Partner boosts net profit in 2Q17 despite lower revenues

17 Aug 2017

Israel’s Partner Communications has reported higher net profit for the quarter ended 30 June 2017, despite recording a drop in revenue. In the three-month period under review Partner generated a total turnover of ILS805 million (USD230 million), down 10% year-on-year, with service revenues falling by 7% against the corresponding period of 2016, to ILS646 million. Service revenues in the cellular sector fell by 6% y-o-y to ILS497 million, with Partner citing the continued price erosion of mobile services and competitive market conditions as the two main factors. In the fixed line sector, service revenues were 12% lower y-o-y in 2Q17 at ILS192 million. Total operating expenses in the second quarter of 2017, meanwhile, were ILS489 million, down 15% y-o-y. reflecting a decline in expenses related to the company’s mobile network, as well as the impact of efficiency measures. Adjusted EBITDA totalled ILS252 million in 2Q17, representing an 11% annual decline, with net profit for the period standing at ILS34 million, up from ILS26 million in 2Q16.

As at 30 June 2017 Partner had a mobile subscriber base of 2.66 million, of which the lion’s share (85%) were post-paid. While this figure represented a 1% drop from mid-2016, Partner did manage to grow its customer numbers from 1Q17, adding a net 4,000 users. Monthly blended ARPU continued to decline, however, standing at ILS62 in 2Q17, compared to ILS65 in the second quarter of 2016.

Israel, Partner Communications Company