Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Q2 2024 Earnings Presentation
33 slides from Partner Communications's earnings presentation, Aug 11, 2024
Slide 1: Company & Financial Overview Q2 2024
Partner Communications Company & Financial Overview Q2 2024 August 11, 2024
Slide 2: Safe harbor statement
This presentation has been prepared by Partner Communications Company Ltd. ("the Company"). This presentation is meant to serve theCompany'sinvestorcommunityandisintendedsolelyforthepurpose ofillustratinginformationincludedinthereportspublishedby the Company. The presentation does not constitute an
Slide 3: Company overview
ss Company | overview Cz eel —
Slide 4: A leading Israeli communications provider
A leading Israeli communications provider Providing quality and innovative communication solutions and services through initiatives, responsibility and fairness, for the benefit of the company's customers, employees and shareholders Cellular Internet Partner TV Business Equipment Partner Solutions P
Slide 5: Our Approach
Our Approach Simplicity Access anywhere 24/7 Excellent service Continued optimization Simplicity in our day-to-day 5G upgrade and development Constant and A relentless effort to improve activity enables us, among positioned at the technological uncompromising operational excellence with the other th
Slide 6: Focus on value expected to continue
Focus on value expected to continue Major points for 2024 ▪ Acceleration of 5G deployment together with the launch of 5G SA network core ▪ Focus on cellular value packages including 5G ▪ Growth in fiber subs. ▪ Completion of fiber infrastructure aimed at international communications providers ▪ Focu
Slide 7: Outlook
Outlook ▪ On the basis that the damage resulting from the war will be similar to that which has been experienced to date from the beginning of 2024, the decrease in the Company's profit (before tax) from roaming services, for each month of the war, is estimated at approx. NIS 5 million. It is also e
Slide 8: 5G core network launch – stability, continuity and quality
5G core network launch – stability, continuity and quality ▪ Deployment enabling a 5G experience in designated geographic areas ▪ Population coverage of approximately 70% at the end of 2023 ▪ Focus on decreasing coverage gaps within the cities ▪ Transition to a 5G SA core system is expected to maxim
Slide 9: The only provider that benefits from access to the three Israeli fiber infrastructures
The only provider that benefits from access to the three Israeli fiber infrastructures ▪ Maximum flexibility thanks to the ability to offer fiber services based on Partner’s independent infrastructure, Bezeq’s fiber infrastructure and IBC’s fiber infrastructure ▪ Fiber subs. growth to continue while
Slide 10: On track with deployment of an infrastructure aimed at the international communications market
On track with deployment of an infrastructure aimed at the international communications market ▪ Laying the local infrastructure for durable communications and data transfer services between the Far East/Gulf countries and Europe ▪ An alternative route from Haifa to both Eilat and King Hussein Bridg
Slide 11: Partner TV - on the road to a new operating model
Partner TV - on the road to a new operating model ▪ The Company signed an agreement with Yes, under which it will be permitted to market to its subs. a fully Partner brand- compatible content application, based on the broadest content package of the Sting+ service (from Yes) ▪ Upon completion of the
Slide 12: Business Solutions growth engines
Business Solutions growth engines ▪ Expanding our share of the client's communication solutions mix ▪ Offering a basket of integrated cellular, fixed-line and equipment solutions under one roof ▪ Focus on continuing to increase revenue from data services for businesses ▪ Growth in revenues from inte
Slide 13: Milestones in Equipment activity’s potential fulfillment
Milestones in Equipment activity’s potential fulfillment ▪ Achieving efficiency and flexibility through the creation of a single unit for trade activity and equipment ▪ Focus on selling equipment that matches the company's core activity ▪ Creating value for customers through repair service packages
Slide 14: Entering the electricity supply market for private & business customers
Entering the electricity supply market for private & business customers ▪ The electricity market for the home consumer is expected to grow due to increasing changes in consumption habits ▪ Growing awareness of the public along with an ever-increasing scope of smart meters provide an opportunity to l
Slide 15: ESG Partner in numbers 2023
ESG Partner in numbers 2023 Extensive social 68% 3.5% activities that create value 50% 10 of our of our employees with “Or Lamishpachot”, of our senior “Platinum Plus” rating in employees are people with IDF fighting regiment, for management the Maala ESG Index of volunteer, incl. disabilities the s
Slide 16: Financial overview Q2 2024
Financial overview Q2 2024 16
Slide 17: Operating and Financial Highlights
Operating and Financial Highlights Q2’24 vs. Q2’23 Cellular subs. Cellular ARPU ex. Interconnect Fiber-Optic subs. TV subs. (thousands) charges (NIS) (thousands) (thousands) 2,629 Postpaid: -14K Prepaid: -21K 42 - NIS 1 404 +70K 205 -8k Decrease due to the impact of the war on revenues Decrease of 8
Slide 18: Cellular Subscribers & Churn Rate
Cellular Subscribers & Churn Rate Change in subscriber base for the quarter was due to the company’s Decrease in churn rate occurred in both Postpaid and Prepaid subscribers focus on premium packages in Postpaid Cellular Subscribers Churn Rate (EOP, '000s) (%) 18
Slide 19: Cellular ARPU
Cellular ARPU (NIS) Excluding interconnect charges, the decrease compared to the corresponding quarter reflected the war impact on revenues from roaming services and the conclusion of Hot Mobile’s deferred revenue recognition offset by an improvement in revenues from cellular packages 19
Slide 20: Cellular segment – Quarterly Results
Cellular segment – Quarterly Results The decrease in Adjusted EBITDA mainly reflects a decrease in revenues from roaming services and the conclusion of Hot Mobile’s deferred revenue recognition which were mainly offset by an increase in revenues from cellular packages, a decrease in salary and subco
Slide 21: Cellular segment - First 6 months of 2024
Cellular segment - First 6 months of 2024 The increase in Adjusted EBITDA mainly reflects an increase in revenues from cellular packages, a decrease in salary and subcontractors expenses and a decrease in provisions for lawsuit and others, which were mainly offset by a decrease in revenues from roam
Slide 22: Internet & TV Subs.
