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Edited Transcript of BEZQ.TA earnings conference call or presentation 18-Nov-19 1:00pm GMT

Q3 2019 Bezeq Israeli Telecommunication Corp Ltd Earnings Call

Jerusalem Nov 30, 2019 (Thomson StreetEvents) -- Edited Transcript of Bezeq Israeli Telecommunication Corp Ltd earnings conference call or presentation Monday, November 18, 2019 at 1:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* David Mizrahi

Bezeq The Israel Telecommunication Corporation Limited - CEO

* Naftali Sternlicht

Bezeq The Israel Telecommunication Corporation Limited - IR Manager

* Ran Guron

Bezeq The Israel Telecommunication Corporation Limited - CEO of Pelephone, DBS & Bezeq International

* Shlomo Rodav

Bezeq The Israel Telecommunication Corporation Limited - Chairman of the Board

* Yahali Rotenberg

Bezeq The Israel Telecommunication Corporation Limited - VP of Finance & CFO

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Conference Call Participants

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* Ondrej Cabejšek

UBS Investment Bank, Research Division - Director

* Roni Biron

Ion Asset Management - Senior Equity Analyst

* Tavy Rosner

Barclays Bank PLC, Research Division - Head of Israel Equities Research

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Presentation

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Operator [1]

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Ladies and gentlemen, thank you for standing by. Welcome to Bezeq's Third Quarter 2019 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded and broadcasted over the web.

At this time, I would like to turn the call over to Mr. Naftali Sternlicht, Investor Relations Manager for Bezeq. Mr. Sternlicht, please go ahead.

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Naftali Sternlicht, Bezeq The Israel Telecommunication Corporation Limited - IR Manager [2]

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Thank you, operator. Welcome, everyone, and thank you for joining us on the call today. With us from Bezeq Group's senior management team, we have Mr. Shlomo Rodav, Bezeq's Chairman; Mr. Dudu Mizrahi, Bezeq's Fixed-line CEO; Mr. Ran Guron, CEO of Pelephone, Bezeq International and yes; and Mr. Yali Rotenberg, Bezeq Group's Chief Financial Officer.

Before we begin today's discussion, I will start with a brief safe harbor statement. Today's conference call and webcast contain general data and information as well as forward-looking statements about the Bezeq Group. Although Bezeq believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties and should not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved.

Today's conference call and webcast contain partial information from the public reports of Bezeq under the Israeli Securities Law for which the Hebrew reports can be accessed at the Israeli Security Authority's website.

The call and webcast are not a substitute for a review of the detailed reports of Bezeq. Today's conference call and webcast also do not constitute an offer or invitation to purchase or subscribe for any securities and nothing contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

Before I introduce our speakers, please note that their comments will generally follow the slide presentation, which is available under the Slides tab on the webcast link, and may also be downloaded from Bezeq's IR website. You can go through the presentation by clicking on the arrows on the left or right-hand side.

Let me now turn the call over to our Chairman, Mr. Shlomo Rodav, for prepared remarks and our group quarterly results, after which Dudu will continue the presentation on Bezeq Fixed-line, followed by Ran discussing results of our subsidiaries and Yali will finish with the financial section.

At the end of Yali's presentation, management will be available to answer questions.

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Shlomo Rodav, Bezeq The Israel Telecommunication Corporation Limited - Chairman of the Board [3]

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Thanks, Naftali. Today, I'd like to provide an overview of our group results during the third quarter of 2019, and suggest that you pay attention, especially to the improvement in our cost structure, as well as our improved financial profile.

Let's start on Slide 3. Bezeq is the largest telecom group in Israel. Here you can see a high-level snapshot of our latest quarterly operating and financial results. We'll talk about this in more details as we go along.

Turning to Slide 4. Our vision is for Bezeq group to lead the telecommunications market in Israel providing a full range of telecommunications product and services for the private and business markets and striving for continuous improvement in its operating results. In term of strategies to achieve our vision, we intend to lead telecommunications market through the ownership and operation of quality and advanced infrastructures and provide the best service while fully complying with regulatory restrictions. We focus exclusively on operation in the Israeli market. We'll emphasize profitability in the medium term and not on market share as a strategic target. We'll also strive for financial stability and improvement in aggregate results with ongoing efficiencies and controlled risk taking.

