Batelco promises peak performance in the year ahead

At the Ordinary Assembly, the minutes of the previous ordinary general assembly held on 23rd February 2005 and the Board of Director's report on the Company's operations for the financial year ending 31st December 2005,
were read and approved.

For the year ending 31st December, 2005, Batelco's year-on-year gross revenue rose by 4 per cent, up from BD203.8 million to BD211.6 million. Net profits climbed by 6 per cent, up from BD82.6 million to BD87.5 million, with earnings rising from 83 fils to 88 fils per share.

"Batelco's performance last year is a very clear validation of our business strategy and comes as a direct result of the inspired planning of our leadership team and the outstanding efforts of our employees,"

said Batelco Chairman Hassan Ali Juma.

The Board of Directors' recommendation of a cash dividend of BD45 million representing the equivalent of 45 per cent of the paid capital - at a value of 45 fils per share, was approved. In July 2005, 20 fils per share was announced and paid, with the remaining 25 fils to be paid after the AGM.

A 20 per cent bonus share issue, awarding one extra share for every five shares currently held by the Company's shareholders was recommended by the Board and approved.

The Board's recommendation to allocate over BD 1,700,000 as donations and sponsorships for philanthropic, social and sports activities was favourably received along with the transfer of BD 8,254,000 to the Statutory Reserve and BD 12,215,976 to be carried forward as retained profits.

During the Extraordinary General Meeting (EGM) a resolution was submitted and approved to increase Batelco's authorised capital from BD100,000,000 (one hundred million dinars) to BD200,000,000 (two hundred million dinars).

In addition the Assembly approved a Board recommendation to raise the Company's issued and paid up capital from BD 100,000,000 (one hundred million dinars) to BD 120,000,000 (one hundred and twenty million dinars).

"The increased capital will spur further growth for the Company and is part of the process of re-engineering our business to remain successful in the increasingly competitive telecommunications environment," said Mr Juma.

He noted that despite operating in the most liberalised telecommunications market in the region with over 90 licences issued, the Company had delivered their best ever results for revenue and profit.

"In the face of stiff challenges during 2005, Batelco continued to excel, by offering emerging technologies at competitive prices and meeting the demands of customers," he said.

Batelco Chief Executive Peter Kaliaropoulos said that Batelco's critical objective for 2006 remains one of improving customer satisfaction and loyalty in Bahrain, whilst accelerating growth, particularly for broadband and data solutions, across MENA.

"We aim for peak performance by addressing the needs and requirements of all customers while also endeavouring to be first in delivering the latest products and services," he said.

Batelco's management continues to invest wisely in new technologies so that the company's products and services remain at the forefront of global innovation.

"Our customers come first; our success in 2005 could not have happened without their loyalty and they are central to our future success. We remain passionate about delivering a performance to be proud of this year in order to retain that loyalty and support," concluded Mr Kaliaropoulos.