Nessuah Zannex: Partner sacrificing ARPU in favor of subscriber base

Investment bank Nessuah Zannex said that cellular provider Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD) is "sacrificing" its average revenue per user in order to increase its subscriber base.

ARPU is expected to this year drop to NIS 185.9, 13% less than ARPU in 2001, which came to NIS 185.9, writes analyst Haim Israel.

The analyst, who correctly estimated the company's top and bottom lines for Q4, has raised revenue forecasts for 2002 to NIS 3.755 billion, up 15.6% on 2001.

Referring to the rising risk premium assigned cellular providers, Israel writes that Partner is least deserving of such treatment due to its subscriber growth rate and its ARPU. Partner outperforms comparable companies in these two key areas, according to Israel.