• Home
• /
• Business

Paltel picks a difficult time to debut ADSM

DUBAI — Market newcomer, Palestinian Telecommunications Company (Paltel), picked a difficult time to make its ADSM debut.

With the year end slump in the local markets, its share prices have slipped from an opening of Dh80 per share to Dh74.10, a fall of 7.38 per cent.

As of the end of the 3rd quarter of 2005, Paltel's shareholder's equity was at Dh965.42 million, and in the first nine months of 2005 had generated net profits of Dh280.68 million with earnings per share about Dh2.77 for the same period.

Paltel has been very active in 2005 in terms of expansion. In February Paltel and its subsidiary, Palestine Cellular Communications Company Ltd. (Palcel), established Hadara for Technological Investment Company Ltd. (Hadara) to specialize in internet services. Hadara' had an authorised share capital of 7.1 million shares with Dh5.18 par value each, for a total of Dh36.778 million. Hadara is 75 per cent owned by Paltel and 25 per cent by Palcel.

In July 2005 Hadara purchased Palnet Company and its subsidiaries, InterPal Company, Vision Company and Palestine Internet Services for Dh9.91 million. Paltel bought out Palestine On Line Company (POL) in July for Dh3.76 million as well.

Also in July, Paltel and Palcel established a specialised media services company called Palmedia. Paltel maintained 75 per cent ownership of Palmedia while Palcel held 25 per cent. Palmedia went on to purchase Point 9 Company and Vision for Dh1.47 million with ownership rights of Vision being sold to Palmedia in September of 2005. With such expansion and investment and growth Paltel's mild splash in the ADSM is rather disappointing but 2006 should bear the fruits of this years investments.