PARTNER COMMUNICATIONS CO LTD

CIK:0001096691|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME
₪ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2021

ILS (₪)

₪ / shares

Dec. 31, 2021

USD ($)

$ / shares

Dec. 31, 2020

ILS (₪)

₪ / shares

Dec. 31, 2019

ILS (₪)

₪ / shares

Statement Line Items [Line Items]

Revenues, net | ₪

₪ 3,363

₪ 3,189

₪ 3,234

Cost of revenues | ₪

2,732

2,664

2,707

Gross profit | ₪

631

525

527

Selling and marketing expenses | ₪

323

291

301

General and administrative expenses | ₪

164

145

149

Credit losses | ₪

Other income, net | ₪

Operating profit | ₪

163

Finance income | ₪

Finance expenses | ₪

Finance costs, net | ₪

Profit before income tax | ₪

Income tax income (expense) | ₪

(10)

^[1]

Profit for the year | ₪

₪ 115

₪ 17

₪ 19

Earnings per share

Basic | ₪ / shares

₪ 0.63

₪ 0.09

₪ 0.12

Diluted | ₪ / shares

₪ 0.62

₪ 0.09

₪ 0.12

Convenience translation into U.S. dollars [Member]

Statement Line Items [Line Items]

Revenues, net | $

$ 1,081

Cost of revenues | $

878

Gross profit | $

203

Selling and marketing expenses | $

104

General and administrative expenses | $

Credit losses | $

Other income, net | $

Operating profit | $

Finance income | $

Finance expenses | $

Finance costs, net | $

Profit before income tax | $

Income tax income (expense) | $

Profit for the year | $

$ 37

Earnings per share

Basic | $ / shares

$ 0.20

Diluted | $ / shares

$ 0.20

[1]	Representing an amount of less than 1 million.

CONSOLIDATED STATEMENTS OF CASH FLOWS
₪ in Millions, $ in Millions

12 Months Ended

Dec. 31, 2021

ILS (₪)

Dec. 31, 2021

USD ($)

Dec. 31, 2020

ILS (₪)

Dec. 31, 2019

ILS (₪)

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash generated from operations (Appendix)

₪ 791

₪ 787

₪ 838

Income tax paid

(17)

(1)

Net cash provided by operating activities

774

786

837

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of property and equipment

(519)

(409)

(462)

Acquisition of intangible and other assets

(153)

(164)

(167)

Acquisition of a business, net of cash acquired

(3)

Investment in deposits, net

(58)

(14)

(552)

Interest received

Consideration received from sales of property and equipment

^[1]

Net cash used in investing activities

(727)

(581)

(1,181)

CASH FLOWS FROM FINANCING ACTIVITIES:

Lease principal payments

(130)

(129)

(139)

Lease interest payments

(18)

(20)

Share issuance, net of issuance costs

276

Proceeds from issuance of notes payable, net of issuance costs

220

466

562

Proceeds from issuance of option warrants exercisable for notes payables

Interest paid

(48)

(49)

(37)

Proceeds from non-current bank borrowing received

150

Repayment of borrowings

(52)

(65)

Repayment of notes payable

(237)

(620)

(109)

Settlement of contingent consideration

(2)

Transactions with non-controlling interests

(2)

Net cash provided by (used in) financing activities

(115)

(128)

227

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(68)

(117)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

376

299

416

CASH AND CASH EQUIVALENTS AT END OF YEAR

308

376

299

Profit for the year

115

Adjustments for:

Depreciation and amortization

713

683

723

Amortization of deferred expenses - Right of use

Employee share based compensation expenses

Liability for employee rights upon retirement, net

(1)

Finance costs, net

(4)

(2)

Lease interest payments

Interest paid

Interest received

(3)

(6)

(1)

Deferred income taxes

(7)

Income tax paid

Capital loss from property and equipment

^[1]

(2)

Decrease (increase) in accounts receivable:

Trade

(24)

Other

(70)

(6)

(1)

Increase (decrease) in accounts payable and accruals:

Trade

(57)

Other payables and provisions

(70)

(14)

Deferred revenues and other

(24)

(27)

Increase in deferred expenses - Right of use

(56)

(47)

(51)

Decrease (increase) in inventories

(10)

(26)

Cash generated from operations:

791

787

838

Supplementary information

Acquisition of intangible assets and property and equipment

157

139

₪ 115

Cost of inventory used as fixed assets

₪ 33

₪ 8

Convenience translation into U.S. dollars [Member]

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash generated from operations (Appendix) | $

$ 254

Income tax paid | $

(5)

Net cash provided by operating activities | $

249

CASH FLOWS FROM INVESTING ACTIVITIES:

Acquisition of property and equipment | $

(167)

Acquisition of intangible and other assets | $

(49)

Investment in deposits, net | $

(19)

Interest received | $

Consideration received from sales of property and equipment | $

^[1]

Net cash used in investing activities | $

(234)

CASH FLOWS FROM FINANCING ACTIVITIES:

Lease principal payments | $

(42)

Lease interest payments | $

(6)

Proceeds from issuance of notes payable, net of issuance costs | $

Interest paid | $

(15)

Proceeds from non-current bank borrowing received | $

Repayment of borrowings | $

(17)

