Batelco delivers better value to customers and grows profits in Q1

The adjusted earning per share is 19 fils compared to 23 fils in Q1 2005. Allowing for the increase of shares to 1.2 billion after the recent 1 for 5 bonus share issue, earnings per share were similar to 2005.

Speaking at the Company's Board Meeting which was held on April 17th, Mr Juma said that Batelco is facing competition head on by continually adapting its offerings to customers and, improving service and value.

"Competition in Bahrain's telecommunications market has intensified and our business is undergoing transformation as Bahrain's residents are offered additional mobile, fixed telephony and internet alternatives," said Mr Juma.

"However, competition is beneficial as it breeds a dynamic environment where customers reap the rewards and Bahrain becomes a more competitive destination for business clients to relocate their regional support centres."

Batelco continued to focus on growing its mobile and broadband business in Q1 2006.

"Batelco has grown its mobile customer base to 580,000 which represents a 75% market share," said Batelco's Chief Executive Peter Kaliaropoulos.

To add greater value for customers, Batelco recently launched a number of marketing initiatives and innovative services such as SMS+Auto Reply and SMS+Filter. In addition, with the Talk More - Pay Less promotion, Batelco mobile customers enjoyed the cheapest off-peak rates for local calls in the Kingdom.

"Broadband and data services are growing at double digits, year on year. We reduced the entry level Broadband business package by 50% to BD 40 per month," Mr Kaliaropoulos continued.

"Subject to Regulatory (TRA) approvals Batelco will introduce revised pricing structures for broadband and data services in the near future," he added.

With a remit to offer local and regional organisations a totally secure environment in which to locate their mission critical data applications for Disaster Recovery, Batelco recently launched INFORT, a world class Data Centre for business customers and Government organisations.

"Batelco has entered the network solutions and systems integration market in Bahrain offering total solutions to clients not just telephony and data connectivity," explained Mr Kaliaropoulos.

"We anticipate that we will win a significant share of this market over the next 3 years."

Mr Juma said that Batelco is also investigating various potential acquisitions in the Middle East and North Africa regions to complement the expected slowdown in revenue growth in Bahrain as a result of the complete deregulation of the market in 2006.

Batelco's support for projects that help the community continues unabated in 2006. Sponsored by Batelco, Bahrain Cancer Society's national Breast Screening campaign is now operational.

"It is a great honour for Batelco to sponsor such a great national campaign, the first of its kind, to safeguard the health of Bahraini women," said Mr Juma.

"Our BD 400,000 contribution to this cause adds another link to the long chain of support and assistance Batelco provides to the people of Bahrain," he said.

As part of Batelco's continued support for the University of Bahrain (UoB), the company recently sponsored the first Students TechShow held at the College of Information Technology at the university campus. The show aimed to spread awareness amongst students about the latest technologies available in the field of Communication & Information technology in a mini show that simulates global IT conferences.

"Stemming from its conviction of the crucial benefits the UoB gives to the community, Batelco will continue playing the role of a main supporter for the university's various activities," explained Mr Juma.

"As the competitive intensity increases, Batelco's transformation is squarely focused on improving the value and experience our customers enjoy in using Batelco's services."

"We will also focus on new business opportunities in the region and drive our costs down in Bahrain to remain competitive and deliver value to both customers and shareholders," he conclude