Partner's 1st quarter profit: NIS 9 million, compared with NIS 64 million in 2017

Partner reported results for the first quarter of the year, indicating that its revenues totaled NIS 826 million, an increase of 3% from the corresponding quarter last year, and a decrease of 1% from the previous quarter. Net profit totaled NIS 9 million, compared with NIS 64 million in the corresponding quarter and a loss of NIS 50 million in the previous quarter. EBITDA (net of interest, tax, depreciation and amortization) was NIS 177 million, down 29% from the corresponding quarter and 12% higher than the previous quarter.

The company announced its intention to buy back shares of up to NIS 200 million. At the end of the first quarter, the company had NIS 703 million. Partner published its buy-back plan in the first quarter of 2018. At the same time, the company reported that it is examining new growth engines - including the credit card field.

Sharp erosion was recorded in the free cash flow, which amounted to NIS 21 million, a double-digit decline from the parallel quarter and the previous quarter. In the cellular segment, Partner posted revenues of NIS 644 million, with revenues from equipment increasing by 23% compared to the corresponding quarter to NIS 178 million, while service revenues fell 5% to NIS 466 million. Cellcom generated EBITDA of NIS 134 million, down from NIS 187 million in the parallel quarter, when the average monthly revenue from an ARPU subscription was NIS 58, a decrease of NIS 3 from the parallel quarter and NIS 1 from the previous quarter.

In fixed line operations, the company's revenues totaled NIS 225 million. Revenues from services were NIS 202 million. The increase in activity is attributed mainly to television revenues. If we examine the first quarter of 2016, Partner did not operate a multi-channel television service, but its entry into the wholesale market was in full swing. Revenues were NIS 222 million in the landline market. This means that the landline sector and the wholesale market are in great wear and television is not able to compensate for the erosion. Today there are 77,000 households connected to Partner TV.