Partner Communications Company Ltd. ("Partner" or the "Company")
(NASDAQ and TASE: PTNR), a leading Israeli communications operator,
announced today its results for the year and quarter ended December 31,
Commenting on the annual results, Mr. Haim Romano said,
"In 2013 we continued to invest in our infrastructure and network,
customer services and information systems, while at the same time facing
intense competition in the telecommunications market, which
significantly reduced our revenues and profits as a result of
substantial price erosion.
During the year we launched the most advanced mobile network in Israel
(Orange ultranet), which enables sharp and clear audio quality through
HD Voice technology, extended battery life, and the fastest browsing
speeds in Israel, and we also continued to invest in our advanced 4G
In January 2014, the Company announced that it was ready to operate a 4G
network, and became the first operator in Israel able to provide these
services. In the coming year we intend to deploy approximately one
thousand base stations equipped with this advanced technology. We look
forward to receiving the allocation of the frequencies needed to provide
the general public with the advanced services available with this
As leaders in providing quality customer service, we have established an
extensive retail operation, including our sales and service centers.
These centers today sell a wide range of mobile devices and related
equipment, accessories and more to all customers.
In 2013, the Company added 31,000 Post-Paid subscribers to its cellular
subscriber base, the first increase in the Company's Post-Paid
subscriber base in two years. This increase is indicative of our
customers' confidence, which was also recognized by the Marketest index
2013 for customer experience in the cellular industry, in which the
Orange brand led in most parameters for the eighth consecutive year.
At the beginning of November 2013, the Company signed a network sharing
agreement with HOT Mobile. This agreement has many benefits for the
general public, including: the ability to maximize existing spectrum for
the launch of 4G network services, reducing the environmental impact
from multiple base stations, and increasing competition in the
telecommunications market in a manner that will benefit consumers. This
agreement will strengthen Partner by contributing to its operational and
Progress in the regulator's decisions regarding the fixed line wholesale
market will enable the Company to be a major player in the entire
telecommunications market, including providing new services such as
television. We are determined to maximize the potential of these
services, albeit in a measured and financially viable approach, by
maximizing the relative advantages of the Company."
Mr. Haim Romano noted: "The Company's strength is also reflected in its
ability to reduce the Company's operating expenses by approximately NIS
0.5 billion compared with the previous year, and in generating free cash
flow (before interest payments) of approximately NIS 1 billion, which
enabled the Company to continue carrying out the investments required
for its continued success while reducing net debt by approximately NIS
Mr. Ziv Leitman, Partner's Chief Financial Officer commented
on the quarterly results:
"In the fourth quarter of 2013, the Company continued to adjust its cost
structure and to implement operational efficiency measures, which, among
other things, led to a decrease in operating expenses (excluding cost of
equipment sold and depreciation & amortization expenses), totaling NIS
21 million compared with the third quarter of 2013.
The churn rate in the fourth quarter of 2013 of our cellular subscribers
increased from the previous quarter due to a rise in the intensity of
competition. This increase in churn rate follows three consecutive
quarterly falls in the churn rate. Nevertheless, the churn rate was
10.7% compared with 10.9% in the fourth quarter last year.
The average revenue per cellular user (ARPU) in the fourth quarter of
2013 was NIS 81, a decrease of three shekels from the previous quarter,
primarily reflecting seasonal effects.
Revenues from equipment sales in the fourth quarter of 2013 increased by
23% from the previous quarter, mainly due to an increase in sales of
iPhones and the commercial efforts of the retail division that was
established only recently. However, for 2013, revenues from equipment
sales decreased by 21%, reflecting the heightened competition in the
handset market from independent importers and distributors.
The Adjusted EBITDA in the fourth quarter of 2013 decreased by NIS 2
million compared with the previous quarter, largely a result of the
decrease in seasonal service revenues which was partially offset by the
reduction in operating expenses.
Finance costs, net, in this quarter decreased by NIS 15 million from the
previous quarter, mainly due to a decrease in CPI linkage expenses which
was partially offset by lower gains from foreign exchange movements and
by a one-time early repayment fee of NIS 8 million related to the
repayment of bank loans.
