Batelco Q2 profit jumps 24pc

Batelco yesterday announced a 24 per cent increase in its 2019 second-quarter net profit attributable to equity holders of the Company to BD19.4 million (US$51.5m) helped mainly by a one-off gain of BD27.2m (US$72.1m) from the sale of Batelco’s 90 per cent stake in Qualitynet. In addition, Q2 2019 net profit is impacted by a further impairment loss of BD20.3m (US$53.8m) on Batelco’s 26.94pc shareholding in Sabafon in Yemen.

Sabafon has faced unique operating challenges due to the ongoing conflict in Yemen and currency decline. In the 2018 quarter, the company recorded a net profit attributable to equity holders of the Company of BD15.7m (US$41.6m). Earnings per share (EPS) are 11.7 fils for the second quarter of 2019 compared to 9.4 fils in Q2 2018. The board approved an interim cash dividend for shareholders of 10 fils per share or 10pc of paid-up capital for the six-month period.

Total comprehensive income attributable to equity holders of the company recorded a 117pc increase to BD17.1m (US$45.4m) while operating profits for the quarter declined 6pc to BD19.1m (US$50.7m) from that in the year-earlier quarter. Revenues were in line with the same period of 2018 and stand at BD100.4m (US$266.3m) in comparison to BD100.5m (US$266.6M) announced for Q2 2018.

Revenues, Batelco said, were supported by strong performance particularly in the home market of Bahrain with revenues from fixed Broadband up by 10pc year-on-year, and improvement of 20pc year-on-year for its Data communications business.

Six-month results

For the first six months of 2019, Batelco’s impairment loss of BD20.3m on its investment in its associate company in Yemen was compensated by a gain from the sale of Qualitynet, the Company’s subsidiary in Kuwait, resulting in a net profit attributable to equity holders of the Company of BD34.0m, 18pc higher than BD28.8m in H1 2018. Revenues were reported at BD201.7m, an increase of 1pc over H1 2018. Revenues were positively boosted by strong performance in the home market despite a challenging environment.

Half-year EPS was 20.5 fils, 18pc higher than H1 2018 EPS of 17.4. Total comprehensive income attributable to equity holders of the company is up by 54pc to BD34.4m (US$91.2m), while operating profits remained steady with a 1pc increase, and stand at BD40.9m (US$108.5m). Batelco’s International Operations have contributed 57pc of Revenues and 55pc of EBITDA for the first six months of 2019.

Commenting on the results, Batelco Chairman, Shaikh Abdulla bin Khalifa Al Khalifa said the company will continue to implement its separation plans as per the NTP4 requirements and would “strive to enrich future returns.” “Investment in 5G, Data Centres, enterprise solutions and digital revenue streams are among our key priorities and support our efforts which contribute towards the growth of the digital economy in line with the Kingdom’s vision,” said Batelco CEO Mikkel Vinter who joined the Company in May.

Looking ahead, Batelco Chairman Shaikh Abdulla said, “Based on our achievements for the first six months of 2019, we are confident that we have the correct strategies in place to seize market opportunities and build on our solid platform.”