Partner Communications Co. Ltd. · TASE:PTNR
Partner Communications — Q1 2025 Earnings Presentation
34 slides from Partner Communications's earnings presentation, May 13, 2025
Slide 1: Investors Presentation Q1 2025
Partner Communications Company Ltd. Investors Presentation Q1 - 2025 May 13, 2025
Slide 2: Disclaimer
This presentation was prepared by Partner Communications Company This presentation may include data that the Company has collected from Ltd. (the “Company”). This presentation is intended to serve the public third parties whose correctness the Company cannot guarantee since it investing in the Compa
Slide 3: Contents
The Company, its business and activity in the reporting period Cellular segment Fixed-line segment Consolidated Company Contents 3
Slide 4: Strategic focus areas
▪ Focus on cellular value-add packages ▪ Establishment of a 5G SA Core Network, rollout of 5G technology, and leveraging 5G capabilities to expand the mobile services portfolio ▪ Realization of IRU fiber agreement > Rights-of-use of Bezeq infrastructure for a long period of use ▪ Broad accessibility
Slide 5: Highlights
Highlights 5G Increase of 11 thousand As a Result of Growth in during the quarter Subscriber Lines and ARPU compared to the ilAA- with a stable outlook corresponding quarter 5
Slide 6: Summary of financial results
Summary of financial results NIS millions Service revenues Equipment Sales Adjusted EBITDA (1) excluding interconnect fees Revenues Net profit CAPEX (2) Adjusted Free Cash Flow + + The rates of change are compared to the corresponding period (1) Adjusted EBITDA - EBITDA excluding one-time losses/gai
Slide 7: Summary of operating segments
Summary of operating segments NIS millions Service Revenues Adjusted EBITDA (1) Operating profit excluding interconnect fees Service Revenues Adjusted EBITDA (1) Operating profit excluding interconnect fees The rates of change are compared to the corresponding period (1) Adjusted EBITDA - EBITDA exc
Slide 8: Summary of operational performance
Summary of operational performance Post-paid subscribers Pre-paid subscribers 5G package subscribers (thousands) (thousands) (thousands) - - + Cellular ARPU NIS Fiber subscribers Internet ARPU NIS TV subscribers excluding interconnect fees (thousands) (thousands) + + + The change and rates of change
Slide 9: Impact of the war on the Company's activities
The consequences of the war on the Company's activities so far have mainly manifested in the impairment of revenues from roaming services, as a consequence of the effects of the fighting on domestic demand for international tourism and the provision of flights by airlines, as well as a certain decre
Slide 10: Dividend distribution
On March 9, 2025, the Company’s Board of Directors resolved to distribute a cash dividend to the shareholders of the Company, amounting to approx. NIS 250 million The dividend was paid on March 25, 2025 The Company has not adopted a dividend distribution policy. The Company will review, from time to
Slide 11: CAPEX forecast
CAPEX(1) is expected to be 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 Company's estimates, assumptions and expectations i
Slide 12: Cellular segment
Partner 5G Cellular segment Q1 - 2025
Slide 13: Subscribers and churn rate
Subscribers and churn rate Over of cellular subscribers are post-paid subscribers » The number of cellular subscribers decreased by approx. 5 thousand compared to the end of Q1-24, and by approx. 1 thousand subscribers compared to the end of the previous quarter » The decrease compared to the corres
Slide 14: Cellular ARPU
NIS/month » The increase in ARPU* in the quarter compared to the corresponding quarter reflects an increase in revenues from roaming services and in revenues from cellular packages, which was partially offset by the end of recognition of deferred revenues from HOT Mobile Cellular ARPU (NIS/month) 51
Slide 15: Cellular revenues
Revenues NIS millions » The decrease in revenues in the quarter compared to the corresponding quarter was mainly due to a decrease in revenue from interconnect fees (as a result of the reduction in connectivity rates) as well as due to the end of recognition of deferred revenue from HOT Mobile, whic
Slide 16: Cellular Adjusted EBITDA
Adjusted EBITDA NIS millions » The decrease in Adjusted EBITDA for the quarter relative to the corresponding quarter was primarily due to the end of the recognition of deferred revenue from HOT Mobile, an increase in frequency fees expenses and a decrease in gross profit from the sales of equipment
Slide 17: Fixed-line segment
Partner 5G Fixed-line segment Q1 - 2025
Slide 18: Internet subscribers
Internet subscribers Over of Internet subscribers are on fiber infrastructure » The number of fiber-optic subscribers amounted to approx. 446 thousand subscribers and increased by approx. 57 thousand subscribers compared to the end of the corresponding quarter, and by approx. 11 thousand subscribers
