Palestine Telecommunications Company (PalTel) Announces End of Year Financial Results for 2011
RAMALLAH, Palestine, February 23, 2012 /PRNewswire/ –
- 9.4% Growth in Net Revenues to reach US$ 522m - 14.6% Growth in EBITDA to reach US$ 232m - 13.7% Growth in Operating Income (EBIT) to reach US$ 179m - 11.6% Growth in Net Income Before Tax (EBT) to reach US$ 142m - 5.1% Growth rate in Net Income - Net Income reached US$ 128m - Total Assets reached US$ 811m - Shareholders Equity reached US$ 605m
End of 2011 Year Results
Sabih Masri, Chairman of the Palestine Telecommunications Company, PalTel announced
the financial results for year end 2011 at a Board of Directors meeting held earlier this
month in Amman, Jordan.
Consolidated net operating revenues grew by 9.4% to reach US$ 522m at the end of year
2011 compared with US$ 477m at the end of year 2010. In regards to the operating revenues
of each segment, the company achieved a growth in its mobile, fixed Line and data revenues
by 9.7%, 4.6%, and 81.4% respectively.
The consolidated operating income for the company reached US$ 179m by the end of year
2011 compared with US$ 158m by the end of year 2010, a growth of 13.7%. This growth was
achieved by an increase in consolidated revenues
and in light of the positive effect of the new operating strategy focusing management
efforts on core telecom functions and outsourcing support functions.
The consolidated net income increased by 5.1% to stand at US$ 128m at the end of year
2011 compared with US$ 122m at the end of year 2010. The increase is operationally driven
resulting from a dual strategy of maintaining existing customer loyalty and wining new
customers across all segments. The growth in customer base was achieved across all core
business including fixed line services.
Sabih Masri, Chairman of PalTel emphasized that, “the Group was able to achieve
another impeccable set of operational results despite a difficult year of increased
competition, regional turmoil and lingering financial crisis in global markets. The Group
was able to wither the storm and achieve growth on all fronts continuing to gain customer
confidence and brand recognition for reliable services. He also added, “The Group is
forging ahead with its plans to lay the foundation for state of the art technology
services; gaining an edge over its competitors and leading the path in building technology
connectivity in Palestine.”
Ammar Aker, CEO of Paltel Group stated, “We are proud to end 2011 with such positive
results, during which we coped with increased exogenous challenges, and relied on our
innate capacities and solid marketing schemes to gain more foothold in market share. We
will continue aiming at gaining more market share from the remaining customer base still
available for telecom inclusion. “We continue to be challenged by regional and global
upsets in the financial markets affecting the general investment climate, despite the fact
that our operational results are healthy and upward oriented.
Current Operating Performance
The number of fixed line subscribers witnessed 6.1% growth rate to stand at 385K
subscribers compared with 363K as of the end of FY-2010. This growth resulted from new
The average monthly revenue per fixed line subscriber reached US$21.1 at the end of
year 2011 compared with US$20.2 at the end of FY-2010.
Mobile subscribers grew by 7.4 % to stand at 2.42m at the end of year 2011 compared
with 2.26m at the end of FY-2010. The composition (split between) of the prepaid and
postpaid subscribers was 90% and 10% respectively.
This growth in the number of mobile subscribers was affected by several acquisition
campaigns and new products and services that targeted existing and prospective customers.
The blended ARPU declined by 1.8% to reach US$15.1/subscriber/month compared with
US$15.4/subscriber/month in year 2010. This decrease in the ARPU is attributable to the
larger customer base, low ARPU of the new customers and to offering larger discounts to
The data segment achieved a 44.5% growth rate in the number of ADSL lines to stand at
156K lines by FY 2011 compared with 108K lines as of the end of FY-2010. This increase in
customer base was accompanied by a decline in ARPU which reached US$18.8 in 2011 compared
to US$25.8 by year end 2010. In addition, penetration rate of the ADSL lines (per
landline) increased from 29.8% at the end of FY-2010 to 40.5% at the end year 2011.
The Group will continue to grow its customer base in its core services, Mobile, Fixed
Line and Data services while meeting the demands of customers who will be able to benefit
from the group’s edge in investing in state of the art technology. The Group will continue
to serve its customers in Gaza and remote marginalized areas of the West Bank while
retaining current customers. The Group will continue to focus its marketing energy on an
ever younger market that will promise more operational yields. The Group is increasing its
social investments via the Paltel Group Foundation in the year ahead to meet an increasing
developmental need in Palestine in the realm of bridging the digital divide towards
building more connectivity in the country.
Palestine Telecommunication Company (“PalTel”) is an integrated telecom operator
offering fixed, mobile, Internet and data services throughout Palestine. Paltel is
publicly listed on the Palestinian Stock Exchange (PEX). Paltel owns majority equity
ownership in Paltel (fixed line operator), Jawwal (Mobile Operator), Reach (Contact
Center), Palmedia (Information and Media Services Provider), Hulul (Business Solutions
Provider) and Hadara (ISP Services). Paltel also owns equity in VTel Holdings a
Dubai-based multinational telecommunications company with interests in Middle East, Africa
and Europe. As of January 31, 2012 Jawwal had 2.4 million mobile customers, Paltel had
385K fixed line customers and 152K ADSL customers. For more information, please visit
Contact Person Ms. Neda Morrar Director of International Corporate Communications Paltel Group Tel: +970-2-294-4006 Mob: +970-599-579-355 email@example.com
SOURCE PalTel Group