Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — FY2024 Earnings Presentation
35 slides from Partner Communications's earnings presentation, Mar 9, 2025
Slide 1: Investors Presentation 2024
Partner Communications Investors Presentation 2024 March 9, 2025
Slide 2: Disclaimer
Disclaimer This presentation was prepared by Partner Communications Ltd. (the “Company”). This This presentation may include data that the Company has collected from third parties presentation is intended to serve the public investing in the Company and is intended whose correctness the Company cann
Slide 3: Contents
The Company, its business and activity in the reporting period Cellular segment Fixed-line segment Consolidated Company Contents 3
Slide 4: Main business and operational activities
Main business and operational activities ▪ Focus on cellular value propositions ▪ Launching of the 5GSA network, deployment of 5G technology and leveraging 5G capabilities to expand the cellular service portfolio ▪ Realization of IRU fiber agreement > Rights-of-use of Bezeq infrastructure for sustai
Slide 5: 2024 In essence
2024 In essence Approx. 579 66 thousand additional Growth in Internet thousand customers connected to revenue 5G customers fiber due to increase in lines and in ARPU 13% growth in Adjusted EBITDA, a 70% Increase in the Company’s increase in net profit and a 99% increase in credit rating to ilAA- wit
Slide 6: 2024 Summary of financial results
2024 Summary of financial results NIS millions Service revenues Revenue from sales of Adjusted EBITDA (1) excluding interconnection fees equipment and other 2,529 565 1,187 +4% +6% +13% Net profit CAPEX payments (2) Adjusted Free Cash Flow 277 527 285 +70% -20% +99% The rates of change are compared
Slide 7: 2024 Summary of operating segments
2024 Summary of operating segments NIS millions Service revenues Adjusted EBITDA (1) Operating profit excluding interconnection fees Cellular 1,332 729 325 segment -2% +5% +14% Service revenues Adjusted EBITDA (1) Operating profit excluding interconnection fees Fixed-line 1,282 458 75 segment +10% +
Slide 8: Q4-2024 Summary of financial results
Q4-2024 Summary of financial results NIS millions Service revenues Revenue from sales of Adjusted EBITDA (1) excluding interconnection fees equipment and other 629 138 304 +6% 5% +21% Net profit CAPEX payments (2) Adjusted Free Cash Flow 80 122 (3) +220% -23% +95% The rates of change are compared to
Slide 9: 2024 Summary of operational performance
2024 Summary of operational performance Cellular Postpaid Cellular Prepaid 5G package subscribers (thousands) subscribers (thousands) subscribers (thousands) 2,462K 169K 579 K -7K -6K +228k Cellular ARPU excluding Fiber-optic Internet ARPU (NIS) TV subscribers interconnection fees (NIS) subscribers
Slide 10: The Iron Swords War
The Iron Swords War The consequences of the War on the Company's activities so far have been reflected mainly in the damage to revenue from roaming services, due to the effects of the War on the local demand for international tourism and the supply of flights by airlines, and in a certain decrease i
Slide 11: Dividend distribution
Dividend distribution On March 9, 2025, the Company's Board of Directors resolved to distribute a cash dividend to the Company's shareholders in a total amount of NIS 250 million The determining date (the “ex-date”) is March 17, 2025. The dividend will be paid on March 25, 2025 The Company has not a
Slide 12: The CAPEX Payments forecast for 2025
The CAPEX Payments forecast for 2025 CAPEX Payments(1) are expected to total NIS 450-500 million The Company will report deviations of ± 10% or more from the figure specified above. The Company’s forecast is forward-looking information as defined in the Securities Law. The forecast is based on the C
Slide 13: Cellular segment
Cellular segment For 2024 and Q4/2024 13
Slide 14: Cellular segment Subscribers and churn rate
Cellular segment Subscribers and churn rate Over » 90% of cellular subscribers are postpaid subscribers The number of cellular subscribers decreased by approx. 13 thousand subscribers compared to the end of 2023, and by approx. 4 thousand subscribers compared to the end of the previous quarter » The
Slide 15: Cellular ARPU NIS/month
Cellular ARPU NIS/month » The stability in ARPU (excluding interconnection fees) in 2024 reflects an increase in revenue from cellular packages, offset by a decrease in revenue from roaming services (impact of the War) and the end of recognition of deferred revenue from Hot Mobile » The increase in
Slide 16: Cellular segment Revenues
Cellular segment Revenues NIS millions » The decrease in YoY revenue was mainly due to a decrease in revenue from interconnection fees (as a result of the reduction in connectivity rates) and in revenue from roaming services, as well as due to the end of recognition of deferred revenue from Hot Mobi
Slide 17: Cellular segment Adjusted EBITDA
Cellular segment Adjusted EBITDA NIS millions » The increase in annual Adjusted EBITDA of the cellular segment was mainly due to an increase in revenue from cellular packages, a decrease in payments to subcontractors and a decrease in provisions for claims and others and in salary and related expens
Slide 18: Fixed-line segment
Fixed-line segment For 2024 and Q4/2024 18