Profit in the fourth quarter of 2013 increased to NIS 46 million, from
NIS 38 million in the previous quarter, largely reflecting the decrease
in financial expenses which was partially offset by the reduction in
Capital expenditures (Capex, cash) totaled NIS 475 million in 2013,
equivalent to 11% of total revenues compared with NIS 492 million and 9%
last year. Capital expenditures (non-cash additions to property,
equipment and computer software) totaled NIS 413 million in 2013, with
the difference between cash and non-cash capital expenditures being
explained by large investments at the end of 2012 which were paid for in
In the fourth quarter of 2013, operating working capital decreased by
NIS 105 million, mainly due to a decrease in trade receivables.
This quarter the Company reported free cash flow (after interest
payments) of NIS 209 million. Over 2013, the Company generated
approximately NIS 860 million in free cash flow (after interest
During the fourth quarter, the Company made an early repayment of loans
in a total amount of NIS 198 million (whose original repayment schedule
was: NIS 148 million in 2015, NIS 25 million in 2016 and NIS 25 million
in 2017). Over 2013, the Company made early repayments of loans in a
total amount of NIS 617 million.
Net debt at the end of the fourth quarter of 2013 amounted to
approximately NIS 3 billion, signifying a decrease of approximately NIS
0.2 billion in the final quarter of 2013 and approximately
NIS 1.9 billion since the highest level of net debt in mid-2011."
Key Financial Results4
Key Operating Indicators:
Free Cash Flow6
* Prior to 2010, the Company did not operate a fixed line service nor
have ISP subscribers.
Partner Consolidated Results
Financial Review (Consolidated)
Total revenues in 2013 were NIS 4,519 million (US$ 1,302
million), a decrease of 19% from NIS 5,572 million in 2012.
Annual service revenues totaled NIS 3,784 million (US$ 1,090
million) in 2013, decreasing by 18% from NIS 4,640 million in 2012.
Service revenues for the cellular segment in 2013 were NIS 2,907
million (US$ 838 million), decreasing by 19% from NIS 3,592 million in
2012. The decrease was mainly a result of the price erosion of Post-Paid
and Pre-Paid cellular services, following increased competition due to
the activity of new competitors (new operators and MVNOs), and the
transfer of existing customers to "unlimited plans" since May 2012. The
decrease also reflected the lower Post-Paid cellular subscriber base
which was approximately 3.5% lower on an average basis (average of
subscriber base at beginning and end of year) in 2013 compared with
2012, as well as lower roaming services revenues, as a result of price
erosion in roaming services.
Pre-paid cellular subscribers (excludes pre-paid international calling
cards sold by 012 Smile) contributed service revenues in a total amount
of approximately NIS 360 million (US$ 104 million) in 2013, a decrease
of 24% from approximately NIS 475 million in 2012, as a result of the
price erosion in pre-paid services and the decrease in the number of
Service revenues for the fixed line segment totaled NIS 1,085
million (US$ 313 million) in 2013, a decrease of 10% compared with NIS
1,210 million in 2012. The decrease mainly reflected price erosion in
fixed line services including local fixed lines, international calls and
internet services. The price erosion resulted from increased competition
in the various fixed line markets, and from the increasing popularity of
bundles that include cellular services together with fixed line services
at heavily discounted prices, and the increasingly competitive market
for international calls.
The total number of active fixed lines was approximately 299,000 at the
end of 2013, an increase of approximately 4% compared with approximately
288,000 at the end of 2012. The ISP subscriber base stood at
approximately 583,000 as of the end of 2013, compared with approximately
587,000 at the end of 2012.8
Equipment revenues in 2013 totaled NIS 735 million (US$ 212
million), a decrease of 21% compared with NIS 932 million in 2012. The
decrease was due to a significant decrease in the number of sales of
cellular devices, partially offset by an increase in the average sales
price which largely reflected a higher proportion of sales of high end
smartphones (in particular iPhone and Samsung Galaxy) and tablets.
The gross profit from equipment sales in 2013 was NIS 42
million (US$ 12 million), compared with NIS 113 million in 2012, a
decrease of 63%, reflecting both the lower number of sales and lower
profit margins following the heightened competition in the handset
market from independent importers and distributors.
