Partner profit plunges 79%

Partner CEO Haim Romano: Results reflect the continuing impact of fierce competition as reflected in significant price erosion.

22 May 13 10:32, Globes’ correspondent

Mobile operator Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) saw net profit plunge 79% in the first quarter of 2013 to $9 million compared with the corresponding quarter of 2012. Revenue was $314 million in the first quarter, down 27% from the corresponding quarter.Service revenue was $263 million, down 23% but operating expenses including the cost of equipment sold was up 23% to $246 million.

Free Cash flow before interest was $56 million, down 9% and cellular ARPU was $22 million, down 19%.

Partner reported that its cellular subscriber base at the end of 2012 was 2.93 million, down 7%.

Partner CEO Haim Romano said, “The results for the first quarter of 2013 reflect the continuing impact of the fierce competition in the telecommunications market, as reflected in the significant price erosion and decline in the company’s revenues. Nonetheless, the company continued this quarter to strengthen its key assets: excellent customer service, technology advancement and an advanced network.”

He added, “The decline in the company’s subscriber base is a result of a decline in the Pre-Paid subscriber base, reflecting, inter alia, seasonal changes and the continued trend of customers shifting from pre-paid to post-paid packages.”

Published by Globes [online], Israel business news – www.globes-online.com – on May 22, 2013

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