Partner Q4 revenue rises, 2019 revenue down

Partner

Net profit totaled NIS 19 million, and the company recruited 66,000 new television subscribers during the year.

Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) finished 2019 with NIS 3.2 billion in revenue, NIS 35 million less than in 2018. Revenue from wireless activity was down NIS 45 million to NIS 1.8 billion, while revenue from landline activity rose NIS 118 million to NIS 925 million. Net profit totaled NIS 19 million, and the company recruited 66,000 new television subscribers during the year.

Partners revenue grew from NIS 814 million in the fourth quarter of 2018 to NIS 834 million in the fourth quarter of 2019, Revenue from wireless services fell from 447 million in the fourth quarter of 2018 to NIS 437 million in the fourth quarter of 2019 as a result of falling prices in the wireless market.

Sales of equipment and accessories totaled NIS 172 million in the fourth quarter of 2019, up from NIS 165 million in the fourth quarter of 2018 and NIS 142 million in the third quarter of 2019.

Revenue in the fourth quarter of 2019 in the landline market (services, excluding equipment) totaled NIS 258 million, NIS 18 million more than in the fourth quarter of 2018 and NIS 5 million more than in the third quarter of 2018.

Partner's debt is low - less than NIS 1 billion. The company reports that 600,000 homes now have access to fiber-optic infrastructure.

In the landline sector, it should be noted that Partner's profit has declined dramatically. On the one hand, the company is deploying fiber-optic infrastructure on an impressive scale and is leading in recruitment of television subscribers. On the other hand, its operating profit has plunged 80% to just NIS 10 million, compared with NIS 48 million in 2018. Partner's operating profit in the fourth quarter of 2019 was zero, compared with NIS 12 million in the fourth quarter of 2018.

Partner's management foregoes 50% of its annual bonus

Partner's management decided earlier this week to give up 50% of the annual bonus to which it was entitled at this stage, as reported in the company's published 20-F report. This report, which is published simultaneously with its 2019 financial statements, shows that Partner was the only company to make a profit; Cellcom reported a NIS 107 million loss, while Pelephone lost money because of a one-time provision for employee retirement. According to the 20-F report, discussion of the waived 50% of management's bonus will take place only after the situation returns to normal, the company's stores reopen, and the employees sent on unpaid leave resume their regular schedule.

Sources inform "Globes" that members of management contributed vacation days to a special fund established in cooperation with the workers' committee at Partner for the purpose of helping needy employees in the current situation.

Published by Globes, Israel business news - en.globes.co.il - on March 26, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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