Slide 19: Fixed-line segment Internet subscribers
Fixed-line segment Internet subscribers Approx. 90% of Internet subscribers are on fiber-optic infrastructure » The number of fiber-optic subscribers amounted to approx. 435 thousand subscribers and increased by approx. 66 thousand subscribers compared to the end of 2023, and by approx. 14 thousand
Slide 20: Internet ARPU NIS/month
Internet ARPU NIS/month » The increase in ARPU stemmed mainly from the connection of customers to fiber-optic infrastructure ARPU Internet - Yearly ARPU Internet - Quarterly 88 90 89 89 91 90 91 84 2022 2023 2024 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 20
Slide 21: Fixed-line segment TV subscribers
Fixed-line segment TV subscribers TV subscribers (000' end of period) Approx. 207 206 205 205 203 90% of TV subscribers are in integrated internet- based packages Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 21
Slide 22: Fixed-line segment Revenue
Fixed-line segment Revenue NIS millions » The annual increase in revenues was mainly due to a transition to recording revenue from the Work for Fee (“WFF”) activity in gross amounts, growth in revenue from Internet and data services for businesses, and from recognition of revenue in respect of a tra
Slide 23: Fixed-line segment Adjusted EBITDA
Fixed-line segment Adjusted EBITDA NIS millions » The annual increase in Adjusted EBITDA of the fixed-line segment resulted mainly from growth in revenue from Internet and data services for businesses, recognition of profit from a transaction for the rental of fiber optics to a business customer and
Slide 24: Consolidated Company
Consolidated Company For 2024 and Q4/2024 24
Slide 25: Consolidated Company Revenue
Consolidated Company Revenue NIS millions » In 2024, service revenues, excluding interconnection fees, increased by approx. 4%, mainly due to growth in revenue from fixed-line services, despite the decrease in revenue from roaming services (impact of the War) and the end of recognition of deferred r
Slide 26: Consolidated Company Sales of equipment and other
Consolidated Company Sales of equipment and other NIS millions » The Company's revenue from sales of equipment and other increased by approx. 6% and approx. 5% compared to the previous year and the corresponding quarter, respectively. The increases were mainly explained by changes in the sales mix T
Slide 27: Consolidated Company Expenses
Consolidated Company Expenses NIS millions « The decrease in the services cost of revenue in 2024 was mainly due to a decrease in interconnection fees (mainly as a result of rate reductions), a decrease in salary expenses, and a decrease in expenses to other communications operators. The decrease wa
Slide 28: Consolidated Company Adjusted EBITDA
Consolidated Company Adjusted EBITDA NIS millions » The annual increase in the Company's Adjusted EBITDA was mainly explained by growth in revenue from fixed-line services, a decrease in provisions for claims and others, and the recognition of profit for a transaction for the rental of fiber optics
Slide 29: Consolidated Company Net profit
Consolidated Company Net profit NIS millions » The Company's net profit in 2024 increased by approx. 70% and amounted to approx. NIS 277 million, compared to approx. NIS 163 million in 2023. » The Company's net profit in the fourth quarter increased by approx. 220% and amounted to approx. NIS 80 mil
Slide 30: Consolidated Company CAPEX Payments
Consolidated Company CAPEX Payments NIS millions » CAPEX payments in fixed assets and intangible assets decreased in 2024 by approx. NIS 129 million and amounted to approx. NIS 527 million » CAPEX payments are expected to total NIS 450-500 million in the year 2025 Cash flow investments - Fixed asset
Slide 31: Consolidated Company Adjusted Free Cash Flow
Consolidated Company Adjusted Free Cash Flow NIS millions » The increase in annual Adjusted Free Cash Flow was mainly due to a decrease in CAPEX payments and an income tax refund due to the tax position assumed by the Company in the 2022 tax statement, which were partially offset by an increase in d
Slide 32: Consolidated Company Financial debt and repayment schedule
Consolidated Company Financial debt and repayment schedule NIS millions » In May 2024, Standard & Poor’s Maalot Ltd. raised the Company’s debt rating and its bond series from ilA+ with a positive outlook to ilAA- with a stable outlook Repayment Schedule: Notes & Loans Net Financial Debt / Net Financ
Slide 33: ESG Partner in numbers - 2024
ESG Partner in numbers - 2024 11 50% 45% 3.4% 33% consecutive of Partner’s of the Company’s Employees with of all employees years - senior managers are disabilities who volunteer. Together Platinum+ ESG management women have been they contributed Maala rating are women +1% integrated into approx. 5,
Slide 34: Summary
Summary ▪ Deployment of 5G technology, with a focus on cellular value propositions ▪ Growth in fiber-optic subscriptions and Internet revenues ▪ Execution of fiber-based infrastructure projects ▪ Continued improvements in sales effectiveness ▪ Improvements in profitability indicators and growth in t
Slide 35: Thank You
Let’s stay in touch Investor Relations Investor website investors@partner.co.il www.partner.co.il/en/Investors-Relations/lobby Thank You 35
Partner Communications — FY2024 Earnings Presentation on 6ix