Israel’s Partner Communications has published its financial results for both the last quarter of 2020 and the full year, reporting lower revenues in both the three- and twelve-month periods.
For the year ended 31 December 2020 the company recorded a total turnover of ILS3.189 billion (USD992 million), down by 1% year-on-year, while service revenues declined by 2% on an annualised basis, to ILS2.508 billion. In 4Q20, meanwhile, total revenues fell by 3% y-o-y to ILS808 million, with service revenues standing at ILS632 million, compared to ILS636 million in 4Q19. Of note, it revealed that service revenues in the cellular sector had fallen by 8% in FY20, to ILS1.663 billion, saying the drop was ‘mainly the result of the negative impact of the COVID-19 crisis which caused a significant reduction in revenues from roaming services, and the continued price erosion of cellular services due to on-going competitive market conditions’. By comparison, service revenues from the fixed line sector rose by 7% in FY20, to ILS993 million, with Partner noting the increase ‘reflected the growth in internet and TV services, which was partially offset by a decline in revenues from international calling services (including the market for wholesale international traffic) which continue to be adversely affected by the increased penetration of internet-based solutions’.
In terms of other key financial metrics, Partner reported that total operating expenses in FY20 stood at ILS1.871 billion, down 1% y-o-y, in part reflecting a reduction in its workforce and related expenses as part of cost-cutting measures it had taken to mitigate the impact of the pandemic. OPEX in 4Q20 was ILS480 million, down 3% against the same period a year earlier. Adjusted EBITDA of ILS822 million was reported for FY20, down from ILS853 million in the previous financial year, while fourth quarter EBITDA totalled ILS203 million, representing a 6% annualised drop. The copany reported a net profit of ILS17 million for FY20, down marginally from ILS19 million a year earlier, while net profit in 4Q20 stood at ILS5 million (4Q19: ILS7 million).
With regards to operational indicators, at the end of 2020 Partner’s mobile subscriber base stood at 2.836 million, up from 2.675 million a year earlier, including approximately 2.5 million post-paid users. In the fixed line sector, it served a total of 139,000 fibre-based broadband subscribers at the same date, up from 76,000 a year earlier, while its ‘infrastructure-based internet subscriber base’ totalled 329,000 (Dec-19: 268,000).