3.9%		26.7%	-67.0%	97.9%
	YoY Change		-23.7%					-14.4%	38.0%	-58.9%	-20.4%
	Working Capital
	Change in trade & other receivables	206	269	(18)	45	20	56	103	(44)	-	26
	Change in inventory	(35)	(5)	(9)	-	4	(14)	(19)	(17)	(3)	10
	Change in trade & other payables	9	(132)	6	(176)	50	43	(77)	98	(223)	34
	Change in provisions	15	81	(30)	3	(5)	(17)	(49)	-		(3)	(8)
	Change in employee benefits	(33)	489	(46)	(52)	(58)	106	(50)	(88)	(78)	(66)
	Change in other liabilities
	(34)	-	(12)	6	(11)	9	(8)	(7)	-	(5)
	Total changes in assets and liabilities	128	702	(109)	(174)	0	183	(100)	(58)	(307)	(9)
	Income tax paid, net	446	467	49	104	89	83	325	-		86	78
				5	185	21			5	154	5
	Interest paid	415	421	181	392
	Funds From Operations (FFO)	3,397	2,810	757	708	672	887	3,024	824	782	733

3 of 24 Group financial metrics

			Bezeq - The Israel Telecommunication Corp. Ltd.
	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2	Q3
(NIS millions)	2018	2019	2019	2019	2019	2019	2020	2020	2020
Bezeq Group
Balance Sheet
Cash & cash equivalents	890	1,265	971	639	400	400	927	708	897
Investments	1,404	1,347	1,944	1,750	1,195	1,195	1,114	1,221	1,306
Trade receivables	1,775	1,752	1,737	1,727	1,677	1,677	1,674	1,698	1,692
Other receivables	284	298	308	341	342	342	357	340	332
Eurocom DBS Ltd., related party	-	-	-	-	-	-	-	-	-
Inventory	97	102	100	94	96	96	109	110	96
Assets held for sale	-	-	-	-	43	43	45	46	46
Total current assets	4,450	4,764	5,060	4,551	3,753	3,753	4,226	4,123	4,369
Trade and other receivables	470	511	535	442	477	477	476	454	525
Broadcasting rights	60	69	59	63	59	59	65	65	67
Right-of-use assets	1,504	1,444	1,394	1,361	1,308	1,308	1,394	1,329	1,276
Fixed assets	6,214	6,215	6,245	6,217	6,039	6,039	6,072	6,076	6,069
Intangible assets	1,919	1,923	977	968	916	916	916	935	952
Deferred tax assets	1,205	1,193	12	18	81	81	61	57	53
Deferred expenses and non-current investments	468	472	474	477	358	358	364	361	233
Investment property	58	58	-	-	-	-	-	-	-
Total non-current assets	11,898	11,885	9,696	9,546	9,238	9,238	9,348	9,277	9,175
Total assets	16,348	16,649	14,756	14,097	12,991	12,991	13,574	13,400	13,544
Debentures, loans and borrowings	1,542	1,538	1,625	1,126	1,007	1,007	1,002	955	957
Lease liability	445	422	434	427	416	416	415	399	387
Trade and other payables	1,855	2,010	1,600	1,681	1,614	1,614	1,834	1,580	1,669
Current tax liabilities	-	10	20	15	-	-	51	46	46
Liability to Eurocom DBS Ltd.	-	-	-	-	-	-	-	-	-
Employee benefits	581	500	443	365	654	654	587	486	441
Provisions	175	145	148	143	125	125	125	122	113
Dividend payable	-	-	-	-	-	-	-	-	-
Total current liabilities	4,598	4,625	4,270	3,757	3,816	3,816	4,014	3,588	3,613
Loans and debentures	9,637	9,618	9,709	9,393	8,551	8,551	8,535	8,517	8,507
Lease liability	1,106	1,061	1,022	989	969	969	1,049	1,017	971
Employee benefits	445	482	487	539	356	356	314	344	334
Derivative and other liabilities	174	168	163	178	139	139	163	176	342
Deferred tax liabilities	56	54	53	50	43	43	46	46	48
Provisions	38	39	39	39	49	49	50	50	54
Total non-current liabilities	11,456	11,422	11,473	11,188	10,107	10,107	10,157	10,150	10,256
Total equity	294	602	(987)	(848)	(932)	(932)	(597)	(338)	(325)
Gross debt	11,179	11,156	11,334	10,519	9,558	9,558	9,537	9,472	9,464
Cash and short-term investments	2,294	2,612	2,915	2,389	1,595	1,595	2,041	1,929	2,203
Net debt	8,885	8,544	8,419	8,130	7,963	7,963	7,496	7,543	7,261
Net debt / Adjusted EBITDA (ttm)	2.5				2.4	2.4	2.3	2.3	2.2

4 of 24 Group financial metrics