Thursday 18 October 2018

Shaikh Mohamed bin Khalifa Al Khalifa

Batelco posts $66.8m nine-month profit

MANAMA, October 31, 2017

Batelco Group, the international telecommunications group with operations across 14 countries, reported a consolidated net profit of BD25.2 million ($66.8 million) for the nine-month period ended September 30.
The profit was a 22 per cent decline compared to the corresponding period in 2016 and quarter-on-quarter decline of 43 per cent compared to Q2 2017 and 37 per cent compared to Q3 2016, a statement said.
The group has maintained stable revenues with increases over the previous quarter and over Q3 2016, it said.
For the nine-month period, the group’s gross revenues were up by 2 per cent year-on-year to BD277.6 million ($736.3 million) supported by improved revenues in the Bahrain operation, Umniah in Jordan and Dhiraagu in the Maldives. Gross revenues also showed an improvement of 6 per cent over the previous quarter in 2017 and 7 per cent over Q3 2016. 
EBITDA for the period was BD91.2 million ($241.9 million), a 13 per cent decline year over year, 14 per cent quarter-on-quarter decline over Q2 2017 and 20 per cent quarter-on-quarter decline over Q3 2016. The drop in EBITDA is mainly attributed to restructuring costs incurred in Q3 2017. However, the group continues to sustain a robust EBITDA margin of 33 per cent, it said. 
The reduced net profits for the period are mainly impacted by the lower EBITDA due to restructuring and the share of loss from the group’s investment in Sabafon, Yemen due to the ongoing political unrest, it said. 
The group’s balance sheet remains strong; as of September 30 net assets were valued at BD522.6 million ($1,386.2 million) with cash balances of BD151.1 million ($400.8 million). This includes the impact of the interim dividend (10 fils per share) announced and paid during the quarter. Earnings per share for the period stood at 15.2 fils.
Batelco chairman Shaikh Mohamed bin Khalifa Al Khalifa said Batelco’s operations are evolving and transforming to meet the challenges of the communications industry and to cope with the competitive environments throughout the group’s locations. 
Shaikh Mohamed noted that the group’s efforts are focussed on transforming operations to achieve a competitive edge and long-term operational excellence. The communications world is shifting due to a thirst for more content and digital transformation. Batelco continues with its efforts to be positioned as a leading digital solutions and services provider. 
Batelco Group chief executive Ihab Hinnawi said that the group is pleased to report that gross revenues are up year-on-year, the first year to show top line improvement in several years, as a result of the company’s investment in fibre and both fixed and mobile LTE.
“We are also delighted that our focussed strategy supported by Batelco Board of Directors has helped us to grow market share in Bahrain, the Maldives and Jordan,” he added.
The group CEO said Batelco recognises the onset of a new digital era and the continuous enhanced demands of its customers.
“We are very pleased to announce that overall subscriber numbers are up 7 per cent year-over-year and 1 per cent since Q2 2017. At the end of the nine month period, 59 per cent of revenues and 56 per cent of EBITDA were attributable to operations outside of Bahrain. This is compared with 59 per cent of revenues and 55 per cent of EBITDA in the first nine months of 2016.” – TradeArabia News Service

Tags: Bahrain | Telecom | Batelco |

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