Bahrain's Batelco has posted outstanding results for the first quarter of 2005. Despite increased competition and new entrants to Bahrain’s telecommunications market, Batelco has announced further growth in top-line gross revenues of 5% over the same period last year, to BD52.6 million.
In addition, Batelco’s profits for the quarter ending 31st March 2005 rose to BD22.5 million – an increase of 16% over the first quarter of 2004.
“However, during this period, Batelco received the full proceeds of BD3.9m from the sale of our investment in Intelsat, resulting in a gain upon disposal of the investment of BD1.7 million,” explained Hassan Juma, Chairman at Batelco.
“The underlying growth in profits – excluding this one-off exceptional disposal – was 7% over the same period last year. “Profits performance for the remainder of 2005 may well be positively influenced by additional asset disposals during the rest of the year as the company seeks to further improve its operational efficiency.”
Revenue growth and profits for Bahrain’s national telecommunications company continue to be driven by an increase in the number of Batelco mobile customers and by revenue generated by the company’s investment in its Broadband Bahrain programme – together with ongoing efficiency improvements throughout the company.
“We have now been operating in a competitive market for more than 16 months, yet mobile customer numbers continue to rise – by more than 15% over the same period last year - and usage continues to increase dramatically,” says Tony Hart, Chief Executive at Batelco.
“Batelco’s success is an enormous testament to the hard work and host of successful initiatives introduced by staff throughout the company.”
This quarter has seen the launch of a raft of mobile promotions and customer service initiatives including the opening of Batelco’s new BCC retail outlet, a SimSim Cash Prize Draw, a Roamers’ Raffle and the successful conclusion to Batelco’s BD100,000+ Mabrook promotion.
In addition, Batelco announced the investment of more than BD21 million in a three-to-five year programme to completely replace its fixed line switched network with a next generation IP-based infrastructure. This investment will underpin the company’s ‘Broadband Bahrain’ programme with the aim of providing faster, more affordable Internet access for both individuals and businesses throughout the Kingdom of Bahrain.