Q1 2020 Earnings Call

[laughter].

[laughter] [noise].

[music].

[laughter].

[laughter].

[music].

Ladies and gentlemen, thank you for standing by welcome to sell comes first quarter 2020 results conference call all participants emotional anymore.

Management's focus on patient instructions that given sort of question answer session. As a reminder, this conference is being recorded you should have all received by now the companies, especially if you have not received it please contact Cellcoms investor relations team, a chicken investor and public relations.

1646683559, well if you went in the news section of the company's website Www Dot Cellcom that C. O that I am I would now that the handover the call them as far as health of GK Investor Relations Mr. Health would you like to begin.

Thank you operator, I would like to what's going on.

Second quarter.

[noise] Joseph Bank merger.

<unk>.

Yeah.

Hi, good bye.

Sure.

Oh.

But I was hoping by providing a summary.

Hi, everyone, then [laughter] calls for of course.

Fourth calendar quarter were sort of I would like to my knowledge.

Core management's prepared remarks.

Content holder.

Which are subject to risk.

Imagine they make a shareholder.

I want to your question.

For the company fans protections and are hopeful folgers instead.

In the private.

Formats.

[music].

Oh.

Yeah.

I know the Nextshares actually that's one Uh huh.

Therefore, we have for use with more discussion of risks and uncertainties and companies fighting with the securities.

Sure.

No I never sector in the company I unfolds.

Somebody says once you know.

And another form 20-F, which are spot on that front just returns.

Yes.

In addition, any projection as to the combined such performance because I imagine, Pennsylvania.

Second we enjoyed a general obligation dropped in these projections.

Logging conditions change.

Sure hope on our technical Incomings person.

He's got the passage you can control.

I would now like I don't want economies to and goodbye.

Thank you.

I would like to show coupons.

Right.

That's offering.

Did you commissions.

[laughter].

Yes.

As you all know Cogs in the unprecedented times.

These are recover.

That makes had been affecting consumer behaviour.

Absolutely.

Fly overseas.

The company response.

And then.

All of our retail stores.

[laughter], thanks to the good relationship.

<unk>.

The Union.

We got to compensate for the loss.

The company continues to function and services customers.

[music].

No.

Hello.

We also currencies.

We are banks works.

[laughter]. However, the current a virus situation continues to evolve.

Okay.

Hello.

<unk> return to normalized.

Therefore, how long we continue to affect our operation.

Before that.

We expect the roaming revenues to continue to be impacted by before debt for simple for civil.

Force.

She will.

Sure.

As long as significant international travelers the luxury.

Sales of equipment remain subject to do our ability to resumed normal operations into our stores.

Well the debt offering two weeks ago, we concluded the tender for that.

The option offering raising 200 million check.

S&P in my loss reserve and I know a negative rating to all day.

We appreciate the support from days running comfortable markets.

Our net debt now stands.

1.9 billion check on net.

As you know.

We have taken significant steps to reduce expenses in capex.

We believe our business is now better structure maps to current market environment.

Combined with our balance sheet all these steps enable cellcom.

Better window.

Current environment.

Our EBITDA to net debt, including Guy for Insixteen FX.

Ratio as off the first quarter was less than three times.

I would like to spend a few moments talking about some strategic initiatives that we have.

Last year.

Completed in investment Daily Ninebc.

Welcome remains very very well positioned to benefit from the future fiber optic marketing Israel.

[laughter] since our purchase we have been reduced in Garland line also thaksin seized by shifting our customers the optical fiber network will fight.

I believe goal is to continue to connect 1 million households, within the next five years today.

Infrastructure infrastructure recently growth 350000 households.

Next in business Mark.

Mark.

The long term growth potential as long as our potential saving from payments for infrastructure over the coming years is very very very soon.

Thanks, Good luck.

The most significant event, which will impact cellcom the potential acquisition of goodbye.

In the first quarter, we entered into the binding and we you for the purchase of Golan Telecom for 590 million shekels.

Some additional payments.

We believe the acquisition of Golan significant win win for both Golan and Cellcom Israel.

