Israel’s Partner Communications has published its financial results for the three months ended 30 June 2019, reporting a 2% year-on-year decline in revenue, despite service revenues rising in the period under review. Partner generated a total turnover of ILS781 million (USD219 million) in 2Q19, down from ILS797 million in the corresponding period a year earlier. Service revenues, however, increased by 4% on an annualised basis – to ILS642 million – in part as a result higher turnover in the cellular sector that it attributed to ‘seasonality’. Equipment revenues fell by more than 18% y-o-y to ILS139 million though, which the company said ‘reflected a lower volume of equipment sales and a change in product mix’. Adjusted EBITDA for 2Q19 totalled ILS214 million, up from ILS197 million a year earlier, with the increase said to mainly be the result of increased service revenues. Net profit for the period stood at ILS3 million, compared to ILS2 million in 2Q18.
In operational terms, Partner ended June 2019 with a mobile subscriber base totalling 2.616 million, down marginally from 2.620 million three months earlier, with the lion’s share – 2.337 million – being post-paid subscribers (1Q19: 2.340 million). Monthly mobile ARPU was ILS58, up from ILS56 in the previous quarter, while the quarterly churn rate was 7.9%, down from 8.5%.
Commenting on the quarterly performance, Tamir Amar, Partner’s Chief Financial Officer, said: ‘Partner completed a positive quarter which was characterized by stability and even slight growth in cellular service revenues, alongside continued growth in the fixed line segment compared with Q2 2018 and Q1 2019, mainly reflecting the growth in our TV and internet operations. The decline trend in our cellular churn rate continued, as churn rate decreased to the lowest level since the third quarter of 2011, totalling less than 8%.’