Batelco Group reports 2015 profits of BD49.5m
Manama :Batelco Group, the regional Telecommunications Group with operations across 14 countries, yesterday reported net profits of D49.5 million (US$131.3m) for full year 2015, compared to BD49.3m (US$130.8m) for 2014, in line with the previous year. Earnings per share for the full year in 2015 stood at 29.8 fils, compared with 29.7 fils reported in 2014.
Board of Directors would also recommend to the Annual General Assembly of Shareholders a full year cash dividend of BD41.58m (US$110.29m), at a value of 25 fils per share. This includes the 10 fils per share that was already paid during the third quarter of 2015 with the remaining 15 fils to be paid in cash following the AGM in March.
Net profit in the fourth quarter was 2 per cent higher than the correspondent quarter in 2014.
EBITDA for the year was BD137.9m (US$365.8m), a 5pc decrease YoY and 7pc since Q4 2014. The Group, however, said it was able to continue its cost containment with a 6pc favourable variance in operating expenditure in 2015 versus the previous year.
Gross Revenues stood at BD372.4m (US$987.8m) for the year versus BD389.7m (US$1,033.7m) in the previous year, a decrease of 4pc year over year. Q4 2015 Gross Revenues were 5pc lower than the fourth quarter of 2014 due to competitive pressure in a number of markets and the resultant falling subscriber numbers.
Operating Profits decreased by 10pc YoY from BD77.7m (US$206.1m) in 2014 to BD70.2m (US$186.2m) in 2015. Q4 operating profits were down by 14pc compared to the fourth quarter of 2014.
As of 31 December 2015, net assets were BD573.1m (US$1,520.2m) with cash and bank balances of BD160.0m (US$424.4m).
Commenting on the results, Batelco Group Chairman, Shaikh Hamad Bin Abdulla Al Khalifa, said, “We continue to face demanding market conditions across a number of our Group’s operations with the impact reflected in reduced subscriber numbers and negative revenue trends. While some of our operations ended the year on a positive note, the overall picture remains challenging. Nonetheless, we are optimistic that our cost transformation activities, investment in new networks including fibre and efforts to develop and strengthen our digital solutions portfolio, will ultimately boost subscriber numbers and the bottom line.”
Batelco Group CEO Ihab Hinnawi said, “Despite the changing communications landscape and competitive challenges, Batelco Group was able to grow its mobile subscriber base in a number of operations, including Bahrain, Umniah in Jordan and Dhiraagu in the Maldives.
“Overall, the Group’s total subscriber numbers are 5pc down year on year with the decrease mainly attributable to declining customer numbers for Sabafon due to the ongoing unrest in Yemen and a difficult operating environment,” he added.
For the year, contributions from operations outside of Bahrain increased both as a percentage of revenues and EBITDA. At year-end 2015, 59pc of revenues and 55pc of EBITDA were sourced from overseas markets compared to 58pc of revenues and 53pc of EBITDA in 2014. Overall performance across the Group was particularly enhanced by favourable results in Dhiraagu in the Maldives.
Going forward into 2016, Batelco Chairman Shaikh Hamad said its commitment and end goal is to play a pivotal role in enabling the integration of the latest technologies in Kingdom and overseas operations to deliver the products, services and solutions relevant for each geography
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