Monday, mobile telecommunications network operator Partner Communications Company Ltd. (PTNR) reported a decline in its fourth-quarter profit, hurt by lower revenues primarily attributed to a significant decrease in outbound and inbound tourism activity amid the prevailing recessionary environment.
The Rosh Ha-ayin, Israel-based company's net income was NIS 264.68 million, or US$69.6 million, a 12.3% decrease from NIS 301.86 million in the year-ago quarter.
Quarterly net revenues were NIS 1.56 billion, or US$410.7 million, down 4% from NIS 1.63 billion in the prior year. Service revenues increased 2.6% to NIS 1.4 billion, or US$367.4 million, from NIS 1.36 billion, last year.
Commenting on the results, chief executive officer David Avner, said, "In the last quarter of 2008 we began to see the first signs of the global recession. We have seen some impact on our revenues as a result of significant decrease in outbound and inbound tourism activity and also an increase in doubtful debts."
For the full year, net income grew 11.9% to NIS 1.05 billion, or US$277 million, from NIS 939.79 million.
Yearly net revenues increased 3.5% to NIS 6.33 billion, or US$1.66 billion, from NIS 6.11 billion. Annual service revenues amounted to NIS 5.57 billion, or US$1.47 billion, an increase of 4.6% from NIS 5.33 billion in 2007.
Looking ahead, chief financial officer Emanuel Avner said, "Our intention is to mitigate, as much as possible, the effects of the downturn through efficiency and cost-cutting measures where appropriate. However, should the downturn continue through 2009, profit levels could be lower than in 2008."
In addition, the company said it would distribute a cash dividend for the fourth quarter of 2008 in the amount of NIS 1.41, or US$0.37, per share, totaling approximately NIS 217 million, or US$57 million, payable on April 1 to shareholders and American Depository Shareholders of record on March 18.
The total dividend amount distributed for 2008 is about NIS 841 million, or US$221 million, which is equivalent to NIS 5.45 per share.
PTNR ended Friday's trading at $15.38 on the Nasdaq.
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