Partner Communications Company Ltd.:
Q2 2013 Highlights (compared with Q2 2012)
The financial results presented in this press release are unaudited financial results
Cash flows from operating activities before interest payments, net of cash flows used for investment activities.
Operating expenses include cost of service revenues, and selling, marketing and administrative expenses, and exclude depreciation and amortization and impairment charges.
For definition of Adjusted EBITDA measure, see “Use of Non-GAAP Financial Measures” on page 16 below.
Partner Communications Company Ltd. (“Partner” or the “Company") (NASDAQ and TASE: PTNR), a leading Israeli communications operator, announced today its results for the quarter ended June 30, 2013.
Commenting on the second quarter 2013 results, Mr.
- Total Revenues: NIS 1,130 million (US$ 312 million), a decrease of 21%
- Service Revenues: NIS 950 million (US$ 263 million), a decrease of 22%
- Operating Expenses (OPEX) 3 including cost of equipment sold: NIS 871 million (US$ 241 million), a decrease of 16%
- Operating Expenses (OPEX) 3 : NIS 700 million (US $193 million), a decrease of 18%
- Adjusted EBITDA 4 : NIS 280 million (US$ 77 million), a decrease of 34%
- Adjusted EBITDA Margin: 25% of total revenues compared with 30%
- Net Profit: NIS 20 million (US$ 6 million), a decrease of 83%
- Net Debt: NIS 3,446 million (US$ 952 million), a decrease of NIS 763 million
- Free Cash Flow (before interest): NIS 287 million (US$ 79 million), a decrease of 8%
- Cellular ARPU: NIS 83 (US$ 23), a decrease of 18%
- Cellular Subscriber Base: approximately 2.92 million at quarter-end, a decrease of 6%
The results of the second quarter of 2013 continue to reflect, on the one hand, the ongoing impact of the competition in the market and, on the other hand, our investment in the Company's key assets: high quality customer service, technological advancement and the most advanced network. At the same time, we are adjusting our business operations, our marketing approach and the cost structure of the Company, measures which resulted in a decline of NIS 153 million in the Company's operating expenses compared to the second quarter of 2012.
During the quarter, we continued to invest in enhancing the quality of the cellular network (Orange ultranet), which includes: sharp and clear voice quality using HD voice technology, enabling extended battery life by up to approximately 40 percent, the fastest browsing speed in Israel and advanced 4G services (LTE ready services). The Company continues to improve and develop its IT and data systems and provides service solutions which are intuitive and user friendly in the digital space. The Company's investments totaled this quarter approximately NIS 122 million.