Manama, Bahrain: Batelco Group (Ticker: BATELCO), the leading telecom in the Middle East of reference with operations across six countries, today announced its financial results for the first quarter of 2012 – first three months of the year ended 31 March 2012 ("the Period"). The period was marked by continued Batelco market leadership in the Kingdom of Bahrain – Batelco's home market, and solid contributions from overseas markets especially from Jordan and Kuwait.

Batelco Group Financial Results for First Quarter 2012: Financial and Subscriber Highlights
- Gross Revenues of BD78.0M (US$206.9M) for the period;
- EBITDA of BD28.3M (US$75.1M) representing a 36% margin;
- Consolidated Net Income of BD16.1M (US$42.7M);
- One off BD2M adverse impact - share of Sabafon results relating to 2011 period;
- Batelco Group total subscriber count of 6.9M reflecting the STel impact;
- Diversified Batelco Group revenues with 38% of revenues and 34% of operating profit now sourced from markets outside Bahrain; and
- Cash and bank balance of BD61.8M(US$ 163.9M).

For the First Quarter 2012, the Batelco Group reported Net Profit of BD16.1M (US$42.7M) versus BD17.5M (US$46.4M) for the corresponding period in 2011, a decrease of 8% year over year. EBITDA for the period was BD28.3M (US$75.1M), representing a 36% margin, versus EBITDA of BD32.6M (US$86.5M) for the corresponding period in 2011. The Batelco's Gross Revenues stood at BD78.0M (US$206.9M) for the First Quarter 2012, down 4% from BD80.8M (US$214.3M) in the corresponding first quarter of last year. Operating Profit for the quarter was BD19.6M (US$52.0M) for the First Quarter 2012 versus BD23.3M (US$61.8M) for the corresponding period in 2011. In line with ongoing efforts to diversify revenues and maximize investments, the Batelco Group saw a healthy contribution from overseas markets. At the end of the first quarter, 38% of revenues and 34% of Operating Profit were generated from markets outside of Bahrain.

The Batelco Group's balance sheet also remained strong. As of 31 March 2012, Batelco had low debt and significant cash and bank balances of BD61.8M (US$163.9M). While this reflects a decline of 6% when compared to the same period last year, it takes into account the impact of a substantial one-off payment made in January 2012 for the acquisition of a 3G licence for Umniah, Batelco's majority owned Jordanian subsidiary. Earnings per share for the period stood at 11.2 fils.

Batelco Chairman, Shaikh Hamad bin Abdulla Al Khalifa, announced Batelco's First Quarter 2012 financial results following a Meeting of the Board of Directors at Batelco's Hamala headquarters stating:
"During the first quarter of 2012, we continued to focus our efforts on maximising the performance of our investments overseas whilst maintaining market leadership in the Kingdom of Bahrain. In line with the guidance that we provided at the outset of the year, the results of Batelco for the First Quarter 2012 reflected the Batelco strategy and our continued impact of significant competition in Bahrain and in the highly competitive environments across the MENA markets in which we operate. We are nevertheless pleased with the ability of the Batelco Group companies to continue to deliver solid results, despite challenging operating environments, as evidenced by strong cash flow generation during the First Quarter 2012 and the overall strength of our balance sheet. Having ended the First Quarter 2012 with significant cash balances despite significant one-off capital expenditures, we continue to be in a strong position to deploy our resources towards further strengthening our existing operations and making investments in the growth and expansion of the Group, which is a key priority in 2012 as we work to build scale and deliver even greater value for Batelco customers and shareholders."

This press release has been issued by Batelco Corporate Affairs department.
For further information, please contact Batelco Public Relations Office
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