Orange Jordan’s 2008 results highlight challenges

Orange Jordan’s 2008 net profit grew 6.1 per cent from a year earlier to JD100.3 million (US$141.5 million), on the back of a strong performance from its Internet services business.

Orange Jordan’s mobile subscribers grew 2.6 per cent to 1.75 million as of end-2008, but faces stiff competition from market leader Zain which had 2.253 million customers at the end of September 2008

Orange Jordan provides fixed, mobile and Internet services, and while overall revenues remained flat, increasing by only 0.9 per cent to JD401.4 million for the year, the contribution from Internet services rose by 52.9 per cent to JD21.1 million.

The operator is 51 per cent owned by France Telecom and is the sole fixed-line operator, yet faces stiff competition in the mobile realm from Zain, Umniah and iDEN operator Xpress. There are also several smaller Internet providers present in the market.

Mobile subscribers grew 2.6 per cent to 1.75 million customers, Internet subscribers rose 55.6 per cent to 102,000, while fixed subscribers increased by a mere 0.5 per cent to 663,400. In comparison, market leader Zain counted 2.253 million mobile customers as of end-September, and is yet to announce its full-year results.

Orange Jordan attributed the overall diminishing growth rate to a weakening economy, while saying the fast-growing data services unit would offset the falling revenues of its fixed business, which decreased by 4.7 per cent year-on-year.