Paltel 1H revenues rise, but profit falls on investment losses

19 Aug 2010

Palestinian fixed line incumbent Palestine Telecommunications Company (Paltel) has unveiled its financial results for the six months ended 30 June 2010, revealing an 8.5% year-on-year increase in revenues. For the six-month period Paltel generated turnover of AED856.35 million (USD233 million), with revenues from both its fixed line and mobile voice services rising 12% and 8% y-o-y respectively, although data service remained relatively flat, down 0.07%. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) in the first half of the operator’s 2010 fiscal year were AED367.26 million, up 8% compared to the AED339.92 million reported in the same period a year earlier. Despite the revenue increase, Paltel posted a net income of AED213.07 million in 1H 2010, down 13.4% y-o-y, with the company attributing the decline to investment losses which totalled AED19.1 million in 1H10 compared to AED1.92 million a year earlier.

In operational terms, at end-June 2010 Paltel had a fixed voice customer base of 404,187, a 12.1% increase against the 360,534 it had at end-June 2009, with the growth attributed to a new range of acquisition campaigns, and ADSL subscriber numbers stood at 102,389, up 21.4% y-o-y. Palestine Cellular Communications Company (Palcel), Paltel’s mobile subsidiary, meanwhile reported subscriber growth of more than 30% to see its total customer numbers surpass the two million mark, ending the period with 2.07 million.