Total revenues for Q4 2013 were NIS 1,127 million (US$ 325 million), a
decrease of 10% from NIS 1,258 million in Q4 2012. Service revenues
in Q4 2013 totaled NIS 922 million (US$ 266 million), decreasing by 11%
from NIS 1,036 million in Q4 2012. Service revenues for the cellular
segment in Q4 2013 were NIS 719 million (US$ 207 million),
decreasing by 9% from NIS 788 million in Q4 2012. The decrease was
mainly a result of the price erosion of Post-Paid and Pre-Paid cellular
services, in line with the annual results. Service revenues for the
fixed line segment totaled NIS 258 million (US$ 74 million) in Q4
2013, a decrease of 12% compared with NIS 294 million in Q4 2012. Again,
the decrease resulted from the same reasons as the annual decrease,
namely price erosion in fixed line services including local fixed lines,
international calls and internet services.
Equipment revenues in Q4 2013 totaled NIS 205 million (US$ 59
million), a decrease of 8% from NIS 222 million in Q4 2012, for exactly
the same reasons as the annual decrease. The gross profit from
equipment sales in Q4 2013 was NIS 19 million (US$ 5
million), compared with NIS 22 million in Q4 2012, a decrease of 14%,
which was explained by the decrease in the number of sales.
Operating expenses ('Opex', including cost of service
revenues, selling, marketing and administrative expenses and excluding
depreciation and amortization) totaled NIS 2,791 million (US$ 804
million) in 2013, a decrease of 14% or NIS 471 million from 2012,
largely reflecting the efficiency savings resulting from the reduction
in the Company workforce by approximately one third on an average basis
(average of workforce at beginning and end of year), principally by
lowering the level of new recruits, as well as a decrease in
transmission expenses, payments to content and communications providers,
State royalties and other expenses. Including depreciation and
amortization expenses, Opex in 2013 decreased by 13% compared with 2012.
For Q4 2013, Opex, excluding depreciation and amortization,
totaled NIS 675 million (US$ 194 million), a decrease of 9% or NIS 69
million from Q4 2012, largely reflecting the efficiency measures
undertaken, partially offset by the one-time reduction in site-rental
expenses in Q4 2012 of NIS 18 million. Including depreciation and
amortization expenses, Opex in Q4 2013 decreased by 8% compared with Q4
Operating profit for 2013 was NIS 409 million (US$ 118 million),
a decrease of 53% compared with NIS 865 million in 2012. For Q4 2013,
operating profit totaled NIS 103 million (US$ 30 million), decreasing by
34% from Q4 2012.
Adjusted EBITDA in 2013 totaled NIS 1,114 million (US$ 321
million), a decrease of 30% from NIS 1,602 million in 2012. Adjusted
EBITDA for the cellular segment was NIS 784 million (US$ 226 million) in
2013, decreasing by 40% from NIS 1,314 million in 2012, largely
reflecting the impact of the decrease in service revenues, partially
offset by the reduction of operating expenses, as described above. As a
percentage of total cellular revenues, Adjusted EBITDA for the cellular
segment in 2013 was 22%, compared with 29% in 2012. In contrast to the
cellular segment, Adjusted EBITDA for the fixed line segment increased
by 15% from NIS 288 million in 2012 to NIS 330 million (US$ 95 million)
in 2013, reflecting the reduction of operating expenses partially offset
by the decrease in service revenues. As a percentage of total fixed line
revenues, Adjusted EBITDA for the fixed line segment in 2013 was 30%,
compared with 23% in 2012.
For Q4 2013, Adjusted EBITDA was NIS 282 million (US$ 81 million),
decreasing by 17% from NIS 340 million in Q4 2012, and the equivalent to
25% of total revenues. For the cellular segment alone, Adjusted EBITDA
was NIS 199 million (US$ 57 million), a 22% decrease from Q4 2012. For
the fixed line segment, Adjusted EBITDA was NIS 83 million (US$ 24
million), a 1% decrease from Q4 2012.
