Batelco's transformation delivers innovation, unmatched customer experience growth key to future success

At the Ordinary Assembly, the minutes of the previous ordinary general assembly held on 28th February 2007 and the Board of Director's report on the Company's operations for the financial year ending 31st December 2007, were read and approved.

Batelco Group achieved a year-on-year rise in gross revenues of 25% to $777.4m (BD293.1m) with net profits reaching a record breaking level of $269.2m (BD101.5m) an increase of 13.6% compared to 2006. Operating expenditure and overheads have been diligently managed and earnings per share have risen to 84.6 fils from 74.4 fils in 2006.

"Batelco's success comes as a direct result of the inspired planning of our leadership team and the outstanding efforts of our employees," said Batelco Chairman Shaikh Hamad bin Abdulla Al Khalifa.

"During 2007, we continued to grow the company and we believe that growth is the key to our future success. We entered the Yemeni market through our acquisition of a 20% shareholding in Sabafon, Yemen's largest GSM mobile operator, reaching 1.5 million mobile subscribers as of the end of 2007."

"In much anticipated news, the Saudi Cabinet has just announced its final approvals allowing the Batelco/Atheeb consortium to roll out wireless broadband, data solutions and voice services nationwide in Saudi Arabia, targeting millions of households."

"To add to this, Batelco has just announced its offer, through its subsidiary Umniah, to purchase the remaining 20% shares it does not currently own in Batelco Jordan, for a total consideration of JD2.126m," added Shaikh Hamad.

The Board of Directors' recommendation of a total cash dividend of 40 fils per share for 2007 aggregating BD48m was approved at the AGM. Batelco has paid 20 fils per share as the interim dividend in July 2007 and the date for paying the remaining 20 fils will be announced soon.

In addition, the Board of Directors has recommended a 20% bonus share issue, awarding one extra share for every five shares currently held by the Company's shareholders.

The Board's recommendation to allocate BD2,537,000 for charitable, philanthropic and social activities was also approved at the AGM.

Batelco Chief Executive Peter Kaliaropoulos said that during 2007 Batelco continued to successfully implement a strategy based on the transformation of the Group's operational capabilities.

"We continue to invest significantly in the Kingdom of Bahrain's infrastructure and in 2007 spent over BD27m to deliver technologies, networks and systems that will, we believe, transform our customers' lives and businesses, along with their experience of dealing with Batelco."

"We have been focused on creating a more customer responsive company that offers strong value for money with a comprehensive range of innovative products and services in Bahrain, whilst at the same time creating a more diversified regional operation across the Middle East," said Mr. Kaliaropoulos.

"During 2007 Batelco launched almost 200 promotional offers, with all customer segments targeted in a drive to deliver unmatched value and world class products and services," he added.

"We launched 3.5G technology and O Services, featuring an innovative range of offerings including video calling and mobile video conferencing, and were delighted to exceed our customer target predictions for 2008 within the first month of its introduction."

"Additionally, our customers benefited from reduced rates for Broadband Business and Education inet packages; a permanent reduction in the IDD rates to GCC countries; and free rental and registration for new or upgraded subscriptions to Batelco Broadband Plus packages."

"Batelco currently has international roaming agreements with 370 operators and customers can avail of all our products and services through 18 shops and kiosks located in all areas of Bahrain. Assistance is always just a phone call away by phoning 196 where our aim is to resolve customer issues on the first and only call to us."

"At Batelco we recognise that without ongoing support from customers and business partners, strong results could not be delivered, and we thank them for choosing Batelco in spite of the ever increasing range of competitive providers and products," Mr. Kaliaropoulos continued.

"I particularly wish to thank all of our employees and managers. There is genuine commitment from them to transform Batelco into a top performing, competitive company and a regional market leader that all Bahrainis can be proud of."

"I believe that through the disciplined pursuit of our strategic priorities at home whilst we continue to invest for growth in our chosen markets overseas, we can deliver a sound performance for 2008 and beyond," concluded Mr. Kaliaropoulos.