Q4 2019 Earnings Call

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[music].

Ladies and gentlemen, thank you for standing by welcome to soak up the fourth quarter and full year 2019 results conference call. All participants are present in listen only mode. Following management's focus on patient instructions will be given so the question than that so she has a reminder, this conference is being recorded.

But now the company's press release.

Not received it please contact Cellcoms Investor relations team at GK, Investor and public relations.

One six or 668355 nights or feeling in the news section of the company's website www SOCOM that C. O that I feel I would now like the handover the call to Mr. eight hotels of GK Investor Relations Mr. Hope would you like to begin.

Thank you I would like to work all of that.

Fourth quarter.

Yes, it does.

Conference call I know that merger.

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Yes, you're on that on.

Sure I'm reporting.

You say goodbye.

Yeah.

And we'll then open the corporate of course.

Before I Gotta Guava Goodbye.

Core management.

May contain forward looking statements, which are subject to risks and uncertainties.

Imagine they could you share folder.

On to your question.

Therefore, the company transportation in Kabul for forward looking statements contained in the private Securities Litigation reform.

And then you ready securities or excuse me.

I know that actually reductions basketball don't discuss today. Therefore, we refer you to remote <unk> discussion of the risk and uncertainty.

The company's filings with Securities and Exchange Commission.

Moving on to recruit drug in the company's on your or a year on December 29 King.

Right on that form 20-F as filed on March three 2020 were there.

In addition, any projection as a company.

Right.

Second we try to humans obligation to update these projections.

Future as market conditions change.

Now I'd like to another car.

I'm good thank.

Thank you.

Yeah.

As much <unk> conference call.

Okay.

Thirdly, two BGR Socal me.

You might you in my first few months.

Company was watching her and potential and <unk>.

Hello.

My goal.

Further the man.

Okay.

Okay.

Well they brought in.

Well services products, we offer a customer.

Hi.

The situation.

Solar markets.

As we've talked for many.

Hi, good decision.

However.

Fixed line market, we were able to show will.

I was in line.

Spot article additions it doesn't make deal with which we demonstrated some for non <unk>.

Revenue that people are level.

Good luck.

3.7 billion.

Stability in our free cash flow.

When you get out by eliminating.

The one time item.

Excellent.

Being report.

I would like to say if youre the ball.

As you know one of the key events of 2019 completion.

Investment.

Phil or fiber network.

Yes.

<unk> position us well for future growth.

Before.

Like there, but there's a token.

There's a big <unk> enzyme.

5% owner.

One of the more advanced seems like an indication that.

As was our potential savings goal over the coming.

[laughter].

Today.

I just use infrastructure over the course thousand outflows coalesces <unk>.

As I do see level continues to extend the club.

We wouldn't be able to provide work off the month Super fast Internet.

Well gigabytes with.

Our goal.

So I'd be see potential you reached over 1 million.

The company would be fine.

That's right now for the restructuring.

In the fourth quarter logical granted.

Structuring plan.

Right.

Thanks to the Gulf and lowering our debt levels.

Increasing.

To further adjust spoken new drugs to the current markets.

We approach or suppliers and got cost across the board.

We also entered new collections employment agreements that go either but that's too early February 2000.

Disagreement.

Well early retirement program for wireless you see.

As well as options and aren't you.

I'll just there to.

Equalization.

We've also been would you think.

Exit fees by shifting.

So the optical fiber and that's local purposes.

The steps were taken or are in line with our annual expense targets reduction about 1 million checkers.

Uh huh.

We're also taking additional steps to reduce capital expenditure.

Our goal reductions to a level.

If you see in 500 million check on cereal.

Your end 2000.

This concludes.

During the Brian I'd and engineering.

As well so can we broke Google actual fiber optic investments like.

This is.

Well, including any additional frequencies related topics that we have made.

Finally.

During the quarter, we also raised over the medium cycle it would be for GAAP purposes.

Non.

We also repurchased.

Open market several for both of them all book approximately 10 million check of.

As of yearend cash was 1.4 billion, Chicago and reduced our net debt.

To 1.9.

Due to all these activities our EBITDA.

Net debt ratio moving away from that I first 16.

Yeah, no less than we thought.

Youre the ball day good luck.

You weeks ago, we answered that binding and will you for the purchase of Golan Telecom local about 5.5 hundred 90 meals.

Subject to certain jobs.

This will be paid in cash.

430 million check so it doesn't.

You should look binding agreement well completion <unk> production and.

And the laser was 77 minimal chickens and.

So do you still have family within three years.

Sure.

That's exactly the public sources acquisitions, including regulatory approval.

We also.

Hope to complete a deal during 2000.

We believe.

The acquisition of go along the significant when we were booked Golan telecom, we see significant share.

Seanergy safe.

You mean the combined.

Right.

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No neglecting the Corona.

So I would like to make comments.

Welcome to.

Growing up and then they booked one socal Lisa.

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Optional roaming revenue.

Already solved fourth quarter.

However in the last two weeks.

He is not in government published that's a good three requirements, including the put additional altogether in enclosed malls and honor leisure.

And substantial reduction went forward.

Britain.

Well.

Well I thought you [laughter].

[laughter] instruction.

The company has low balling, Doug walk centers, essentially would you be circle.

Essentially for the continued proper operational cyclical and providing the company.

During the third you.

The company intends to focus efforts.

Providing quality dependable.

Service.

In addition.

You did a sharp decline in stock market the company's investment portfolio.

