Israeli mobile carrier Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) reported its third quarter results today. Quarterly revenue fell slightly, by 1% to NIS 1.102 billion ($298 million),, while net profit rose 5% to NIS 40 million ($11 million).
Adjusted EBITDA in the third quarter of 2014 totaled NIS 282 million ($76 million), a decrease of 1% from NIS 284 million in the corresponding quarter.
Average monthly revenue per user (ARPU) fell 10% to NIS 76. Partner's cellular subscriber base declined 2% during the quarter, to 2.89 million.
Partner CEO Haim Romano said, “Similar to recent quarters, this quarter was characterized by the continued intense competition in the telecoms market which impacts on service revenues. The company is taking a variety of measures to cope with the changing market reality and to mitigate its impact. Partner continues to implement its strategy which is based on technological leadership and an innovative product offering, a strategy which proved itself again this quarter.
"The company’s success in implementing its strategy is expressed through the loyalty of our customers and by an increase in our Post-Paid subscriber base for the sixth consecutive quarter, which grew this quarter by approximately 7,000 subscribers.
"In the reported quarter, the company continued to invest in technology and the deployment of 4G sites and was the first mobile operator to launch a 4G network with the broadest coverage in Israel within the band permitted by the Ministry of Communications. We are making preparations to provide our customers with the full potential embodied in the 4G network which will be made available after the completion of the 4G frequencies tender, expected to be held in December 2014.
"At the end of 2013, we established the retail division which focuses on selling telecom devices and complementary accessories. In this quarter, we recorded a 44% increase in revenues from device sales compared to the comparable quarter last year, while improving profitability levels
"We are reviewing entrance to the television market in order to provide a quality alternative service at an attractive price to the Israeli public. Our entrance to this market depends on the removal of regulatory entrance barriers."
Published by Globes [online], Israel business news - www.globes-online.com - on November 12, 2014
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