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FINANCIAL NEWS
Jordan Telecom reports 5.6% decline in profits in 2011
07 Feb 2012
(MENAFN) Jordan Telecom Group (JT) reported 5.6 percent decline in profits to USD126.6 million in 2011 on lower investments income and rising costs, Reuters reported.
The telecom group said revenues of its integrated mobile, internet and fixed-line business rose 2.4 percent to USD579.31 million last year.
JT’s total subscriber base, which includes fixed lines, rose 17.7 percent to 3.55 million in 2011 compared to 3 million in 2010, the company said.
Operating expenses, however, increased 8.7 percent to USD348.87 million, on higher costs of marketing 3G services, while the company earned lower interest on its bank deposits of around USD393.89 million, the company added.
Jordan Telecom saw growth in broadband 3G services boosting the 2011 bottom line amid fierce competition from its rivals Zain and Umniah, and sluggish economic growth.
Chief financial officer Raslan Diraniyah attributed the growth mainly to the fast growing broadband internet services which rose between 20 to 25 percent last year compared to 2010.
The firm’s mobile subsidiary Orange has over 34 percent market penetration.
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