Batelco net profit declines to BD 24.3 million; seeks acquisitions

Bahrain-based Batelco has reported its Q1 2010 financial results, posting revenues of BD 85.9 million (US$227.8 million), up four per cent from the first quarter of 2009, while net profit declined seven per cent to BD 24.3 million. The firm attributed the slide in profits to significant start-up costs of its new operations and specifically funding S-Tel in India. Earnings per share for the quarter was 16.9 fils.

Chief executive Peter Kaliaropoulos said he was satisfied with the group’s performance, taking into consideration increased competitive activities and new entrants in Bahrain and Jordan. He said the 35 per cent year-on-year growth in Batelco’s customer base to 6.4 million came largely from increases in mobile and broadband customers across every market, including over a million customers in India.

In addition, Kaliaropoulos stated the group was seeking acquisitions in North Africa and Asia, in the price range of US$1.5-2 billion. This is with a view to raising annual net profit to between BD 90-100 million during 2010.

“Furthermore, whilst investing in infrastructure, sales, marketing and customer care initiatives, we have also been implementing efficiency and productivity initiatives and as a result our EBITDA has grown by five per cent and group operating profit grew by seven per cent to BD 27.8 million,” he added.

The firm has invested twice as much in Bahrain – its home and most important market – in Q110 compared to Q109, focussing on expanding fixed and mobile infrastructure. Operations outside of Bahrain contributed 32 per cent of revenues and 22 per cent of EBITDA during the period.

Jordanian operation Umniah now has 1.65 million mobile subscribers, amounting to a 26 per cent market share. Its WiMAX and ADSL customer base increased to 19,000 customers.