Orange Annual Report 2011
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contents 2011 financial highlights 9 best of 2011 17 disclosure schedule report 27 consolidated financial statements 41 His Majesty King Abdullah II “In economic policy, our focus is on jobs-rich growth, innovation, and new enterprise. National investments in infrastructure and education are continuing - and we are seeing results in the success of sectors like ICT”. 3 a letter from the Chairman sectors. We have also worked toward were crowned by the two regional network boosting internet penetration throughout the projects, the Regional Cable Network (RCN) Kingdom, particularly within governorates — a multi-terabit cable system extending beyond the Capital — an endeavor in which from the UAE through Saudi Arabia, Jordan we are trendsetters. We also introduced a and Syria, all the way into Europe — and wide variety of special offers at competitive the JADI Link cable system — a fiber optic prices, making our services more accessible link that will pass through Jeddah, Amman, to various segments of the community. Damascus, and Istanbul, serving as a robust, more reliable alternative route to existing As for customer care and services, what Mediterranean and Red Sea cable systems set 2011 apart was the launch of “Emtiyaz”, for data traffic between Europe, the Middle a program that aims to bolster customer East and Asia. satisfaction across various touch points throughout our operations. This landmark This is in addition to the continued program stems from our unwavering investments by France Telecom in the commitment to our subscribers and to Technocentre Amman — the Group’s first the remarkable customer services that we Technocentre outside Europe, which is based provide — which include an explicit guarantee at our headquarters in Amman and serves as innovation continues: of addressing any technical problem logged an unmatched innovation department that more investments, more achievements on our fixed or ADSL lines within 72 hours develops unique technology solutions bearing — whether through this program or through the Orange brand. The center offers its Dear Shareholders, any of our call centers, showrooms and services to all companies operating under the their associated customer service centers. France Telecom umbrella in the AMEA region. On behalf of all Board members, it is with The Emtiyaz Program is founded on the Recently, the center celebrated yet another great pleasure that I place in your hands the principles of transparency and clarity when major achievement, receiving the “Best New annual report of the Jordan Telecom Group it comes to our offers and our relationship Service” award at AfricaCom — one of the - Orange for the year 2011. This report with our customers in general. It also lends largest communications conference and highlights a number of key achievements strong focus to the issue of security and “safe exhibition in the AMEA region — for its Surf throughout the year. As we embrace the year browsing”, through which we try to protect & Pay service; an integrated internet usage 2012 with optimism, we hope to continue the children and families in our community and billing management service that blends walking the same trails we have blazed since by ensuring access to content that flows in cutting-edge technology and robust software the privatization of Jordan Telecom in January harmony with our values and ethics. architecture. The solution was developed at 2000. We will continue to deliver qualitative the Technocentre Amman in cooperation with achievements that seek to reinforce our We have developed and improved all Orange R&D professionals in Cairo. pioneering position in the market and to operational procedures pertaining to secure continued returns on your investments. customer services in response to changing I would like to seize this opportunity to We will continue working toward the realization trends. As to what the program has achieved, commend the Jordanian government, the of the Royal vision of H.M. King Abdullah II that I am pleased to report that, since its launch, Ministry of Information and Communication seeks to make Jordan a leading telecoms and we have logged the least amount of incoming Technology and the Telecommunications IT hub through the cultivation of a knowledge- customer complaints in the company’s Regulatory Commission for fostering a solid based economy. history. ICT foundation in the Kingdom. I would also like to thank France Telecom Group, the In 2011, we continued to spearhead the 2011 was just as successful on the Corporate owner of the Orange trademark worldwide, for fundamental evolution of the Kingdom’s Social Responsibility front. We continued continually supporting us in making qualitative ICT landscape — an endeavor that was to pour further investments in our various leaps. epitomized by receiving “King Abdullah II innovative CSR projects, which have become Fund for Development Award”, as we are potent symbols due to the improvements In closing, I would like to thank both our investing in various aspects that contribute they have leveled on the quality of life of shareholders and our customers for their to the modernization of the Kingdom’s ICT numerous social segments. The “Orange continued trust, which is a primary motivator infrastructure through the development of our Villages project” that addresses rural poverty, for our growth. I would also like to thank all own networks. and the “Orange Broadband Fund” that seeks members of the Board of Directors for their to boost internet penetration nationwide, will continued support of the management and We also improved the quality of our both continue as our flagship CSR projects their active participation in policy formation maintenance and customer support services. during this year. and investment decisions over the years. We are always developing our human Their role, together with the combined efforts resources and public relations. The variety Despite the economic recession that has of all our employees, has been instrumental and innovation in our operations and services affected the region and the Kingdom over in helping us reach our advanced position in are primary elements for our growth, not only the past year, not to mention the unparalleled Jordan’s market. I am proud of the dedication, in 2011 but also over the past several years. competition within the telecoms sector, the capabilities, the loyalty and the high Jordan Telecom Group - Orange has standards of the CEO, the Executive officers We succeeded as usual in being pioneers in continued to lead the local market, achieving and their aids. the introduction of numerous technologies and a total revenue of JD 411.8 million for 2011, in services that allowed us to lead the Jordanian addition to net profits totaling JD 89.8 million At this point, we can fairly state that “life market and to be the reference operator in and an ever-growing customer base that changes with Orange” for the better, because the Kingdom. After introducing the first 3G+ includes more than 3.5 million subscribers. Jordanians deserve the very best. network in Jordan in 2010, we became the first internet service provider to introduce I would like to underscore Orange Jordan’s With highest regards to all shareholders high-speed broadband connections with commitment to investing in boosting our bandwidths reaching 24Mbps, contributing local market share and to bolster our brand effectively to boosting productivity across presence on both local and regional scales Dr. Shabib Ammari various businesses, education and other in order to secure further added value for our Chairman of the Board of Directors customers. Our achievements in this regard 4 a letter from the CEO nationwide, which constitutes around half of Project” — our CSR strategy continues to the Jordanian population. deliver unprecedented results in boosting broadband penetration throughout the On the financial front, Orange Jordan Kingdom and in promoting essential social continues to be the leader of the internet development within impoverished rural industry and enjoys sustainable growth communities nationwide. Organizing and despite the continuing effects of the global supporting youth-centric initiatives was also recession. While our profit margins have a primary objective in 2011, culminating certainly been impacted by our long-term in our signing the agreement with the investments in network development, they Jordanian Football Association. Both remain healthy and positive. endeavors will continue to play a central role in our community development plans for the On the subject of innovation, the Orange coming year. Jordan Labs — the Group’s flagship As we sow the seeds of progress in various innovation center and the only institution of aspects of our operations, we look forward its kind in the AMEA region —continues to to a year that promises to be all about set new benchmarks in cutting-edge solution momentum. Orange Jordan will continue to development region-wide. take the lead in driving ICT growth both locally The year 2011 also witnessed the launch and regionally, utilizing its sheer brand power of “Emtiyaz”, a customer experience to support innovation on multiple scales. improvement initiative dedicated to setting Both the technology and the application new standards for customer service in the scope within the ICT industry are experiencing Dear Shareholders, Kingdom. This long-term endeavor comes radical revolutions, and we perceive it as our to reinforce our staunch commitment to primary duty to make these