Batelco reports BD37.6 million profit in 2016

Manama : Batelco Group, a regional Telecommunications Group with operations across 14 countries, yesterday, announced its results for the twelve-months ended 31 December 2016, reporting a 4 per cent increase in its customer base to 9.4 million, despite competitive pressure. 

Announcing the results, Batelco Group’s new Chairman Shaikh Mohammed bin Khalifa Al Khalifa, said, “The upswing in customer numbers is attributed to our investments in new networks including fibre and our efforts to strengthen our digital solutions portfolio.”

The group also announced that the board would recommend a full year cash dividend of BD41.6m (US$110.3m), at a value of 25 fils per share, of which 10 fils per share was already paid during the third quarter of 2016 with the remaining 15 fils to be paid following the AGM in March. 

The group ended the year with Net Profit of BD37.6 million (US$99.7m) compared to BD49.5m (US$131.3m) reported in 2015, a 24pc year over year decline.  Q4 2016 net profit reported a decrease of 40pc over Q4 2015 and 47pc over Q3 2016. Net profits was mainly impacted by an impairment loss on goodwill related to the group’s operation in Jordan. 

For the full year 2016, Gross Revenues was BD367.1m (US$973.7m), a marginal decrease of 1pc over the prior year.  Q4 2016 Gross Revenues showed a 1pc improvement over the prior year quarter and 4pc improvement over Q3 2016 despite competitive pressures across the Group. 

Earnings per share for the full year in 2016 stood at 22.6 fils, compared with 29.8 fils reported in 2015.

EBITDA was BD135.2M (US$358.6m), a decline of 2pc year over year. EBITDA decreased by 3pc in the fourth quarter of 2016 compared to Q4 2015 and 12pc since Q3 2016. The Group continues to concentrate on its cost containment programmes and sustained a robust EBITDA margin of 37pc.

Results from operating activities for the year were BD65.4m (US$173.5m), reflecting a 7pc decrease year-over-year and 8pc decrease QoQ compared to Q4 2015.  This decline is attributed to increased depreciation charges for higher capex as a result of significant network expansion throughout the Group.

At year-end 2016, 59pc of revenues and 52pc of EBITDA were sourced from overseas markets compared to 59pc of revenues and 55pc of EBITDA in 2015. Overall performance across the Group was supported by increased customer numbers in the majority of the Group’s operations.