Partner reports 2.1% net profit gain in 2Q

11 Aug 2009

Israeli mobile operator Partner Communications has released its financial results for the three month period ended 30 June 2009, revealing a 2.1% year-on-year increase in net profit, despite a fall in both revenue and operating profit. Partner posted a net income of ILS288 million (USD73 million) for the three-month period, up from ILS282 million a year earlier, while revenue fell 1.6% y-o-y to ILS1.514 billion and operating profit 2.9% against 2Q08 to ILS434 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 1.8% against the same period a year earlier at ILS574 million.

The cellco reported it had signed up 41,000 new subscribers over the quarter, bringing its total customer base to 2.94 million, of which it said 1.102 million were subscribed to 3G services. It also noted that average minutes of use (MoU) and average revenue per user (ARPU) had both declined compared to the same quarter a year earlier; it attributed the fall in ARPU to lower roaming revenue coupled with the switch from twelve-second billing intervals to one-second. Commenting on the results, David Avner, Partner’s CEO, said: ‘I am very satisfied with our operational and financial performance, which demonstrates our focus on the realisation of the company’s short-term objectives and long-term strategy.’

In separate but related news Reuters reports that Israel-based handset distributor Scailex Corp has submitted a binding bid for Hutchison Telecommunications International’s (HTIL’s) stake in Partner. The announcement comes after HTIL revealed plans to sell its majority stake in the cellco last month.

Israel, Partner Communications Company