Manama, Bahrain: Batelco Group (Ticker: BATELCO), the regional telecommunications operator of reference with operations across seven countries, today announced its results for the twelve-months ended 31 December 2011 ("the year"), which were marked by sound financial results and operating performance across its markets of operation in the MENA region and India.

Financial and Subscriber Highlights

- Gross Revenues of BD327.0M (US$867.4M) for the year;

- EBITDA of BD126.0M (US$334.2M) representing a 39% margin for the full year; with the highest quarterly EBITDA for the year recorded in Q4 2011;

- Consolidated Net Profit of BD80.0M (US$212.2M) for the year, with net profit for Q4 representing the second highest quarterly net profit in the last eight quarters;

- Record subscriber base that now surpasses 11 million, an increase of 20% YoY; including 21% growth in mobile customers and 8% growth of the broadband subscriber base;

- Continued diversification of Group revenues with 37% of revenues and 30% of operating profit now sourced from markets outside Bahrain;

- Significant cash and bank balances totaling BD107.9M (US$286.2M) at year end;

- Recommended dividends of BD57.6M (US$152.8M) for the full year, equivalent to 40 fils per share, marking the Group's ongoing ability to deliver strong value and returns to shareholders; and

- An overall solid financial position to support future growth and results as underscored by the Group's Investment Grade Credit Ratings - its first public credit ratings- received from Fitch and Standard & Poor's Ratings Services in Q4 2011.

For the full year 2011, the Group reported Net Profits of BD80.M (US$212.2M) versus BD86.8.M (US$230.2M) for 2010, representing a decline of 8%. EBITDA for the year was BD126.0M (US$334.2M), representing a 39% margin, versus EBITDA of BD146.2M (US$387.8M) for 2010. The Group's Gross Revenues stood at BD327.0M (US$ 867.4M) for the year, down 4% from BD340.3M (US$902.7M) in the previous year. In line with the Group's continued diversification, 37% of revenues and 30% of Operating Profit are now generated from markets outside of Bahrain where the Group continues to focus on building its presence and strengthening the performance of its operations.

The Group ended the year with a strong balance sheet. As of 31 December 2011 Batelco Group was free of debt and had significant cash and bank balances of BD107.9M (US$286.2M) an increase of 24% year on year.

The Group also reported that the Board of Directors would recommend a full year cash dividend of BD57.6M (US$152.8M) to the General Assembly of Shareholders, which represents a 72% payout at a value of 40 fils per share of which 20 fils per share was already paid during the third quarter of the year.

Supporting the Group's sound financial results was continued growth of its subscriber base. At year end 2011, the Group reported a record 11 million customers, an increase of 20% year on year, underscoring the success of ongoing efforts to add scale to its operations and maximise performance across its regional network.

Batelco Group Chairman, Shaikh Hamad Bin Abdulla Al Khalifa, announcing the 2011 financial results following a meeting of the Board of Directors at the Group's Bahrain Headquarters, said:

"Throughout 2011 Batelco Group successfully managed its operations balancing our performance in mature markets such as Bahrain, where we have effectively maintained market leadership despite strong competitive pressures, with opportunities to pursue and achieve further growth across our regional markets of operation. Whilst our financial results showed expected declines for the year in line with market guidance, we are nevertheless pleased to have ended the year on a strong note with the fourth quarter accounting for the highest EBITDA reported in 2011. We are also proud of our ongoing ability to deliver value to shareholders. In recommending to the General Assembly a substantial dividend of BD57.6M (US$152.8M) for the full year, equivalent to 40 fils per share, we see the Group continue to top the ranks of regional telecommunications companies in terms of dividend yields and comparative shareholder returns. Operationally, we are also pleased with our ongoing ability to make progress in building scale, a cornerstone of our growth strategy. In 2011, we successfully expanded our customer base by 20%, bringing our subscriber numbers to a record 11 million users. We will continue to focus on executing the strategy we outlined to our shareholders during last year's AGM, investing in both strengthening our existing network and further expanding our operations and subscriber base for the benefit of customers and shareholders alike."

"Our strategic imperatives are supported by the Group's solid financial position, which we have maintained through strong cash flow generation in 2011, exceeding guidance, and strengthening our balance sheet. Further growth will also be supported by the Group's Investment Grade Credit Ratings received during the fourth quarter of the year from leading global credit ratings agencies Fitch and Standard & Poor's Ratings Services. These were the first public credit ratings issued to the Group and affirm our strong operating and financial results and prospects as well as the Group's overall positive credit quality."