But the two recalled last first quarter.

We have taken steps to reduce our expenses and buckman, we thinking.

The impact so far we don't.

We also reduced the workforce by sending a large wasn't you'll complete.

Thank you.

Leave and have a loud oh working.

Where possible to meet the government's requirement.

However.

The current situation.

Continue for a long duration, if we like me.

I have a material.

The company's operation and financial results.

Well, we do reach although.

Well see.

A quick recovery.

We will.

We will all be able to return to normalized squeak more.

Well go Socal Negroes can go back to focusing on our longer term sought to deal growth.

And profitable.

Just to summarize with that I would like to hand over to slow.

The only please thank you all these [laughter].

Oh It provides a summary as a result, because can be found.

The threats with this we issued earlier today.

Well in New York go through a call Johnson 19 totaled 3.7 billion shaken up.

Up marginally on the 3.70 sugar with both the last year.

Oh just goes.

Service revenue where coupon.

Yeah, good on chicken and the same level of goes Oh.

We like to highlight the fixed line segment service revenues grew 4% going to go so called the men 18 to rights on Threed leadership.

You should encourage resulted mainly from the increase in revenues from Internet and TV services and revenue from private or public infrastructure deployment.

Right.

This increase was partly offset by degrees demeanor to sell them on international comps.

Adjusted EBITDA for 2000.

925, you don't share goods or 25% of revenue, 35% group compared with 687, you don't show good.

19% of revenues in 2018.

Greetings and adjusted EBIDA resulted from increased rent expense.

Will amount to 247.

Sure good due to the <unk> mission liked it feels to us it as a result dilution on conventional I correct me talking calling from January 2000.

This was called New York City by expenditure of good Bunkering government retirement them, which took less than before we'll go through college and.

<unk> adjusted EBITDA on the fixed line segment looks read on that and 8 million Checker Commscope route to harvest and do not even sure. Good luck.

And the adjustment EBITDA from set it up.

Silicon Needham sugar.

Well on that and they didn't even chicken.

Last year.

Net loss for 2019 go got 118 Unum check up.

Douglas Emmett local [laughter] form your objectives.

2019.

The free cash flow from 2018 were 300 and I can walk even chicken gross was 191.

181.

We want sort of checking into a covered and then Peter.

Free cash will include the proceeds from the central fiber infrastructure ammonia into.

And 191.

Our gross stuff because expenditures from 2018 goes on 557, you don't check because this is quite hundreds and 83 million chicken due to others.

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As of the end of 2010 things in our net debt stood at approximately 1.9 billion shares.

We are still kind of broke Brooks Brooks.

Watchful for Gosh, you know a balance you on overall debt repayment.

Interest income because that does you until the end of 2020, a mark to 600 <unk>.

At year end of two causes them and the company had approximately 2.744 million shut off subscribers.

A decrease of approximately 100000 107000 subscribers that compelling.

Fair enough such subscriber base in the end of 2000.

And 18.

Decrease resulted mainly because of the company the lead to 153000 subscribers.

Subscriber base accounts, he and his first quarter of 2090.

Two tranches <unk>.

Counting Mitchell of the company's cellular subscriber base.

Yes.

Right, but generate.

Your Julie billed revenue to the company.

During the fourth we'll go to causes then they seem to company.

So the fiber based decreased by approximately switches recalls.

Right now.

The generator cellular subscribers and before I walk through 2018.

11 months reports into 45.8%.

2010.

Yeah 19.

The monthly sell a up for the fourth quarter, two targets and 18 months.

49 point dual use even though to the 49.

Two plus years.

We've got I would like to open the call for questions.

Operator please.

Thank you ladies and gentlemen at this time, we'll begin the question answer session to have a question. Please press star one if you wish to Kathy Everquest. Please press star too. If you think speaker equipment kind enough to have that suppressing the numbers your questions will be pulling in the order. They are received them by only pull fair question.

The first question is some patti roster of Barclays. Please go ahead.

Hi, This is Chris Reimer on SURTAVI. Thank you for taking my questions I.

I wanted to ask about inside their deployment and the headway and if you've made anyway I B C. You've mentioned in your opening remarks that you had reached over 300000 homes passed I think that last reported was 300000 is there a new number you can provide.

Hi, that's now.

No this is getting longer Oh, yeah into Europe.

You see.

The dogs.

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Hi blog network.

Oh, absolutely the.

Hi numbers during this years and when we would be able to report non <unk>.

Okay.

I'm also assuming the acquisition is going on it's proved can you give any color around integration plans.

As we declared in the past.

We said go down as a.

Good opportunities are good and he's a very good company. We will continue to operate your long as a separate does come from me and the lots of synergies from the operation side like your roaming and Ah Ah engineering et cetera, but.

There are companies you got to compete we continue to give the sensor with.

And the same good set of is that given to them to their customers.

Oh, okay.

Thank you that's it for me.

If there any additional questions. Please press star one if he wants to cancel your question. Please press star to see standby only poll for questions.

[noise] there no further questions at this time, Mr. Guy would you like to make it including statements.

Sure so.

[noise], let's pick up I would you like Nike.

[laughter] I'd like thank you all of you for joining me.

Since called continued interest in our company.

I just wonder I look forward to Austin get again in the next call. Thank you very much and have a good day and help.

Thank you this 'cause it the Cellcom Israel Ltd fourth quarter 2019 results conference call. Thank you for your participation or they go ahead and disconnect.

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