Batelco, the regional telecommunications group with
operations across 14 countries, today announced its financial results for the
third quarter of 2018, the three month period ended 30 September 2018 (Q3) and
for the first nine months of 2018. In line with the promising figures announced
for the first six months of the year reported in the H1 2018, the results for
the third quarter show strong improvement compared to Q3 of 2017.
Financial Highlights
- Q3
Net Profit attributable to equity holders of the company of BD17.3M, up 179% from BD6.2M in
2017 and Net Profit for the nine-month period attributable to
equity holders of the company of
BD46.0M, an increase of 83% over BD25.2M in 2017.
- Q3
Operating Profit of BD20.0M, up by 78% from BD11.3M in 2017 and nine-month
period Operating Profit of BD60.5M, an increase of 47% from BD41.2M in 2017.
- Q3
EBITDA of BD36.3M, up by 33% from BD27.2M in 2017 and nine-month period EBITDA
of BD109.2M, an increase of 20% from BD91.2M in 2017.
- Q3
Revenues of BD101.5M, growth of 5% from BD96.5M in 2017 and Revenues
for the nine-month period of BD301.5M, an increase of 9% from BD277.6M in 2017.
- Q3
EPS of 10.4 fils compared to 3.7 fils in Q3 2017, an increase of 179% and EPS
for the nine-month period of 27.7 fils compared to 15.2 fils in 2017, a 83%
increase.
Group
Financial Review
Batelco announced net profits attributable to equity holders
of the company for the first nine months of 2018 of BD46.0M (US$122.0M) up from
BD25.2M (US$66.8M) for the corresponding period in 2017, an increase of
83%. Similarly, net profit attributable to equity holders of the
company for Q3 2018 was reported at BD17.3M (US$45.9M), a 179% increase from
BD6.2M (US$16.4M) for the corresponding period of 2017.
Operating profit for the quarter is up by 78% to BD20.0M
(US$53.1M) from BD11.3M (US$30.0M) in Q3 2017; while year-on-year operating
profits increased by 47% from BD41.2M (US$109.3M) in 2017 to BD60.5M
(US$160.5M).
For the nine-month period, EBITDA increased 20% over the
corresponding period of 2017 from BD91.2M (US$241.9M) to BD109.2M (US$289.7M)
and EBITDA margin of 36%. EBITDA for the third quarter of 2018
stands at BD36.3M (US$96.3M) compared to BD27.2M (US$72.1M) in Q3 2017,
representing an increase of 33%.
In line with the first two quarters of 2018, revenues for
the third quarter have increased by 5% over Q3 2017 from BD96.5M (US$256.0M) to
BD101.5M (US$269.2M). Revenues for the first nine months of
2018 are BD301.5M (US$799.7M) an increase of 9% when compared to BD277.6M
(US$736.3M) revenues for the first nine months of 2017. Revenues have been
positively bolstered by continued strong performance at Batelco Bahrain, Umniah
in Jordan and Dhiraagu the Group’s operation in the Maldives. Revenues were
mainly boosted by improvements in broadband and adjacent services, with growing
broadband subscriber bases in all three locations.
The Group’s balance sheet continues to be strong with total
assets of BD909.0M (US$2,411.1M) as of 30 September 2018 compared to BD932.5M
(US$2,473.5M) as of 31 December 2017. Net assets as of 30 September 2018 stand
at BD497.8M (US$1,320.4M) compared to BD502.5M (US$1,332.9M) as of 31 December
2017. The Group’s cash and bank balances are a substantial BD151.2M
(US$401.1M). This includes the impact of the interim dividend of 10 fils per
share announced and paid during the quarter.
Total Equity attributable to equity holders of the company
is BD460.7M (US$1,222.0M) compared to BD461.9M (US$1,225.2M) as of 31 December
2017. Earnings per share (EPS) are 10.4 fils for the third quarter of 2018
compared to 3.7 fils in Q3 2017 resulting in EPS of 27.7 fils for the
nine-month period compared to 15.2 fils for the corresponding period of 2017.
Batelco Chairman,
Shaikh Abdulla bin Khalifa Al Khalifa, announced the Third Quarter 2018
financial results following the meeting of the Board of Directors on November 1st at
Batelco’s Hamala Headquarters.
“The
Board of Directors is pleased with Batelco's performance for the first nine
months of this year. The Group has witnessed a positive performance reflecting
Batelco Group's overall strategic plans, and will continue to work at the same
pace in all locations, in order to achieve the desired results for the full
year.
Group
Operational Review
Batelco Group CEO Ihab Hinnawi said that the successful implementation
of the Group’s transformational strategy and investment in Fixed LTE, Fibre and
Digital solutions across all operations has resulted in strong revenue and
EBITDA growth.
“We
continue to reap the fruit of our efforts and have sustained the momentum
established in the first half of this year with strong performances in the
third quarter, particularly at Batelco Bahrain, Umniah in Jordan and Dhiraagu
in the Maldives.”
