Cellcom A0MKP2

Company Profile

Cellcom Israel Ltd.,   established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its 3.073 million subscribers (as at December 31, 2007) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure.  

The Company operates an HSPA 3.5 Generation network enabling the fastest high speed content transmission available in the world, in addition to GSM/GPRS/EDGE and TDMA networks.

Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide.

Through its broad customer service network Cellcom Israel offers its customers technical support, account information, direct to the door parcel services, internet and fax services, dedicated centers for the hearing impaired, etc.

 In April 2006 Cellcom Israel, through Cellcom Fixed Line Communications L.P., a limited partnership wholly-owned by Cellcom Israel, became the first cellular operator to be granted a special general license for the provision of landline telephone communication services in Israel, in addition to data communication services.

13.08.2008 07:22

Cellcom Israel   Announces Second Quarter 2008 Results  NETANYA, Israel, August 13 -

Cellcom Israel (News)   Presents Record Results in Terms of Total Revenues, EBITDA and Operating Income and an Increase in Market Share Compared to Second Quarter Last Year:

- These Record Results Were Achieved Despite the Ongoing Price Erosion and the Intense Market Competition;

- Revenues Increased 9.9%; EBITDA(1) up by 14.7% - Cellcom Israel Declares a Second Quarter Dividend of NIS 2.76 Per Share (Totals Approx. NIS 270 Million) Second Quarter 2008 Highlights (results compared to second quarter 2007, unless otherwise stated):

- Total Revenues (including revenues from end-user equipment) increased 9.9% to NIS 1,600 million ($477 million)

- Total Revenues from services increased 6.3% to NIS 1,410 million ($421 million)

- Revenues from content and value added services (including SMS) increased 35.6%, reaching 11.3% of services revenues

- EBITDA(2) increased 14.7% to NIS 617 million ($184 million) (including a one time expense reversal of NIS 14 million)

- EBITDA margin reached 38.6%, up from 37.0%

- Operating income increased 25.7% to NIS 431 million ($129 million) - Financing expenses, net increased by NIS 90 million (including a one time expense(3) of approx. NIS 29 million) - Net income increased 8.5% to NIS 230 million ($69 million) - Free Cash Flow increased approx. 295% compared to previous quarter and totaled NIS 308 million

- The Company's subscriber base increased 5.3% compared to second quarter last year; the Company's market share also increased

- Post-paid Subscriber base increased approx. 27,000 net new subscribers and pre-paid subscriber base was down by 6,000. Total net new additional subscribers in the second quarter reached approx. 21,000; Total subscriber base reached approx. 3.117 million at the end of June 2008

