2006 Financial Results for Jordan Telecom Group
34% of the company’s Capital will be the proposed dividends to shareholders:
Jordan Telecom Group’s Board of directors recommended to the General Assembly to distribute 34% of the company’s capital as dividends to shareholders, in aggregate JD 85 million, which represent 340 fils per share. Worth to be mentioned that the company distributed the same dividends to its shareholders in year 2005.
Summary of Results for the Year ended Dec 31st,2006:
Subscriber Base:
| K Subscribers | As of Dec 31st, 2006 | As of Dec 31st, 2005 | Variance (%) |
| Jordan Telecom | 677.1 | 664.0 | 2% |
| MobileCom | 1,405.5 | 750.8 | 87.2% |
| Wanadoo | 38.6 | 27.6 | 40% |
| Total | 2,121.2 | 1,442.4 | 47.1% |
Jordan Telecom group subscriber base witnessed a 47.1% growth, hitting (2.1) Million subscriber as of year end 2006, compared to (1.4) Million subscribers as of year end 2005, chiefly driven by the vast expansion in MobileCom subscriber base that increased by around 87% compared to year end 2005, as illustrated above. In addition to 40% increase in ADSL subscriber base for Wanadoo as a result of the continuous promotional offers and drop in prices. Revenues:
| Year end 2006 | Year end 2005 | Variance (%) |
| 362.9 (MJD) | 352.2 (MJD) | 3.0% |
Jordan Telecom Group revenues reached (362.9 MJD) by year end 2006. JT Group exceeded year 2005 revenues which posted at that time JD 352.2 MJD, revealing a boost by 3%. More explanations are hereinafter:
- Jordan Telecom (Fixed line) revenues stood at 244.1 MJD, a decline by 3.6% over year 2005, the performance however was in a negative manner by year end 2006, mainly as a result of the increasing vigorous competition on the International traffic day by day.
- MobileCom (GSM) revenues reached 140.0 MJD a 21% growth over the pervious year, the growth can be attributed to the expansion in the subscribers base by 87%, which affected the demand positively pushing up the revenues noticeably.
- Wanadoo (ISP) generated revenues of 10.4 MJD by year 2006, a growth of 44.4% over year 2005, which is driven largely by the increasing popularity of the Internet and particularly on the high speed ADSL broadband.
Operating Expenses:
| Year end 2006 | Year end 2005 | Variance (%) |
| 193.8 (MJD) | 182.1 (MJD) | 6.4% |
Jordan Telecom Group Operating expenses before Depreciation and Amortization increased by (11.7 MJD) 6.4% posting (193.8 MJD) at year end 2006, as compared to (182.1 MJD) in year 2005 .This increase can be attributed to the following: 1. Higher Cost of Services by (7.7 MJD) 6.7%, mainly due to the growth in Mobile revenues.
2. Higher Selling and Administration expenses by (1.5 MJD) 2.7%, due to higher advertising and promotions expenses for the Group offers and services.
Gross Operating Profits (EBITDA):
| Year end 2006 | Year end 2005 | Variance (%) |
| 169.1 ( MJD) | 170.1 (MJD) | 0.6% |
Earning before Interest, Tax, Depreciation and Amortization for the Group reached (169.1 MJD) by year end 2006, compared to (170.1 MJD) in year end 2005, representing a minor decrease by 0.6% (1 MJD). This result came as a consequence of higher OPEX by 6.4%, although the revenues witnessed a boom, but that was not enough to cover the increase in OPEX.
Thus, Gross Operating margin went down by 1.7 points reaching 46.6% by year end 2006 compared to 48.3% over year end 2005.
Profit for the Year:
| Year end 2006 | Year end 2005 | Variance (%) |
| 87.0 (MJD) | 86.4 (MJD) | 0.7% |
Jordan Telecom Group generated (87.0 MJD) as net profit for the year ended 2006, with an increase by (0.6 MJD) 0.7% compared to year ended 2005. This solid bottom line was mostly influenced by both lower depreciation and higher interest from deposits.
Capital Expenditures (CAPEX):
Group Capital Expenditures reached (41.7 MJD) with an increase of 22.3% compared to (34.1MJD) over year 2005, due to the expansions in our networks for MobileCom and Data network (Jordan Telecom) in order to bear the growing demand on the network and to ensure customer satisfaction through providing services with high quality and advanced technology.
Closing Cash Balance:
Closing cash balance by the end of year 2006 reached (289.4 MJD) a growth of 33.1% compared to (217.5 MJD) end of year 2005, retaining a strong liquidity position for the Group.