Paltel Group Announces Financial Results for the Period Ending 30th of September 2013, Net Profit Increased by 9.5% to Stand at US$ 96.8 Million
RAMALLAH, Palestine, November 12, 2013 /PRNewswire/ --
2.2% growth in Net Revenues to reach US$ 397m (vs. Q3, 2012)
4.2% growth in Operating Income to reach US$ 129m (vs. Q3, 2012)
5.3% growth in EBITDA to reach US$ 175m (vs. Q3, 2012)
9.5% growth in Net Income to reach US$ 97m (vs. Q3, 2012)
9.5% growth in EPS to reach US$0.73 (vs. Q3, 2012)
7.3% growth in CAPEX to reach US$ 32m (vs. Q3, 2012)
2.3% growth in total number of subscribers (Fixed, Mobile, Data) (vs. End of year 2012)
Paltel Group, the telecommunications leader in Palestine providing mobile, fixed and data services announced its financial results for the period ending 30th September 2013. The results showed an increase in net profit of 9.5% to reach US$ 96.8 million compared to a net profit of US$ 88.3 million for the same period of previous year. The earnings per share (EPS) marked an increase of 9.5% to stand at US$ 0.735 compared with US$ 0.671 for the same period of 2012.
The consolidated net operating revenues reached US$ 397.2 million compared with US$ 388.5 million in same period of 2012 reflecting an increase of 2.2% from the previous year. The gross profit, EBITDA and net profit margins achieved growth by 79.8%, 43.9% and 24.3 respectively. The company reported a decrease of US$ 4.8 million in investment losses to reach US$ 2.8 million compared to US$ 7.6 million during the same period of previous year, this decrease has contributed to the positive results of this year, furthermore it is expected that investment losses will shrink further in the future as the company is changing its strategy in terms of regional investments throughout Vtel the international investment arm of which Paltel owns 25.3% stakes.
Sabih Masri, Chairman of the Paltel Group Board of Directors, stated that Paltel Group financial results in the third quarter 2013 form an indicator of the Group's ability to grow in both financial and operational directions. This growth is a result of the Group's diversity of investments in Palestinian and regional markets according to a well-studied, revised strategy that guarantees rewarding results for the investors of PALTEL. Simultaneously, Paltel Group continued to invest in its telecom network in Palestine within a comprehensive development process of which economic development is an integral part. Such investment in the network aims at providing most recent services to Palestinians to help them shape their economic, social and cultural future. On the other hand, such investment will result in rewarding returns to investors in parallel with the Group's regional investments which started to positively influence the Groups' financial performance.
Ammar Aker, CEO of Paltel Group, stated that the Group maintained growth, provision of modern services and commitment to social responsibility in spite of the existing economic and social difficulties in the region. "The Group continued to give distinguished offers to subscribers that meet their expectations in the light of technology development, which resulted in sustainable growth though the 3G and 4G frequencies are still banned by Israeli authorities" Aker added.
Aker pointed that Palestine shows a huge demand on technology and applications, and this is where the Group sees the opportunity to meet this demand especially in youth sector which represents more than 40% of the population, in addition to the education and community sectors that are yet in the development phase. Therefore, the Group intensified its projects to support technology applications in these key sectors. On the other hand the Group continues to support public and NGO sectors to reach marginalized and underserved communities who need urgent support in different development fields, Aker concluded.
Operating Performance
The total subscriber base of Group companies grew by 2.3% in the first three quarters of 2013 to reach 3.23 million subscribers. This growth in subscriber base covered subscribers in fixed, mobile and data services sectors.
The number of fixed line subscribers grew from 396 thousand at the end of 2012 to 401 thousand at the end of third quarter 2013 reflecting a 1.2% growth. The ARPU for fixed line users grew by 1.0% to reach US$ 19.3 compared with US$ 19.2 at the end of 2012.
The number of ADSL subscribers grew from 185 thousand at the end of 2012 to 208 thousand at the end of third quarter 2013 reflecting a 12.0% growth. The ARPU for ADSL line users grew by 4.3% to reach US$ 14.2 compared with US$ 13.7 at the end of 2012.
