Mahmood Rafique
Batelco, which posted net profit of $175million and reaching the milestone of serving 7.9million customers at end of Q3, is keen go for a major acquisition of $1.5 billion to $2 billion in size of investments, a top official at the company revealed.
“Zain Saudi operations has been under the consideration of Batelco as given the growth prospects of the market and this could be a possible option,” Peter Kaliaropoulos, Batelco Group Chief Executive Officer, said.
“With stiff competition in Bahrain and shrinking revenue base at home Batelco in principle is seeking to conclude a major deal in the MENA region, including Saudi, or in India before year-end,” Peter added.
“Batelco has invested overseas, it will be a number of years before start-up operations in markets such as India and Saudi Arabia compensate for the unrelenting challenges of the home market,” he said.
Peter also hinted at a possible deal in Morocco which he said took 11 month Batelco to complete diligence. “This opportunity again is very attractive but we can’t offer premium beyond thirty per cent as we don’t have unlimited wallet luxury,” he said.
“Batelco balance sheet has a zero debt and can comfortably afford a $2 billion deal with the support of the key financial institutions,” he said. Referring to the recurring losses at Batelco’s operations in India under the name of Stel he said that such losses were much anticipated for any startup operations.
“We are thinking of Stel coming on its feet in five years as this happens in each such business model,” he added.
Peter, who was joined by Group HR General Manager Shaikh Ahmed AlKhalifa, Group General Manager Media Relations Ahmed Al Janahi, said Batelco would maintain its sustainability by tapping the all possible opportunities overseas.
“Managing our operation in Bahrain remains our number one priority. Regulatory reform which has led and will continue to lead to more competition in a market with limited growth potential has been extremely successful. These policies have enabled new operators to establish a presence and offer wider choices to customers. The Kingdom is also benefiting from new infrastructure.”
“Batelco’s focus continues to be one of delivering quality and innovative services and, offering better value to customers. However, significant reduction in operating costs, a smaller workforce and lower overheads, will be key priorities for our operation in Bahrain. This is a necessary strategy for a market which is not growing due to high levels of penetration and intensive competitive pressures,” added Kaliaropoulos.
“We are greatly buoyed by a significant rise in the Batelco Group customer base which now stands at just over 7.9 million across all our operations for all products and services. A year ago our mobile subscriber base was 4.9 million but has now reached approximately 7.5 million representing an increase of 53%. We have increased our total Broadband customer base by 35% to 233,000 whilst we now have 188,000 fixed lines.”
“Umniah, Batelco Group’s 96% owned subsidiary in Jordan, continues to demonstrate its strength and popularity in the Jordanian market with a mobile customer base of 1.8 million customers.”
“Continuously rising subscriber numbers for Sabafon, in which the Group holds a 26.94% equity investment, is also encouraging. Sabafon’s customer base has reached 3.2 million. Etihad Atheeb, in which Batelco holds 15% equity, continues to grow in the Saudi market through offering quality broadband and voice services under the brand GO. Etihad now delivers to 92,000 customers an increase of 5% since Q2 of this yea,” he added.
“Subscriber numbers in S Tel India, in which Batelco holds 42.7% equity, have also grown in Q3 to 1.64 million across its operations in Bihar, Orissa and Himachal Pradesh and the recently launched Assam and North East,” he said.