Batelco Group posts Q1 net profit of BD 9.6m

Manama : Batelco Group, the regional Telecommunications Group with operations across 14 countries, yesterday announced its results for the first quarter of 2016 (“the Period”). Despite continued competitive pressure, the Group was able to increase its quarter-on-quarter profitability through its successful cost containment programmes. 

Batelco Group reported Gross Revenues for the period of BD90.9m (US$241.1m), a 3 per cent and 2pc decrease year-over-year and over the previous quarter respectively. Revenues continue to be impacted by competitive pressure in a number of markets across the Group. 

EBITDA for the period was BD35.1m (US$93.1m), representing a margin of 39pc.  Despite a 1pc decline from the previous year, EBITDA increased by 13pc from the previous quarter.  Throughout the period, the Group was able to continue its successful cost containment programmes resulting in a 5pc reduction in expenditure compared to the same period last year and an 11pc reduction from the previous quarter. 

For the period, the Group reported Net Profit of BD9.6m (US$25.5m); a 33pc decline compared to Q1 2015, mainly as a result of one-off items, but a 12pc increase over the previous quarter. 

The Group’s balance sheet remained strong with net assets of BD555.0m (US$1,472.1m) and substantial cash and bank balances of BD174.1m (US$461.8m). Earnings per share for the first quarter of 2016 are 5.8 fils.

Batelco Group Chairman, Shaikh Hamad bin Abdulla Al Khalifa said, “We will continue to invest heavily in new infrastructure and solutions to meet our customers’ requirements and to ensure we are their first choice in all markets,” added Shaikh Hamad.

Commenting on the operational performance for the period, Batelco Group CEO Ihab Hinnawi said that, while the overall customer base was down by 8pc when compared with Q1 of 2015, a number of the Group’s operations performed very well and showed marked increases in customer numbers. 

“It is pleasing to note that our Maldives operator Dhiraagu posted YoY increases in mobile and Broadband customers of 10pc and 17pc respectively. The companies operating under the SURE brand in the Channel Islands, Isle of Man and in the South Atlantic and Diego Garcia also performed well, with their mobile and broadband customer bases increasing year over year.” 

For the period, 60 pc of Revenues and 55 pc of EBITDA was attributable to operations outside of Bahrain. 

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

“For the period, mobile subscribers in Bahrain remained steady over the previous quarter with a slight decline year-on-year. The Broadband subscriber growth year-over-year was pleasing with customer numbers up by 8pc mainly due to the growing popularity of Batelco’s TV and other value added services.”  

“Demand for Batelco’s broadband services grew YoY as a result of Batelco’s continuous investment in its fibre network to reach new developments and replace out of date infrastructure across Bahrain,” said Hinnawi.

Batelco Chairman Shaikh Hamad also spoke of Batelco’s reputable CSR programme, noting that Batelco is recognised as one of the leading companies in Bahrain when it comes to supporting local communities through its commitment to Health, Education, Sports and Social/Cultural initiatives. 

For the period, Batelco has committed over BD600,000 to benefit the community via its sponsorship and donation programme.