Now I'll turn the call to Dudu to talk about Bezeq Fixed-line.

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David Mizrahi, Bezeq The Israel Telecommunication Corporation Limited - CEO [4]

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Thanks, Shlomo. Turning to Slide 6. At Bezeq Fixed-line alongside the increasing broadband Internet speed, we are focusing on improving broadband Internet quality and security through our customer's premises strategy which offer the BE router with cyber protection and the Bspot service that enables Wi-Fi reception throughout the home.

Since its launch in April 2018, more than 272,000 customers upgraded to the BE router, representing approximately 27.5% of total Bezeq broadband retail lines. This will enable us to significantly reduce customer churn.

Turning to the next slide. Broadband retail ARPU has shown impressive growth with increase to ILS 98 in the third quarter due to the increase in penetration in customer premises services as well as value-added services.

On Slide 8, we serve 180,000 SMEs in Israel, a leading business solution. We provide innovative solutions to customers, sell diversified telecom solutions to businesses and simplify service and sales processors through interface digitization. Bezeq market share in business telephony increased from 75.5% in 2018 to 78% in the first quarter of 2019.

Turning to Slide 9. As we have previously reported, Bezeq Fixed-line entered the terminal equipment market this year. We continued to show sales growth in our retail store network and in e-commerce sales at which a year-over-year increase of 22.9% in the other revenues item in the third quarter of 200 -- 2019.

In addition, we offer advanced and diversified services in business retail market and have created a wide variety of integration solution over the Bezeq cloud.

On the next cloud -- on the next slide, let me upgrade -- let me update you on our efforts in reducing operational real estate sites and sales of redundant assets. This year, we sold the Sakia complex and recorded capital gains of ILS 403 million. We signed an agreement to transfer Bezeq's headquarters from Tel Aviv to Holon in 2021, likely to result in savings of tens of millions of shekels in operating expenses.

In addition, we have begun to convert some of our properties to data centers, utilizing the physical layout, communication connection and energy durability in currently owned buildings. Proceeds from the sales of real estate in 2020 are expected to be approximately ILS 240 million. We'll continue to review real estate sites and the sale of additional properties in the future.

Moving to Slide 11. Employee streamlining has been a big initiative for Bezeq Fixed-line. The company intends to take advantage of the total potential of the retirement plan for hundreds of additional employees under the terms of the current collective agreement. In 2019, 261 employees left the company as a part of the streamlining plan. This month the board approved the retirement of an additional 140 permanent employees and 60 employees with flexible status. A provision of ILS 137 million is expected to be recorded in the fourth quarter of 2019.

Turning to Slide 12. In the third quarter, efficiency measures led to a decrease in most operating expenses items after excluding terminal equipment and materials.

Now I'll turn the call to Ran to talk about Bezeq subsidiaries, Pelephone, Bezeq International and yes.

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Ran Guron, Bezeq The Israel Telecommunication Corporation Limited - CEO of Pelephone, DBS & Bezeq International [5]

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Thanks, Dudu. Let me start with Slide 14. Yes is Israel's a favorite content brand with high quality, original and international content and provide a great viewing experience to our customers. In March this year, yes won 21 awards in the Israeli Academy Awards.

Moving to Slide 16. Yes is gradually migrating from satellite to IP broadcasting in order to significantly upgrade the viewing experience as well as show for the transfer of operations over to the group's infrastructure. Over the next few years, yes will gradually replace satellite set top boxes until full transition to IP services. The fixed cost for satellite infrastructure will be eventually replaced by the use of the group's infrastructure. The migration will result in a decrease in operating expenses, such as acquisition of set top boxes, installation and service costs.

On the next slide, we recently announced the launch of yes+, the advanced and widest streaming service in Israel as part of a strategic first of its kind partnership with Apple. This marked the start of our transition from satellite-based broadcasting to Internet-based broadcasting, which is a significant change in the company history. Even now, just a few weeks after the launch, we have already seen that the service is in high demand with thousands of new subscribers.

Moving to Slide 17. The third quarter, we launched the very first triple play package, including a leading Internet service from Bezeq International, together with high-quality TV from yes. This package enables to enhance the value proposition for both existing and new customers and offer a full range of telecommunication products under one roof. Triple play will also result in operating effectiveness in sales and services.

