Partner Communications Reports Second Quarter 2019 Results1
Partner Communications Company Ltd. (“Partner” or the “Company”) (NASDAQ and TASE: PTNR), a leading Israeli communications provider, announced today its results for the quarter ended June 30, 2019.
Commenting on the results for the second quarter of 2019, Mr. Isaac Benbenisti, CEO of Partner noted:
“While our competitors in the telecommunications market are facing instability and impairments, Partner presents business leadership and financial strength.
Partner is more prepared than its competitors to cope with the complex challenges in the Israeli telecommunications market that suffers from ongoing market failures.
Partner continues to demonstrate positive trends in key KPI’s, a strong balance sheet and operational excellence while other competitors experience balance sheet write-downs and instability.
Partner today has an advantage in the range of services that we offer to over 3 million customers:
Cellular – Despite the ongoing competition, our ARPU has increased and churn rate has decreased, and is at the lowest level since 2011. This is attributed to our choice to provide our customers with value added services as part of our "MORE" Partner plans.
TV – For over two years Partner TV is the fastest growing TV service in Israel. At the end of the second quarter we report a net growth of 77 thousand subscribers compared with the corresponding quarter in 2018, and as of today, Partner TV has over 170 thousand subscribers. Unlike all of our competitors, Partner is the only company that does not need to replace its subscribers' set top boxes to be prepared for the new viewing habits: 100% of Partner TV set top boxes broadcast with 4K quality, support Catch Up and allow access to world leading content applications.
Fiber Optics – two years after the launch of Partner Fiber our fiber optic infrastructure reaches over 480 thousand households in Israel. We connect customers in dozens of cities nationwide to the fastest data internet speed in Israel of up to 1,000 mbps. In addition, we are working to switch wholesale internet customers to the independent infrastructure in order to reduce dependency on monopolies and increase the Company's profit.
The combination of all these services solidifies our status as a leading communications group and the positive figures in this report reflect Partner's leadership in a range of services within the highly competitive Israeli telecommunications market."
Mr. Tamir Amar, Partner's Chief Financial Officer, commented on the results:
“Partner completed a positive quarter which was characterized by stability and even slight growth in cellular service revenues, alongside continued growth in the fixed line segment compared with Q2 2018 and Q1 2019, mainly reflecting the growth in our TV and Internet operations. The decline trend in our cellular churn rate continued, as churn rate decreased to the lowest level since the third quarter of 2011, totaling less than 8%. We continue to strive to maintain our customer base while creating value for our customers and limiting price erosion, through our strategic focus on profit rather than market share. Despite the decline in revenues from equipment we experienced only a slight decrease in gross profit from equipment sales.