Partner cites impact of COVID-19 as it reports lower revenues in 2020

26 Mar 2021

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).

Israel, Partner Communications Company