Turning to Slide 18. Yes offers diversified and customized plan for a wide variety of subscribers, both single and triple play as well as satellite and IP broadcasting for premium and StingTV for low-cost customers. As shown on Slide 19, Bezeq International is leading ISP in Israel with advanced services and high-quality infrastructure. We provide a wide range of business solution from ICT to cyber, data centers and project management.

Moving to Slide 20. Pelephone subscriber base has grown for 3 consecutive years. We have an advanced cellular network with wide retail distribution, and we are a leading operator in the business sector. We're also continuing to innovate in key technologies such as IoT, Big Data, cyber, cloud and ESIM. We are preparing for the frequency tender published by the Ministry of Communication, which will be used for future -- in the future for 5G as well.

On Slide 21, the graph details the subscriber growth at Pelephone in the number of postpaid subscribers that reached almost 1.9 million users by the end of the third quarter of 2019. The growth in the number of subscribers helped to offset the decrease in price and resulted in a significant slowdown in the erosion of revenues.

Turning to Slide 23. Let's talk about some of the synergies and streamlining efforts with the labor unions. This year, we signed agreements with each of the 3 subsidiaries labor unions that allow the companies to realize synergy and streamlining, thus reaching our -- reducing our workforce by a total of over 1,000 employees in the next 2 years in addition to non-recruitment of additional employees. The subsidiaries have begun to implement efficiency plan in accordance with the agreement. The decrease in salary expenses in subsidiary companies is a direct reflection of our streamlining efforts. As you can see on Slide 24, such expenses decreased 7% year-by-year to ILS 204 million in the third quarter of 2019. Meanwhile, as shown on Slide 25, total operating expenses in the subsidiary companies decreased by 4% to ILS 1.21 billion during the quarter.

Moving on to the next slide. Additional areas of synergies and streamlining, we have already implemented, including the transition of an integrated management team in all companies, resulting in the lowering of number of senior managers by approximately 50%, thereby saving millions of shekels every year. We've also begun to implement joint purchasing by 3 companies, resulting in additional financial savings. In addition, we recently signed an agreement to transfer Pelephone corporate headquarters building in Givatayim to Petach Tikvah, which is expected to save millions of shekels in operating expenses.

On Slide 27, we lay out some of the plans that we have in the pipeline for future maximize synergy in the subsidiaries. Firstly, we are looking at cross-selling opportunities to improve marketing capability for customers who do not currently receive service from the 3 companies. We plan on establishing a centralized point of contact with customers to improve service and reduce churn. In addition, we'd like to set up one-stop shop to maximize synergies of the various distribution and service channels of the 3 companies. I would like now to turn over the call to Yali, who will provide you with some financial highlights.

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Yahali Rotenberg, Bezeq The Israel Telecommunication Corporation Limited - VP of Finance & CFO [6]

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Thanks, Ran, and hello, everyone. Turning to Slide 29. Group-wide revenues in the third quarter totaled ILS 2.25 billion compared to ILS 2.3 billion a year ago, a decrease of 2.3%. The decrease in revenues was primarily due to lower revenues in yes, Bezeq Fixed-line and Bezeq International.

On Slide 30, group-wide salaries decreased from ILS 494 million in the third quarter of 2018 to ILS 474 million in the third quarter of 2019. The decrease was due to streamlining efforts that led to the reduction in salary expenses in all of the key group segments.

On Slide 31, group-wide operating and general expenses decreased from ILS 815 million in the third quarter of 2018 to ILS 794 million in the third quarter of 2019. The decrease in operating expenses was primarily due to lower expenses in yes.

On Slide 32, group-wide adjusted EBITDA in the third quarter of 2019 totaled ILS 979 million compared to ILS 992 million in the corresponding quarter a year ago.

Turning to Slide 33. Adjusted net profit in the third quarter of 2019 amounted to ILS 221 million compared to net profit of ILS 239 million in the same quarter of 2018. The decrease in adjusted net profit was primarily due to an increase in financing expenses Bezeq Fixed-Line due to ILS 73 million received for the early repayment of debt as well as financing expenses of ILS 42 million for actuarial provisions for employee benefits.

Moving to Slide 34. The group's free cash flow in the third quarter of 2019 was ILS 358 million, including the receipt of ILS 75 million for the betterment levy paid in connection with the sale of Sakia.

