Ramallah (05/09/2004), Palestine Telecommunication Company discussed in its General Assembly 7th Annual Meeting yesterday in Ramallah and Gaza the Annual administrative and Financial Reports for the fiscal year ending December 31, 2003. Dr. Abdul Malik Jaber, vice CEO of Paltel, chaired the meeting. The following attended: board members, company controller, company external financial auditor, number of shareholders and interested individuals.
The meeting was held via video conferencing to connect Ramallah’s Grand Park Hotel, and Gaza’s Rashad el-Shawa Hall sessions. Video conferencing technology was used to enable interested individuals in the West Bank and Gaza to attend the session.
During the meeting, Dr. Abdul Malik Jaber, vice CEO for Paltel, Executive Council CEO, announced that Paltel managed to improve customers’ services quality and outreach for 2003. Paltel reported a 50% increase (JD 11.5 million) in profits for 2003.
Mr. Omar Al-Horoub, Paltel Company Controller confirmed that a quorum was met with 61.4% of shareholders present. Then he proceeded to open the floor to Dr. Abdul Malik Jaber who delivered a speech and congratulated Paltel for its success and quality services delivery and for achieving positive results despite all difficulties and obstacles faced in 2003. These obstacles resulted in enormous damages to equipments and infrastructure and affected Paltel’s revenues. Despite that, Paltel managed to increase its capacity and report profits.”
After that, both financial and administrative reports for 2003 were ratified. Shareholders in Ramallah and Gaza also approved balance sheet and financial statements for 2003. Shareholders discharged the board and management for the financial year ending December 31, 2004 and approved the appointment of Ernst & Young as auditors for the coming financial year, 2005.
Palestine Telecommunication Company shareholders expressed their satisfaction after the reading of the financial report. One of them said, “Palestine Telecommunication Company is the only Palestinian company to maintain this level of success, despite the severe economic conditions.”
After session adjourned, Dr. Jaber explained: “Paltel has decided to distribute 12% of the share nominal value to shareholders. This step represents a large increase compared to the previous year, whereby only 7% was distributed for 2001 and 2002.” He added that this profit distribution “is due to the strong financial performance of the Company: growth of operational revenues and net profits (50% - JD 11.5 million) exceeding all those attained since the establishment of the Company with net shareholders’ profit of JD 11.5 million and share capital of JD 67.5 million. This fact reflects the strong financial performance of Palestine Telecommunication Company. It is worth mentioning that the book value of Paltel’s stock is JD 1.726, and its market value amounts to 1.8 times its book value. Compared to the stock value of other telecommunication companies in the region (estimated at JD 3.00), Palestine Telecommunication Company’s stock appears to be stronger with a fair value exceeding JD 5.00.”
Mr. Zahi Khoury, CEO for the Palestine Cellular Telecommunications Company (Jawwal) said: “The real asset of Palestine Telecommunication Company is Palestinian subscribers’ satisfaction with its performance, and their loyalty to the one Palestinian telecommunications company, connecting 97% of localities with telephone service, including the rural areas, Paltel services currently cover 512 communities, with 265,000 telephone lines connections.” This is added Khoury: “is the most important achievement of this infantile company since its establishment seven years ago”.
In his turn, Mr. Farouq Zeiter, Palestine Telecommunication Company Executive Board Member and CEO of Palestinian Development and Investment Company (PADICO), which is the largest shareholder company in Paltel –owning around 30% of its shares-, stated his satisfaction with Palestine Telecommunication Company’s profits for 2003 and the percentage of profits distributed to shareholders. Through enhancing level of performance, Palestine Telecommunication Company accomplished these profits.
Mr. Zeiter remarked: “high profits will reinforce Paltel’s financial situation in the Palestinian Stock Market and will assist in financing future expansion projects.” He added that this increase of profit under the current circumstances defiantly indicates more secure and stable profit in case we enjoy stable political situation in the future.
Mr. Mosab Khorma, General Manger of Paltel, stated: “As a national Palestinian company, Palestine Telecommunication Company assumes corporate social responsibility for assisting Palestinian community. The recent campaigns to cut prices and adopt a theme of creativity and excellence in education are only minor segments of Palestine Telecommunication Company’s commitment towards the local community. Paltel is focused on to insure customer and shareholder satisfaction by providing the best quality services in hopes of garnering more profits.”
Mr. Khorma expressed his satisfaction with last year’s achievements. “We are satisfied with what we accomplished in the previous year, despite all challenges and difficulties.” Khorma touched on a few of the most significant achievements in 2003. “Palestine Telecommunication Company adopted the theme of creativity and excellence in education. This project aims at exploring and sponsoring talented children. In addition, Paltel offered 200 scholarships to students in Palestinian universities. Paltel also led a campaign during Ramadan to support Palestinian farmers that had sustained damages due to the Israeli apartheid wall by purchasing a quantity of their olive oil that was then distributed to poor families in cooperation with the Agriculture Relief and Zakat [Islamic Charity] Committees in several localities.”
Shareholders and attendees got a copy of the Annual Report that includes details on the most important achievements of 2003. Among these were introduction of e-services and ISDN in Palestine. These services provide technology for leased digital circuits services, cellular communications (Jawwal) and other services. The Report dedicated one page to describing future projects, mainly Subscription Free Internet (SFI), which will allow customers to connect to the Internet via telephone lines without prior subscription through an Internet Service Provider (ISP). The report contains information about the Recorded Voice Message System project, Costumer Care and Pre-paid Calling Service.
It is worth mentioning that Palestine Telecommunication Company began operations on January 1st, 1997 as the operator and provider of all telecommunications services, installation and operation of telecommunications stations and fixed and mobile phone networks, Internet, data and information exchange services and leased digital circuits. Palestine Telecommunication Company is the first and one company providing communications services and operating in the Palestinian National Authority Territory.
Palestine Telecommunication Company was established in 1995 as a public shareholding company with a paid-up capital of JD 45 million. This was increased in 1999 to JD 67.5 million after capitalization of retained earnings through a decision of the General Assembly. The total number of Paltel shareholders reached 4,991 by the year ending on December 31, 2003. The list of shareholders includes a group of Palestinian individuals, companies, associations and investment entities.
