Batelco Chairman Shaikh Hamad bin Abdulla Al Khalifa reiterated Batelco’s ongoing commitment to invest in the Kingdom’s infrastructure as the Batelco Group announced an impressive set of full year results at a Board meeting held 23 January at the Company’s Hamala Headquarters.
Batelco achieved a year-on-year rise in gross revenues of 11% to BD235.0 million with net profits reaching a new level of BD 89.3 million, an increase of 4.4% compared to last year. Operating profit in 2006 increased to BD84.9, a 10 % increase from 2005. Earnings per share increased to 74 fils, up from 71 fils in 2005.
Batelco also invested a record amount of BD39.5 million in upgrading the telecommunications infrastructure in Bahrain, including a Next Generation Network, expansion to its mobile network, enhanced international capacity and many other projects ensuring the Kingdom remains a leader in advanced communications services.
“We are delighted with this excellent set of operational and financial results delivered in the fast changing Bahraini market even as competitive and pricing pressure persists in the region’s most liberalised telecommunications environment,” said Shaikh Hamad.
“Our Board of Directors will recommend to the General Assembly of Shareholders a cash dividend of BD57.6 million representing the equivalent of 48% of the paid capital – at a value of 48 fils per share, of which 20 fils per share was announced and paid in July 2006,” stated the Chairman.
“As we complete our 25th year of dedicated service to the Kingdom, we give our commitment to continue to drive a ‘Customers First’ strategy to exceed customers’ expectations in a very competitive Bahraini market,” said Shaikh Hamad.
Batelco Chief Executive Peter Kaliaropoulos stated that the 2006 results reflected the ongoing implementation of a 3 years business strategy to transform Batelco into a very customer responsive, value for money, innovative company in Bahrain and create a more diversified, regional operation across the Middle East.
“Our strong results reflect our ongoing focus on delivering better value to our customers and improving our operational capabilities."
"In 2006 we introduced for the first time new services in the Kingdom including nationwide 2 Mgbps internet access, SMS credit transfer from prepaid and postpaid mobiles, first in the Middle East to send MMS anywhere in the world, first in the GCC with the most affordable broadband service, first in Bahrain to launch the BlackBerry mobile solution, first to offer international calling VoIP pre-paid cards, first in the region to offer regional IP VPN services on MPLS technology and started the rollout of a Kingdom wide 3.5G wireless broadband network," stated Mr. Kaliaropoulos.
Batelco's innovation has been matched with reduced prices across many of their services including internet services for both consumers and businesses, lower prices for data services, lower IDD prices and many special promotions for fixed and mobile customers.
“The introduction of new products and services continues unabated at Batelco.
As part of our far-reaching plans to put virtually every household in Bahrain within reach of Broadband services, we launched a BD10 inet Broadband package which has been a resounding success and more than doubled our number of Broadband subscribers, and increased penetration to over 22% of fixed access lines. Tens of thousands more Bahrainis accessed the Information Superhighway for the first time in 2006 as a result of the BD10 service."
Mr. Kaliaropoulos noted that Batelco’s ongoing customer research shows that their customers have noticed many improvements from the Company in 2006 in the provision of services, fault rectification, wider range of services and lower prices.
"Quite understandably, customers also continue to expect better value and faster, after sales service," he continued.
"Batelco plans to meet and exceed such customer expectations by focusing on improving its processes through redesign and automation, reducing operational costs and improving employee training and development initiatives.”
“Batelco has changed very significantly since deregulation of the market, and the transformation is accelerating.”
To meet the transformational needs of the Company, Batelco continues to invest significantly in staff training & development. During 2006, BD1.2M was invested and 79% of employees attended various training & development initiatives. E-learning programmes were also launched.
Batelco, consistent with its transformational strategy, also invested in Umniah, the fastest growing GSM mobile operator in Jordan in 2006 as it searches for new profitable growth and expands its addressable market.
To accommodate the increasingly sophisticated demands from Bahrain’s residents, Batelco has already started to implement its NGN (Next Generation Network) project which will facilitate triple play (Voice, Data & Video) services and make 21st century integrated communications services a reality this year.
“Furthermore, we were delighted to join the growing line-up of operators launching live 3G (3rd Generation) and HSDPA (High Speed Downlink Packet Access - 3.5G) mobile networks late 2006 with the target of providing nationwide 3G and HSDPA coverage with download speeds up to 14.4Mbps in 2007,” Mr. Kaliaropoulos said.
“These initiatives, together with our already implemented ADSL2+ technology with the capability to deliver data services at speeds up to 10Mbps, will put Batelco’s customers among the best connected in the world.”
“Investments in Bahrain’s communications infrastructure are designed to ensure that we continue to offer innovative services, add value for customers and remain a driving force in the success of the Kingdom’s economy.”
The Company donated over BD1.2 million and committed a further BD3.6 million to a variety of causes in 2006.
“Among the projects receiving our support are King Hamad Schools of the Future project, Batelco Care Centre for Family Violence Cases, Batelco Childcare Centre, Shaikh Mohammed bin Khalifa bin Salman Al Khalifa Cardiac Centre and Batelco Pedestrian Bridge,” said Batelco’s Chairman Shaikh Hamad.
“We are grateful to our customers for their loyalty in rewarding us with their business in 2006 and proud of the performance delivered by our motivated team of staff who continue to find innovative ways to maintain Batelco’s leadership in the market and contribute to Bahrain’s competitiveness as a leading information and communications hub,” concluded Mr. Kaliaropoulos.
© 2007 Al Bawaba (www.albawaba.com)