Moving to Slide 35. CapEx in the third quarter was ILS 329 million compared to ILS 412 million in the same quarter of 2018, a decrease of 20.1%. The total CapEx shown in Q3 '19 is after the deduction of the receipt of ILS 75 million for betterment levy paid in connection with the Sakia transaction.

On Slide 36, we have broken down subscribers in ARPU by different business segments. Let me just point out broadband Internet retail ARPU in the third quarter of 2019 was ILS 98 compared to ILS 93 in the third quarter of 2018.

Turning to Slide 37. Broadband Internet subscribers totaled 1.59 million subscribers in the third quarter of 2019, with wholesale subscribers representing 38% of the total.

On Slide 38, we are focused in -- on lowering our debt over time. Gross debt decreased by ILS 1.4 billion and net debt decreased ILS 900 million year-over-year.

Moving on to Slide 31. We continue to adapt the company's debt structure to its needs to extension of maturities with the raising of long-term debt and repayment of short-term debt. In 2019, we raised ILS 1.69 billion and made early repayments of debt of ILS 1.97 billion, thereby increasing the average duration of our debt from 3.5 to 4. We will continue to manage all financial aspects of the company responsibly and prudently in order to provide financial flexibility and ensure the company's long-term financial strength.

Lastly, let me talk about our 2019 guidance on Slide 40. Due to the 3 extraordinary items in the second quarter as well as the inclusion of estimated costs for early retirement in the outlook, we updated the group's guidance for 2019 after the second quarter. There is no change to our guidance since the second quarter update. We continue to expect a net loss of approximately ILS 1.1 billion, EBITDA of approximately ILS 2.9 billion and CapEx at ILS 1.7 billion.

Let me remind you that as usual, we will be holding an analyst conference at our corporate headquarters in Tel Aviv after this call.

In addition, we will be attending the UBS Global TMT Conference in New York from December 9 to 10. This concludes our prepared remarks. Operator, let's begin the Q&A session.

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Questions and Answers

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Operator [1]

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(Operator Instructions)

The first question is from Tavy Rosner of Barclays.

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Tavy Rosner, Barclays Bank PLC, Research Division - Head of Israel Equities Research [2]

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I guess, the first one is for Dudu with regards to fiber. We went through the framework that was published 2 weeks ago by the MOC. And I guess, where -- looking at the next steps, when are the hearings scheduled for? And does the Minister of Telecommunication and Finance needs to sign off on it? And I guess, theoretically speaking, once, assuming this is signed, how soon can you guys be ready to start marketing the fiber product?

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David Mizrahi, Bezeq The Israel Telecommunication Corporation Limited - CEO [3]

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Well, Tavy, I think it's still early to say. We're currently on the first stage of answering those 3 or 4 hearings that were published by the Ministry. We have a meeting with the ministry on December. I think it will take them at least a few weeks, maybe a few months to conclude the hearings and to finalize the policy regarding the fiber rollout. So we are at a very, very early stage of the process. So it's really hard now to give you exact dates. Once there is -- once there is a policy set, and once that -- one that allows us to start the project on an economical basis, I think we can start the rollout relatively quick.

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Tavy Rosner, Barclays Bank PLC, Research Division - Head of Israel Equities Research [4]

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Okay. That's helpful. And then, I guess, perhaps for Shlomo. Just looking at the cost cuttings, you gave a lot of details about the different cost-cutting measures, the early retirement, I guess, looking beyond, when you talk about streamlinings and efficiency, do we have a way to kind of quantify, help us model through long-term of what are we talking about here?

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Shlomo Rodav, Bezeq The Israel Telecommunication Corporation Limited - Chairman of the Board [5]

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We don't publish long-term forecast, but what you -- what you should assume is that we'll continue with the increased efficiencies manner for the foreseeable future. So what you've seen is an example. This year, you should assume that we will do additional things next year, the year after and the year after that. Simply, we have no choice. What you should take into consideration is that some of the measures that we have already taken, you do not see the fruits yet. You just see, in this quarter, the first hints of the benefits, and they'll go and increase over time in the coming years. So it's an ongoing struggle. We're fighting uphill, but we'll continue to do it for the foreseeable future.

