Partner Q3 profit down 73%

Isaac Benbenisti Photo: Tamar Matsafi

Partner CEO Isaac Benbenisti: Partner is leading fiber optic deployment in Israel.

Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) has reported revenue of NIS 825 million for the third quarter of 2019, higher than the NIS 781 million reported for the previous, but flat in comparison with the third quarter of 2018, when revenue totaled NIS 822 million.

The third quarter is generally a strong one in the mobile telephony market because of the Jewish holidays that fall in it.

Partner posted a net profit of NIS 7 million for the third quarter of this year, down 73% in comparison with the NIS 26 million profit posted in the corresponding quarter of 2018, but more than double the NIS 3 million net profit in the preceding quarter.

Partner's revenue from the mobile telephony segment continued its decline. Revenue from mobile services in the third quarter totaled NIS 466 million, 2% down on the NIS 476 million recorded in the third quarter of 2018. The decline is mainly due to continued erosion of mobile services prices as competition in this market continues to be fierce. ARPU in the third quarter was NIS 59, a decrease of 2% in comparison with the third quarter of 2018.

Partner added 16,000 subscribers to its television service, reporting 176,000 subscribers at the end of the third quarter. The current subscriber total is 183,000. In addition, 540,000 subscribers were connected to the company's fiber optic network.

Investment in its fiber optic network cut Partner's cash flow in the third quarter to NIS 13 million, which compares with NIS 31 million in the previous quarter and NIS 70 million in the corresponding quarter of 2018.

Adjusted EBITDA was NIS 225 million in the quarter, up 12% on the corresponding quarter of 2018.

Partner CEO Isaac Benbenisti said, "In the third quarter, Partner reported increases in revenues, in cellular subscribers, in Partner TV subscribers and in the number of households that we reached with our fiber optic infrastructure, 'Partner Fiber.'

"In the cellular segment, our strategy of enhancing the value to customers and focusing on customer service led to a net increase of 35 thousand subscribers this quarter, alongside a further decrease in the churn rate to 7.7%, the lowest rate in 8 years.

"As of Today, Partner TV’s subscriber base has reached more than 183 thousand, the majority of whom are in offerings which also include Internet. Partner TV is the fastest growing TV service in Israel, and is suited to the current era as a super aggregator of international content services open to the Israeli viewer, in addition to our multi-channel offering.

"Partner is leading today the fiber optic deployment field in Israel, with an independent infrastructure that is being rapidly deployed and has already reached over 540 thousand households, approximately 28% of Internet-connected households in Israel."

Published by Globes, Israel business news - en.globes.co.il - on November 26, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Isaac Benbenisti Photo: Tamar Matsafi
Isaac Benbenisti Photo: Tamar Matsafi
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