Partner reports reveal: how much is each customer worth to a mobile company?
Partner's revenue fell by 1.5% to 790 million shekels, but operating profit and EBITDA continued to grow. The company crossed the one million 5G subscriber mark for the first time, alongside an increase in internet and television subscribers. The company is awaiting a court ruling on its request to distribute a special dividend.
The communications group Partner concludes the second quarter with revenue of 790 million shekels, reflecting a slight decrease compared to the corresponding quarter, but an increase when neutralizing the effects of the Ministry of Communications' interconnection fee reduction scheme. At the same time, the company showed an improvement in profitability and an increase in the number of subscribers. Revenue for the quarter totaled 790 million shekels, a decrease of 1.5% compared to the corresponding quarter. Operating profit grew by 17.5% to 121 million shekels and net profit grew by 16.7% to 84 million shekels.
Adjusted EBITDA grew by 3.6% to 314 million shekels, a rate of 40% of revenue compared to 38% in the corresponding quarter. Net financial debt totaled 369 million shekels, an increase compared to the corresponding quarter but a decrease compared to the previous quarter. At the revenue level, there was a decrease in revenue from services in both the mobile and fixed-line sectors, while revenue from equipment sales increased in both. Adjusted free cash flow decreased by 20.9% to 106 million shekels, which the company explains, among other things, by the procurement of mobile devices as part of the Accountant General's tender (Partner was chosen alongside Pelephone to provide services to state employees, with Partner's share being 40%).
In the first half of the year, revenue approached 1.6 billion shekels, a decrease of 3.2% compared to the corresponding period, while operating profit and net profit grew by double-digit rates and totaled 228 million shekels and 158 million shekels, respectively.
Operational data indicate an increase in the number of mobile subscribers to more than 2.7 million at the end of the second quarter, with Partner crossing the one million subscriber mark in 5G for the first time. The average monthly revenue per mobile subscriber (ARPU) excluding interconnection fees stood at 43 shekels, similar to the corresponding quarter and 2 shekels higher than the previous quarter.
Partner's number of internet subscribers reached 500 thousand at the end of the second quarter and the number of fiber subscribers was 480 thousand, of which 285 thousand are on its own fiber infrastructure. The ARPU of internet subscribers was 96 shekels, an increase compared to the corresponding and previous quarters. The number of television subscribers grew to 212 thousand, an addition of about 5,000 during the quarter.
The court will decide regarding the dividend
Recently, Partner approached the court with a request to distribute a special dividend of 500 million shekels not from its profit balances, to be financed through raising debt of 750 million shekels; however, its bondholders voted against the move.
This follows a vote where 56% of series Z bondholders were in favor and 44% opposed, while in series H bonds only 43% supported and 57% opposed. Partner notes that the majority required to accept the decision in each series was two-thirds of the voters. In any case, the board of directors approved the full redemption of series H bonds in the amount of 140 million shekels, to be carried out on September 14. As for the special dividend, the opposition was submitted to the court. If approved, the share of the controlling shareholder Ampisa (composed of companies of Shlomo Rodav, Roni Gat, CEO Avi Gabbay, Mori Arkin, and Phoenix) will be about 106 million shekels. Partner's market value is about 6.9 billion shekels.
CFO Miri Tikutiel added that the growth in revenue was supported by a continuous increase in the subscriber base in core services. "The adjusted free cash flow totaled about 106 million shekels, influenced by the procurement of mobile devices as part of the Accountant General's tender—an effect expected to continue in the second half of 2026. The request for approval of a cash dividend distribution of up to 500 million shekels not from profits, in accordance with section 303 of the Companies Law, is pending in court," she stated.
