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.
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$1,234.0M) as of 31 December 2018.
Financial and
Operational Highlights
|
H1 2019 |
H1 2018 |
Growth |
Q2 2019 |
Q2 2018 |
Growth |
||||
|
BDM |
US$M |
BDM |
US$M |
% |
BDM |
US$M |
BDM |
US$M |
% |
Gross Revenues |
201.7 |
535.0 |
200.0 |
530.5 |
+1 |
100.4 |
266.3 |
100.5 |
266.6 |
- |
EBITDA |
74.4 |
197.3 |
73.0 |
193.6 |
+2 |
35.8 |
95.0 |
36.4 |
96.6 |
-2 |
Operating Profit |
40.9 |
108.5 |
40.5 |
107.4 |
+1 |
19.1 |
50.7 |
20.2 |
53.6 |
-6 |
Net Profit attributable to
equity holders of the company |
34.0 |
90.2 |
28.8 |
76.4 |
+18 |
19.4 |
51.5 |
15.7 |
41.6 |
+24 |
Total Comprehensive income
attributable to equity holders of the company |
34.4 |
91.2 |
22.4 |
59.4 |
+54 |
17.1 |
45.4 |
7.9 |
21.0 |
+117 |
Subscriber Base |
8.4 million |
9.2 million |
-10 |
|
|
|
||||
Contribution to Revenues by International Operations |
57% |
60% |
-3 |
|
|
|
||||
Contribution to EDITDA by International Operations |
55% |
51% |
+4 |
|
|
|
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.”
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