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    Michael Klahr

    Research Analyst at Citigroup

    Michael Klahr's questions to PARTNER COMMUNICATIONS CO (PTNRF) leadership

    Michael Klahr's questions to PARTNER COMMUNICATIONS CO (PTNRF) leadership • Q1 2017

    Question

    Michael Klahr of Citigroup asked for a breakdown of the significant reduction in operating costs, seeking to understand how much of the decline was sustainable versus seasonal or related to one-time rebranding efforts. He also questioned revenue trends in both mobile (competition, subscriber mix between Partner and 012 brands) and fixed-line (drivers of decline).

    Answer

    CFO David Mizrahi attributed the cost reduction primarily to sustainable efficiency measures, with a smaller portion due to seasonality, and emphasized management's ongoing focus on cost control. CEO Isaac Benbenisti added that the completed merger of the 012 and Partner brands into a single call center and database created major efficiencies. On revenue, Mizrahi noted stabilizing ARPU in mobile and declining ILD/ISP revenues in fixed-line, but declined to disclose the subscriber mix between brands.

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    Michael Klahr's questions to PARTNER COMMUNICATIONS CO (PTNRF) leadership • Q4 2016

    Question

    Michael Klahr of Citibank asked for an outlook on the mobile market, specifically when an inflection point for ARPU might be reached given current competition. He also questioned the sustainability of the current low mobile CapEx levels.

    Answer

    CEO Isaac Benbenisti opined that the Israeli mobile market is at a turning point due to unsustainably low prices and expects a change post-2017 to support future 5G investments. Regarding capital expenditures, Benbenisti confirmed that current lower levels are sustainable due to significant savings and efficiencies, and the company does not foresee returning to historical highs in the near term.

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    Michael Klahr's questions to PARTNER COMMUNICATIONS CO (PTNRF) leadership • Q3 2016

    Question

    Michael Klahr of Citigroup inquired about the anticipated costs and profitability impact of Partner's planned entry into the TV market, and the potential cost benefits from the proposed Arrangements Law, particularly regarding access to Bezeq's infrastructure.

    Answer

    CFO Ziv Leitman stated that while specific costs for the TV project are not disclosed, a negative impact on EBITDA is expected in the first half of the year before significant subscriber growth. He added that the Arrangements Law could reduce costs by enabling passive wholesale access to Bezeq's infrastructure and by implementing a 'must-sell' requirement for sports content. CEO Isaac Benbenisti emphasized that the 'must-sell' provision is crucial for a competitive market entry and that their strategy is to offer a differentiated TV solution.

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