Internet & TV Subs. Approx. 89% of internet subscribers Over 80% of TV subscribers are in bundle offerings use fiber-based infrastructure (broadband-based) Internet Subscriber Base Partner TV subscriber base (EOP, '000s) (EOP, '000s) 22
Slide 23: Fixed-line segment – Quarterly Results
Fixed-line segment – Quarterly Results Increase in Adjusted EBITDA reflects an increase in Internet and data service revenues and a decrease in advertising and marketing expenses and other telecoms operator expenses Fixed line - Revenues Fixed line - Adjusted EBITDA & Adjusted EBITDA margin* (NIS, m
Slide 24: Fixed-line segment - First 6 months of 2024
Fixed-line segment - First 6 months of 2024 Increase in Adjusted EBITDA reflects an increase in services and a decrease in advertising and marketing expenses and other telecoms operator expenses Fixed line - Revenues Fixed line - Adjusted EBITDA & Adjusted EBITDA margin* (NIS, million) (NIS, million
Slide 25: Total Company results- Sales of Equipment and Other
Total Company results- Sales of Equipment and Other (NIS, million) Increase in revenues in the quarter compared to the corresponding quarter was impacted mainly by an increase in cellular equipment sales, partially offset by a decrease in equipment and license integration sales to business customers
Slide 26: Total Company results- Adjusted EBITDA
Total Company results- Adjusted EBITDA (NIS, million) Adjusted EBITDA totaled NIS 283 million in Q2’24, an increase of 4% from NIS 272 million in the corresponding quarter Quarter Period * Adjusted EBITDA margin excl. interconnect charges totaled 38% & 37% in Q2’24 & H1’24 respectively compared with
Slide 27: Total Company results- Net Profit
Total Company results- Net Profit (NIS, million) Net Profit totaled NIS 57 million in Q2’24, an increase of 6% from NIS 54 million in the corresponding quarter Quarter Period 27
Slide 28: Total Company results- Capital Expenditures (cash)
Total Company results- Capital Expenditures (cash) (NIS, million) The Company expects Cash CAPEX in 2024 will decrease and amount to approximately NIS 550 million, compared to approximately NIS 656 million in 2023 Quarter Period 28
Slide 29: Total Company results- Adjusted Free Cash Flow
Total Company results- Adjusted Free Cash Flow (NIS, million) Decrease in Adjusted FCF resulted mainly due to changes in working capital including an increase in IRU payments, offset by a decrease in Cash CAPEX Quarter Period 29
Slide 30: Net Financial Debt & Repayment Schedule
Net Financial Debt & Repayment Schedule In May 2024 S&P Ma’alot upgraded its Rating from ‘ilA+’ to ‘ilAA-’ due to improved financial metrics, Rating’s Outlook - Stable Net Financial Debt (NIS, million)/Net Financial Debt to Repayment Schedule Notes & Loans Adjusted EBITDA (NIS, million) As of June 3
Slide 31: In Conclusion
In Conclusion ▪ Continuing improvement processes which lead to cost cutting and to improvements in sales effectiveness ▪ Investing in the future and in innovation: Accelerating of 5G sites deployment & launching of 5G SA ▪ Continued focus on Cellular value propositions including 5G packages hello fu
Slide 32: Let’s stay in touch
Let’s stay in touch Amir Adar Head of Investor Relations & Corporate Projects +972 (54) 781 5051 investors@partner.co.il Investor website: www.partner.co.il/en/Investors-Relations/lobby 32
Slide 33: Thank you
Thank you 33
Partner Communications Company — Q2 2024 Earnings Presentation on 6ix