Batelco Group records BD22.7m half-year profit

Manama : Telecommunications company Batelco Group reported a net profit of BD22.7m for the six months ended June 30, 2016, the firm announced yesterday. 

Despite competitive pressure, the group’s ongoing cost containment efforts resulted in increased results from operating activities over the first half of 2015.

The group’s Gross Revenues are down by 2 per cent YoY to BD182.9m 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 1pc since Q1 2016.

The net profit of BD22.7m in the first six months points towards an 18pc decline compared to the corresponding period in 2015. Q2 2016 net profit reported a decrease of 2pc over Q2 2015. The reduced net profits for the period are impacted by one-off items and BD0.9m share of loss of the group’s investment in Sabafon, Yemen.

EBITDA (earnings before interest, tax, depreciation and amortisation) for the period was BD71.3m, representing a margin of 39pc, a 2pc increase year over year and 6pc increase versus Q2 2015. 

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 a 4pc quarter on quarter reduction from Q2 2015. The group continues to sustain its robust EBITDA margin.

Results from operating activities for the period were BD36.8m, reflecting a 2pc increase year-over-year.  Results in the second quarter of 2016 increased by 7pc compared to 2015.

The group’s balance sheet remained strong; as of June 30, 2016 net assets were BD560m with substantial cash balances of BD163.7m. Earnings per share were 13.6 fils and the Board of Directors approved an interim cash dividend for shareholders of 10 fils per share for the six month period.

Commenting on the results following the meeting of the Board of Directors on August 4, Batelco Chairman Shaikh Hamad bin Abdulla Al Khalifa said the group is pleased to report an increase in operating profits over the first half of 2015.

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

Group Operational Review

Commenting on the group’s operational performance, 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.

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 3pc 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 5pc and 12pc 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,” Hinnawi added.