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Tavy Rosner, Barclays Bank PLC, Research Division - Head of Israel Equities Research [6]

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Understood. Maybe a last one on the strategy for yes. So you guys came up with the triple play offering. And just looking at the strategy, this is based on Bezeq wholesale Internet. So theoretically, if you have retail, retail Internet customer who want to take this product, then you would lose the revenues because they would become wholesale. Is that part of strategy that you're comfortable potentially having some cannibalization? But in exchange, you do have like a good offering that can compete with a cheaper OTT product. Am I looking at it right?

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Ran Guron, Bezeq The Israel Telecommunication Corporation Limited - CEO of Pelephone, DBS & Bezeq International [7]

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So this is Ran. This is not exactly right. We offer wholesale and retail as well at the same time. And what we call triple play is not actually one offer. What we actually mean is that our customer, the customer of the subsidiaries, will use the services of mainly 2 subsidiaries, which are yes and Bezeq International. There are many customers among yes customer base that do not use Bezeq International ISP at all. It's either retail or wholesale. So our effort is aimed at moving these customers to Bezeq International as an ISP and of course to the new yes offer. So we offer a variety of services. And this is not an effort to take all Bezeq International or yes customers and put them on wholesale. This would not make any economical sense.

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Operator [8]

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The next question is from Roni Biron of ION.

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Roni Biron, Ion Asset Management - Senior Equity Analyst [9]

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A quick question on the broadband and broadband side. It seems that the decline in retail broadband as well as the Pay TV subscribers and also Bezeq International picked up in Q3 versus Q2, which may suggest that you lost more triple play subscribers. Can you comment on what you see on the competitive side? And if you expect the current run rate of broadband lines -- around 24,000 broadband line loss to continue until you start -- until you introduce your own product -- fiber product?

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David Mizrahi, Bezeq The Israel Telecommunication Corporation Limited - CEO [10]

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Roni. No, I think that the -- what you've seen in Q3 is a bit -- is a bit higher than what we've seen in previous quarters. And I think we can expect lower numbers in the future, mainly on the retail side. We are seeing Cellcom and Partner focusing mainly on moving customers from wholesale to their own fiber network. They have least -- they have smaller success in doing that on Bezeq retail customers. But I think that the numbers of Q3 are a bit higher than the current trend we are looking at.

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Roni Biron, Ion Asset Management - Senior Equity Analyst [11]

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Okay. And the same goes for the 24,000 overall lines that you lost in the quarter?

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David Mizrahi, Bezeq The Israel Telecommunication Corporation Limited - CEO [12]

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I was talking about those 24,000.

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Operator [13]

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The next question is from [Abraham Charon of Halamoti Sak]

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Unidentified Analyst, [14]

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Congratulations for a very strong EBITDA and very strong cash flow. I wanted to ask regarding the debt reduction in 2020. What is the forecast according to the strong EBITDA forecast and the strong reduction in employee cost?

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Yahali Rotenberg, Bezeq The Israel Telecommunication Corporation Limited - VP of Finance & CFO [15]

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As we generally said, we will continue to decrease the debt. We don't publish specific numbers, not within our guidelines. So you've seen what we have done during this year. And I've mentioned before, with regard to other things in the business. I think you should continue to expect alongside the same lines.

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Unidentified Analyst, [16]

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Okay. But can we see that the decrease of the employees is not fully going into the bottom lines of this quarter?

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Yahali Rotenberg, Bezeq The Israel Telecommunication Corporation Limited - VP of Finance & CFO [17]

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I'm not sure I follow you completely. You asked about the...

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Unidentified Analyst, [18]

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Do we see on that last report, the effect of all the employees that already left in 2019?

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Yahali Rotenberg, Bezeq The Israel Telecommunication Corporation Limited - VP of Finance & CFO [19]

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Yes. As I've mentioned before, we've only just started. We published the agreement with yes within the first quarter. Then there was Bezeq International within this quarter and Pelephone just made public and the provision will go into the fourth quarter. This means that in actual, the cash flow for it will account partly. It had already started this year, but mostly -- part of -- to a large extent, next year, alongside with the salary decrease.

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Unidentified Analyst, [20]

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Okay. Thank you very much. And do we see any cost reductions once the transition to the fiber will go into full capacity?

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Yahali Rotenberg, Bezeq The Israel Telecommunication Corporation Limited - VP of Finance & CFO [21]

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If you're talking about CapEx, we generally have CapEx to remain alongside the same line that we see today. We don't think there is going to be a hike, a short-term hike in the CapEx.

