PalTel Announces H112 Financial Results
News: Palestinian mobile operator Palestine Telecommunications (Paltel) registered a slight increase of 0.3% y-o-y in revenues to US$258mn in H112. However, net income for the period declined to US$58mn, from US$67mn in H111. The fall is mainly due to the devaluation of the Israeli shekel and the firm's decision to postpone the 50% tax exemption for two years as requested by the government to ease the public financial crisis. The new income tax bracket of 20% introduced by the government in 2012 to replace the earlier 7.5% also impacted the H112 profit.
Palestine is a high-growth market. However, the high security risk and border controls are deterring a lot of potential investors. Q-Tel-owned Wataniya Telecom is the only significant competitor to PalTel, focusing on the high-growth mobile sector.