Batelco reports Q1, 2022 profit

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Batelco yesterday released financial results for the first quarter of 2022, reporting a 9% decrease in net profit which the company attributed “mainly to increased operational expenses associated with setting up new digital entities.”

Q1 results were also impacted by “increased competition due to the regulatory environment in the telecom sector,” said Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa.

He added: “This as well as the increased operational expenses stemming from investments in transformational initiatives, including digital growth and the launch of new digital brands, had an impact on the financial results for the first quarter.”

He, however, said the company is “pleased with the milestones achieved in the digital space and proud of the launch of three new digital brands during the first quarter.” Quarterly results First quarter net profit was BD17.9 million (US$47.5m), compared to BD19.7m (US$52.3m) in the same quarter a year ago.

Quarterly earnings per share (EPS) was 10.8 fils compared to 11.9 fils in Q1 2021. Revenues decreased 1% to BD98.5m from BD99.7m (US$264.5m) in Q1 2021, mainly due to YoY reductions in datacoms and lower roaming revenue in Dhiraagu’s operation in the Maldives due to COVID.

Operating profit declined by 13% to BD22.1m (US$58.6m) from BD25.4m (US$67.4m) in Q1 2021. EBITDA stands at BD40.6m (US$107.7m) compared to BD43.8m (US$116.2m) in Q1 2021, a decrease of 7%. The company maintained a healthy EBITDA margin of 41% in Q1 2022.

Total comprehensive income attributable to equity holders was reported at BD12.9m (US$34.2m), a 57% decrease from BD29.9m (US$79.3m) in the first quarter of 2021, mainly due to foreign exchange translation differences and investment fair value changes.

Batelco’s balance sheet remains strong with total equity attributable to equity holders of the company of BD473.3M (US$1,255.4M) as of 31 March 2022, 3% lower than BD489.6M (US$1,298.7M) reported as of 31 December 2021. Cash and bank balances are a substantial BD235.4M (US$624.4M).