Batelco group posts BD19m profit in H1
Manama : Batelco Group has posted a net profit of BD19m for the six months ended June 30, 2017. The Group continued with its promising start to the year with net profit showing improvement over Q1 2017.
The Group’s Gross Revenues of BD181.1M (US$480.4M) have remained steady year-on year with a slight 1 per cent decline compared to the same period in 2016. The gross revenues for the second quarter of 2017 show a 1pc decrease compared to Q2 2016 but an increase of 2pc compared to Q1 2017.
EBITDA for the period was BD64.0M (US$169.8M), a 10pc decline year over year, and quarter on quarter decline of 12pc compared to Q2 2016. EBITDA for Q2 2017 was in line with that of the previous quarter with only a 2pc marginal decline. The YoY drop in EBITDA is a partly due to increased operating expenses compared to 2016, mainly higher network and IT costs as a result of network enhancements and additional sites across the Group. Despite the reduction in EBITDA, the Group continues to sustain its robust EBITDA margin of 35pc.
For the first six months of the year, the Group reported Net Profit of BD19.0M (US$50.4M), a 16pc decline compared to the corresponding period in 2016 and a quarter on quarter decline of 17pc over Q2 2016. However, Net Profit is up by 32pc compared to Q1 2017 as Q1 results were impacted by the share of loss from the Group’s investment in Sabafon, Yemen, due to the continued instability in the region caused by political unrest.
The Group’s balance sheet remained strong; as of 30 June 2017 net assets were BD532.9M (US$1,413.5M) with substantial cash and bank balances of BD157.4M (US$417.5M). Earnings per share were 11.4 fils and the Board of Directors approved an interim cash dividend for shareholder of 10 fils per share for the six month
period.
Commenting on the results for the first six months of 2017 Batelco Chairman Shaikh Mohamed bin Khalifa Al Khalifa said that Batelco Group continues to be immersed in a lengthy period of harsh competitive pressure and the impact of this is reflected in the Group’s financial results.
“This operating environment is due to circumstances in the telecom industry, not just in Bahrain but across the geographies in which we operate. However, our strategy is evolving so that we are prepared to meet the ongoing changes in the industry. We are investing in restructuring and training to ensure we have the right mix of skills and expertise across our management an general staff teams.”
“Another key area where we are continuously evolving is on strengthening the relationship we have with our customers by focusing on the overall customer experience rather than just customer services. We are client and customer focused across all sectors from the general public to government, medical, banking and beyond.”
“Additionally, our combined Group-wide efforts to pool resources is making good progress an helping to support our efforts to reduce costs,” Shaikh Mohamed added.
Related Posts