Partner Communications Clocks 3% Revenue Growth In Q1 Aided By Service Revenue

Partner Communications Company Ltd PTNR reported first-quarter FY22 revenue growth of 3% year-on-year to $269 million.
Service revenue rose 8% Y/Y to $217 million, and Equipment revenue fell 15% Y/Y to $52 million.
Service revenues for the cellular segment increased 7% Y/Y to $139 million, and the fixed-line segment rose 8% Y/Y to $88 million.
Cellular ARPU was flat Y/Y at $15; Cellular Subscriber Base rose 6% Y/Y to 3.06 million. The Cellular Churn Rate fell 20 basis points to 6.7%.
Fiber-Optic Subscriber Base rose 50.3% Y/Y to 233 thousand subscribers, Homes Connected (HC) to Partner's Fiber-Optic Infrastructure rose 49.8% Y/Y to 770 thousand. Infrastructure-Based Internet Subscriber Base rose 14.2% Y/Y to 387 thousand subscribers, and TV Subscriber Base declined 3.8% Y/Y to 225 thousand subscribers.
The gross margin from equipment sales contracted 153 basis points to 20.1%, reflecting the decrease in wholesale sales in the cellular segment and the decrease in fixed-line sales.
EPS was $0.07.
Adjusted EBITDA margin expanded 500 basis points to 30%.
Partner Communications generated $75 million from operating cash flow and held $233 million in cash and equivalents.
Price Action: PTNR shares closed higher by 4.70% at $7.24 on Monday.