Mobile carrier Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) posted NIS 1.68 billion ($432 million) revenue for the second quarter, 10.7% more than the NIS 1.51 billion for the corresponding quarter. Net profit rose 1.7% to NIS 293 million ($76 million (NIS 1.89 or $0.49 per share) for the second quarter from NIS 288 million for the corresponding quarter.
The company beat Israeli analysts' revenue forecasts were NIS 1.5-1.6 billion, but missed on their net profit forecasts of NIS 309-370 million, similar to preceding quarters. They also expected the profit to be distributed as a dividend to finance Ilan Ben-Dov's acquisition of the company through Scailex Corporation (TASE: SCIX; Pink Sheets:SCIXF).
Partner will distribute a dividend of NIS 290 million ($75 million) for the second quarter.
Partner added 28,000 net new subscribers during the second quarter to 3.1 million at the end of June, including 1.43 million 3G subscribers. Analysts had expected 25,000 net new subscribers to 3.09 million.
Average minutes of use (MOU) per subscriber rose 1.1% to 368 minutes during the second quarter from 364 minutes during the corresponding quarter, but average revenue per use (ARPU) fell 3.2% to NIS 149 per month from NIS 154 per month. The contrasting figures mean that the company's subscribers spoke more, but paid less.
Free cash flow rose 50% to NIS 350 million ($90 million) for the second quarter from NIS 233 million for the corresponding quarter.
Partner has been making news lately because of its management changes, including Yacov Gelbard's replacing David Avner as CEO.
Recommendations for Partner's share range from Clal Finance's "Outperform" with a target price of NIS 75 to Excellence Nessuah's "Market perform" with a target price of NIS 65. Clal Finance says, "The gradual drop over several years in connectivity fees uproots the main risk to the mobile carriers."
Partner's share rose 0.3% in premarket trading on Nasdaq today to $16.30, giving a market cap of $2.52 billion, and rose 1.4% by mid-afternoon on the TASE to NIS 62.06.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2010
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