Batelco pours millions of dinars into the infrastructure of the Kingdom

A host of new products and services, such as Mobile Office, VOIP/IDD prepaid cards and customer service initiatives including Home Delivery, resulted in an overall better experience for both residential and business users.

As Batelco announced its Annual Results for 2005, Chairman Hassan Ali Juma said that he and his colleagues on the Board have no doubt that Batelco's continuing excellent performance is attributable to a combination of strategic vision, inspired planning and sheer hard work on the part of their management and employees.

Bahrain's telecom users have a range of options today with a host of providers vying for the loyalty of the same customers.

'The challenges that we have faced since the emergence of competition in the market place have naturally made our task more difficult but we continually adapt by building on our solid foundations, adding innovative technologies as they become available, and polishing our performance in all customer handling departments,'

said Mr Juma.

'We are very proud of our results for 2005, as in spite of increasing competition in the local and regional telecommunications market, net profits have climbed by 6% to BD87.5 million up from BD82.6 million last year. The Company also achieved a year-on-year rise in gross revenues of 4% to BD211.6 million,' he announced.

'In spite of, or perhaps because of competition in our field, we remain optimistic about Batelco's ability to offer competitive services to its customers,' he said.

Earnings rose from 83 fils to 88 fils per share and the Board of Directors will recommend to the General Assembly of shareholders a cash dividend of BD45 million - representing the equivalent of 45% of the paid capital - at a value of 45 fils per share, of which 20 fils per share was announced and paid in July 2005, with the remaining 25 fils to be paid after the Annual General Assembly.

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

Batelco continues to invest in forward thinking initiatives and during 2005 committed several million to upgrade their current offerings and introduce new ones.

Broadband Bahrain is one of the Company's key initiatives at the moment with BD21 million earmarked for the project.

'This investment will ensure that the enormous potential of the worldwide web of information is available to the residents and businesses in the Kingdom, with faster and more affordable Internet access,'

said Batelco Chief Executive Peter Kaliaropoulos.

'An investment of BD17 million to upgrade the mobile network will improve coverage in buildings and some remote areas in the Kingdom and increase network capacity to meet higher traffic volumes and data transmission.'

The Company has also invested tens of millions in the new FLAG Telecom's FALCON cable system which is expected to contribute in a big way in delivering a faster internet and international data services as a result of superior, diverse connectivity than is possible today.

'In addition, the extension of the MPLS (Multi Protocol Label Switching) networks, our major Data Centre Project, our desire to extend our VOIP (Voice over Internet Protocol) services and a range of additional products and services are all designed to ensure that we continue to offer innovative services, add value for customers and remain a driving force in the success of the Kingdom's economy, through significant infrastructure investments,' continued Mr Kaliaropoulos.

'Batelco has been improving the value of its services with IDD, Broadband and mobile rates being more affordable in 2005 than ever before. Placing orders more conveniently over the phone with less and less paperwork, Home Delivery and improved response rates from our Call Centres are all evidence of delivering better value to customers,' he added.

By providing a state-of-the-art telecommunications infrastructure, Batelco is acting as the digital backbone of the Kingdom and playing a pivotal role in its reputation on the world stage.

'Initiatives such as the new e-Government Portal would not be possible without such leading edge technology and we consider our financing of the first phase of this project as an extremely worthwhile investment in the future of the Kingdom,' he explained

'Throughout this year we will forge ahead with plans that aim to put Batelco in pole position in Bahrain in catering to the needs of our residential and business customers. We aspire to be first for all round value to customers, first to introduce innovative products and services, and first for valuable contributions to the community.'

As the market leader, Batelco will also continue to be the first in aiding those who need it most - the underprivileged and vulnerable.

To this end, in conjunction with the Bahrain Society to Resist Family Violence, Batelco opened the Batelco Care Centre for Family Violence Cases, the Gulf's first centre dedicated to helping those affected by domestic violence.

Batelco is also at the forefront in supporting the education of Bahraini children. Their investment in the King Hamad 'Schools of the Future' project in conjunction with the Ministry of Education aims to provide Bahrain with home grown talent who will be the leaders in shaping the Bahrain of tomorrow.

'We are accelerating Batelco's transformation into a more competitive and customer driven company,' Mr Kaliaropoulos noted.

'We remain passionate about delivering a better customer experience, passionate about improving our financial and operational performance and passionate about attracting the most talented people into our company. We are grateful to our customers for rewarding us with their business and proud that our people excelled themselves in delivering yet again another very solid performance.'

'We remain optimistic about the future and don't underestimate the competitive intensity ahead of us. We expect further growth from broadband and mobile services,' Mr Kaliaropoulos stated.

'We also anticipate that we will win a significant share of the network solutions and systems integration market we are expanding into.'

'Our joint ventures in Kuwait and Jordan will also contribute a bigger share of revenue and profits from continued growth in 2006,' he concluded.