Partner swings to Q4 loss, stops dividends

By GLOBES
March 22, 2012 11:20
1 minute read.

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) swung to a net loss for the fourth quarter and saw its full-year profit fall 60 percent, and has stopped the distribution of dividends, after already distributing 80% of the 2011 profit. The cellular carrier's chairman Haim Romano said that the company has cut 1,100 jobs since October.

Fourth quarter revenue fell 10% to NIS 1.59 billion ($416 million) from NIS 1.76 billion for the corresponding quarter of 2010, and fell 25% if Smile's revenue is excluded. The company swung to a net loss of NIS 188 million ($49 million) (NIS 1.21 per share) for the fourth quarter, compared with a net profit of NIS 304 million for the corresponding quarter.

Full-year revenue rose 5% to NIS 7 billion ($1.83 billion) in 2011 from NIS 6.67 billion in 2010. The 2011 figure includes NIS 888 million ($232 million) following the acquisition of 012 Smile Telecom Ltd. in March; excluding Smile's contribution, revenue fell 8% in 2011. Net profit fell 60% to NIS 443 million ($116 million) (NIS 2.85 per share) in 2011 from NIS 1.24 billion in 2010. Service revenue fell 8% to NIS 5.22 billion in 2011 from NIS 5.66 billion in 2010.

Cellular revenue fell 24% to NIS 4.25 billion from NIS 5.58 billion, while fixed-line revenue rose 10-fold to NIS 1.13 billion from NIS 164 million. Partner attributes the fall in cellular revenue to the 71% cut in intern-network connectivity fees and 94% cut in SMS connectivity fees on January 1, 2011, which cost the company NIS 1.08 billion in revenue.

Related Content

Breaking news
July 16, 2018
U.S. Sen. Graham blasts Trump response on Russia election meddling

By REUTERS