Slide 19: Internet ARPU
NIS/month » The increase in ARPU was primarily due to connecting customers to high speed fiber internet infrastructure packages Internet ARPU (NIS/month) 89 91 90 91 92 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 19
Slide 20: TV subscribers
TV subscribers TV subscribers (000' end of period) Approx. 206 205 205 203 200 of TV subscribers are in integrated Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Internet-based packages 20
Slide 21: Fixed-line revenues
Revenues NIS millions » The increase in revenue compared to the corresponding quarter was mainly due to growth in revenues from Internet and business data service Fixed-line - Quarterly revenues 376 324 316 17 333 329 19 10 2 14 10 2 2 1 1 357 303 304 318 318 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Service re
Slide 22: Fixed-line Adjusted EBITDA
Adjusted EBITDA NIS millions » The increase in the Adjusted EBITDA in the quarter compared to the corresponding quarter stemmed mainly from growth in revenue from Internet and business data services Fixed-line - Quarterly Adjusted EBITDA and percentage of revenue* 200 36% 37% 40% 33% 35% 180 35% 160
Slide 23: Consolidated Company
Partner 5G Consolidated Company Q1 -2025
Slide 24: Consolidated revenues
Revenues NIS millions » In the first quarter of 2025, revenues from services, excluding interconnect fees, increased by approx. 4%, mainly due to growth in revenues from fixed-line services and also from an increase in revenues from roaming services compared to the corresponding quarter, which suffe
Slide 25: Equipment Sales
Equipment Sales NIS millions » The Company's revenues from the sale of end equipment decreased by approximately 12% compared to the corresponding quarter, the decrease primarily explained by a decrease in cellular equipment sales Equipment Sales Quarterly 400 19% 21% 350 14% 14% 16% 300 11% 250 8% 1
Slide 26: Expenses
Expenses NIS millions » The decrease in the cost of revenue from services in the quarter was mainly due to a decrease in interconnect fees (mainly as a result of a reduction in connectivity rates). The decrease was partially offset by an increase in frequency fee expenses resulting from the end of t
Slide 27: Adjusted EBITDA
Adjusted EBITDA NIS millions » The increase in the Company’s Adjusted EBITDA in the quarter compared to the corresponding quarter is mainly explained by growth in revenues from fixed-line services, an increase in roaming service revenues, and revenues from mobile packages. These were partially offse
Slide 28: Net profit
Net profit NIS millions » The Company's net profit in the quarter increased by approx. 16% and amounted to approx. NIS 64 million compared to approx. NIS 55 million in the corresponding quarter Net profit - Quarterly 85 80 64 55 57 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 28
Slide 29: CAPEX
CAPEX NIS millions » The cash flow investment in fixed and intangible assets (CAPEX) in the first quarter of 2025 amounted to approx. NIS 118 million compared to approx. NIS 172 million in the corresponding quarter » CAPEX is expected to total between NIS 450-500 million for the year 2025 CAPEX - Fi
Slide 30: Adjusted Free Cash Flow
Adjusted Free Cash Flow NIS millions » The Adjusted Free Cash Flow in the quarter was mainly influenced by a decrease in CAPEX payments and changes in working capital, which were partially offset by an increase in payments for the right-to-use Bezeq's infrastructure Adjusted Free Cash Flow - Quarter
Slide 31: Financial debt and repayment schedule
Financial debt and repayment schedule NIS millions » In May 2025, Standard & Poor’s Maalot Ltd. reaffirmed the Company’s ilAA- rating with a Stable outlook for the Company and its bond series Net Financial Debt / Net Financial Debt to Adjusted Repayment Schedule: Notes & Loans EBITDA a/o Dec 31, 202
Slide 32: Partner in numbers - 2024
Partner in numbers - 2024 consecutive years of Partner’s senior of the Company’s employees with of all employees - Platinum+ ESG management are managers are women disabilities who have volunteer. Together they Maala rating women a 1% increase been integrated into contributed approx. Partner 5,000 vo
Slide 33: Strategic priorities going forward
▪ Deployment of 5G technology, with a focus on cellular value-add packages ▪ Growth in fiber subscriptions and Internet revenues ▪ Execution of fiber-based infrastructure projects ▪ Continued improvements in sales effectiveness ▪ Improvements in profitability indicators and growth in the Free Cash F
Slide 34: Thank You
investors@partner.co.il www.partner.co.il/en/Investors-Relations/lobby Thank You 34
Partner Communications Company — Q1 2025 Earnings Presentation on 6ix