- 3G subscribers reached approx. 608,000 at the end of June 2008, net addition of approx. 85,000 - The Company declared a second quarter dividend of NIS 2.76 per share  Cellcom Israel Ltd. ("Cellcom Israel", the "Company"), announced today its financial results for the second quarter of 2008. Revenues for the second quarter 2008 totaled NIS 1,600 million ($477 million); EBITDA for the second quarter 2008 totaled NIS 617 million ($184 million), or 38.6% of revenues; and net income for the second quarter 2008 totaled NIS 230 million ($69 million). Basic earnings per share for the second quarter 2008 reached NIS 2.36 ($0.70).  Commenting on the results, Amos Shapira, Chief Executive Officer said, "I am very pleased with our second quarter 2008 results, especially given the competitive environment and the continuing price erosion, which proves again our ability to adjust quickly to the changing business environment. Cellcom Israel presents today another record quarter in terms of total revenues, EBITDA, EBITDA margin and operating income. I am proud of all our employees and managers for the achievements this quarter, as well as for the fast growth in our brand positioning, further enhancing our status as the leading cellular company in Israel."  Mr. Shapira added: "In the second quarter of 2008, I am pleased to note, we presented record results in terms of revenues, EBITDA and operating income and an increase in market share (4) in comparison with the second quarter of last year, which reflects the strengthening of our leadership position in the Israeli cellular market. In the second quarter, we further increased and improved our total subscriber base, gaining approximately 27,000 net new post-paid subscribers while losing approximately 6,000 net pre-paid subscribers. Our 3G subscriber base continues to grow, reaching above 608,000 subscribers as of the end of June 2008, up 85,000 this quarter, all of which are post-paid subscribers, characterized by high ARPU. The overall improvement in the Company's composition of subscribers contributed to the increased ARPU and the Company's profitability. Revenues from content and value added services increased by approximately 36%, reaching 11.3% of our service revenues. Furthermore, we broadened our offering of landline services, which continued to contribute to the fast growth of revenues from these services. Simultaneously, we kept on cost efficiency measures, contributed directly to our improved EBITDA and EBITDA margin."  Tal Raz, Chief Financial Officer, commented: "This was another strong quarter in terms of revenues and operating profitability for the Company, resulting mainly from an increase in revenues from content, value added services and landline services as well as ongoing cost efficiencies. Marketing, sales, general and administrative expenses as percentage of revenues decreased from 22.4% in the second quarter of 2007 to 21.9% in the second quarter this year. Our net income increased despite the significant increase in financing expenses, stemming mainly from the increase in the Israeli Consumer Price Index (CPI) during the second quarter, which affected the linkage expenses to the Israeli CPI, associated with our debentures. Our free cash flow for the second quarter rised again towards the level we used to present before the first quarter of 2008 and totaled NIS 308 million, an increase of approximately 295% compared to the previous quarter.  Furthermore, during the second quarter we decreased our handsets and accessories inventory level, which was purchased during our preparation to number portability, by approximately NIS 86 million compared to the previous quarter and the inventory lowered again to the level we used to present before our preparations to number portability."  Main Financial and Performance Indicators: Q2/2008 Q2/2007 % Change Q2/2008 Q2/2007 million NIS million US$ (convenience translation) Total Services revenues 1,410 1,327 6.3% 420.6 395.9 Revenues from content and 160 118 35.6% 47.7 35.2 value added services Handset and accessories 190 129 47.3% 56.7 38.5 revenues Total revenues 1,600 1,456 9.9% 477.3 434.4 Operating Profit 431 343 25.7% 128.6 102.3 Net Income 230 212 8.5% 68.6 63.2 Cash Flow from Operating 308 352 -12.5% 91.9 105.0 Activities, net of Investing Activities EBITDA 617 538 14.7% 184.1 160.5 EBITDA, as percent of 38.6% 37.0% 4.3% Revenues Subscribers end of period 3,117 2,960 5.3% (in thousands) Estimated Market Share4 34.7% 34.4% 0.9% Average Monthly MOU (in 354 345 2.6% minutes) Monthly ARPU 149 148 0.7% 44.5 44.2 Financial Review  Revenues for the second quarter of 2008 totaled NIS 1,600 million ($477 million), a 9.9% increase compared to NIS 1,456 million ($434 million) in the second quarter last year. The increase in revenues resulted from a 6.3% increase in revenues from services, reaching NIS 1,410 million ($421 million) compared to NIS 1,327 million ($396 million) in the second quarter last year, as well as from a 47.3% increase in handset and accessories' revenues from NIS 129 million ($38 million) in the second quarter last year, to NIS 190 million ($57 million) in the second quarter 2008. The increase in revenues from services is attributed mainly to a 35.6% increase in revenues from content and value added services (including SMS) in the second quarter 2008, compared to the second quarter last year, reaching NIS 160 million ($48 million), or 11.3% of revenues from services. The increase also resulted from an increase in roaming services and landline services. The increase in revenues from services was partially offset by the reduction of interconnect tariffs, which came into effect on March 1, 2008 and the ongoing airtime price erosion. The increase in handset and accessories' revenues in the second quarter of 2008, resulted primarily from a larger amount of handsets sold and an increase in the average handset sale price, due to higher sales of advanced 3G handsets in the second quarter of 2008.  Cost of revenues for the second quarter of 2008 totaled NIS 819 million ($244 million), compared to NIS 786 million ($234 million) in the second quarter last year, an increase of 4.2%. The increase in cost of revenues primarily resulted from an increase in interconnect expenses due to an increase in outgoing calls terminating in other operators' networks, as well as an increase in cost of content and value-added services due to increased usage. The increase also resulted from an increase in handset costs following the higher number of handsets sold during the second quarter of 2008 and an increase in the average handset sale price, partially offset by increased efficiency in handset procurement and the appreciation of the NIS against the US dollar, which lowered the cost of handsets.  In June 2008, the Israel Accounting Standards Board published a clarification to the International Accounting Standard no. 39 ("Financial Instruments: Recognition and Measurement"), in which it recognized the US Dollar as a Commonly Used currency in Israel until December 31, 2006. As a result, all transactions related to engagements made by December 31, 2006, do not require a separation of the embedded derivative. Since the Company began, in the first quarter of 2008 - following the adoption of the IFRS - to retroactively separate embedded derivatives, the Company had to reverse the recorded amounts for the separation of embedded derivatives related to engagements made on or before December 31, 2006. This resulted in a one-time reversal of rent expenses in the amount of approximately NIS 14 million, mainly related to previous years, which offset in part the increase in cost of revenues. On the other hand, this issue increased financing expenses by approximately NIS 29 million, which constitutes a one-time reversal of financing income mainly related to previous years. See Financing Expenses, net below.  Gross profit for the second quarter of 2008 totaled NIS 781 million ($233 million), a 16.6% increase compared to NIS 670 million ($200 million) in the second quarter of 2007. Gross profit margin for the second quarter of 2008, increased to 48.8% from 46.0% in the second quarter last year.  Selling, Marketing, General and Administrative Expenses ("SG&A Expenses") for the second quarter of 2008 totaled NIS 350 million ($104 million), or 21.9% of total revenues, compared to NIS 326 million ($97 million), or 22.4% of total revenues, in the second quarter of 2007.