Finance costs, net in 2013 were NIS 211 million (US$ 61 million),
a decrease of 10%, compared with NIS 234 million in 2012. The decrease
was mainly due to a decrease in interest expenses resulting from the
lower level of average debt (see Funding and Investing Review below),
together with foreign exchange gains, partially offset by early loan
repayment fees of NIS 17 million in 2013 and by higher CPI linkage
expenses due to the larger increase in the CPI level in 2013 compared to
2012. For Q4 2013 alone, finance costs, net, totaled NIS 38 million (US$
11 million), unchanged from Q4 2012. This largely reflected lower
interest expenses and higher gains from exchange rate movements being
offset by higher CPI linkage expenses, together with a one-time early
loan repayment fee of NIS 8 million in Q4 2013.
Profit for 2013 was NIS 135 million (US$ 39 million), a decrease
of 72% compared with 2012. For Q4 2013, profit totaled NIS 46 million
(US$ 13 million), compared with NIS 102 million in Q4 2012, a decrease
of 55%. Based on the weighted average number of shares outstanding
during 2013, basic earnings per share or ADS, was NIS 0.87 (US$
0.25), a decrease of 72% compared to NIS 3.07 in 2012.
The effective tax rate for 2013 was 32%, compared with 24% in
2012. The increase in the effective tax rate was mainly due to the
higher percentage of unrecognized expenses than in 2012, due to the
decline in profit before tax.
Cellular Segment Operational Review
At the end of the 2013, the Company's cellular subscriber base
(including cellular modem and 012 Mobile subscribers) was approximately
2.96 million, including approximately 2.133 million Post-Paid
subscribers or 72% of the base and approximately 823,000 Pre-Paid
subscribers, or 28% of the subscriber base.
Over 2013, the cellular subscriber base declined by approximately
20,000. The Post-Paid subscriber base increased by approximately 31,000,
which was more than offset by a decrease in the Pre-Paid subscriber base
by approximately 51,000. The decrease in the Pre-Paid subscriber base
was largely attributed to the Pre-Paid subscribers moving to Post-Paid
subscriber packages as a result of the significant price erosion (and
hence increasing attractiveness) in these products.
The annual churn rate for cellular subscribers in 2013 was 39%,
slightly higher than 38% in 2012, mainly reflecting the continued
intense competition in the cellular market.
Total cellular market share (based on the number of subscribers)
at the end of 2013 was estimated to be approximately 29%, unchanged from
the market share at year-end 2012.
During the final quarter of 2013, the cellular subscriber base grew by
approximately 6,000, with the increase being entirely attributed to the
increase in the Post-Paid subscriber base, whilst the Pre-Paid
subscriber base remained unchanged compared with the previous quarter.
The quarterly churn rate for cellular subscribers in Q4 2013 was 10.7%,
compared with 10.9% in Q4 2012.
The monthly Average Revenue Per User ("ARPU") for cellular
subscribers in 2013 was NIS 83 (US$ 24), a decrease of 14% from NIS 97
in 2012. The decrease mainly reflected the continued price erosion in
the key cellular services including airtime (Post-Paid and Pre-Paid),
content and roaming services, due to the persistent fierce competition
in the cellular market, partially offset by an increase in revenues from
wholesale services provided to MVNO's hosted on the Company's network.
For Q4 2013, ARPU was NIS 81 (US$ 23), a decrease of 7% from NIS 87 in
Q4 2012. The decrease mainly reflected the continued price erosion in
airtime and related services.
The monthly average Minutes of Use per subscriber ("MOU") for
cellular subscribers in 2013 was 522 minutes, an increase of 16% from
450 minutes in 20129. This increase largely reflected the
continued increase in the proportion of cellular subscribers with
bundled packages that include large or unlimited quantities of minutes.
In view of this trend, and as notified in previous quarterly releases,
the Company believes that reporting MOU is no longer relevant to
understanding the results of operation, and therefore the Company will
no longer be reporting MOU figures in future results releases.
Funding and Investing Review
In 2013, cash flow generated from operating activities before
interest payments, net of cash flow used for investing activities ("Free
Cash Flow"), totaled NIS 1,041 million (US$ 300 million), a decrease
of 16% from NIS 1,234 million in 2012.