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Operator [22]

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The next question is from Ondrej Cabejšek of UBS.

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Ondrej Cabejšek, UBS Investment Bank, Research Division - Director [23]

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A couple of them for me, please. Just following up on the CapEx due today. Now that you have a good sort of -- rather good visibility on the sort of rules that will sort of command how you roll out the CapEx more or less over what period, to what percentage of homes, et cetera, do you -- or can you provide a rough estimate today as to what you're expecting over what period to invest? Second question, in terms of the regulatory proposals today. If you could just list a couple of the biggest pushbacks from your side to what you know today? And the third question, in terms of Bezeq International, there have been reports locally that the regulator may cancel the structural separation between the parent and international. So if you could elaborate on what potential implications operationally and financially that could have?

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David Mizrahi, Bezeq The Israel Telecommunication Corporation Limited - CEO [24]

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In terms of CapEx, as Yali has just mentioned, once we start roll out in the fiber, we expect slightly higher level of CapEx, but it's mainly capitalized salary. So in terms of cash, we don't expect a real hike in CapEx. In terms of regulation, as just I have said earlier, we are currently under a hearing process. So the policy has not been set yet. It could take some time until the hearing stage finalize and until there's a final decision by the ministry regarding the new policy. So it's not clear yet what will be the outcome. So I think that things will clear up over the next few weeks or maybe a few months once there is finalized regulation. So unfortunately, we cannot provide you any more details regarding that currently.

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Shlomo Rodav, Bezeq The Israel Telecommunication Corporation Limited - Chairman of the Board [25]

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And concerning the article that you have seen in the newspaper about the position of the Ministry of Finance, it's their position to the best of our knowledge for a couple of years already, but we do not, unfortunately, expect any change over the next few months. So to your question, we do not expect any immediate influence of such decision that will be taken if and when.

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Ondrej Cabejšek, UBS Investment Bank, Research Division - Director [26]

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Okay. And just if I may, on the CapEx side, I understand that you don't expect a hike. But then just in terms of total budget for this exercise that you currently have -- or would have, is there any number that you can give us roughly? And then implying following the couple of years rollout, where could your CapEx fall to if you're capitalizing most of the salaries, et cetera just that you have no budget yet?

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David Mizrahi, Bezeq The Israel Telecommunication Corporation Limited - CEO [27]

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As we said, we have -- we are not providing correctly any guidance for next year yet. But as I said earlier, I think we can expect more or less in terms of cash, we can expect more or less the same level of CapEx as we've seen this year. So we don't expect any real, as I said, a real hike in CapEx. So more or less, we can expect some levels.

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Ondrej Cabejšek, UBS Investment Bank, Research Division - Director [28]

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Okay. And then assuming this project ends a couple of years from now, what is the amount of capitalized labor cost and CapEx in general that you think can exit the system then, let me ask it this way?

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David Mizrahi, Bezeq The Israel Telecommunication Corporation Limited - CEO [29]

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Could you repeat the question?

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Ondrej Cabejšek, UBS Investment Bank, Research Division - Director [30]

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So just asking a different way maybe. So in terms of how -- looking at -- once the project ends, where can CapEx fall to? If you're saying no peak now, where can CapEx fall to once the project is done?

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David Mizrahi, Bezeq The Israel Telecommunication Corporation Limited - CEO [31]

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It's still very early to say. Once this project is ended, there could be other projects. So it's still very, very early to predict that.

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Yahali Rotenberg, Bezeq The Israel Telecommunication Corporation Limited - VP of Finance & CFO [32]

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Just to add on this, Ondrej...

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Operator [33]

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(Operator Instructions)

There are no further questions at this time. I would like to remind participants that a replay is scheduled to begin in a period of 3 hours on the company's website at www.bezeq.co.io. Mr. Rotenberg, would you like to make your concluding statement?

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Yahali Rotenberg, Bezeq The Israel Telecommunication Corporation Limited - VP of Finance & CFO [34]

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I would like to thank you all for taking the time to join us today. Should you have any follow-up questions, please feel free to contact our Investor Relations department. Management looks forward to speaking to you on the fourth quarter 2019 earnings call. Thank you.

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Operator [35]

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Thank you. This concludes Bezeq's Third Quarter 2019 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.