The SG&A Expenses in the second quarter 2008 were affected, among other things, by the accelerated recording of option related expenses under our option plan in the amount of approximately NIS 11 million, following the Company's reevaluation of a "Corporate Transaction" occurrence (for additional details see  "Other developments during the second quarter of 2008 and subsequent to balance sheet date

- Amendment to employee share incentive plan" below).  Operating income for the second quarter of 2008 increased 25.7%, reaching NIS 431 million ($129 million), compared to NIS 343 million ($102 million) in the second quarter last year. The increase in operating income, as well as in EBITDA, reflects, among other things, the one-time reversal of rent expenses in the amount of approximately NIS 14 million, mainly related to previous years, as explained in Cost of revenues.  EBITDA for the second quarter 2008 increased 14.7%, reaching NIS 617 million ($184 million), compared to NIS 538 million ($161 million) in the second quarter 2007. EBITDA as a percent of total revenues, reached 38.6%, compared to 37.0% in the second quarter last year.  Financing Expenses, net for the second quarter 2008 totaled NIS 109 million ($33 million), compared to NIS 19 million ($6 million) in the second quarter last year. This increase resulted, among other things, from a one-time reversal of financing income in the amount of approximately NIS 29 million, mainly related to previous years, for the separation of embedded derivatives related to engagements made on or before December 31, 2006, as explained in Cost of revenues. The increase also resulted from an increase in interest and linkage expenses to the Israeli Consumer Price Index (CPI), associated with the Company's debentures, following the increase in our debt level and the increase in the Israeli CPI during the second quarter 2008, compared to the second quarter last year.

The increase in financing expenses was partially offset by two main items: an increase in financing income related to the Company's hedging portfolio, which totaled approximately NIS 39 million compared to approximately NIS 13 million in the second quarter of 2007, and the lack of interest expenses relating to the Company's former credit facility, which was fully prepaid in March 2008, compared to approximately NIS 21 million facility related interest expenses in second quarter of 2007.  Net Income for the second quarter of 2008 increased 8.5%, reaching NIS 230 million ($69 million), compared to NIS 212 million ($63 million) in the second quarter last year.

Basic earnings per share for the second quarter of 2008 totaled NIS 2.36 ($0.70), compared to NIS 2.17 ($0.65) in the second quarter of 2007.  Operating Review  New Subscribers - at the end of June 2008 the Company had approximately 3.117 million subscribers. During the second quarter of 2008 the Company added approximately 21,000 net new subscribers (an increase of approximately 27,000 post-paid subscribers and a decrease of approximately 6,000 pre-paid subscribers).

In the second quarter of 2008, the Company added approximately 85,000 net new 3G subscribers to its 3G subscriber base, reaching approximately 608,000 3G subscribers at the end of June 2008, representing 19.5% of the Company's total subscriber base.