“Increased
customer numbers for Broadband services have contributed significantly to the
growing revenues with year-on-year growth of 9% in the total Broadband base.
Year-on-year, fixed Broadband customer numbers are up by 16% in Bahrain, while
in Jordan subscriber numbers are up by 49% and in the Maldives up by 42%.”
“Our key
priorities include maintaining a sharp focus on enhancing our digital services
and continuing to grow and evolve our adjacent services, while striving to make
great improvements to the experience we deliver to our customers,” said Mr.
Hinnawi.
As we
near the end of another year, we will continue to build on our strategic
imperatives, aligning all areas of our business across the whole Group to build
on the Group’s synergy,” he added.
Batelco
Bahrain Highlights
Commenting
on the Group's performance in Bahrain, Batelco Bahrain Chief Executive Officer
Mohamed Bubashait said, “The results achieved by Batelco Bahrain came as a
result of the strategy set by the company at the beginning of the year
focussing on customer experience, innovation, diversification of income
sources, strategic partnerships, and enhanced corporate identity.”
“Efforts
have been made to create a work environment that develops talent and enables
creativity. This improvement has led to the delivery of innovative solutions,
such as bwallet, the leading electronic portfolio in the Kingdom of Bahrain.”
“Investment
in the digital infrastructure and cloud-computing environment, which is the
future of the telecommunications sector in the region and the world, has also
been targeted. A new data centre, which will be opened before the end of the
year, has been completed and an agreement has been signed to build another data
centre at the company's headquarters.”
“This
strategic move comes as a result of the company's work to strengthen relations
with its key partners and work together to achieve common strategic
objectives.”
"Focusing
on the company's customers and providing them with an exceptional experience is
a key focus of the company's activities, including business, social
responsibility and corporate identity,” Mr. Bubashait added.
International
Highlights
At the end of the nine-month period, 59% of Revenues
and 52% of EBITDA were attributable to operations outside of Bahrain, compared
with 59% of Revenues and 56% of EBITDA in the first nine months of
2017. Across the Group, a number of operations reported revenue
growth and improved customer numbers.
· Jordan
(Umniah): Umniah continues to set new milestones in the Jordanian
telecommunications market through its support of the education
sector. The company recently worked with the Ministry of Education
on preparing and developing the first online pilot electronic exam in the
Kingdom as part of the General Certificate of Education for high school
students that is expected to cater to approximately 27,000
students. Umniah achieved revenue growth of 16% year-over-year and
broadband subscribers have increased by 49% over Q3 2017 and 6% over Q2 2018.
· Maldives
(Dhiraagu): Dhiraagu is proud to be celebrating 30 years in connecting
the Maldives through telecommunication. During the third quarter,
the company extended its fibre broadband service to 70% of households and
expanded Dhiraagu TV to new islands. Dhiraagu also delivered
“Digital Schools”, a key ICT project for the Ministry of Education that
provided connectivity to all government schools in the country. The
company was recognized by Rebrand 100® Global Awards 2018 as one of the most
effective 100 brand transformations of 2017 and received the “Social
Responsibility & Environment Awareness Award” at the Maldives Business and
Customer Experience Awards 2018. Year-over-year fixed broadband
subscribers have increased by 42% and by 8% since the second quarter of 2018.
· Channel
Islands, Isle of Man, South Atlantic & Diego Garcia (Sure Group): Strong
mobile market share growth continued in the Isle of Man during
2018. In the Channel Islands Sure received the accolade, from the
local regulator, of having the most satisfied customers of any network
operator. In the South Atlantic Falklands Sure launched 4G LTE
services completing a major infrastructure investment and
upgrade. In Diego Garcia Sure was granted a new 11 year operating
license which will provide Sure with exclusivity over commercial communication
services including broadband, mobile, leased lines, international voice, data
communication and public Wifi. Q3 2018 saw Sure’s mobile and
broadband subscribers increase by 7% and 3% respectively over the same period
last year.
· Kuwait
(Quality Net): Qualitynet continues to diversify its product offering
and deliver new solutions to the market. This quarter the company
cemented its position as a unified communication provider through the successful
implementation of various contact center projects for several large financial
institutions in the country.
Looking
Forward
Before
concluding the meeting, Batelco Chairman Shaikh Abdulla said that it is
important for the Group’s operations to strengthen their positions in their
respective markets and continue to play a central role in growing strong
digital economies, through investment in delivering the latest technologies.
“It is
crucial to remain focused on improving the experience of our
customers; meeting their needs and staying ahead of competitors by delivering
the latest products and services is always top of our priorities.”
“On behalf
of my colleagues on the Board, I extend appreciation to all teams across our
operations for their efforts that have contributed to the strong set of
financial results, and encourage all to continue to build on this strong
platform to complete the year 2018 on a high note,” Shaikh Abdulla concluded.
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