Batelco AGM approves US$150 million cash dividend

Batelco Group shareholders have approved a full-year cash dividend of BD57.6 million (US$152.8 million), which represents a 72 per cent pay-out at a value of 40 fils per share. The group already paid 20 fils per share during the third quarter of 2011 with the payment of the remaining 20 fils per share expected on March 6, 2012.

As announced earlier in the month, for the full-year 2011, the Batelco Group reported net profit of BD80 million versus BD86.8 million 2010, representing a decline of eight per cent. EBITDA for the year was BD126 million, representing a 39 per cent margin, versus EBITDA of BD146.2 million for 2010. The Group’s gross revenues stood at BD327.0 million for the year, down four per cent year-on-year.

As of December 31, 2011, Batelco Group was free of debt and had significant cash and bank balances of BD107.9 million, an increase of 24 per cent year-on-year.

Batelco reported the total group mobile customer base grew by 21 per cent in 2011 whilst broadband subscriber figures across the network increased by eight per cent. 2011 also saw the group achieve record contributions from overseas operations resulting from on-going diversification of its operations geographically. For the year, 37 per cent of revenues and 30 per cent of operating profit were sourced from markets outside Bahrain.

In spite of aggressive market competition in Bahrain and the first full-year of operations for the third mobile operator, the Batelco still maintained a nearly 44 per cent share of the mobile market and strong retention rates. Similarly the telco reported additional progress in the broadband segment in Bahrain where Batelco saw an increase of more than 50 per cent in its wireless broadband subscriber numbers for the year.