Cellcom Israel Announces Sharing Network Partner Has Not Made Payment
Cellcom Israel Ltd. (NYSE: CEL) announced that its cellular sharing network partner, Marathon 018 Xfone Ltd., failed to make the required payment due on October 31, 2020, under their sharing network agreement. The company has demanded immediate payment and will take measures to enforce its rights. Currently, Cellcom cannot assess the impact of this situation on its financial results. The network sharing agreements are significant to the company's revenue, as detailed in its 2019 annual report.
- Cellcom acts quickly to recover unpaid debt, showing proactive management.
- The company has significant revenue streams from network sharing agreements.
- Xfone's non-payment raises concerns about cash flow stability.
- Current inability to assess financial implications indicates potential uncertainty for investors.
NETANYA, Israel, Nov. 16, 2020 /PRNewswire/ -- Cellcom Israel Ltd. (NYSE: CEL) (TASE: CEL) (hereinafter: the "Company") announced today that its cellular sharing network partner, Marathon 018 Xfone Ltd., or Xfone, has not paid the monthly payment due October 31, 2020, under the sharing network agreement, or Debt.
The Company issued a demand for the immediate payment of the Debt to Xfone and intends to act diligently to exercise its rights under the agreement.
At this preliminary stage, the Company cannot assess the implications on the Company's results.
For additional details regarding the materiality of the network sharing agreement on the Company's results, see the Company's 2019 annual report on Form 20-F, dated March 23, 2020, under "Item 3. Risk Factors - Our network sharing agreements consideration constitute a significant portion of our revenues" and Item 4. Information on the Company – B. Business Overview – Networks and Infrastructure – Network sharing agreements".
About Cellcom Israel
Cellcom Israel Ltd., established in 1994, is a leading Israeli communications group, providing a wide range of communications services. Cellcom Israel is the largest Israeli cellular provider, providing its cellular subscribers with a broad range of services including cellular telephony, roaming services, text and multimedia messaging, advanced cellular and data services and other value-added services in the areas of mobile office, data protection etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates advanced networks enabling high-speed broadband and advanced multimedia services. Cellcom Israel offers nationwide customer service including telephone customer service, retail stores, and service and sale centers. Cellcom Israel further provides OTT TV services, internet infrastructure and connectivity services and international calling services, as well as landline telephone services in Israel. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://investors.cellcom.co.il.
Company Contact Shai Amsalem | Investor Relations Contact Elad Levy |
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SOURCE Cellcom Israel Ltd.
FAQ
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