Cellular company Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) today reported its results for the fourth quarter of 2014 and the entire year. The Saban Capital Group Inc. subsidiary, managed by CEO Haim Romano, posted a NIS 162 million profit in 2014, up 20%, compared with 2013. Annual revenue totaled NIS 4.4 billion, 3% less than in the preceding year.
Partner's fourth quarter net profit plunged 48% to NIS 24 million, and its total revenue dipped 2% to NIS 1.1 billion.
Partner finished 2014 with 2.84 million subscribers, 60,000 few than the 2.9 million it had in the third quarter of that year. Partner lost a total of 120,000 subscribers in 2014 as a result of the intense competition in the sector. The subscriber churn rate was 11.5% in the fourth quarter, compared with 12% in the third quarter, and 47% in all of 2014, compared with 39% in 2013.
Revenue from services dropped 10% to NIS 3.4 billion in 2014, and 12% to NIS 808 million in the fourth quarter of that year. Revenue from equipment jumped 35% to NIS 992 million in 2014 and 46% to NIS 300 million in the fourth quarter.
EBITDA was down 2% to NIS 1.1 billion, 25% of total revenue, in 2014. Fourth quarter EBITDA declined 12% to NIS 249 million, 22% of total revenue. Net debt fell from NIS 3 billion at the end of 2013 to NIS 2.6 billion at the end of 2014, a NIS 388 million decrease.
Partner's monthly average revenue per cellular user (ARPU) was NIS 75 in 2014, 10% less than in 2013. Fourth quarter monthly ARPU was down 12% to NIS 71.
Partner reported that sales of smartphones in 36 monthly installments had a negative effect on the company's cash flow, and it is considering a halt in the sale of devices on installments, which is liable to have a negative impact on the company's revenue and profit from this business.
Romano said, "2014 was characterized by further escalation in the level of competition in the telecommunications market in Israel, resulting in erosion of revenues and profitability of the Company. At the same time, we remained loyal to implementing the Company’s strategy and continued to advance its core elements: investment in technology and innovation and a focus on customer experience."
Published by Globes [online], Israel business news - www.globes-online.com - on March 11, 2015
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