Investors might want to turn a deaf ear to Jordan Telecom Group (JTG) as crowded competition and a saturated mobile market has slowed growth in the country's incumbent player to a crawl.
Despite having the most liberalised telecommunications sector in the Middle East, JTG has seen its revenues slip over the past few years from 401.4 million Jordanian dinars in 2008 to 396.4m dinars last year.
JTG's business has been hit by the influx of three other competitors in the local mobile market, now the most lucrative business for telecoms operators generally, which has driven calling rates lower, said a recent report by Rasmala Investment Bank.
JTG operates the mobile service Orange Telecom as well as Jordan Telecom, which handles the company's fixed-line operations.
France Telecom is JTG's main shareholder with 51 per cent of the company, while various Jordanian institutions hold 32 per cent and Noor Telecom owns 10 per cent. The remaining 7 per cent is publicly traded.
JTG is the second-largest mobile operator in Jordan with 29 per cent of the market, behind Zain Jordan, which has a 43 per cent share. Umniah, which is owned by Batelco, has 27 per cent of the market while XPress is at 1 per cent.
Rasmala initiated coverage of JTG on Tuesday with a "sell" recommendation and a 12-month target of 4.43 dinars.
Shrouk Diab, a telecoms analyst with Rasmala, said: "With the wireless segment of the Jordanian market almost at saturation levels, we believe that future growth will be correlated with growth in the internet and data segment.
"With its cash and know-how, JTG seems in a good position to take advantage of opportunities that may arise, all of which should provide some stability to the company's revenues."
However, Ms Diab forecasts the company's revenue growth to be just 1 per cent over the next four years.
"We believe that cost efficiency, at the operational level in particular, will be the main driver of bottom-line growth over the next few years," she said.
[ dgeorgecosh@thenational.ae ]
Emiratisation at work
Emiratisation was introduced in the UAE more than 10 years ago
It aims to boost the number of citizens in the workforce particularly in the private sector.
Growing the number of Emiratis in the workplace will help the UAE reduce dependence on overseas workers
The Cabinet in December last year, approved a national fund for Emirati jobseekers and guaranteed citizens working in the private sector a comparable pension
President Sheikh Khalifa has described Emiratisation as “a true measure for success”.
During the UAE’s 48th National Day, Sheikh Khalifa named education, entrepreneurship, Emiratisation and space travel among cornerstones of national development
More than 80 per cent of Emiratis work in the federal or local government as per 2017 statistics
The Emiratisation programme includes the creation of 20,000 new jobs for UAE citizens
UAE citizens will be given priority in managerial positions in the government sphere
The purpose is to raise the contribution of UAE nationals in the job market and create a diverse workforce of citizens
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“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”
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