Repayment of notes payable | $

(76)

Net cash provided by (used in) financing activities | $

(37)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | $

(22)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | $

121

CASH AND CASH EQUIVALENTS AT END OF YEAR | $

Profit for the year | $

Adjustments for:

Depreciation and amortization | $

229

Amortization of deferred expenses - Right of use | $

Employee share based compensation expenses | $

Liability for employee rights upon retirement, net | $

Finance costs, net | $

(1)

Lease interest payments | $

Interest paid | $

Interest received | $

(1)

Deferred income taxes | $

(2)

Income tax paid | $

Capital loss from property and equipment | $

^[1]

Decrease (increase) in accounts receivable:

Trade | $

(8)

Other | $

(23)

Increase (decrease) in accounts payable and accruals:

Trade | $

Other payables and provisions | $

Deferred revenues and other | $

(7)

Increase in deferred expenses - Right of use | $

(18)

Decrease (increase) in inventories | $

(3)

Cash generated from operations: | $

254

Supplementary information

Acquisition of intangible assets and property and equipment | $

Cost of inventory used as fixed assets | $

$ 11

[1]	Representing an amount of less than 1 million.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
₪ in Millions, $ in Millions

Dec. 31, 2021

ILS (₪)

Dec. 31, 2021

USD ($)

Dec. 31, 2020

ILS (₪)

CURRENT ASSETS

Cash and cash equivalents

₪ 308

₪ 376

Short-term deposits

344

411

Trade receivables

571

560

Other receivables and prepaid expenses

152

Deferred expenses - right of use

Inventories

CURRENT ASSETS, TOTAL

1,489

1,496

NON CURRENT ASSETS

Long-term deposits

280

155

Trade receivables

245

232

Deferred expenses - right of use

142

118

Lease - right of use

679

663

Property and equipment

1,644

1,495

Intangible and other assets

472

521

Goodwill

407

Deferred income tax asset

Other non-current receivables

NON CURRENT ASSETS, TOTAL

3,904

3,629

TOTAL ASSETS

5,393

5,125

CURRENT LIABILITIES

Current maturities of notes payable and borrowings

268

290

Trade payables

705

666

Other payables and provisions

185

127

Current maturities of lease liabilities

125

120

Deferred revenues and other

139

131

CURRENT LIABILITIES, TOTAL

1,422

1,334

NON CURRENT LIABILITIES

Notes payable

1,224

1,219

Borrowings from banks

184

Financial liability at fair value

Liability for employee rights upon retirement, net

Lease liabilities

595

582

Deferred revenues from HOT mobile

Non-current liabilities and provisions

NON CURRENT LIABILITIES, TOTAL

2,112

2,068

TOTAL LIABILITIES

3,534

3,402

EQUITY

Share capital - ordinary shares of NIS 0.01 par value: authorized - December 31, 2020 and 2021 - 235,000,000 shares; issued and outstanding - December 31, 2020 - 182,826,973 shares

Capital surplus

1,279

1,311

Accumulated retained earnings

742

606

Treasury shares, at cost - December 31, 2020 - 7,741,784 shares December 31, 2021 - 7,337,759 shares

(164)

(196)

TOTAL EQUITY

1,859

1,723

TOTAL LIABILITIES AND EQUITY

₪ 5,393

₪ 5,125

Convenience translation into U.S. dollars [Member]

CURRENT ASSETS

Cash and cash equivalents | $

$ 99

Short-term deposits | $

111

Trade receivables | $

184

Other receivables and prepaid expenses | $

Deferred expenses - right of use | $

Inventories | $

CURRENT ASSETS, TOTAL | $

480

NON CURRENT ASSETS

Long-term deposits | $

Trade receivables | $

Deferred expenses - right of use | $

Lease - right of use | $

218

Property and equipment | $

529

Intangible and other assets | $

152

Goodwill | $

131

Deferred income tax asset | $

Other non-current receivables | $

^[1]

NON CURRENT ASSETS, TOTAL | $

1,255

TOTAL ASSETS | $

1,735

CURRENT LIABILITIES

Current maturities of notes payable and borrowings | $

Trade payables | $

227

Other payables and provisions | $

Current maturities of lease liabilities | $

Deferred revenues and other | $

CURRENT LIABILITIES, TOTAL | $

457

NON CURRENT LIABILITIES

Notes payable | $

394

Borrowings from banks | $

Liability for employee rights upon retirement, net | $

Lease liabilities | $

191

Deferred revenues from HOT mobile | $

Non-current liabilities and provisions | $

NON CURRENT LIABILITIES, TOTAL | $

680

TOTAL LIABILITIES | $

1,137

EQUITY

Share capital - ordinary shares of NIS 0.01 par value: authorized - December 31, 2020 and 2021 - 235,000,000 shares; issued and outstanding - December 31, 2020 - 182,826,973 shares | $

Capital surplus | $

411

Accumulated retained earnings | $

239

Treasury shares, at cost - December 31, 2020 - 7,741,784 shares December 31, 2021 - 7,337,759 shares | $

(53)

TOTAL EQUITY | $

598

TOTAL LIABILITIES AND EQUITY | $

$ 1,735

[1]	Representing an amount of less than 1 million