Partner Communications Company Ltd. (

PTNR

)

Q4 2010 Earnings Conference Call

February 23, 2011, 10:00 am ET

Executives

Emanuel Avner – CFO

Yacov Gelbard – CEO

Analysts

David Kaplan – Barclays Capital

Michael Claw – Citibank

Abraham Aylon [ph]

Presentation

Operator

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Ladies and gentlemen thank you for standing by. Welcome to the Partner Communications Company fourth quarter 2010 results conference call. (Operator instructions) Following management’s formal presentation instructions will be given for the question- and-answer session. As a reminder this conference is being recorded, February 23, 2011. I would now like to turn over the call to Mr. Emanuel Avner, Partner’s CFO. Mr. Avner, please begin.

Emanuel Avner

Thank you. Hello to all our listeners. Thank you for joining us for this conference call to discuss Partner Communications annual results for 2010 and for the fourth quarter. With me on the call today, is Yacov Gelbard our CEO. Our CEO Yacov Gelbard is going to make several statements and then I will give the summary of our financial and operational results and outlook. We will then open the floor to Q&A.

Before we begin, I would like to draw your attention to the fact that all statements in this conference may be – call may be forward-looking statements within the meaning of US Private Securities Litigation Reform Act of 1995. Regarding such all forward-looking statements, you should be aware that Partners’ actual results might vary materially from those projected in the forward-looking statements.

Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements are contained in Partner’s press release dated February 23, 2011 as well as Partner prior filings with the US Securities and Exchange Commission on forms 20-F, F1 and 6-K, as well as the S-3 shelf registration statement, all of which are readily available.

Please note that the information in this conference call related to projections or other forward-looking statements is subject to the previous Safe Harbor Statements as of the date of this call. For your information, this call is being broadcast simultaneously over the Internet and can be accessed through our website at www.orange.co.il.

At this stage, I would like to hand the call over to our CEO, Yacov Gelbard, Yacov please?

Yacov Gelbard

Thank you, Emanuel and hello to all our listeners. The results for the year ‘010 demonstrates once again the financial and operational strength of Partner. The achievements of considerable growth and profitability and continued growth in subscriber base and revenues demonstrate the strength of our brand and the quality of our leadership and we achieved that in a highly competitive environment and with a challenging regulatory backdrop.

Our commitment to all shareholders of the company demanded with continue to demand to strengthen our assets through building platform for long term growth. In October ‘010, we signed an agreement with Ericsson for the upgrade of our networks and for deployment of a fourth generation LTE network in Israel. A network that will guarantee our technological progress also in the future years. The new network will meet the growing needs of consumers of communications in Israel for data services at the high speeds and will also raise performance levels of both the cellular and the fixed line networks.

We anticipate these upgrades and the deployment of the new network will help us create the differentiation from our competitors and provide considerable added value to the experience of our consumers. Partner’s focused approach to service quality and emphasize our customer needs, both key requirements for consumer satisfaction, retention will enable the company to add impressive number of 108,000 subscribers net to a subscriber base in ‘010.

Over the last few months, the company has taken several steps to strengthen the company’s commitments to its customers and to focus on their needs across all our operational areas. Since the start of this year, the company has offered a variety of attractive rate plans without any exit fees on any commitments and we continue to market our consumers – customers a proposition that is based first and foremost on fairness and loyalty.

Regarding the expected acquisition of Smile 012, which would be completed within approximately a couple of weeks, this acquisition is an important step in Partner’s strategic transformation into a comprehensive communication group. The acquisition will increase competition for the benefit of the consumer and for the wider public benefit, enabling Partner to continue to focus on its core cellular business while 012 Smile will continue to focus on its current core businesses of international and local fixed line telecommunication services and broadband services.

The year ahead poses a particular challenge to revenue and profit margins due to the steep reduction in the interconnect tariffs as of January ‘011. As a response, we have taken a series of efficiency measures and have imposed an even tighter control over cost. These measures together with continued growth in revenues and the subscriber will work to moderate the impact of the interconnect tariff reductions while it’s allowing us to continue to build our business for the future. Partner recognizes that the human capital is the best in Israel marketplace and the company regards its employees as the integral ingredient of its success.

The future offers us many opportunities that will enable us to maximize our particular assets and strengthening order to continue to build our business and provide value for all our stakeholders. With that said, I would like to hand the call over to Emanuel Avner, our CFO.

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