Jordan Telecom has reported a net profit of JD41.3m ($58m) for the first half of the year, a 9.5 per cent decline since the same period last year caused by lower earnings before interest and taxes and lower interest rates on bank deposits.
Revenue for the first half of the year reached JD202m, up 3 per cent from the same period last year and the group’s subscriber base grew by 12 per cent to reach 3.37 million.
Jordan Telecom, which is 51 per cent owned by France Telecom, was the first operator to offer third-generation (3G) services in the country, having secured the licence in August 2009.
Higher expenses relating to 3G and interconnection costs have also dented profits. The company has budgeted JD50m this year to develop 3G services in a bid to benefit from the rise in smartphone sales.
During the first four months of 2011, Jordan imported JD60m’s worth of mobile devices, a rise of 26 per cent since the same period last year.