The Churn Rate in the second quarter 2008 was 4.7%, compared to 3.9% in the second quarter last year and compared to 5.3% in the previous quarter. As expected and as experienced in other countries, the implementation of number portability has increased the churn, which primarily consists of lower contribution pre-paid subscribers and subscribers with collection problems.

The increased churn of pre-paid subscribers had a negligible impact on the Company's results.  Average monthly subscriber Minutes of Use ("MOU") in the second quarter 2008 totaled 354 minutes, compared to 345 minutes in the second quarter 2007, an increase of 2.6%.  The monthly Average Revenue per User (ARPU) for the second quarter 2008 increased 0.7% and totaled NIS 149 ($44.5), compared to NIS 148 ($44.2) in the second quarter last year.  Financing and Investment Review Cash Flow  Free cash flow (Cash provided by operating activities, net of cash used in investing activities) for the second quarter of 2008 totaled NIS 308 million ($92 million), compared to NIS 352 (5) million ($105 million) generated in the second quarter of 2007.

The relative decrease in Free Cash Flow in the second quarter 2008 compared to the second quarter last year resulted primarily from the increase in investing activity, attributed mainly to different dispersal of investments over the year compared to last year, and from the remaining payments, mainly for handsets procurement and payroll expenses, related to the Company's preparations for number portability.

The Company's free cash flow for the second quarter increased by approximately 295% compared to the previous quarter and rised again towards the level presented in the periods before the first quarter of 2008.  Shareholders' Equity  Shareholders' Equity as of June 30, 2008 amounted to NIS 372 million ($111 million), primarily consisting of accumulated undistributed retained earnings.  Investment in Fixed Assets and Intangible Assets  During the second quarter 2008, the Company invested NIS 128 million ($38 million) (on accrued basis, not cash basis) in fixed assets and intangible assets (including, among others, deferred commissions and investments in information systems and software), compared to NIS 117 million ($35 million) in the second quarter 2007.

Dividend  On August 12, 2008, the Company's board of directors declared a cash dividend in the amount of NIS 2.76 per share, and in the aggregate amount of approximately NIS 270 million (the equivalent of approximately $0.77 per share and approximately $76 million in the aggregate, based on the representative rate of exchange on August 11, 2008; the actual US$ amount for dividend paid in US$ will be converted from NIS based upon the representative rate of exchange published by the Bank of Israel on September 4, 2008), subject to withholding tax described below. The dividend will be payable to all of the Company's shareholders of record at the end of the trading day in the NYSE on August 25, 2008.

The payment date will be September 8, 2008. According to the Israeli tax law, the Company will deduct at source 20% of the dividend amount payable to each shareholder, as aforesaid, subject to applicable exemptions. The dividend per share that the Company will pay for the second quarter of 2008 does not reflect the level of dividends that will be paid for future quarterly periods, which can change at any time in accordance with the Company's dividend policy.

Dividend declaration is not guaranteed and is subject to the Company's board of directors' sole discretion, as detailed in the Company's annual report for the year ended December 31, 2007 on Form 20-F, under "Item 8 - Financial Information - Dividend Policy".

Other developments during the second quarter of 2008 and subsequent to balance sheet date  Site Licensing - As previously disclosed, the Company has relied upon an exemption from the requirement to obtain building permits in relation to cellular radio access devices. This exemption has been challenged in court. In May 2008, the Israeli Attorney General opined that the exemption does apply to cellular radio access devices, but later that month, the District Court of Tel-Aviv-Jaffa ruled, in its capacity as court of appeals, that the reliance of the Company and other cellular providers in Israel upon the exemption, is invalid, since the cellular operators' devices do not meet the exemption's requirements.  The Company and other cellular operators appealed this ruling to the Supreme Court, which granted a stay of execution until further decision, to which the State did not object.

All those appeals await consideration in the Supreme Court. Other appeals on that issue are still under consideration in the District Court as court of appeals. On July 2, 2008, subsequent to the balance sheet date, an amendment to the Israeli Communication Law, 1982, proposing to annul the exemption, passed the preliminary phase of enactment.

