Thursday, Partner Communications Co. Ltd. (PTNR), a mobile telecommunications network operator, reported a marginal increase in first quarter profit, despite revenues declining year-on-year, helped by a substantial increase in other income and lower selling and marketing expenses. The company cautioned that should the downturn continue, profit for 2009 could be lower than 2008 level.
The Rosh Ha-ayin, Israel-based company's first quarter net income was NIS 296.44 million or US$ 70.8 million, compared to NIS 296.33 million in the prior-year period. Diluted earnings per share rose to NIS 1.93 from NIS 1.87 a year ago, while earnings per ADS remained flat at US$0.46.
Analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the quarter. Analysts' estimates typically exclude special items. Quarterly revenues dipped 10.7% to NIS 1.41 billion or US$ 337.25 million from NIS 1.58 billion in the year ago quarter. The Street estimated revenues of $364.57 million.
Partner's chief executive officer, David Avner, said, "In this quarter, we have succeeded in mitigating the recession impact on our cellular business profitability. Since the release of our 2008 financial results in February, the business environment has stabilized and has now better clarity."
Avner further added that the company has begun the implementation of the upgraded version of HSPA network, which is expected to improve the mobile broadband user experience and to enhance content and data consumption.
Quarterly service revenues decreased 2.9% to NIS 1.298 billion or US$ 309.9 million from NIS 1.336 billion a year ago, due primarily to the impact of economic recession on roaming revenues, as well as, lower voice revenues. However, revenues from content and data services excluding SMS increased 13.1% to NIS 131.2 million or US$ 31.3 million in the quarter, compared to the year ago period. SMS service revenues were NIS 85.1 million or US$ 20.3 million, an increase of 11.9% compared to the prior-year period.
Equipment revenues fell 53.3% to NIS 114.6 million or US$ 27.4 million from NIS 245.3 million in the comparable period last year.
Other income rose to NIS 23.96 million from NIS 8.66 million a year ago, while selling and marketing expenses dipped to NIS 83.35 million from NIS 102.73 million last year.
During the quarter, the company said approximately 5,000 net new subscribers were added, including nearly 6,000 new net active postpaid subscribers and 1,000 fewer net active prepaid subscribers.
The quarterly churn rate decreased to 4.8% in the quarter from 5.1% a year ago. The average revenue per user was NIS 145 or US$ 35, down 5.8% from NIS 154 last year.
Additionally, the company announced a dividend of NIS 1.54 or US$0.39 per share to shareholders and ADS holders of record on June 24, 2009, which is expected to be paid on July 8, 2009.
Commenting on the company's outlook, Avner warned that should the downturn continue through 2009, profit levels could be lower than in 2008.
PTNR is trading at $16.70, down $0.66 or 3.80%, on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.