Paltel Announces Substantial Growth for the 1st Quarter of 2010
The Palestinian Telecommunications Company, Paltel announced its financial results of the first quarter for 2010 exceeding all expectations despite the advent of competition and continued market liberalization. The announcement coincides with mobile operator Jawwal's declaration of reaching the 2 million subscriber threshold, guided by a strategy to increase efficiencies and market share.Paltel's consolidated net operating revenues have grown by 9.82% to reach US$113.06 million at the end of the first quarter for 2010 compared with US $102.95 million at the end of the first quarter of 2009.
This comes as a result of the increase in operating revenues achieved by the company in its mobile, media and data services which rose by 15.65%, 43.95% and 0.76% respectively. The consolidated operating income for the company reached US $37.63 million by the end of the first quarter for 2010 compared with US $32.87 million by the end of the first quarter of 2009, a growth of 14.49% achieved through an increase in the consolidated revenues and in light of the positive effect of the new operating policy focusing management efforts on core telecom functions. The financial results were also influenced by the strategy, as a result net income increased by 20.77% to stand at US $32.66 million end of the first quarter, 2010 compared with US $27.05 million end of the first quarter, 2009.
Based on the quarterly results, the company will continue enhancing commercial opportunities while optimizing operations by focusing on the company's core business, relying on outsourcing for non-core services. CEO of Paltel Group, Mr. Ammar Aker, stated "that the financial results are the best proof of the company's wise decision to re-focus on core services and is confident in the Group's ability to continue its success in the next quarter." Mr. Aker further added, "due to the liberalization of telecommunications sector in the Palestinian market, the company has created a new business strategy to increase its subscriber base.
Due to the recent changes in the market place, Paltel is currently undergoing restructuring in order to focus on its core telecom services which will include re-examining and reviewing business models that involve its investments in various non telecom SME's throughout the country.
© 2010 Al Bawaba (www.albawaba.com)
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