Partner records 66% drop in net profit in 2019

27 Mar 2020

Israel’s Partner Communications has published its financial results for the year ended 31 December 2019, reporting a 66% drop in net profit, on the back of increased finance costs. In the twelve-month period under review Partner’s total turnover stood at ILS3.234 billion (USD936 million), down 1% from ILS3.259 billion in FY 2018. Annual service revenues were, however, up 1% year-on-year at ILS2.560 billion, with an increase in fixed line service revenues – which rose 9% on an annualised basis to ILS925 million – more than offsetting a 2% y-o-y drop in cellular service revenues to ILS1.798 billion, down from ILS1.843 billion. The company noted that lower service revenues in the mobile market were mainly a result of ‘the continued downward pressures on the prices of post-paid and pre-paid services as a result of the continued competition in the market’.

Partner’s total operating expenses amounted to ILS1.885 million in FY 2019, down 6% against the previous fiscal year, which it said mainly reflected the implementation of the IFRS 16 reporting standard in 2019. Operating profit for 2019 meanwhile totalled ILS87 million, down 25% y-o-y, with adjusted EBITDA for the fiscal year coming in at ILS853 million, up from ILS722 million in FY 2018. Net profit in 2019 totalled ILS19 million, down from ILS56 million.

In operational terms, at the end of 2019 Partner had a total of 2.657 million mobile subscribers on its books, up marginally from the 2.646 million it had reported a year earlier, while it reported 188,000 pay-TV subscribers, up from 122,000. While the company did not break out subscriber numbers for its fixed line broadband services, its CEO Isaac Benbenisti did note that the company had ended 2019 with ‘an independent fibre-optic infrastructure that already reaches approximately 600,000 households’.

Israel, Partner Communications Company