The number of mobile line subscribers grew from 2.59 million at the end of 2012 to 2.63 million at the end of third quarter 2013 reflecting a 1.7% growth. The ARPU in mobile line users decreased by 3.5% to reach US$ 12.6 compared to US$ 13.0 at the end of 2012.
Future Outlook
The company is maintaining a stable growth in both operational and investment activities in Palestine and the region. Based on this stability, the company will continue to search for new opportunities and potential through more investments in the telecoms network in Palestine and will continue to widen its regional investments in order to achieve rewarding results for investors and make their investments profitable and sustainable.
Financial Performance (in Jordanian Dinar)
Consolidated Income Statement
For period ending September 30, 2013
Three months ended Nine months ended
------------------ -----------------
September September September
30, 30, 30, September 30,
2013 2012 2013 2012
JD '000s JD '000s JD '000s JD '000s
-------- -------- -------- --------
Revenues 98,646 92,723 281,602 275,439
Telecommunication services
costs (6,816) (8,799) (21,122) (24,583)
License fees (7,438) (6,609) (21,482) (19,954)
Other costs (4,849) (6,521) (14,412) (18,947)
-------- -------- -------- --------
79,543 70,794 224,586 211,955
Operating and administrative
expenses (46,661) (41,686) (133,281) (124,325)
Loss from investments (1,389) (1,848) (1,955) (5,366)
Finance costs (227) (345) (1,247) (1,134)
Other (expenses) revenues (1,648) 449 (256) (1,242)
-------- -------- -------- --------
Profit before income tax 29,618 27,364 87,847 79,888
Provision for income tax (6,399) (6,162) (19,287) (17,294)
-------- -------- -------- --------
Profit for the period 23,219 21,202 68,560 62,594
-------- -------- -------- --------
Basic and diluted earnings
per share 0.176 0.161 0.521 0.476
-------- -------- -------- --------
Consolidated Statement of Financial Position
September 30, 2013
September 30, December 31,
2013 2012
---- ----
JD '000s JD '000s
-------- --------
Assets
Non-current assets
Property, plant and equipment 191,086 198,651
Intangibles 34,040 34,264
Projects in progress 3,512 3,503
Materials 12,109 15,827
Investment in associate 32,230 38,290
Available-for-sale investments 95,866 84,718
Investment properties 7,138 7,138
Other non-current financial assets 54,413 51,826
-------- --------
430,394 434,217
-------- --------
Current assets
Inventories 5,138 8,881
Accounts receivable 81,214 89,500
Prepayments and other current assets 41,807 30,296
Financial assets held for trading 7,636 7,414
Cash and cash equivalents 61,069 46,213
-------- --------
196,864 182,304
-------- --------
Total Assets 627,258 616,521
-------- --------
Equity and liabilities
Equity
Paid-in share capital 131,625 131,625
Statutory reserve 32,906 32,906
Voluntary reserve 6,756 6,756
Special reserve 7,950 7,950
Foreign currency translation (59) (50)
Available-for-sale reserve (3,200) (593)
Retained earnings 289,308 279,979
-------- --------
Total equity 465,286 458,573
-------- --------
Non-current liabilities
Non-current interest-bearing loans and
borrowings -- 7,090
Provision for employees' indemnity 28,580 29,151
-------- --------
28,580 36,241
-------- --------
Current liabilities
Accounts payable 41,448 41,907
Current interest-bearing loans and borrowings 19,221 15,198
Provision for income tax 2,181 4,373
Other current liabilities 70,542 60,229
-------- --------
133,392 121,707
-------- --------
Total liabilities 161,972 157,948
-------- --------
Total Equity and Liabilities 627,258 616,521
-------- --------
About Paltel
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 a majority equity ownership in Paltel (fixed line operator), Jawwal (Mobile Operator), Reach (Call Centre services), Palmedia (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, Asia and Europe. For more information, please visit www.paltelgroup.ps
For further information please contact
Ms. Fareeda Diab
Director of Investor Relations
Paltel Group
Tel: +970-2-2944004
Mob: +970-59-9000022
Fareeda.diab@paltelgroup.ps
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