Batelco announces annual financial results for 2004

For the year ending December 31st 2004, Batelco announced a year-on-year rise in gross revenues of 6% to BD203.7 million. During the year, the company's net profits rose to BD82.6 million from BD60.7 million in the previous year. Earnings rose from 61 fils to 83 fils per share. Batelco's Board of Directors has approved a cash dividend for shareholders, which represents the equivalent of 50% of the paid capital at a value of 50 fils per share (of which, 20 fils per share was announced and paid in July 2004).

These figures are outstanding by any standards; the fact that they were posted during the first year of competition in Bahrain's lucrative mobile sector illustrates Batelco's strength, depth and knowledge of its market and customers.

"Batelco's performance this year is a very clear validation of our business strategy and comes as a direct result of the outstanding efforts and achievements of our management and employees," says Hassan Ali Juma, First Deputy Chairman at Batelco. "Careful planning, a clear strategy, hard work, determination, technical know-how, market knowledge and a desire to be the best have served us well - and will continue to benefit our customers and shareholders as we tackle the challenges of 2005."

Batelco's strategy has worked, proving that the company's twin strengths of market knowledge and customer awareness are, indeed, what drives customers' decisions.

Bahrain's national telecommunications company now has some 532,000 mobile customers, representing a market penetration of 78%. Significantly, average revenue per customer is also up, further indicating that Batelco fulfills its customers' needs.

"Our customer numbers are up, our image among consumers and business customers has never been better and we have continued to make significant headway in cutting costs and ensuring that we're operating as efficiently as possible," explains Juma.

"However, there are still many extraordinary challenges ahead and we will not be resting on our laurels. During the course of this year, our business will undergo further pressure and scrutiny as Bahrain's telecommunications users are offered additional alternatives.

"Through Carrier Pre-Select (CPS) licenses, new operators will be able to compete with Batelco's fixed line local and international services, and six new Internet Service Provider (ISP) licenses have already been granted," explains Juma. "Bahrain's telecommunications market is now completely liberalized and during 2005, consumers will be faced with more choice than ever before. It is vital that we, at Batelco, continue to provide our customers with unrivalled services and products."

Batelco will remain focused on improving customer service and demonstrating its unmatched knowledge of customer needs - which Batelco's senior management continue to recognise as the company's unique differentiator in the market.

Key customer-focused initiatives during 2004 included the launch of some 94 new products and services, including Batelco's ground-breaking x-change and Al Dana customer loyalty programmes, production of the biggest ad ever filmed in Bahrain, the launch of Batelco's Family & Friends service - another first for Bahrain, and the addition of more free minutes to many of Batelco's mobile packages.

In addition, the company invested BD9 million in a network expansion programme that gives Bahrain's mobile users more capacity and better coverage than ever before.

"We have continued to build upon Bahrain's communications infrastructure, ensuring that our Kingdom's businesses and residents have the very best that technology can offer - now and in the future," explains Tony Hart, Chief Executive at Batelco. "In addition to our comprehensive mobile network expansion programme, the company anticipated customer demand and launched WiFi technology to cover most key strategic locations throughout the country; we re-launched @ltijara.com - our updated, state-of-the-art e-commerce service for the business community; and we are also embarking on a major five year project to upgrade our fixed line service to a 'next generation' broadband network, using IP at its core."

In addition, Batelco's vision of expanding beyond the borders of Bahrain has come to fruition with successful bids against a host of leading international telecommunications companies to sign agreements with Telecom Italia and Iran's ADA (Asre Danish Afraz) to provide global multi-million dollar services to clients in those countries.

Batelco has also continued its strong tradition of sharing its success by providing significant help for those in Bahrain who need it most. During 2004, Batelco donated more than BD5 million to a host of health, education, social, sporting and charitable organizations who provide vital services to the Kingdom's communities.

"Finally, topping our impressive list of accomplishments this last year has been the loyalty of our customers," says Tony Hart, Chief Executive at Batelco. "For the first time in our history, customers were given a choice in their telecoms provider and our performance has proven that we were judged favourably. They chose Batelco.

"As Bahrain's national telecommunications company, we can justifiably boast an unrivalled knowledge of our market. We also offer the market's best value services and products and can give our customers the world's most up-to-date technology. In addition, it has become clear over the past couple of years that we are privileged to have a workforce that is willing - time and again - to go the extra mile where our customers' needs are concerned.

"I am extremely proud of Batelco's continuing business success during this last year," says Tony. "In every respect, our achievements have contributed to Batelco's ability to face further market liberalisation from a position of both business and moral strength and I have the highest confidence in the company's continued progress."