Partner: Number of households in buildings connected to optical fiber increased by 44.2%

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by Ifi Reporter Category:Communication Nov 23, 2022

Partner reports an improvement in the revenue line, alongside a strong increase in the profit line. The communications services provider's revenues in the third quarter of 2022 totaled NIS 891 million, a 6.5% increase compared to the corresponding quarter last year. The net profit jumped by 112.5% ​​to NIS 51 million.
The number of the company's cellular subscribers increased by 0.8% to 3.04 million, and the average monthly income per subscriber increased by 6.3% to NIS 51. The optical fiber activity recorded particularly strong growth, with a 39.6% jump in the number of subscribers to 268 thousand. At the same time, the number of households in buildings connected to Partner's optical fiber increased by 44.2% to 900 thousand.
The total number of the company's internet subscribers is 403 thousand, an increase of 10.4%. The only point where Partner showed weakness is its television activity, where the number of its subscribers registered a decrease of 1.8% to 222 thousand.
Revenues from services in the landline sector in the third quarter of 2022 amounted to 285 million shekels, an increase of 6% from 270 million shekels in the third quarter of 2021. The increase mainly reflects the increase in revenues from internet and television services.
Revenues from equipment in the third quarter of 2022 amounted to NIS 163 million, a decrease of 1% compared to NIS 165 million in the corresponding quarter last year. This decrease is mainly due to a lower volume of retail sales and a decrease in sales to wholesale customers in the cellular sector, alongside the impact of the company's decision in the last quarter of 2021 to switch to a rental model of internet routers for private customers - instead of a sales model. These decreases were mostly offset by increased revenues in business activity in the landline sector.
The gross profit from equipment sales in the third quarter of this year amounted to 33 million shekels, a decrease of 11% compared to 37 million shekels in the third quarter of 2021. The decrease is mainly due to a change in the sales mix in the cellular sector, which was partially offset by the increase in the profit of the landline sector.
Operating profit in the third quarter of 2022 amounted to NIS 84 million, an increase of 71% compared to NIS 49 million in the third quarter of 2021. Adjusted EBITDA in the third quarter of this year amounted to NIS 276 million, an increase of 10% compared to 250 million Shekel in the third quarter of last year. The percentage of Adjusted EBITDA from the revenues amounted in the third quarter of this year to 31% compared to 30% for the corresponding quarter last year.
In the two main growth engines in the communications market - fiber and cellular - Partner managed to grow in the last quarter - but at a small rate. As in the entire communications market, the television sector is a loss-making sector, but the company continues to maintain it because content services are a complementary product for customers who want to purchase a package of internet infrastructure together with a television service. However, due to the great competition in the broadcasting market and the existence of cheap services - the company sees a decrease in customers.
Partner was the first company to connect end customers to fiber optic based internet. - which gives it an advantage in the market. According to the reports, the company has deployed fiber infrastructure in 900,000 households in Israel and in the last quarter has connected another 18,000 customers. Today, Partner has the highest number of subscriptions in the fiber market with 277,000 paying customers.
In the cellular sector, Partner recruited another 12,000 customers and increased the average monthly income from a subscription from NIS 49 in the previous quarter to NIS 51 in the last quarter - however, according to the reports, the rate of customer abandonment increased from 6.6% in the previous quarter to 6.8% this quarter the third.
The television market is also faltering. The company reports the abandonment of 2,000 customers and currently stands at 222,000 subscriptions to the television services.
Compared to its competitors in the market - Bezeq and Cellcom - in the terminal equipment market the company reported a decrease in revenues. The volume of sales of end equipment was NIS 163 million - a decrease of NIS 2 million compared to the previous quarter. Partner positions this market as its next growth engine and plans to expand the activity - that is, the establishment of more points of sale in volumes similar to those operated by its competitors.
"Partner continues to show growth and stability in its financial results, while continuing to invest in the deployment of optical fibers and 5G," said Partner's CEO, Avi Gabai. "At the same time, we have recently finished consolidating the management board, while we are focused on continuing to improve service to our customers," he added collector.

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