Partner's profit continues to shrink

Partner CEO Isaac Benbenisti Photo: Amir Gossfried
Partner CEO Isaac Benbenisti Photo: Amir Gossfried

Partner's television service which surpassed 100,000 subscribers, helped boost its revenue from landline services.

Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR), managed by CEO Isaac Benbenisti, made a profit of only NIS 2 million in the second quarter. The company's results, published today, show a lower profit margin in the mobile phone sector, with market competition causing a fall in Partner's revenue: NIS 454 million in the second quarter, compared with NIS 466 million in the first quarter and NIS 497 million in the second quarter of 2017. Partner, which reports that it currently has 100,000 television subscribers, finished the second quarter with 83,000 television subscribers.

Partner's total revenue reached NIS 797 million in the second quarter, 1% less than its NIS 805 million in revenue in the second quarter of 2017. Revenue from services in the second quarter totaled NIS 620 million, 4% less than the NIS 646 million it earned in the second quarter of last year.

Partner attributed its loss of revenue to lower prices for mobile phone services caused by ongoing competition in the mobile phone market and a NIS 15 million one-time provision for a class action suit. Excluding these items, the loss of revenue from mobile phone services was 6%.

Revenue from landline services totaled NIS 210 million in the second quarter of 2018, 9% more than the company's NIS 192 million in revenue in the corresponding quarter last year. The increase is attributable to revenue from television services, which began in the third quarter of 2017, in addition to a rise in revenue from Internet services, partially offset by a decline in revenue from overseas phone calls.

Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Partner CEO Isaac Benbenisti Photo: Amir Gossfried
Partner CEO Isaac Benbenisti Photo: Amir Gossfried
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