Segment Reporting

12 Months Ended

Dec. 31, 2019

Disclosure of entity's operating segments [text block] [Abstract]

Disclosure of entity's operating segments [text block]

Note 4 - Segment Reporting

The Group operates in four segments in the communications sector and every company in the Group operates in a separate business segment. The primary reporting format, by business segments, is based on the Group’s management and internal reporting structure.

Each company provides services in the segment in which it operates, using the property, plant and equipment and the infrastructure it owns (see also Note 26). The infrastructure of each company is used only for providing its services. Each of the companies in the Group is exposed to different risks and yield expectations, mainly with respect to the technology and competition in the segment in which it operates. Accordingly, the separable components in the Group are each company in the Group.

Based on the above, the business segments of the Group are as follows:

- Bezeq - The Israel Telecommunication Corp., Limited.: fixed line domestic communications

- Pelephone Communications Ltd.: cellular communications

- Bezeq International Ltd.: international communications, internet services and network end point services

- D.B.S. Satellite Services (1998) Ltd.: multichannel television

The other companies in the Group are presented under the “Other” item. Other operations include call center services (Bezeq Online) and online shopping and classified ads (through Walla!). These operations are not reported as reporting segments as they do not fulfill the quantitative thresholds.

Inter-segment pricing is set at the price determined in a transaction in the ordinary course of business.

The results, assets and liabilities of a segment include items directly attributable to that segment, as well as those that can be allocated on a reasonable basis. The results of the segments are presented net of the impairment losses described in Note 9. This is in accordance with the manner in which the Group’s chief operating decision maker evaluates the performance of the segment and makes decisions regarding the allocation of resources to the segment.

Segment capital expenditure is the total cost incurred during the period for acquisition of property, plant and equipment and intangible assets.

	Year ended December 31, 2017
	Domestic fixed–line communications			Cellular communications			International communications and Internet services			Multi-channel television			Others			Adjustments			Consolidated
	NIS			NIS			NIS			NIS			NIS			NIS			NIS
Revenue from external entities		3,953			2,500			1,466			1,650			220			-			9,789
Inter-segment revenues		291			46			71			-			17			(425	)		-
Total revenue		4,244			2,546			1,537			1,650			237			(425	)		9,789
Depreciation and amortization		728			383			135			285			20			566			2,117
Segment results - operating income		1,971			72			174			163			(20	)		(750	)		1,610
Finance income		36			54			4			10			5			(40	)		69
Finance expenses		(439	)		(3	)		(12	)		(81	)		-			(51	)		(586	)
Total financing income (expense), net		(403	)		51			(8	)		(71	)		5			(91	)		(517	)
Segment profit (loss) after finance expenses, net		1,568			123			166			92			(15	)		(841	)		1,093
Share in profit (loss) of equity-accounted investee		-			-			-			-			(4	)		(1	)		(5	)
Segment profit (loss) before income tax		1,568			123			166			92			(19	)		(842	)		1,088
Income tax		396			28			39			336			-			(452	)		347
Segment results - net profit (loss)		1,172			95			127			(244	)		(19	)		(390	)		741
Additional information:
Segment assets		9,086			3,271			1,199			1,502			174			2,460			17,692
Goodwill		-			-			6			-			10			2,921			2,937
Investment in equity-accounted investee		-			-			5			-			(6	)		11			10
Segment liabilities		13,901			536			410			1,154			64			1,488			17,553
Investments in property, plant and equipment and intangible assets		851			331			169			237			19			-			1,607

	Year ended December 31, 2018
	Domestic fixed–line communications			Cellular communications			International communications and Internet services			Multi-channel television			Others			Adjustments*			Consolidated
	NIS			NIS			NIS			NIS			NIS			NIS			NIS
Revenue from external entities		3,883			2,401			1,338			1,473			226			-			9,321
Inter-segment revenues		313			42			53			-			15			(423	)		-
Total revenue		4,196			2,443			1,391			1,473			241			(423	)		9,321
Depreciation and amortization		850			655			194			323			21			345			2,388
Segment results - operating income		1,224			(2	)		116			(56	)		(36	)		(2,630	)		(1,384	)
Finance income		32			56			1			27			-			(27	)		89
Finance expenses		(502	)		(22	)		(16	)		(16	)		-			(64	)		(620	)
Total financing income (expense), net		(470	)		34			(15	)		11			-			(91	)		(531	)
Segment profit (loss) after finance expenses, net		754			32			101			(45	)		(36	)		(2,721	)		(1,915	)
Share in profit (loss) of equity-accounted investee		-			-			1			-			(4	)		-			(3	)
Segment profit (loss) before income tax		754			32			102			(45	)		(40	)		(2,721	)		(1,918	)
Income tax		187			8			25			3			-			(282	)		(59	)
Segment results - net profit (loss)		567			24			77			(48	)		(40	)		(2,439	)		(1,859	)
Additional information:
Segment assets		8,896			4,124			1,332			1,606			157			971			17,086
Goodwill		-			-			6			-			-			2,274			2,280
Investment in equity-accounted investee		-			-			6			-			3			-			9
Segment liabilities		14,284			1,425			567			687			84			1,564			18,611
Investments in property, plant and equipment and intangible assets		902			346			137			318			13			-			1,716

