The newly appointed Batelco Chairman, Shaikh Hamad bin Abdulla bin Mohammed Al Khalifa, announced record results for Batelco at a Board meeting held at Batelco’s Hamala Headquarters, 11th October. For the first nine months of 2006, Batelco recorded a net profit of BD70.6 million ($186.8) on a turnover of BD170.1 m ($450 m).
Batelco’s results at the end of the third quarter of 2006 showed an increase in group net profit of 8.3% for the comparable period last year with operating profits showing an even stronger improvement to 13%. Growth in net revenues was 8.2% over the same period.
Data, internet and mobiles services revenues contributed to growth whilst international call revenues declined as a result of fierce price competition from VoIP calling cards with lower quality, prepaid services. Operating expenditure has been tightly managed and earnings per share have risen to 59 fils, a 9.2% increase.
Shaikh Hamad bin Abdulla in his address to the Board said that he is pleased to lead a successful company with an international reputation.
“Batelco has been facing many competitive and regulatory challenges and will continue to do so. However, it has a strong and experienced team driving the business to new levels of performance”.
“We have completed 25 years and are recognised as the leaders in telecommunications, not only in the Kingdom of Bahrain but also the region. I am confident that the dedication and hard work of all the Batelco employees will only further strengthen our position,” he added.
Batelco’s CEO Peter Kaliaropoulos said the results reflect the implementation of the “Peak Performance” strategy approved by the Board in Dec 05.
“In the most competitive market in the Middle East, we remain focused on improving our customers’ experience. We have introduced new innovative mobile technology such as Blackberry and i-Teq X-Bond (the first Microsoft based PDA mobile with television in the Middle East), new content for mobiles including MMS (Multimedia Message Service) and Batelco Connect (offering the latest news updated every 4 hours), lower prices for residential and business broadband services and many new pricing plans for mobiles and broadband.”
“Additionally our IDD pre-paid card rates are amongst the lowest in the Kingdom,” said Mr. Kaliaropoulos.
Batelco is currently in the process of migrating all Batelco services to the next generation network (NGN) infrastructure. Once complete, Bahrain’s residential and business customers will enjoy the benefits of state-of-the-art integrated communications services that are on a par with the best the world has to offer.
“Batelco’s network strategy is to create a data centric network capable of supporting data voice and multimedia services competitively,” added Mr. Kaliaropoulos.
Batelco recently introduced a BD10 Broadband Package, the most affordable across the GCC.
“We are growing broadband penetration for the first time in 3 years. We want to transform Bahrain to be a regional leader for broadband services and the most attractive destination for businesses to locate their call and data centres in the GCC,” he added.
Batelco not only has been launching more products and introducing lower prices but also making it more convenient for customers to buy such services. Batelco mobile and prepaid cards are now available from thousands of stores including 16 Batelco branded shops. Customers can also top-up electronically. Business clients can benefit from the dedicated service of account managers who offer complete solutions to their complex ICT needs.
Batelco’s strategic priorities also involve expansion into new markets and managing costs better based on benchmarking operational effectiveness.
“Our acquisition of Umniah is another milestone to achieving growth. It gives us access to 6 million people in Jordan and allows us to improve economies of scale in our mobile business,” Mr Kaliaropoulos added.
Batelco, as an employer of 1600 people in Bahrain has also focused on its social and humanitarian obligations. Batelco has always supported various needy causes with the help of different voluntary organisations and charity funds in the Kingdom of Bahrain. So far this year, the company has donated more than BD1 million in charitable aid designed to help those who need it most.
During the Holy month of Ramadan Batelco distributed over 16,000 food baskets to Bahrain’s needy families through Bahrain’s Charity Funds.
As part of the Company’s ongoing commitment to the Kingdom’s healthcare providers, to deliver the very best treatment for patients, Batelco has initiated a number of activities. During the last quarter Batelco delivered a number of wheelchairs to various health centres across the Kingdom. Up to 200 wheelchairs will be delivered by the end of the year.
“We have managed to improve our results by focusing on the fundamentals” stressed Batelco’s CEO.
“Better products and services, innovation, lower prices and more convenient ways to purchase services. We are focused on retaining our customers’ loyalty. By reducing operational costs, introducing more innovation and expanding in new markets, we will continue to deliver more benefits to our customers and in turn, our shareholders. Our customers’ support and our employees efforts are critical ingredients for long term success,” he concluded.
This press release has been issued by Batelco’s Corporate Affairs department. For further information, please contact Batelco Corporate Affairs General Manager Ahmed Al Janahi TEL: +973 1788 4337, e-mail: [email protected]
About BATELCO
Serving both the corporate and consumer markets in the most liberalised and competitive market in the Middle East, Batelco is committed to delivering cutting-edge telecommunications to its customers in Bahrain and MENA. Batelco is driven by an enthusiasm for delivering the best customer experience based on innovation, affordability and reliability of products and services.
With significant operations in Bahrain, Jordan, Kuwait and Egypt, the Batelco Group provides voice and data services over fixed, wireless, and internet platforms, systems integration and enterprise solutions to Government and Corporate clients.
Batelco’s specialised services cover the full spectrum of telecommunications solutions for residential and business customers and spans a comprehensive array of mobile services, international roaming, high speed Internet connections, WiFi, MPLS IP-VPN network provisioning and management, Datacoms services and high-tech, reliable fixed line services. Batelco is currently migrating to an all IP network as part of its ‘Broadband Bahrain’ national project. This major investment reflects Batelco’s commitment for excellence which has reinforced Bahrain’s position as a leading communication hub. The Company’s shares are listed on the Bahrain Stock Exchange. Batelco has a total capitalization of approx US$ 2.7 billion.