See significant share synergies and savings.

Which mean.

The combined entity cash flows and Seattle, we'd be greater than to some spots.

The transaction is subject to certain conditions, including regulatory approvals, which we hope to making 2020.

To summarize.

First quarter was a difficult periods where everybody.

We continue to support and several customers throughout users with all their computer communication.

Wed for Internet.

Yeah.

And my summary, and I would like to hand over to stop.

Thank you RV good gave to all this year I will provide you a summary of how results due to its can be found in the press release, we issued earlier today.

Revenue for the first quarter 2020 tacos.

Hey, harder to 92 million chickens quicker to.

828, we know chicken or bought into first quarter last year.

I'll just goes into service revenues over 682 million shares to significantly ahead of the 678 million checkers imported into first quarter constitute.

I would love to highlight.

Fixed line segments services revenue grew 3%.

First quarter over the last year to 327 dealerships.

This increase resulted mainly from the net increase in revenues from Internet and TV service.

Adjusted EBITDA for the first quarter of two girls 2020 was too hard and 44, we don't share good or 27.4% of revenue.

Right right Percentincrease cargos with 224 wheel chair goods or 24.1.

Research.

Revenue in the first quarter fluff.

The EBITDA was positively impacted by 28 million shares.

Following.

Retroactive update the Olson marketplace for basic services by the Ministry of Communications.

This was partly offset by the impact due to the Corona virus crisis.

Adjusted EBITDA for into fixed on segments was 100 and said, it's really good compared with 78 leadership in the last year increase of 71%.

Adjusted EBITDA from the seller settlement would work was 131 million shares or.

Does was 146 billion check as last years.

I'd like to burn out conduct our net financial expenses in the first quarter of 2020.

I wanted to 60 formula checkers compared to 27 years shekel last.

Year over year increase this expense was mainly due to the loss.

Greater been investment portfolio, which amounted to 27 million share count as a result of the shock market decline during the quarter due to the Corona virus during April.

Due to directly into security prices in the capital markets. Some of these losses has been Dubai.

Net loss in the first quarter 220, 20 totaled 43 million checkers construct to a nickel 60 million share calendar first quarter last year.

Free cash flow.

The first quarter next when twins was 57 million shares.

Sports 6 billion shifts in the first quarter flat with last year.

Our capital expenditure.

On this first photos 20 twins.

Total 118 check.

Versus 180 kilometers of share because in the first quartile of last year.

It's the end of first quarter 2020, our net debt stood at approximately 1.9 billion shrink.

We have a total of approximately one point tubular chicken cash no a balance sheets.

Okay.

While our overall debt repayments of interest in capital.

Due to until the end of 2021 amounted to one been changing.

At the end of the first quarter of 2022 company owned approximately 2.747 billion cellular subscriber.

Generate cellular subscribers in the first quarter 2020 was 8.8% compared with 11% in the first quarter 2000.

That is mainly because of the first quarter of 2017.

2020.

Generate gross only the negative net churn or.

And to subscribers subscribers.

Just to eliminate changes.

No change.

Onto flies helped by the customers.

Finally, the monthly seller, though.

ARPU for the first quarter 2020 was 48.1.

Shekels seeming to 47.2 in the first quarter last year.

I would like to open the call hopefully.

Operator.

Thank you ladies and gentlemen at this time will begin the question answer session. If you have a question. Please press star one if you wish to cancer. Your question. Please press star too if you think speaker equipment the stance that buffer pressing the numbers your questions will be pulled from the or are they out receipts. Please standby we pull for your questions.

I repeat if you have a question. Please press star one if you wish to cancel your question. Please press star to please standby vehicle for your questions.

[music].

There are no questions at this time just to go by which they can make his concluding statement.

Yes.

Thanks.

[music].

I would like to thank all of you for joining our conference call and your continued interest in our company.

I look forward to all seeing you again at our next call have a good data.

Thank you. This concludes the Telkom is LTB first quarter 2020 results conference call. Thank you for your participation you May go ahead and disconnect.

[music].