Partner Communications Profits Halved on Lower Revenues
Published on: 10th Mar 2014
By: Ian Mansfield
Israel's Partner Communications has reported a 10% decline in its fourth quarter revenues and a more than halving of its profits.
The mobile network, which operates under the Orange brandname, posted revenues of NIS 1.13 billion (USD325 million), while profits were down by 55% at NIS 46 million (USD13 million).
Commenting on the annual results, Mr. Haim Romano said, "In 2013 we continued to invest in our infrastructure and network, customer services and information systems, while at the same time facing intense competition in the telecommunications market, which significantly reduced our revenues and profits as a result of substantial price erosion."
During 2013, the Company added 31,000 contract subscribers to its cellular subscriber base, the first increase in the company's contract subscriber base in two years.
At the end of the 2013, the company's cellular subscriber base was approximately 2.96 million, including approximately 2.133 million contract subscribers or 72% of the base and approximately 823,000 prepay subscribers, or 28% of the subscriber base.
The churn rate in the fourth quarter of 2013 increased from the previous quarter due to a rise in the intensity of competition. This increase in churn rate follows three consecutive quarterly falls in the churn rate. Nevertheless, the churn rate was 10.7% compared with 10.9% in the fourth quarter last year.
Net debt at the end of the fourth quarter of 2013 amounted to approximately NIS 3 billion.