Manama, Bahrain: Batelco (Ticker: BATELCO), today announced its financial results for the first six months of 2019 (H1) and for the second quarter of 2019, the three-month period ended 30 June 2019 (Q2). 

The Company reported strong revenues of BD201.7M for the first six months of 2019, an increase of 1% over H1 2018.   Revenues were positively boosted by strong performance in the home market despite a challenging environment. Similarly, EBITDA of BD74.4M has increased 2% over H1 2018 and operating profits year-on-year have remained steady at BD40.9M, a 1% increase over BD40.5M, in H1 2018.  Batelco’s impairment loss of BD20.3M on its investment in its associate company in Yemen was compensated by a gain of BD27.2M in Q2 2019 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 for the first six months of 2019, 18% higher than BD28.8M in H1 2018.

Financial Review

Batelco announced net profits attributable to equity holders of the company for the first six months of 2019 of BD34.0M (US$90.2M) up 18% from BD28.8M (US$76.4M) for the corresponding period in 2018.  Similarly, net profit attributable to equity holders of the company for Q2 2019 was reported at BD19.4M (US$51.5M), a 24% increase from BD15.7M (US$41.6M) for the corresponding period of 2018.   The net profit for Q2 2019 reflects a one off gain of BD27.2M (US$72.1M) from the sale of Batelco’s 90% 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 26.94% shareholding in Sabafon in Yemen.  Sabafon has faced unique operating challenges due to the ongoing conflict in Yemen and currency decline.

Total comprehensive income attributable to equity holders of the company is up by 54% for the first six months of 2019 from BD22.4M (US$59.4M) to BD34.4M (US$91.2M) with total comprehensive income for Q2 2019 reported at BD17.1M (US$45.4M) an increase of 117% from BD7.9M (US$21.0M) for the second quarter of 2018.

Operating profits year-on-year have remained steady with a 1% increase, and stand at BD40.9M (US$108.5M) compared to BD40.5M (US$107.4M) reported in H1 2018; however, operating profits are down by 6% for the quarter from BD20.2M (US$53.6M) in 2018 to BD19.1M (US$50.7M).

For the six-month period, EBITDA increased by 2% over the corresponding period of 2018 from BD73.0M (US$193.6M) to BD74.4M (US$197.3M) with a healthy EBITDA margin of 37%.  EBITDA for the second quarter of 2019 stands at BD35.8M (US$95.0M) compared to BD36.4M (US$96.6M) in Q2 2018, representing a decline of 2%. 

Revenues for the first six months of 2019 were BD201.7M (US$535.0M) an increase of 1% when compared to BD200.0M (US$530.5M) revenues for the first six months of 2018. Revenues for the second quarter of 2019 are 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. The Company’s revenues are supported by strong performance particularly in the home market of Bahrain with revenues from fixed Broadband up by 10% year-on-year, and an improvement of 20% year-on-year for its Data communications business.

Batelco’s balance sheet remains strong with total assets of BD959.2M (US$2,544.3M) as of 30 June 2019 compared to BD912.4M (US$2,420.2M) as of 31 December 2018. Net assets as of 30 June 2019 stand at BD505.8M (US$1,341.6M) compared to BD504.9M (US$1,339.3M) as of 31 December 2018. The Company’s cash and bank balances are a substantial BD167.4M (US$444.0M). Total Equity attributable to equity holders of the company is BD467.3M (US$1,239.5M) compared to BD465.2M (US$1,234.0M) as of 31 December 2018.

Earnings per share (EPS) are 11.7 fils for the second quarter of 2019 compared to 9.4 fils in Q2 2018 resulting in half year EPS of 20.5 fils, 18% higher than H1 2018 EPS of 17.4. The Board of Directors approved an interim cash dividend for shareholders of 10 fils per share or 10% of paid up capital for the six-month period.

Financial and Operational Highlights

>

Batelco Chairman, Shaikh Abdulla bin Khalifa Al Khalifa announced the Half Year 2019 financial results following the meeting of the Board of Directors on July 25th at Batelco’s Hamala Headquarters.

“We are very pleased to deliver this set of financial results which reflect the efforts of our teams who have continued to be focussed on our strategic goals, which includes becoming a leading regional provider of digital services for both consumers and businesses, while continuing to implement the Company’s separation plans as per the NTP4 requirements.”

“It remains a priority for the Board of Directors to achieve the highest possible returns as well as strive to enrich future returns, while ensuring the continuous and sustainable success of the company in the long run,” Shaikh Abdulla added.

Batelco CEO Mikkel Vinter, who joined the Company in May, said, “We are focussed on evolving and enhancing our solutions for our consumer and business customers with a strong emphasis on digitisation and the delivery of exceptional customer experience.”

“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,” he said.

Batelco’s International Operations have contributed 57% of Revenues and 55% of EBITDA for the first six months of 2019. Batelco continues the development and implementation of strategic actions to enhance the market position and operational performance of its international assets.

In the Maldives, Dhiraagu continues to foster its position as market leader with the Company’s high-speed broadband network now reaching 75% of households across the country connecting 58 islands with the state of the art fibre-to-the-home service.

Key goals for Batelco’s International operations for the rest of 2019 remains the enhancement of the value propositions for customers across its international footprint, while continuing with its digital transformation agenda and accelerating a cost efficiency programme.

Looking Forward 

Before concluding the meeting, Batelco Chairman Shaikh Abdulla took the opportunity to extend appreciation to management and staff for their ongoing efforts in working diligently to achieve the Company’s goals.

“Batelco has the right combination of knowledge and experience across its teams, along with partnerships with major technology providers and additionally a clear vision for the future, which positions us well to address current challenges and also to take advantage of opportunities in the evolving digital communications space.”

“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,” Shaikh Abdulla concluded.

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 

-Ends-

This press release has been issued by Batelco Corporate Communications & Social Responsibility Department. For further information, please contact Public.Relations@btc.com.bh  / Fax +973 17611898

© Press Release 2019

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.