Partner sees small profit gain

Partner CEO David Avner: Our Orange brand has been named the leading telecom brand in Israel for the seventh consecutive year by "Globes"

Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) today published its financial statements for the second quarter of 2009 and announced the distribution of a dividend. The wireless carrier, which is up for sale by its controlling shareholder Hutchison Telecommunications International Ltd. (NYSE: HTX; HKSE: 2332), reported a small increase in its net profit on a decline in revenue.

Partner posted $386 million revenue (NIS 1.51 billion) for the second quarter, 1.6% less than the NIS 1.54 billion revenue for the corresponding quarter.

Net profit rose 2.1% to $73 million (NIS 288 million) ($0.48 per share) for the second quarter from NIS 282 million for the corresponding quarter, although operating profit fell 2.9% to $110 million (NIS 434 million) from NIS 447 million.

Partner declared a dividend of $59 million for the second quarter.

Content and data services revenue, excluding SMS, rose 13.9% to $33 million (NIS 131 million) from NIS 115 million for the corresponding quarter. SMS revenue rose 14.1% to $23 million (NIS 89 million) for the second quarter.

Partner added a net 41,000 new subscribers during the second quarter to give a total of 2.94 million, of whom 1.1 million were 3G subscribers.

Average minutes of use per subscriber (MOU) fell to 364 minutes in the second quarter from 368 minutes in the corresponding quarter, which Partner attributed to a campaign launched following the introduction of number portability that included a significant number of free minutes for a period of 12 months. Average revenue per user (ARPU) fell to NIS 151 in the second quarter from NIS 157 the corresponding quarter, which the company attributed to lower roaming revenues, and the switch to one-second billing from twelve-second billing intervals on telephone calls.

Partner CFO Emanuel Avner said that the upcoming launch of the Apple iPhone should boost Partner's working capital during the second half of 2009.

Partner CEO David Avner said, "Once again our brand Orange has been elected the leading telecom brand in Israel, for the seventh consecutive year, by "Globes"."

Partner's share closed at $17.57 on Nasdaq on Friday, giving a market cap of $2.7 billion. The share fell 0.4% by mid-afternoon on the TASE today to NIS 68.50.

Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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