Cash generated from operations decreased by 10% to NIS 1,539
million (US$ 443 million) in 2013, from NIS 1,705 million in 2012. This
decrease was mainly explained by the decrease in profit for the year,
partially offset by changes in operating working capital movements.
Working capital decreased in 2013 by NIS 463 million, primarily as a
result of a decrease in trade receivables reflecting the installment
payments of customers for handset purchases in previous periods,
together with lower equipment sales which reduced the payments to
equipment vendors, and a higher proportion of equipment sales by credit
cards (whose proceeds are factored).
The level of cash capital expenditures in fixed assets (Capex)
including intangible assets but excluding capitalized subscriber
acquisition and retention costs, net, was NIS 475 million (US$ 137
million) in 2013, a decrease of 3% from NIS 492 million in 2012, and the
equivalent of 11% of total revenues in 2013 compared with 9% in 2012.
Approximately half of the capital expenditures made was invested in the
Company's cellular network, and the remaining amount was invested in
software and the optical fiber transmission network.
The level of net debt10 at the end of 2013
amounted to NIS 3,000 million (US$ 864 million), compared with NIS 3,812
million at the end of 2012, a decrease of NIS 812 million.
For Q4 2013, free cash flow was NIS 278 million (US$ 80 million), a
decrease of 14% compared with NIS 323 million in Q4 2012, reflecting a
13% decrease in operating cash flow, partially offset by a 12% decrease
in capex (cash). The decrease in operating cash flow mainly
reflected the decrease in profit for the quarter.
Conference Call Details
Partner will hold a conference call on Monday, March 10, 2014 at 11.00
a.m. Eastern Time / 5.00 p.m. Israel Time.
Please call the following numbers (at least 10 minutes before the
scheduled time) in order to participate:
International: +972.3. 918.0610
North America toll-free: +1.888.668.9141
A live webcast of the call will also be available on Partner's website
If you are unavailable to join live, the replay numbers are:
North America: +1.888.295.2634
Both the replay of the call and the webcast will be available from March
10, 2014 until March 17, 2014.
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 "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 contains forward-looking
statements regarding the anticipated roll-out of the Company's 4G
network, future operational and financial benefits from the network
sharing agreement with HOT Mobile, and the expansion of fixed line
services. In addition, all statements other than statements of
historical fact included in this press release regarding our future
performance, plans to increase revenues or margins or preserve or expand
market share in existing or new markets, plans to reduce expenses, and
any statements regarding other future events or our future prospects,
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 about recent and future regulatory actions
(specifically, whether the frequencies needed for 4G operation will be
allocated, as well as whether the regulations for the wholesale
fixed-line market will be appropriately developed and applied) and
whether the network sharing agreement with HOT Mobile will be approved
without substantial modification, as well as consumer habits and
preferences in cellular telephone usage, trends in the Israeli
telecommunications industry in general, and the impact of global
economic conditions. Future results may differ materially from those
anticipated herein. For further information regarding risks,
uncertainties and assumptions about Partner, trends in the Israeli
telecommunications industry in general, the impact of current global
economic conditions and 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. 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
Adjusted EBITDA and free cash flow, which are non-GAAP financial
The financial information is presented in NIS millions (unless
otherwise stated) and the figures presented are rounded accordingly.
The convenience translations of the Nominal New Israeli Shekel (NIS)
figures into US Dollars were made at the rate of exchange prevailing at
December 31, 2013: US $1.00 equals NIS 3.471. The translations were made
purely for the convenience of the reader.
