Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) recorded a 7% drop in revenue in 2015 to $1.054 billion, while an accounting write-down took it to a loss for year of $10 million. Without the write-down, Partner's would have recorded a profit of $8 million, still 80% down on the previous year.
Explaining the write-down, Partner stated: "In the fourth quarter of 2015, the company decided to cease using the "012 Smile" trade name in 2017. This change in business induced the company to determine that an indicator of impairment existed for the fixed-line segment. The company reviewed the recoverability amounts of the VOB/ISP assets, and as a result, an impairment charge was recognized for the fixed-line segment which reduced operating profit in the fourth quarter of 2015 by NIS 98 million."
Revenue form services fell 12% to $767 million, while equipment revenue rose 13% TO $287 million. The company's free cash flow rose 9% in 2015 to $145 million.
ARPU (average revenue per user) for mobile subscribers fell 8% to $18 monthly. The mobile subscriber base declined by 4% to 2.72 million at the end of 2015.
In the fourth quarter of 2015, revenue fell 9% in comparison with the corresponding quarter of 2014 to $258 million. Partner posted a loss of $17 million for the quarter.
Partner CEO Isaac Benbenisti said, "2015 was another year of intense competition in the telecommunications market, particularly in the cellular market and as a result we continued to experience price erosion which led to the decline in the cellular segment results. Despite the difficult market environment, our Post-Paid subscriber base increased in the fourth quarter and in 2015. However, our Pre-Paid subscriber base continued to decline as a result of the intense competition in the market. We hope that the regulatory uncertainty in the cellular market will end in the near future and thus enable a rational and proportionate competition with equal enforcement of the license obligations on all the operators in the market.
"The year 2016 began with the rebranding process of most of the company's products and services under the "Partner" brand. As part of the branding preparation process, the company's vision and purpose were redefined and integrated with our strategic plan for the coming years in the ever-changing telecommunications market. Our purpose, as a full communications group, is to make the connected digital life of private and business consumers simpler and accessible in every way."
Published by Globes [online], Israel business news - www.globes-online.com - on March 14, 2016
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