Wednesday 26 June 2019
 
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Shaikh Abdulla bin Khalifa Al Khalifa and Ihab Hinnawi

Batelco Q1 net profit up 11 pc to $38.7m

MANAMA, May 2, 2019

Bahrain-based Batelco, a top telecom group, has posted net profits of BD14.6 million ($38.7 million) for the first quarter (Q1) of the year up from BD13.1 million ($34.7 million) for the corresponding period of 2018, an increase of 11 per cent.

Similarly, total comprehensive income attributable to equity holders of the company of BD17.3 million ($45.9 million) in Q1 2019 increased 19 per cent from BD14.5 million ($38.5 million) in Q1 2018.

The Group’s operating profit for Q1 2019 increased by 8 per cent to BD21.9 million ($58.1 million) from BD20.3 million ($53.8 million) in Q1 2018. 

EBITDA for the first quarter of 2019 stands at BD38.6 million ($102.4 million) compared to BD36.6 million ($97.1 million) in Q1 2018, representing an increase of 6 per cent and EBITDA margin of 38 per cent.  The improved EBITDA is bolstered by the revenue gains and a 2 per cent reduction in direct costs.

The Group continues to report revenue growth with Q1 2019 revenues of BD101.2 million ($268.4 million) 2 per cent higher than Q1 2018 revenues of BD99.5 million ($263.9 million).  Revenues continue to be positively impacted by strong performance at Batelco Bahrain, Umniah in Jordan and Dhiraagu in the Maldives.

The Group’s balance sheet continues to be strong with total assets of BD974.4 million ($2,584.6 million) as of 31 March 2019 compared to BD912.4 million ($2,420.2 million) as of 31 December 2018.  Net assets as of 31 March 2019 stand at 492.3 million ($1,305.8 million) compared to BD504.9 million ($1,339.3 million) as of 31 December 2018.  The Group’s cash and bank balances are a substantial BD154.9 million ($410.9 million).

Total equity attributable to equity holders of the company as of 31 March 2019 is BD450.0 million ($1,193.6 million) compared to BD465.2 million ($1,234.0 million) as of 31 December 2018.  Earnings per share (EPS) is 8.8 fils for Q1 2019 compared to 7.9 fils for the corresponding period of 2018.

Batelco chairman Shaikh Abdulla bin Khalifa Al Khalifa said: “We are delighted to continue to deliver growing revenues and profits keeping in line with our improved financial achievements during 2018. The successful implementation of our strategic plans across the Batelco Group has established a very sound platform which our teams continue to build on.

“Investment in Fibre and Data, two key areas of our focus, has helped to generate good growth in revenues, while our net profits have been boosted by 11 per cent year-on-year supported by cost containment programmes.”

Batelco Group CEO Ihab Hinnawi said: “intense competition in the telecommunication markets we operate in continue to present challenges. However, growth in key areas including in our digital services, which improved by 12 per cent year-on-year, supported the positive revenue contribution.

“Batelco was delighted to announce some major achievements in the first quarter, most notably an agreement between Umniah and the Jordan Electric Power Company to create the largest fibre aerial network in the Kingdom of Jordan.”

Hinnawi continued by saying, “The solid execution of our strategic plans across all our OPCOS proved to be fruitful throughout 2018 and the trend has continued during the first quarter of 2019. We are encouraged by the positive performance and will remain focussed on our objectives with emphasis on digitisation initiatives, customer experience programmes and on creating a leaner and more agile organisation.

Looking Forward

Shaikh Abdulla extended appreciation to management and staff across Batelco’s network of operations for delivering a fast paced and successful first quarter of the year which witnessed important operational achievements and pleasing financial results.

“We have well planned strategies in place across the Group of companies which our teams continue to execute successfully. We are in a good position and based on this sound platform we aspire to gain further momentum going forward,” he concluded. – TradeArabia News Service




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