Partner Communications Reports 17% Net Profit Growth Despite Revenue Decline

Partner Communications Group reported its financial results for the second quarter, showing a slight revenue decline but significant profit growth and subscriber increases. Revenues totaled 790 million shekels, down 1.5% compared to the same quarter last year. However, operating profit rose by 17.5% to 121 million shekels, and net profit increased by 16.7% to 84 million shekels.

The adjusted EBITDA grew by 3.6% to 314 million shekels, representing 40% of revenues compared to 38% in the previous year. Net financial debt stood at 369 million shekels, higher than the year-earlier quarter but lower than the previous quarter. Revenue declines were noted in both cellular and fixed-line services, while equipment sales increased in both sectors. Adjusted free cash flow fell by 20.9% to 106 million shekels, partly due to stocking up on cellular devices for a government tender, where Partner was selected alongside Pelephone to supply cellular services and equipment to state employees, with Partner holding a 40% share.

In the first half of the year, revenues approached 1.6 billion shekels, down 3.2% year-over-year, while operating and net profits rose by double digits to 228 million and 158 million shekels, respectively. The number of cellular subscribers grew to over 2.7 million by the end of Q2, with Partner surpassing one million 5G subscribers for the first time. The average monthly revenue per cellular subscriber (ARPU) was 43 shekels, stable year-over-year and up 2 shekels from the previous quarter.

Internet subscribers reached 500,000, with 480,000 fiber subscribers, including 285,000 on Partner’s own fiber infrastructure. Internet ARPU increased to 96 shekels. Television subscribers rose to 212,000, adding about 5,000 during the quarter.

Partner recently requested court approval to distribute a special dividend of 500 million shekels, financed by issuing 750 million shekels in debt. However, bondholders opposed the move, with only 56% and 43% approval in two bond series, short of the required two-thirds majority. The company’s board approved full redemption of 140 million shekels of one bond series by September 14. The court will decide on the dividend request. If approved, controlling shareholder Ampisa, holding 21.2% of shares, would receive about 106 million shekels.

Partner’s CFO, Miri Takutiel, noted that revenue growth was supported by continued subscriber increases in core services and new TV subscribers from a recently launched service. She highlighted that adjusted free cash flow was impacted by device procurement for the government tender, an effect expected to continue into the second half of 2026. The company awaits the court’s decision on the dividend distribution.