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Batelco Net Profit BD78.3 Million

MANAMA - Bahrain Telecommunications company (Batelco), one of the leading integrated telecommunications provider in the Kingdom of Bahrain announced its Gross Revenue results, delivering a net profit of BD 78.3 million on a turnover of BD 245.4 million, at the end of the third quarter of 2008.

This figure has surpassed all similar previous achievements, thus registering an equivalent 32 per cent profit margin, reversing the 2.8 per cent year on year decrease that had been reported during half year results.

Announcing the third quarter results of Batelco at a Board meeting in Bahrain recently, Chairman Shaikh Hamad bin Abdulla Al Khalifa said the results reflects continued double digit top-line growth and strong focus on cost containment and productivity improvement especially in the Bahrain operation.

He noted that the milestone was reached at a time when competition is rapidly increasing in the region, adding that Batelco continues to maintain its market leadership position in the Kingdom while growing in strength across the Middle East. Shaikh Hamad noted that the growth in Gross Revenue year to date was up 15.1 per cent over the same period last year and operating profit year to dates was BD72.3 million, marginally up 1 per cent year on year, resulting primarily from overseas operations.

In its report, Batelco says that strong revenue performance continues to impact the Group’s cost base, with the Group’s expenses including network operating expenses, out payments to other operators, staff costs and depreciation increasing 22 per cent year on year. This result, it says however represents a significant reduction from the 30 per cent year on year increase reported during half-year results.

The company recently introduced ‘Batelco World Freedom’, a promotion which makes Batelco the first and only operator in Bahrain to provide incoming calls from anywhere in the world free of charge for its customers.

“Bahrain continued to deliver steady results and growth was driven mainly by overseas operations which now represent 36 per cent of Batelco’s revenues. The group’s 96 per cent owned subsidiary in Jordan, Umniah, has delivered significant year on year revenue growth.