Manama, Bahrain: Batelco (Ticker: BATELCO), announced net profit attributable to equity holders of the company for Q2 2022 of BD20.0M (US$53.1M), a 12% increase from BD17.8M (US$47.2M) for the corresponding quarter of 2021.  Earnings per share (EPS) are 12.1 fils for the second quarter of 2022 compared to 10.8 fils in Q2 2021. 

Total comprehensive income attributable to equity holders in Q2 2022 was reported at BD12.8M (US$34.0M), a 26% decrease from BD17.3M (US$45.9M) in the second quarter of 2021. 

Revenues for Q2 2022 of BD99.2M (US$263.1M) are up by 1% compared to BD98.4M (US$261.0M) in Q2 2021.  Operating profit for the second quarter of 2022 increased by 4% to BD24.7M (US$65.5M) from BD23.8M (US$63.1M) in Q2 2021, while EBITDA stands at BD42.9M (US$113.8M) in Q2 2022 compared to BD41.7M (US$110.6M) in Q2 2021, an increase of 3%.

For the first six months of 2022, net profit attributable to equity holders of the company of BD37.9M (US$100.5M) increased by 1% from BD37.5M (US$99.5M) in 2021. Earnings per share (EPS) are 22.9 fils for the period compared to an EPS of 22.7 for H1 2021. 

Total comprehensive income attributable to equity holders of the company is down by 46% from BD47.2M (US$125.2M) in H1 2021 to BD25.7M (US$68.2M) in H1 2022, mainly due to foreign exchange translation differences and investment fair value changes.

Revenues for the first six months of the year of BD197.7M (US$524.4M) are in line with BD198.2M (US$525.7M) of revenues in H1 2021.  Operating profits decreased by 5% from BD49.3M (US$130.8M) in H1 2021 to BD46.8M (US$124.1M) in H1 2022 due to increases in operating expenses.  Similarly, EBITDA decreased by 2% from BD85.4M (US$226.5M) in H1 2021 to BD83.5M (US$221.5M) in H1 2022. The company maintained a healthy EBITDA margin of 42% in H1 2022.

Batelco’s balance sheet remains strong with total equity attributable to equity holders of the company of BD485.6M (US$1,288.1M) as of 30 June 2022, 1% lower than BD489.6M (US$1,298.7M) reported as of 31 December 2021. Total assets of BD1,028.6M (US$2,728.4M) as of 30 June 2022 are in line with total assets of BD1,030.6M (US$2,733.7M) as of 31 December 2021. Similarly, net assets as of 30 June 2022 which stand at BD528.1M (US$1,400.8M) are in line with BD530.7M (US$1,407.7M) reported as of 31 December 2021. The Company’s cash and bank balances are a substantial BD226.2M (US$600.0M), which reflects the 2021 final dividend of 16.5 fils per share paid in April 2022. 

The Board of Directors approved an interim cash dividend for shareholders of 13.5 fils per share or 13.5% of paid-up capital for the six-month period of 2022. This is in line with the 2021 interim dividend payment and the Board of Directors commitment to continuously deliver strong returns to shareholders.

Commenting on Batelco’s performance for the first half of 2022, Batelco Chairman, Shaikh Abdulla bin Khalifa Al Khalifa said, “The Board of Directors is pleased with the Company’s performance for the second quarter of 2022 which shows improvement over the same period of last year. This is reflected by 12% increase in net profits and increased earnings per share (EPS) of 12.1 fils compared to 10.8 fils for Q2 2021. Delivering good returns on shareholder investment is a priority for the Board of Directors and we are focussed on driving an ambitious long-term strategy aimed at meeting the expectations of all stakeholders.”

“Stemming from a commitment to support the Kingdom’s digital transformation vision, Batelco continues to be focussed on its digital growth strategy. The Board was proud to witness the success of Elevate, Batelco’s first of its kind technology forum for the Enterprise sector, which showcased the Company’s digital brands Beyon Cyber, Beyon Connect and Beyon Solutions. The forum brought together hundreds of leaders from Bahrain’s business community and featured presentations and informative sessions led by experts from the Beyon teams and industry leaders including AWS.”

“My colleagues on the Board and I appreciate the efforts of the executive team for their diligent management and commitment to implementing the strategic objectives, which has led to the improved results for the second quarter,” Shaikh Abdulla concluded.

Batelco CEO Mikkel Vinter said, “Batelco accelerated the momentum set in the first quarter to accomplish a number of significant achievements during Q2, keeping digital transformation foremost in mind and delivering on our commitment to the Board.”

“During the quarter Batelco focussed on developing and diversifying its digital products and services across its core business, and introduced Cloud ERP and Retail Management Solutions, to help the enterprise sector manage their operations and costs efficiently and maximise revenues.”

“For consumers, a major new Home Broadband campaign, with the biggest raffle in the Company’s history, has begun. It’s a very exciting opportunity open to existing and new customers, which will see a lucky customer win a luxury property in Diyar Al Muharraq early in 2023.”

“Meanwhile the Beyon digital brands continued to grow their presence in the market by collaborating with leading organisations in Bahrain, and we expect to see an increasing revenue continuation from our digital operations going forward.”

“I would like to thank the entire Batelco team and encourage them to keep up the positive momentum to build on our ambitious business plans for the second half of 2022,” Mr. Vinter concluded.

-Ends-

This press release, along with the full set of financial statements, is available on the Bahrain Bourse website and on Batelco website, www.batelco.com