Rosh Ha'ayin, Israel - January 18, 2001 - Partner Communications Company Ltd. (NASDAQ: PTNR), reported on January 7, 2001 net growth totaling 201,000 subscribers for the fourth quarter, and a year end customer base of approximately 834,000, an increase of 32 percent from 633,000 at the end of the third quarter. This was the highest quarterly subscriber growth recorded by the Company since its launch in January 1999, and the highest quarterly net growth ever recorded by a cellular company in Israel. Of the total new subscribers 79,000 were pre-paid customers that joined Partner's "Big Talk" program.
Partner's record subscriber growth this quarter increased Partner's market share to an estimated 20 percent compared to 13 percent at December 31, 1999. The yearly subscriber growth of 480,000 represents a growth of 135 percent. The Company's quarterly churn rate declined to 1.1 percent.
Average monthly usage for the quarter was 361 minutes, versus 427 minutes per month for the comparable quarter last year, and 399 minutes per month for the third quarter 2000. The usage level for the fourth quarter continued to be well above the market and the industry averages. Average monthly revenue per user (ARPU), including in-roaming revenues, was NIS 265 (US$ 65), versus NIS 374 (US$ 92) for the fourth quarter of 1999 and NIS 318 (US$ 79) per month for the third quarter 2000. As previously noted, the dilution in the ARPU was due primarily to the faster than expected expansion of the Company's customer base, which included a large percentage of prepaid and "orange to go" customers; a decrease in roaming traffic, resulting primarily from the recent tension in the Middle East and other seasonal effects.
Management expects that the record subscriber growth achieved this quarter, will not adversely affect its EBITDA target.
The cost of acquiring new subscribers continued to decline. The average subscriber acquisition cost this quarter was NIS 603 (US$ 149), a significant decrease from NIS 1,633 (US$ 404) for the fourth quarter of 1999 and 14 percent lower than the third quarter 2000. This trend is driven primarily by the increased portion of sales of the new "orange to go" and prepaid packages, which have significantly lower handset subsidies.
Network coverage increased from 96 percent of the Israeli population at the end of the fourth quarter of 1999 to 97 percent at December 31, 2000. In order to support the rapidly growing subscriber base, the number of operational base stations grew from 800 macro sites and 46 micro sites at the end of the fourth quarter last year, to 1008 macro sites and 347 micro sites at the end of the fourth quarter, 2000 and the Company's employment roster grew from 1,453 full-time equivalent employees at December 31, 1999 to 2,131 at December 31, 2000.
The company will release its year-end financial results on March 14, 2001.
Partner CEO, Amikam Cohen stated: "Partner's operational results for the fourth quarter and for the entire year, set a new record for the cellular industry in Israel in terms of adding net new subscribers. Partner has delivered the promise it has made when it entered the market two years ago to become a leader in the cellular industry in Israel. Thanks to our loyal customers, our management, our employees, and our shareholders, we are confident we will continue to generate growth and value in the years to come".
Partner Communications will conduct a conference call at 17:00 Israel local time (10:00 EST) on Thursday, January 18, 2001. The teleconference will be broadcast live over the Internet, and may be accessed through Partner's web site at http://investors.partner.co.il. Listeners should go to the web site at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. For those not available to listen to the live broadcast, a replay will be available shortly after the call ends.
Partner Communications Company Ltd. is the only Global System for Mobile Communications, or GSM, mobile telephone network operator in Israel. The Company commenced full commercial operations in January 1999 under the international Orange Brand name and, through its network, provides quality of service and a range of features to over 834,000 subscribers in Israel. Partner provides its subscribers with international roaming services. It has 196 operators in 78 countries. The Company's shares are quoted on NASDAQ under the symbol PTNR and on the London Stock Exchange under the symbol PCCD. (For further information: http://investors.partner.co.il)
| The statements contained in this release which are not historical facts are forward-looking statements with respect to plans, projections or future performance of the Company, the occurrence of which involves certain risks and uncertainties. For a discussion of important factors which could cause actual results to differ materially from such forward-looking statements, refer to the Company's recent filings with the U.S. Securities and Exchange Commission.
The convenience translation of the Adjusted New Israeli Shekel (NIS) figures into US Dollars was made at the rate of exchange prevailing at December 31, 2000: US $1.00 equals 4.041. The translations were made purely for the convenience of the reader. |
Contacts:
Dr. Dan Eldar
V.P. Carrier, Investor and International Relations
Tel: +972-3-9054151
Fax: +972-3-9054161
E-mail: dan.eldar@orange.co.il
Alan Gelman
CFO
Tel: +972-3-9054951
Fax: +972-3-9054987
E-mail: alan.gelman@orange.co.il
(1) We have presented the amounts in nominal NIS. The equivalent adjusted NIS amounts are 370 as of December 31, 1999 and 265 as of December 31, 2000.
(2) We have presented the amounts in nominal NIS. The equivalent adjusted NIS amounts are 1,610 as of December 31, 1999, and 603 as of December 31, 2000.
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