Israel's Partner Communications - which trades as Orange - has reported that its first quarter revenues dropped by nearly 11% to reach NIS 1.4 billion (US$ 337 million), although the net income was steady at NIS 296 million (US$ 71 million).
EBITA rose by 2.6% to NIS 552 million (US$ 132 million), and the subscriber base gained 5,000 net new customers to reach 2.903 million, including 1.021 million 3G subscribers. Total market share at the end of the quarter is estimated to be approximately 31.4% (unchanged from Q4 2008).
Commenting on the quarter's results, Partner's CEO, Mr. David Avner, said: "We are pleased with Partner's performance this quarter. Partner's results demonstrate the Company's financial and operational robustness in view of the challenging macro-economic environment and the implementation of recent regulatory initiatives. In this quarter, we have succeeded in mitigating the recession impact on our cellular business profitability. Since the release of our 2008 financial results in February, the business environment has stabilized and has now better clarity."
Revenues from content and data services excluding SMS reached NIS 131.2 million (US$31.3 million) in Q1 2009, or 10.1% of service revenues, compared with 8.7% of service revenues in Q1 2008, an increase of 13.1%.
Commenting on the Company's results, Mr. Emanuel Avner, Partner's Chief Financial Officer said: "As we explained in our press release of February 23, 2009, the current recession has affected our business mainly in roaming activity. However, we are pleased that we have managed to maintain high profitability levels in our core cellular business and to mitigate most of the recession impact. Since the February press release, we have not seen any further deterioration in the business environment."
Commenting on the Company's outlook, Mr. Emanuel Avner added: "The annual guidance for 2009 profitability remains as provided in the press release of February 23, 2009. The annual level of capital expenditures on fixed assets for 2009 is expected to be below NIS 600 million."
Posted to the site on 21st May 2009
Posted to: www.cellular-news.com/story/37602.php