Bahrain Telecommunications (Batelco) announced its financial performance for the year 2008 wherein it posted net profit of $276.4 million (BD 104.2 million) which is a record for the company. The growth rate recorded turns to be 2.7 percent as compared to 2007 figures.

The year saw the company taking a hit of $3.5 million related to non-operating investments. Revenues grew by 9pc to $846.4m and net revenues grew by 10pc to $666.8m. Earnings per share rose to 72.4 fils from 70.5 fils in 2007.

The company will recommend to the general assembly of shareholders a cash dividend of BD72m representing the equivalent of 50pc of the paid-up capital - at a value of 50 fils per share, of which 20 fils per share was announced and paid in July last year with the The remaining 30 fils will be paid after the annual general assembly next month.

Batelco attributed the growth to continued top-line growth from new products and services, competitive offers and promotions and, strong focus on cost containment and productivity improvement across all operations including Bahrain.

"We have maintained our market leadership in Bahrain and continued to grow across the Middle East region despite the highest competitive intensity in every market we operate," said group chairman Shaikh Hamad bin Abdulla Al Khalifa.

The company last week picked stake in Indian mobile services new entrant S-Tel.