Partner Communications Clocks Mixed Q1 Earnings

Partner Communications Co Ltd PTNR reported first-quarter FY21 revenue growth of 3% year-on-year to $250 million.
Service revenue rose 2% Y/Y to $192 million, and Equipment revenue rose 9% Y/Y to $58 million.
Service revenues for the cellular segment declined 2% Y/Y to $124 million, and the fixed-line segment rose 6% Y/Y to $78 million.
Cellular ARPU declined 9% Y/Y to $14; Cellular Subscriber Base rose 8% Y/Y to 2.90 million. The Cellular Churn Rate fell 70 basis points to 6.8%.
Fiber-Optic Subscriber Base rose 78.2% Y/Y to 155 thousand subscribers, Homes Connected (HC) to Partner's Fiber-Optic Infrastructure rose 42.4% Y/Y to 514 thousand. Infrastructure-Based Internet Subscriber Base rose 20.6% Y/Y to 339 thousand subscribers, and TV Subscriber Base rose 17% Y/Y to 234 thousand subscribers.
The gross margin contracted 179 basis points to 17%, and the operating margin contracted 110 basis points to 3.4%.
EPS was $0.01.
Adjusted EBITDA margin contracted 200 basis points to 25%.
Partner Communications generated $62 million from operating cash flow and held $237 million in cash and equivalents.
Price action: PTNR shares closed at $4.8 on Tuesday.