Performance Update

Over the last 18-months, we’ve worked hard to set out our strategy and clearly define our 5-year plan. JT’s Balanced Scorecard was created and launched at the end of 2021 to outline JT’s long-term vision. The 5-year plan contains a roadmap of annual targets and performance measures.

The below table outlines JT’s Balanced Scorecard in more detail, and provides a RAG performance update for JT’s 2022 targets, measured against an annual KPI set for each key objective.

Provide an excellent network

Objective

Strategic Priorities

Description

Do Good for Jersey

We take great pride in the infrastructure we have invested in for the people of the Channel Islands, and we want to ensure

“Do good” for Jersey Transform and Grow

Build a Sustainable Telco

Provide an excellent network

Positive & proactive shareholder engagement

Provide excellent customer experience

• Ensure JT’s network is resilient and delivers the latest technology for our customers

• Comply with local regulations

• Maintain excellent relationship and transparent communication with our shareholder

• Listen to customer feedback and act upon it

• Improve JT’s overall customer experience by improving the way they can interact and do business with us

RAG Performance vs 2022 target

Grow CI business

• Remain competitive within the Channel Islands with our products and services, resulting in a growth in margin

• Simplify legacy product portfolio, to allow for future product investments

Grow International business

Sustainable people

Sustainable planet

Sustainable profit

• Identify International growth opportunities, which allow us to further leverage our existing services

• Invest in new products and services, relevant to our International customer base

• Maintain an engaged team, with a supported and diverse culture

• Become Carbon Neutral by 2030 in our scope 1+2 emissions

• Generate return from our large-scale investment programme

• Improve JT’s overall efficiency by simplifying and digitising the business, in line with customer needs

Do Good for Jersey Provide an Excellent Network

We take great pride in the infrastructure we have invested in for the people of the Channel Islands, and we want to ensure we do all we can to provide a truly resilient network. To do so, requires a great deal of maintenance work and in 2022 JT’s engineers conducted over 4,000 planned works, to maintain a secure and robust network. However, we still saw a number of Service Incidents that impacted some of our customers. Advances have been made as part of our service assurance framework and further improvements will be made through our network replacement and transformational programmes.

Read more on our Operations Update Page >

Positive & Proactive Shareholder Engagement

As a States of Jersey-owned entity, the relationship we maintain with our shareholder is crucial. Our ‘no surprises’ commitment and continuous improvement around transparent two-way communications, is core to our success and we maintain a very strong line of engagement and relationship with the Minister for Treasury and Council of Ministers.

Provide Excellent Customer Experience

Delighting our customers has always been very important to us, be that by providing a great network, personal service or product range and value. We continuously listen to feedback to improve the products and services that we offer, and we continue to invest in the digital channels that our customers want to use. Our Net Promoter Score delivered a 2.13 rolling average for the year, which whilst short of the high target we set ourselves, is significantly ahead of the UK Telco average of -20 *

Transform and Grow Grow CI Business

Growing the Channel Islands’ profit margin is challenging due to increasing costs, plus the challenge added by growing competitors from outside of the Channel Islands. However, in 2022 we grew our local consumer subscriber base by over 3,000 users, and saw growth in both our Data Centre business and business customer base, all contributing to our 2022 revenue targets. Further margin growth is expected as a result of our business focus on simplicity and efficiency. As we reduce the complexity within our portfolio, we can begin to offer our customers what they want in a more efficient and quicker way. In 2022, we reduced legacy products and services by over 30%. Read more on our Operations Update Page >

Grow International Business

Growth outside the Channel Islands is a key element of our strategy. Following the successful sale of our IoT business in 2021, we have focused on the growth of our other International business lines, in particular our Fraud Protection Service (FPS) product. We exceeded our margin target for FPS in 2022 and believe there are opportunities for future growth as the market matures. 2022 was also a good year for our Messaging services, which grew over 40% year-on-year. In 2022, we also started the development of new products and services for International customers, which we plan to launch in 2023.

Read more on our Financial Performance Page >

Build a Sustainable Telco Sustainable People

Having an engaged workforce is core to JT’s success. Our key KPI which sits behind the engagement of our people comes from JT’s monthly Peakon employee engagement survey (eNPS). We ended 2022 on eNPS of 67, against a target of 50 - Putting us in the top 5% of telcos globally.** The rolling average for the full year was 60.

Read more on our People Page >

Sustainable Planet

Our sustainable planet KPI is aligned to the Government of Jersey’s plans to be carbon neutral in their scope 1+2 emissions by 2030 and we have a roadmap in place to reduce our carbon footprint over that period. In 2022, whilst our Scope 2 emissions have reduced, we have seen an increase in our Scope 1 emissions from cooling equipment and increasing generator testing back to pre-Covid levels. We continue to monitor data in order to improve all aspects of our business.

Read more on our Sustainability Update Page >

Sustainable Profit

Our sustainable profit KPIs are set to ensure we return profits on continued large-scale investments. In 2022 we have not quite met our profit target for the year, due to high investment and transformation expenses and continued regulatory pressures. Whilst we expect to see lower profitability in the short-term as we focus on simplifying and transforming the business so it operates more efficiently, we do see it increasing as we progress through our simplification programme and 5-year plan.

Read more on our Financial Performance Page >

Looking Ahead –Strategic Challenges

JT is a sub-scale telecommunications company in a scale-rewarding industry. The key strategic challenge for JT is to ensure it generates sufficient returns, to allow us to invest in the large network investments that our stakeholders expect.

These returns are difficult to achieve in the Channel Islands alone, so we continue to develop off-Island products and services that utilise some of the spare capacity that we inevitably obtain when moving to, for example, 5G.

International business presents a different set of challenges: there is more competition, we are relatively small compared to some of our competitors and we encounter diverse legal, regulatory and currency related risks. However, the potential for growth far exceeds what we could achieve locally.

Our strategic challenge is a fine balance of International growth, alongside our primary focus - transforming the business to meet the future needs of our customers, whilst providing them with exceptional customer service. This is why we are investing significantly in both simplifying and digitising our product offerings and our back-office operations to improve efficiencies, customer interactions and overall customer experience.