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Batelco Achieves Net Profit Attributable to Equity Holders of BD19.7M, a 6% YoY Increase

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Batelco (Ticker: BATELCO), announced net profit attributable to equity holders of the company for Q1 2021 of BD19.7M (US$52.3M), a 6% increase from BD18.5M (US$49.1M) for the corresponding period of 2020.  The increase in net profit is attributable to increases in revenues whilst maintaining good control of costs.  Earnings per share (EPS) are 11.9 fils for the first quarter of 2021 compared to 11.2 fils in Q1 2020.

Total comprehensive income attributable to equity holders for Q1 2021 reported at BD29.9M (US$79.3M), an increase of 151% from BD11.9M (US$31.6M) for the first quarter of 2020.

Revenues for the first quarter in 2021 of BD99.7M (US$264.5M) increased by 2% compared to BD97.6M (US$258.9M) in Q1 2020.  The increase in revenues is mainly due to YoY increases in fixed broadband, adjacent services and wholesale revenues of 19%, 17% and 8% respectively.

Similarly, operating profit for the quarter is up by 4% to BD25.4M (US$67.4M) from BD24.5M (US$65.0M) in Q1 2020. EBITDA for the first quarter of 2021 stands at BD43.8M (US$116.2M) compared to BD41.6M (US$110.3M) in Q1 2020, an increase of 5% with a healthy EBITDA margin of 44%. 

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Batelco’s balance sheet remains strong with total equity attributable to equity holders of the company of BD470.3M (US$1,247.5M), 1% lower than BD473.2M (US$1,255.2M) reported as of 31 December 2020.  Total assets of BD1,016.1M (US$2,695.2M) as of 31 March 2021 have increased by 2% compared to total assets of BD992.2M (US$2,631.8M) as of 31 December 2020. Net assets as of 31 March 2021 which stand at BD511.7M (US$1,357.3M) are in line with BD512.1M (US$1,358.4M) reported as of 31 December 2020. The Company’s cash and bank balances are a substantial BD200.2M (US$531.0M).

Financial and Operational Highlights

 Q1 2021Q1 2020Growth 
Gross Revenues99.7264.597.6258.9+2 
Operating Profit25.467.424.565.0+4 
Net Profit attributable to equity holders of the company19.752.318.549.1+6 
Total Comprehensive income attributable to equity holders of the company29.979.311.931.6+151 
Subscriber Base*3.8M3.8M   
Contribution to Revenues by International Operations53%54%-1   
Contribution to EBITDA by International Operations51%53%-2   

*Excludes subscriber numbers from Sabafon, Batelco’s associate company in Yemen, and Etihad Atheeb Telecom, Batelco’s investment in Saudi Arabia.

Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa announced the results for the first quarter of 2021 following a Board meeting on Wednesday 28 April, which took place virtually.

“The positive start to the year is the result of Batelco’s strategic direction to enhance its core business with a focus on connectivity and growing ICT services, while effectively managing costs,” Shaikh Abdulla said.

“I and my colleagues on the Board appreciate the commitment of Batelco’s management and team members for keeping the momentum high and achieving the desired results in line with Batelco’s business plans for the year.”

“Meeting our shareholders’ expectations is a priority and we will remain focussed on maximizing shareholder value in line with what we have achieved in 2020. We have started 2021 on a strong note and over the coming months, we will continue to build on this positive trend,” Shaikh Abdulla added.

Speaking following the announcement of the first quarter financials, Batelco CEO Mikkel Vinter said, “The solid results of the first quarter are encouraging and will motivate us to continue the year at the same pace. We have invested in the further development of our networks, leading to Batelco being named by SpeedtestÒ by OoklaÒ as Bahrain’s Top-Rated Mobile Network, an achievement we are proud of,” Mr. Vinter said.

“The demand for efficient home internet services continues to be high as many people are still working and studying from home, and accordingly we were creative in coming up with products such as Batelco Red Box to enhance the customers’ home WiFi experience.”

Mr. Vinter continued by saying, “Developing our ICT portfolio remains constant with good progress for our Data Center plans during the first quarter. We are glad to see the positive take up for its services with key customers particularly in the banking and finance sector.”

“Looking ahead, delivering innovative digital services, and driving digital growth will be central to our plans. We are confident that we have the right strategy and team in place to build on the solid performance of the first quarter of 2021,” Mr. Vinter concluded.

This press release, along with the full set of financial statements, is available on the Bahrain Bourse website and on Batelco website, www.batelco.com

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