Use of Non-GAAP Financial Measures:
'Adjusted EBITDA' represents earnings before interest (finance costs,
net), taxes, depreciation, amortization (including amortization of
intangible assets, deferred expenses-right of use, and share based
compensation expenses) and impairment charges, as a measure of operating
profit. 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 Company's
historic operating results nor is it meant to be predictive of potential
future results. Adjusted EBITDA is presented solely to enhance the
understanding of our operating results. We use the term "Adjusted
EBITDA" to highlight the fact that amortization includes amortization of
deferred expenses - right of use and employee share- based compensation
expenses, but Adjusted EBITDA is fully comparable to EBITDA information
which has been previously provided for prior periods. Reconciliation
between our net cash flow from operating activities and Adjusted EBITDA
on a consolidated basis is presented in the attached summary financial
About Partner Communications
Partner Communications Company Ltd. ("Partner") is a leading
Israeli provider of telecommunications services (cellular, fixed-line
telephony and internet services) under the orange™ brand and the 012
Smile brand. 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.orange.co.il/en/Investors-Relations/lobby/
1 Cash flows from operating activities before
interest payments, net of cash flows used for investment activities.2
Operating expenses include cost of service revenues, and selling,
marketing and administrative expenses, and exclude depreciation and
amortization and impairment charges.3 For
definition of Adjusted EBITDA measure, see "Use of Non-GAAP Financial
Measures" below.4 See also definitions on
first page. Quarterly financial results are unaudited.5
In Q4 2011, the Company recorded an impairment charge on its fixed line
assets which reduced the annual and Q4 operating profit by NIS 322
million and the net profit by NIS 311 million. See press release of
March 22, 2012 for details.6 Cash flows
from operating activities before interest payments, net of cash flows
used for investment activities, except for years 2010 and 2011 for which
free cash flow does not take into account outward cash flows used for
the acquisition of 012 Smile.7 Reported
ARPU for 2010 was NIS 148. The ARPU for 2010 has been restated under the
lower interconnect tariff effective in 2011, for the purpose of
comparison.8 Due to market developments
in 2013, and in particular the increasing prevalence of bundled
offerings in the market, the Company believes that the number of fixed
lines and ISP subscribers no longer provide any meaningful insight into
the results of operation, and therefore will not be reporting them in
the future.9 MOU data includes total
incoming minutes to subscribers of those MVNO operators which Partner
hosts on its network.10 Total long term
indebtedness including current maturities less cash and cash equivalents.
PARTNER COMMUNICATIONS COMPANY LTD.(An Israeli
Corporation)CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
New Israeli shekels
Share capital - ordinary shares of NIS 0.01 par value:authorized
- December 31, 2012 and 2013 - 235,000,000shares; issued and
and 2013 - 4,467,990 shares
* Representing an amount less than 1 million.
**Net of treasury shares
PARTNER COMMUNICATIONS COMPANY LTD.(An Israeli
Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
PARTNER COMMUNICATIONS COMPANY LTD.(An Israeli
Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTSOF
New Israeli Shekels
Profit for the year
Other comprehensive losses for the year, net of income taxes
PARTNER COMMUNICATIONS COMPANY LTD.(An Israeli
Reconciliation of Adjusted EBITDA to profit before income tax
PARTNER COMMUNICATIONS COMPANY LTD.(An Israeli
Corporation)INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
Convenience translation into U.S.dollars
12 monthperiod ended December 31,
3 monthperiod ended December 31
3 monthperiod ended December 31,
CASH FLOWS FROM INVESTING ACTIVITIES:
CASH FLOWS FROM FINANCING ACTIVITIES:
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS AT END OF PERIOD
* Representing an amount of less than 1 million
Appendix A - Cash generated from operations and supplemental
At December 31, 2013 and 2012, trade and other payables include NIS 223
million ($64 million) and NIS 280 million, respectively, in respect of
acquisition of intangible assets and property and equipment. These
balances are recognized in the cash flow statements upon payment.
PARTNER COMMUNICATIONS COMPANY LTD.(An Israeli
Corporation)RECONCILIATION BETWEEN OPERATING CASH FLOWS AND
Convenience translation into U.S.dollars**
Accrued interest and exchange and linkage differences onlong-term
* Representing an amount of less than 1 million** The convenience
translation of the New Israeli Shekel (NIS) figures into US dollars was
made at the exchange prevailing at December 31, 2013: US $1.00 equals
3.471 NIS.*** Financial expenses excluding any charge for the
amortization of pre-launch financial costs
Key Financial and Operating Indicators
11 See first page for definitions. Including the
results of 012 Smile from March 2011. The annual results are audited.12
Cash capital expenditures in fixed assets including intangible assets
but excluding capitalized subscriber acquisition and retention costs,
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