Jordan Telecom posts 2001 results
The Jordanian PTT's revenues rose year on year by 8.4%, net income fell noticeably and EBITDA was up by 3.5%.
Jordan Telecom (JTC) has posted increased revenue but reduced net profits for financial year 2001. The Jordanian PPT, which plans to float some of its equity on the Jordanian stock market this year, grew revenues by 8.4% year on year to JD309 million. Net income fell to JD46 million from JD60 million in 2000.
In its earnings statement, JTC preferred to focus on EBITDA (earnings before interest, taxes, depreciation and amortisation), an alternative, slightly controversial way of assessing a company’s performance. EBITDA for 2001 was JD123 million, compared to JD119 million in 2000.
The decline in net income was attributed to a large increase in capital expenditure, from JD80 million in 2000 to JD103 million in 2001. The company spent significantly on the technical development and marketing of its mobile service, MobileCom.
“2001 was a major threshold for the Jordan Telecom Group as its mobile activities were only beginning to grow in the market and the other new activities such as data and Internet still represented marginal revenues,” the company stated in its annual Activity Report.
“Nonetheless, this threshold was successfully crossed, and once the new activities, especially those of the mobile, become cash flow positive, the new strategy will fully benefit the Group in the mid-term. This is expected to occur within the next two to three years, progressively taking over the market as the fixed activities profitability will be tested due to the competition expected by the end of 2004.”
Annual highlights included the acquisition of an ISP, Global One, and the creation of a new business unit called e-dimension. The company also saw a spectacular rise in mobile subscribers, from 70,000 at the end of December 2000 to 185,000 at the end of 2001.
The earnings statement was signed off by Ernst & Young and audited in accordance with International Standards on Auditing.