Bahrain-based Batelco, a global telecom group, has reported a net profit of BD22.7 million ($60.2 million) for the first six months of the year, an 18 per cent decline compared to the corresponding period in 2015.

For the second quarter of the year, the group posted a decrease of 2 per cent in net profit over Q2 2015. The reduced net profits for the period are impacted by one-off items and BD0.9 million ($2.4 million) share of loss of the group’s investment in Sabafon, Yemen, a statement said.

The group’s gross revenues are down by 2 per cent year-on-year (YoY) to BD182.9 million ($485.1 million) mainly due to competitive pressures in key markets. However, revenues have remained steady in the second quarter of 2016 compared to Q2 2015 and with a slight increase of 1 per cent since Q1 2016.

EBITDA for the period was BD71.3 million ($189.1 million), representing a margin of 39 per cent, a 2 per cent increase year over year and 6 per cent increase versus Q2 2015. Throughout the period, the group was able to continue its successful cost containment programmes resulting in a 5 per cent reduction in expenditure compared to the same period last year and a 4 per cent quarter on quarter reduction from Q2 2015. The Group continues to sustain its robust EBITDA margin, the statement said.

Results from operating activities for the period were BD36.8 million ($97.6 million), reflecting a 2 per cent increase year-over-year.  Results from operating activities in the second quarter of 2016 increased by 7 per cent compared to the corresponding period of 2015.

Batelco chairman Shaikh Hamad bin Abdulla Al Khalifa said: “We continue to operate smartly through synergizing Group efforts. Accordingly, our operations outside of Bahrain continue to generate over half of our revenues and EBITDA with our home operation also making a strong contribution with increased subscriber numbers for both fixed lines and Broadband in spite of the challenging market conditions in Bahrain,” he said.

“Our combined Group-wide efforts to pool resources, technologies and expertise while continuing to focus on programmes to reduce operating costs are making good progress and helping to boost our results,” Shaikh Hamad added.

Batelco Group chief executive Ihab Hinnawi said a number of operations performed very well which is reflected in substantially improved customer numbers for specific services in key locations.

“Across the Group a number of locations showed substantial growth in their customer base, particularly for mobile services, with Umniah numbers up by 19 per cent YoY and South Atlantic and Diego Garcia reporting YoY increases of 64 per cent and 26 per cent respectively,” Hinnawi said.

“In Bahrain mobile subscribers increased 3 per cent compared to the first quarter of 2016 and broadband services reported a 12 per cent YoY increase in subscriber numbers. Dhiraagu, our Maldivian operation continues to impress and posted YoY increases in mobile and broadband subscribers of 11 per cent and 16 per cent respectively.”

Hinnawi continued by saying that the communication ecosystem continues to shift in all locations and no sooner have telcos delivered the latest new technology before the next new wave is on the way.

“Customers, especially younger generations, have grown up in a world of always-on communications and want the newest devices and services as soon as possible. Such demands continue to challenge us to be more customer-experience-oriented. Accordingly at the moment we are very much focused on digitisation to ensure Batelco Group customers are among the first to benefit from world-class products and services which will enrich their lives beyond the pure connectivity needs,” he added.

Batelco’s overseas operations overall remain strong and at the end of the six month period, 59 per cent of revenues and 57 per cent of EBITDA were attributable to operations outside of Bahrain. This is compared with 59 per cent of revenues and 56 per cent of EBITDA in the first half of 2015.

During the period, a number of overseas markets delivered positive results due to the rollout of new and enhanced solutions to exceed their customers’ expectations.

Hinnawi continued by stating that in Bahrain Batelco maintained a steady presence in the mobile market supported by its retention of high value post-paid residential and business customers.

“Mobile subscriber numbers in Bahrain were up by 3 per cent over the previous quarter but showed a slight decline year-on-year. However, both the fixed line and Broadband customer base has grown YoY with a 5 per cent and 12 per cent increase in customer numbers respectively. We are very pleased with this progress which reflects the popularity of Batelco TV and other value added services plus also the growing uptake of Batelco’s fibre offers,” said Hinnawi.

“Major news for the second quarter of the year was the launch of Bahrain wi-fi with a number of  Mobile Hotspots including the Bahrain International Circuit, Seef  Mall  Muharraq and the Juffair Restaurant area already live and over 50 locations catering to all regions of Bahrain currently ready or in process.”

“We are very proud of the launch of Bahrain wi-fi which is delivered by Batelco for the benefit of the Kingdom of Bahrain. The service is available for all residents and also visitors to the Island and it will undoubtedly boost Bahrain’s endeavours to be a leading regional communications hub.”

“The investment required to cover Bahrain with wi-fi demonstrates our commitment in developing relevant Smart City solutions and supports the local digitisation drive. The launch of Bahrain-wi-fi combined with the rollout of Batelco’s Superfast fibre network provides the most advanced digital platform for consumers and business in Bahrain,” added  Hinnawi.

In conclusion, Shaikh Hamad stressed on the importance of leveraging on the unique strengths of each of the Group’s operations and on continuing to invest wisely to deliver the relevant products and services to meet the specific needs of each operation.

“Among the key services under the spotlight at the moment are digital solutions. Batelco continues to invest in relevant platforms as part of its drive to become a recognised integrator of digital solutions in Bahrain and also in a number of our overseas operations. We have already laid the foundations for digital solutions and will continue to build on our strong base by developing our portfolio in-house throughout the Group and where needed by forging partnerships with other organisations,” Shaikh Hamad concluded. – TradeArabia News Service