Paltel Group, a telecom leader in Palestine providing mobile, fixed and data services, has posted consolidated net operating revenues of $516 million in 2012, as against $522.7 million in 2011, marking a decrease of 1.3 per cent.

The results reflect stable performance across operating indicators and growth in EBT despite the current economic downturn in Palestine. The country continues to be affected by changes in the taxation laws, fluctuation in currency exchange rates and the overall slowdown in economic activities in the region.

The Earnings before Tax (EBT) reached $149 million compared with $142.5 million reflecting a growth of 4.6 per cent and this reflects a steady growth in operational indicators from last year, a company statement said.

Net income reached $115.8 million compared with $128 million reflecting a decrease of 9.5 per cent from the previous year which is attributed to the government decision to postpone the investment encouragement 50 per cent tax exemption for an additional two years.

In addition, the tax has been raised from 7.5 per cent in the previous year to 20 per cent in 2012 as per a new tax law that was implemented at the beginning of 2012 to raise income tax from 15 per cent to 20 per cent.

Sabih Masri, chairman of Paltel Group, said: “The consolidated net operating revenues and the net income do not solely reflect the performance indicators of the group. On the contrary, the group achieved significant growth in its customer base in both the fixed and mobile lines which also applies to ADSL subscribers.”