	Year ended December 31, 2019
	Domestic fixed–line communications			Cellular communications			International communications and Internet services			Multi-channel television			Others			Adjustments*			Consolidated
	NIS			NIS			NIS			NIS			NIS			NIS			NIS
Revenue from external entities		3,757			2,316			1,283			1,344			229			-			8,929
Inter-segment revenues		316			46			56			1			9			(428	)		-
Total revenue		4,073			2,362			1,339			1,345			238			(428	)		8,929
Depreciation, amortization and impairment		861			633			190			219			14			147			2,064
Segment results - operating income		2,142			(99	)		(57	)		(135	)		1			(1,286	)		566
Finance income		39			62			2			5			-			158			266
Finance expenses		(608	)		(23	)		(8	)		(17	)		(1	)		(81	)		(738	)
Total financing income (expense), net		(569	)		39			(6	)		(12	)		(1	)		77			(472	)
Segment profit (loss) after finance expenses, net		1,573			(60	)		(63	)		(147	)		-			(1,209	)		94
Share in profit (loss) of equity-accounted investee		-			-			-			-			(2	)		-			(2	)
Segment profit (loss) before income tax		1,573			(60	)		(63	)		(147	)		(2	)		(1,209	)		92
Income tax (benefit)		381			(13	)		(13	)		2			-			1,116			1,473
Segment results - net profit (loss)		1,192			(47	)		(50	)		(149	)		(2	)		(2,325	)		(1,381	)
Additional information:
Segment assets		8,091			4,088			1,126			1,491			149			(912	)		14,033
Goodwill		-			-			-			-			-			1,548			1,548
Investment in equity-accounted investee		-			-			4			-			2			-			6
Segment liabilities		12,466			1,434			414			576			79			820			15,789
Investments in property, plant and equipment and intangible assets		914			335			110			222			9			-			1,590

* Impairment losses of the multi-channel television segment, the cellular communications segment and the International communications and internet services segment are presented as part of the adjustments (please refer to Note 9). Adjustments also include depreciation, amortization and impairment of assets resulting from the Bezeq PPA.

B. Adjustments for segment reporting of revenue, profit or loss, assets and liabilities

	Year ended December 31,
	2017			2018			2019
	NIS			NIS			NIS
Revenue
Revenue from reporting segments		9,977			9,503			9,119
Revenue from other segments		237			241			238
Elimination of revenue from inter-segment sales		(425	)		(423	)		(428	)
Consolidated revenue		9,789			9,321			8,929

	Year ended December 31,
	2017			2018			2019
	NIS			NIS			NIS
Profit or loss
Operating income for reporting segments		2,380			1,282			1,851
Financing expenses, net		(517	)		(531	)		(472	)
Adjustments for multi-channel television		-			-			80
Share in the losses of equity-accounted investees		(5	)		(3	)		(2	)
Profit (loss) from operations classified in other categories		(20	)		(36	)		1
Depreciation and amortization of intangible assets resulting from the Bezeq PPA adjustments		(733	)		(975	)		(185	)
Loss from impairment of assets (see Note 9)		-			(1,638	)		(1,274	)
Other adjustments		(17	)		(17	)		93
Consolidated profit (loss) before income tax		1,088			(1,918	)		92

	December 31,
	2018			2019
	NIS			NIS
Assets
Assets from reporting segments		15,970			14,800
Assets attributable to operations in other categories		159			151
Inter-segment assets		(626	)		(124	)
Goodwill not attributable to segment assets		2,274			1,548
Loss from impairment of assets		(1,638	)		(2,577	)
PPA not attributable to reporting segment		1,166			-
Assets resulting from the Bezeq PPA, net		1,477			1,291
Assets attributable to a non-reportable segment		593			498
Consolidated assets		19,375			15,587

	December 31,
	2018			2019
	NIS			NIS
Liabilities
Liabilities from reporting segments		16,963			14,890
Liabilities attributable to operations in other categories		84			79
Inter-segment liabilities		(1,158	)		(1,247	)
Liabilities resulting from the Bezeq PPA, net		247			194
Liabilities attributable to a non-reportable segment		2,475			1,873
Consolidated liabilities		18,611			15,789