Furthermore, on July 21, 2008, subsequent to balance sheet date, a petition was filed by the Union of Local Authorities in Israel and certain local planning and building authorities against the Attorney General and the Israeli cellular operators, including the Company, with the Supreme Court. The petitioners seek remedies aimed at (1) annulling the Attorney General's opinion described above, as well as directives issued by the Attorney General to the local authorities, to refrain from indicting the cellular operators for building and operating radio access devices based on the exemption, if the devices meet the exemption's requirements; and at (2) applying the District Court's decision in relation to the exemption. The petitioners further seek an ex-parte interim order rendering the Attorney General's directives ineffective or alternatively, an interim order preventing the building of cellular radio access devices based on the exemption, until the petition is decided upon.

The court has requested the respondents' response for both the petition and interim remedy sought.  On July 17, 2008, subsequent to the balance sheet date, a petition was filed by environmental entities against the Minister of Environmental Protection, the Minister of Communications and the cellular companies, including the Company, with the Supreme Court. The petitioners seek remedies relating to the delayed enactment of regulations under the Israeli Non-Ionizing Radiation Law, 2006, as well as an ex-parte temporary injunction preventing the provision of any environmental permits, until the petition is decided upon. The court has requested the respondents' response for both the petition and interim remedy sought.  For additional details see the Company's most recent annual report for the year ended December 31, 2007 on Form 20-F under "Item 3. Key Information - D. Risk Factors - Risks related to our business - We may not be able to obtain permits to construct cell sites" as well as under "Item 4. Information on the Company - B. Business Overview - Government Regulations - Permits for Cell site Construction - Site Licensing" and "Construction and operating permits from the commissioner of environmental radiation" and the Company's immediate report on Form 6-K filed on May 14, 2008 under "Other Developments Subsequent to Balance Sheet Date - Site Licensing".  

- As previously disclosed, on July 6, 2008, subsequent to the balance sheet date, the Company's audit committee and board of directors approved an amendment to the Company's 2006 Share Incentive Plan (the "Plan"). The Plan previously provided that the vesting of options and restricted share units ("RSUs") (together "Awards") issued under the Plan would fully accelerate prior to the occurrence of certain Corporate Transactions, as defined under the Plan, and immediately terminate upon the effective date of any such Corporate Transaction if not exercised by such date. The events constituting Corporate Transactions include, among others, a decrease in share ownership by Discount Investment Corporation Ltd. and its subsidiaries ("DIC") to less than 50.01% of the Company's outstanding share capital. As of June 30, 2008, DIC held approximately 50.5% of the Company's outstanding share capital.

The amendments to the Plan include (1) changing the 50.01% threshold to a trigger when DIC ceases to control (as such term is defined in the Israeli Securities Law, 1968) the Company; and (2) requiring the Company to provide each grantee with a ten-day period to exercise the Awards upon a Corporate Transaction. Such amendments apply also with respect to outstanding options.  The Company's audit committee and board of directors further approved a change to the terms of outstanding options at that time, to allow, if the grantee is dismissed without cause, up to additional six (6) months from the Date of Cessation, as defined under the Plan, for vesting of the third or forth portions to occur.  The amendments to outstanding options held by the Company's Chairman of the Board, Mr. Ami Erel, require the further approval of the Company's shareholders, according to the Israeli Companies Law -1999.  No RSU's have been granted under the Plan.

For additional information regarding the Plan and the options outstanding thereunder, please see the Company's most recent annual report for the year ended December 31, 2007 on Form 20-F under "Item 6. Directors, Senior Management and Employees - E. Share Ownership - 2006 Share Incentive Plan".

www.finanznachrichten.de/nachrichten-2008-08/artikel-11509120.asp

Up für Cellcom.

Israels größter Mobilfunkbetreiber ist kein spektakulärer, aber solider Wert. Bei weiteren Korrekturen bietet Cellcom (mittelfristiges Ziel 27 €) in Bezug auf Kurs & Dividende Chancen.

Neueste Idee ist ein mobiles Internet / Entertainment System fürs Auto, das Cellcom in Kooperation mit einem StartUp Unternehmen entwickelt hat.

news.yahoo.com/s/nm/20110123/wr_nm/us_cellcom_iway_auto

werden am 15.03.11 veröffentlicht

investors.ircellcom.co.il/releasedetail.cfm

Kurstechnisch eher enttäuschend peppen die Dividenden diesen defensiven Titel etwas auf,

in 2010 wurde zweimal eine Dividende aufs Konto ausgeschüttet :
 

16.03.2010  0,51 €

16.12.2010  0,85 €