The Group’s gross revenues reached $651.2 million for the period, down 4% from $679.3 million year over year.
Overall the financials showed continued growth and diversification of its customer and revenue base from across the MENA region and India.
In line with the Group’s continued diversification policy, around 37% of revenues and 29% of operating profit are now being generated from markets outside of Bahrain.
Net revenues were down by 7% to $160 for 2011 in comparison to $ 172.7 million for 2010. The Group additionally reported an operating profit of $50.1 million for Q3, 2011 against $70.6 million in 2010 and EBITDA of $75.1million in Q3, 2011 against $96.8 million for 2010.
The Group continues to strengthen its presence and customer base, which grew overall to more than 11 million subscribers by the end of Q3 up 41% from the corresponding period in 2010.
The Group’s balance sheet continues to remain strong. The Group is free of debt and as of 30 September 2011 had substantial cash and bank balances of $ 230.2 million reflecting 65% increase over the same period last year. This includes the impact of interim dividend (20 fils per share) announced and paid during the quarter. Earnings per share for the period stood at 39.2 fils.
Batelco Chairman, Shaikh Hamad Bin Abdulla Al Khalifa, announced the results at a board meeting held at Batelco headquarters, said that the Batelco Group had continued to deliver solid financial results and operating performance throughout the first nine months of 2011.
“Since the end of Q2, we have added more than 800 thousand new subscribers to our customer base, which now exceeds 11 million across the MENA region and India. This increase underscores the ongoing growth of our business and the strength of our offering despite a year over year decline in the Group’s revenues and profitability, which in line with market guidance have continued to be impacted throughout 2011 by significant and ongoing competitive pressures in Bahrain.”
“During Q3, the Group generated strong cash flows, maintained a solid balance sheet and continued to pay substantial dividends to our shareholders. We continue to support the expansion of our network and investments across the region as we seek to add further scale to our operations and deliver even greater value for our shareholders,” Shaikh Hamad added.
Newly appointed Group CEO, Shaikh Mohamed Bin Isa Al Khalifa, said that operationally, Batelco continues to effectively execute its strategy.
“Despite the intensely competitive nature of the market in Bahrain and the challenges that have faced the MENA region throughout the period, we have retained both our market leading position at home whilst also successfully continuing to strengthen our competitiveness and the performance of our subsidiaries both geographically and by segment.”
“Batelco’s ability to maintain its market leadership in mobile services and broadband in the face of aggressive competition can be attributed to a sharp focus on delivering greater value, choice and service to our customers,” said Shaikh Mohamed.
“We have pursued this strategy by working to enhance our competitiveness through effective cost management and operational efficiency as well as through ongoing product and service innovation to support customer retention and to encourage higher usage per customer.”