Israel's Partner Communications Q2 revenue up by 9%

Israel's Partner Communications Q2 revenue up by 9%

Partner Communications Company, formerly Orange Israel, has reported a 9% year-on-year increase in total turnover for the three months ended 30 June 2021, with the company seeing increases in both service and equipment revenues.

The second-largest mobile operator in Israel said that it generated a total turnover of ILS840 million (USD258 million) for 2Q, up from ILS774 million in 2Q20, with service revenues representing the lion’s share of the total – ILS649 million, up from ILS616 million.

Tamir Amar, Partner's Deputy CEO & Chief Financial Officer, said: "In the second quarter of 2021, growth in revenues continued while maintaining a cost structure that enabled growth in profit. A moderate return of roaming service revenues along with an increase in the subscriber base led to cellular service revenue growth compared to the corresponding period last year. The fixed-line segment's growth trajectory continued along with an improvement in Adjusted EBITDA. "

The mobile network operator said that its cellular subscriber base totaled 2.97 million at quarter-end, an increase of 67000 in the quarter. ARPU in the quarter totaled NIS 48 compared to NIS 51 in the corresponding quarter last year, the decrease mainly reflecting the continued price erosion, although to a lesser extent, and the decrease in interconnect revenues, which were partially offset by a moderate increase in roaming service revenues.

The number of homes connected within buildings connected to its fiber-optic infrastructure was 571,000 at the end of the quarter, an increase of 57,000 in the quarter. Partner's fiber-optic subscriber base totaled 173,000 at the end of the quarter, an increase of 18,000 in the quarter and of 34,000 since the beginning of the year, reflecting a 30% penetration rate from potential customers in connected buildings.

Looking ahead, the telco expects a moderate recovery in roaming service revenues, due to the continued increase in air travel, to continue in the third quarter of 2021. However, a retreat is possible given the possible implications of the new COVID-19 variants for air travel.

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