Lower financing costs saw the Orange franchisee’s profit

rise 68% despite a fall in revenue.

Mobile carrier Partner Communications Ltd. (Nasdaq: PTNR; TASE:PTNR), controlled by the Saban Group, has reported a strong surge in profits for the first quarter of 2014 on slightly lower revenue.

Revenue for the first quarter of 2014 was NIS 1.103 billion down 4% from the corresponding quarter of 2013 while profit rose 68% to NIS 52 million. The jump in profit was mainly due to a cut in financing costs during the quarter, which fell to NIS 24 million, down 51% from the corresponding quarter.

Partner CEO Haim Romano said, “The improvement resulted from adapting our cost structure to our challenging business reality, as well as the activity of our retail division which contributed to the growth in equipment sales.

He continued, “We continue to invest in the most advanced 4G network in Israel and other innovative technologies, investments which have totaled more than NIS 1 billion in the past two years. Partner is currently the only cellular operator in Israel that is ready to launch a 4G network. Subject to the Ministry of Communications’ approval, the public in Israel will be able to enjoy the most advanced 4G technology using the 5 MHz frequency previously allocated to the company.”

Roman continued, “This quarter we added approximately 4,000 Post-Paid subscribers to our cellular subscriber base. It is the fourth consecutive quarter in which we have recorded an increase in our Post-Paid subscriber base.”

“In the near future, the Ministry of Communications is also expected to announce its decision with respect to the fixed-line wholesale market, a decision which will likely have a material impact on our plans to expand our offering to our customers and to the general public, to include television. “

“We expect to receive during the next quarters the required regulatory approvals for our network sharing agreement with Hot Mobile, although the full impact of the agreement on our financial results will only begin in 2015.”

Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2014