2007 Financial Results for
Jordan Telecom Group
Subscriber Base:
Variance (%) | As of Dec 31st, 2006 | As of Dec 31st,2007 | K Subscribers |
(2.5%) | 677.1 | 660.1 | OrangeFixed |
21.7% | 1405.5 | 1,711.2 | Orange Mobile |
70.2% | 38.6 | 65.7 | Orange Internet |
14.9% | 2,121.2 | 2437.0 | Total |
Jordan Telecom Group subscriber base witnessed a 14.9% growth, hitting (2.4) Million subscribers as of year end 2007, compared to (2.1) Million subscribers as of year end 2006, chiefly driven by Orange Mobile base that increased by 21.7% compared to year end 2006, as illustrated above. In addition to that Orange Internet base witnessed a huge expansion of 70.2%.
Revenues:
Variance (%) | Year end 2006 | Year end 2007 |
9.6% | 362.9 (MJD) | 397.9 (MJD) |
Consolidated revenues for the group posted an increase of 9.6% from JD 362.9 million in year 2006 to JD 397.9 million in year 2007. Presented below are the detailed revenues for eachsegment:
<!--[if !supportLists]--> OrangeFixedexternal revenues dropped by 4.5% in year 2007 to reach JD 210.2million against JD 220.1 million, mainly as a result of the decrease in the fixed subscribers base & traffic.
Orange Mobileexternal revenues reached JD 173.9 million in year 2007, representing a sizeable growth by 31.3% opposed to JD 132.4 million in 2006. The growth was achieved through maximizing traffic revenues by attracting more users.
<!--[if !supportLists]--> Orange Internetrevenues increased by 32.7% to reach JD 13.8million in year 2007 compared to JD 10.4 million in year 2006, which is driven largely by the increasing popularity of the internet and particularly on the high speed ADSL broadband
Operating Expenses:
Variance (%) | Year end 2006 | Year end 2007 |
17.4% | 193.8 (MJD) | (MJD)227.6 |
Jordan Telecom Group Operating expenses before Depreciation and Amortization witnessed an increase of 17.4% to reach JD 227.6 million in year 2007 against JD 193.8 million in year 2006, this increase can basically be attributed to the increase in cost of services that is primarily led by the growth in revenues, the main component that increased the cost of services is interconnection cost, in addition to some exceptional expenses as a one time impact, such as :
<!--[if !supportLists]--> -<!--[endif]--> Rebranding expense as one time impact.
<!--[if !supportLists]--> -<!--[endif]--> End of service expense as one time impact.
Gross Operating Margin (EBITDA):
Variance (%) | Year end 2006 | Year end 2007 |
0.7% | 169.1 (MJD) | 170.3 ( MJD) |
Earning before Interest, Tax, Depreciation and Amortization for the group in year 2007 grow slightly against year 2006, where it stood in year 2007 at JD 170.3 million from JD 169.1 million , showing 0.7% increase.
The EBITDA margin for the Group reached 42.8% as end of year 2007, down from 46.6% last year. This dropdue to the combined effect of higher revenues by (35.0 MJD) and higher OPEX by (33.8 MJD).
Profit for the Period:
Variance (%) | Year end 2006 | Year end 2007 |
8.6% | 87.0 ( MJD) | (MJD)94.5 |
Jordan Telecom Group generated JD 94.5 million as net profit after tax for the year ended 2007, with a remarkable increase by 8.6% compared to year ended 2006. This increase mostly influenced by both lower depreciation and higher interest from deposit.
Capital Expenditures (CAPEX):
Group Capital Expenditure reached JD 59.8million for the year ended 2007, showing an increase of 43.4% compared to the JD 41.7million, as Jordan Telecom Group invested heavily in mobile network in order to be able to bear the increasing demand from its growing subscribers, and in addition to the expansions that took place during the year on data network to prove the importance given by JT to maintain capacity of the networkaccompany the growth and maintain state of the art range of services that leads to an increase in Capex spending.