Batelco Chairman:Batelcos roll out of innovative and competitive new services in Bahrain and other regional markets
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Batelco Chairman Shaikh Hamad Bin Abdulla Al Khalifa said that Batelco's roll out of innovative and competitive new services in Bahrain and other regional markets, during the first half of 2009, contributed to the Group's impressive half year financial results.
Batelco, Bahrain's leading telecommunications company, following its Board Meeting on 22 July 2009, announced a half year growth in gross revenues to BD170.6 million ($452.5 m), a 6% increase over the same period of 2008 and net profit of BD54.2 million ($143.8m) a 7% increase compared to 2008. This profit included an impairment of BD2.6m for existing investments in non-core operations. Earnings per share were 37.6 fils. The Board of Directors approved an interim cash dividend of 20 fils per share.
"Batelco continues to grow in Bahrain, even though there are now 70 other operators licensed to compete in the local market. Batelco also continues to grow overseas and for the first time is establishing a presence outside of the Middle East region through its investment in Indian mobile operator S Tel Limited (S Tel)," added Shaikh Hamad.
Batelco Group Chief Executive Officer, Peter Kaliaropoulos, said that Batelco's Group of companies, despite softening of economic activity in global and regional markets, delivered record half year revenues at $452.5 m.
"We are delighted that growth has been realised both in Bahrain and all our overseas operations which now represent 31% of Batelco’s revenues."
The Group's 96% owned subsidiary in Jordan, Umniah, is on track for double digit earnings growth buoyed by a 13% increase in the number of mobile subscribers, with a customer base now standing at 1,487,000. Sabafon, in which the Group holds a 26.94% equity investment, has delivered an 18% year-on-year growth in revenue with the mobile subscribers base increasing by 29%, for a total customer base of 2,440,000.
"Our expectations to realise further growth are high due to our start-up operations in Saudi Arabia and more recently India. We anticipate a greater percentage (39%) of our revenues to come from our overseas ventures in the near future (2010)," said Mr. Kaliaropoulos.
"Whilst Batelco continues to grow it is also implementing a disciplined cost leadership programme and expects revenue growth to continue for the rest of 2009. The priority remains one of growing profitable market share in all overseas markets, and at the same time, maintaining market leadership in Bahrain," he added.
Most Competitive Products & Services
Mr. Kaliaropoulos stated that Q2 has been abundant with great news for customers in Bahrain.
"Of key importance, we have delivered on our promise to launch the most competitive broadband in the Kingdom. High speed broadband service is an essential catalyst for a knowledge economy and underpins Bahrain's Economic Vision for 2030."
"We were therefore delighted, following approval from the TRA, to finally announce our line-up of redesigned packages which offers choices from 256 Kbps all the way up to 10Mbps. Batelco’s existing customers have been automatically migrated to the new packages to benefit from higher speeds and more usage at lower prices," he explained.
"Additionally, Batelco became the first telecom provider in Bahrain to offer unified local high speed data roaming charges throughout its network, covering all GCC states and a number of major Arab countries across the Middle East."
"Previously such mobile data access while roaming was costing between BD5 and BD7 per megabyte. However, the new rate is only 600 fils per megabyte so this equates to a huge saving for our customers!"
"Furthermore, a number of ongoing promotions are adding value for our customers. All Batelco residential postpaid mobile customers are eligible to win high value prizes in a loyalty programme that will continue until the end of 2009, in which customers can win cash prizes of up to BD1000 every month for 12 months," said Mr. Kaliaropoulos.
"Broadband customers, both existing and new, can avail of terrific bundled deals of high speed broadband with game consoles or top brand laptops on an interest free instalment basis over 12 or 18 months, with prices starting from as low as BD7 per month."
"This is the only deal of its kind in the Kingdom of Bahrain and is offered as part of our ongoing commitment to put the needs of our customers first," added Mr. Kaliaropoulos.
Across our Network
Batelco's mobile customer base in Bahrain, Jordan and Yemen has reached 4.68 million. In Bahrain there are 82,000 customers registered to Batelco's broadband services and the total number of telephone lines in operation is 201,500.
Mr. Kaliaropoulos noted that with the addition of the Batelco Group's new operations in partnership with Etihad Atheeb in Saudi Arabia and S Tel in India, the broadband and mobile stats would rise significantly by the end of the year.
Etihad Atheeb with a number of skilled Batelco staff on board is on target to begin the roll-out of wireless broadband, data solutions and voice services by the end of Q4 this year. Atheeb also had a successful listing in Saudi Arabia this year. Additionally, S Tel is scheduled to launch full services by Q4, 2009.
"Batelco has been investing overseas for the last 3 years and now has operations in six Middle East countries plus India reaching markets of 300 million people. Such expansion is driven by the commercial realities of the saturated Bahrain market and regulatory policy. As new companies are entering the Bahrain telecommunications market, we perceive it as an opportunity to improve our service, value and innovation and strengthen our market leadership. In parallel, fierce competition at home also creates a natural imperative to seek sizeable acquisitions and new licences overseas."
"We are proud that with the support of our employees and customers in Bahrain, we are transforming Batelco into a sizeable regional company that all Bahrainis are proud of," added Mr. Kaliaropoulos.
Shaikh Hamad also expressed his thanks to Batelco employees in Bahrain and all other locations for their focus on customers, which has contributed to record results for Batelco despite the economic situation and increased competition in every market Batelco operates.
Always a Helping Hand
The Batelco Chairman Shaikh Hamad also spoke about how important it is for companies to be contributing members of the communities in which they operate.
"Batelco has an enviable track record when it comes to living up to its social responsibilities and so far this year BD2.5 million has been distributed through donations and sponsorships," he said.
Our donation of BD10,000 to the Palm Association has been put to very good use to rebuild and refurbish dilapidated homes belonging to needy Bahraini families, with an amazing transformation in the quality of their living conditions.
Additionally, Batelco reacted immediately to media reports of lack of entertainment for patients recovering from the H1N1 virus at the Isolation Ward located at Ebrahim Khalil Kanoo Community Health Centre, by installing Wireless Broadband internet and gaming equipment.
July 22,2009