bahrain’s consumers benefit from batelco’s regional expansion
Batelco Chairman Shaikh Hamad Bin Abdulla Al Khalifa stated that, as Batelco grows and consequently delivers better performance, the real beneficiaries are the Kingdom’s consumers and business customers. Shaikh Hamad was speaking at Batelco’s Board Meeting, which took place on 17th July during which the Company’s half year financial results were announced.
Batelco, Bahrain’s leading telecommunications company, announced a half year net profit of BD 52.3m, a 10.2% increase over the first six months of last year. Gross revenues grew to BD 136.4 m whilst net revenues grew by 25% over the same period of 2006. Earnings per share of 44 fils were also announced and the Board of Directors’ recommendation of a cash dividend of 20 fils per share was approved.
The net profit results include a one-off benefit of BD4.7m as a result of write back for provisions relating to network assets and an investment return.
“This strong set of half year results was delivered as a result of Batelco’s strategy to expand across the region but not losing focus on Bahraini customers’ demands for better products, better service and more affordable prices,” said Shaikh Hamad.
“Our top priority remains the Bahrain market. We continue to offer better value and a complete range of advanced products and services for our customers. We intend to remain the first choice for consumers and businesses with new technologies and smart solutions,” said Batelco’s Chairman.
Batelco’s Chief Executive, Peter Kaliaropoulos, elaborated that a strong performance in the Bahrain market is critical to Batelco’s strategic expansion across the Middle East.
“Despite ever increasing competitive intensity and more significant regulatory intervention, Batelco delivered to its customers in Bahrain a greater variety of mobile, internet and voice offerings in the last six months than ever before,” said Mr. Kaliaropoulos.
“Our mobile customer base grew to a record 643,000 customers. Similarly over 58,000 customers, another record figure, are using Batelco’s broadband services. The total number of telephone lines has grown to 201,000 at the end of June. Strong economic growth in the Kingdom coupled with aggressive promotions, new services and better value for our customers, underpinned Batelco’s success in the first half of 2007,” stated Mr. Kaliaropoulos.
“Our customers have enjoyed better value than ever before. Through various promotions we offered up to 81% off IDD (International Direct Dial) rates through calling cards, 99 fils for IDD calls from mobiles, free credit with new mobile top ups, easy payments for handsets, 50% reduction for new managed data and business broadband and many other better value-for-money offers,” explained Mr. Kaliaropoulos.
"To further strengthen Bahrain’s position as a leading business hub in the Middle East and support the Kingdom's e-Government strategy, Batelco has reduced the price for high speed dedicated internet access by 50%, putting the rates among the most competitive across the GCC.”
He continued by saying that Batelco remains focused on improving customers’ telecommunications experience in Bahrain through the implementation of improved customer services and the latest technologies.
“Subject to the TRA (Telecommunications Regulatory Authority) decisions, we plan to continue investing in Bahrain’s infrastructure for high speed data services and expansion of the fixed network infrastructure to new locations across the Kingdom.”
“In the second half of 2007, we will also commence commercial operation of the most advanced 3.5 G mobile network across the Kingdom. These infrastructure projects involve tens of millions of dinars of new investment and significant planning by Batelco. It is crucial to Batelco’s success that TRA policy relating to new telecommunications infrastructure is supportive of such major projects which have long term benefits to the Kingdom,” continued Mr. Kaliaropoulos.
Batelco is continuing with its strategy for growth in the region. The Company’s latest venture will see a Batelco/Atheeb consortium launch fixed and wireless broadband services in the Saudi market, targeting millions of households in 2008 and beyond.
“Batelco’s overseas operations are making the most significant contribution to the company’s growth,” stated Mr. Kaliaropoulos.
“Growth in Bahrain’s retail operations was only 2% versus the same period last year as a result of price erosion and market share loss. However, our operations in Kuwait, Jordan, Egypt and Yemen contributed 28% of our revenues – almost all our growth, as we expected. We have over 30,000 broadband customers in Jordan and Kuwait, in addition to 815,000 mobile customers from Umniah, Jordan and 1.6 million customers from Sabafon, Yemen,” he explained.
“The Batelco team has been very busy over the last few months,” commented Shaikh Hamad, Batelco’s Chairman.
“Their priority has been to ensure we deliver better value and service to our customers in Bahrain. However, they also have been increasingly focusing their attention to creating a strong, regional operation for Batelco to tap into new markets for the future. We are determined to transform Batelco into a company most admired by Bahrainis for its service and strength across the region,” continued Shaikh Hamad.
Furthermore, Batelco takes its responsibility to the community very seriously and annually donates millions to support a variety of causes. Since the beginning of the year the Company has contributed over BD3 million to various projects which include BD100,000 to Al Rahma Centre, BD450,000 to Al Noor Charity Association, BD800,000 to support Batelco Care Centre for Family Violence Cases and BD700,000 to complete their commitment, totaling BD1.5 million, to the King Hamad Schools of the Future project.
“Batelco is more than pleased to continue offering support to the community we live in and work in; it is our way of saying thank you for their loyalty to us over the years,” said Batelco’s Chairman.
“The pace of competition continues unabated in Bahrain. We have embraced competition for over four years now and there is no turning back. We welcome it and we will continue to be more focused on the needs of our customers. Our customers will continue to increasingly experience better service, lower prices and greater choice. We are listening to our customers and are working tirelessly to respond quickly to meet their demands.
We plan to ensure Bahrain remains a world class ICT hub to allow individuals to have access to any service to keep in touch with their friends and family and for businesses to locate data/call centres and make Bahrain their best ICT choice for business in the Middle East,” Mr. Kaliaropoulos concluded.
