Partner cites impact of coronavirus as Q2 cellular service revenues drop 10% y-o-y

19 Aug 2020

Israel’s Partner Communications has reported total revenues of ILS774 million (USD223 million) for the quarter ended 30 June 2020, a decline of 1% from the corresponding period a year earlier, with service revenues falling by 4% year-on-year, to ILS616 million. Notably, a 6% annualised increase in service revenues in the fixed line sector – to ILS244 million – were more than offset by a 10% y-o-y drop in cellular service revenues to ILS409 million attributed by Partner to ‘the negative impact of the coronavirus crisis on roaming service revenues and the continued price erosion of cellular services due to the continued competitive market conditions’.

In terms of other headline financial indicators, Partner reported adjusted EBITDA of ILS200 million in 2Q20, down 7% from ILS214 million in the year-ago period, while operating profit fell to ILS20 million from ILS22 million in 2Q19. Meanwhile, net profit for the three-month period under review totalled ILS7 million, up from ILS3 million.

At 30 June 2020 Partner’s mobile subscriber base stood at 2.708 million, up from 2.676 million three months earlier, although monthly ARPU declined to ILS51 in 2Q20, down from ILS53 quarter-on-quarter. In addition, the company also highlighted the continued expansion of its fibre network, confirming that the infrastructure now passes more than 657,000 premises across the country.

Commenting on the operator’s quarterly performance, CFO Tamir Amar said: ‘The results for the second quarter of 2020 reflect, on the one hand, the negative impact of the global coronavirus crisis on the company’s revenues and, on the other hand, the company’s agility in quickly adjusting to the changes made, the impact of which largely offset the harmful effects of the crisis.’

Israel, Partner Communications Company