Tuesday, November 12, 2019

Batelco Announces 2019 Q3 Financial Results

Batelco (Ticker: BATELCO), today announced its financial results for the first nine months of 2019 (the period) and for the third quarter of 2019, the three-month period ended 30 September 2019 (Q3).

Batelco announced net profit attributable to equity holders of the company for Q3 2019 of BD10.2M (US$27.1M), a 41% decrease from BD17.3M (US$45.9M) for the corresponding period of 2018. Net profits attributable to equity holders of the company for the first nine months of 2019 of BD44.2M (US$117.2M) are down 4% from BD46.0M (US$122.0M) for the corresponding period in 2018. Earnings per share (EPS) are 6.2 fils for the third quarter of 2019 compared to 10.4 fils in Q3 2018 resulting in an EPS of 26.7 fils for the period compared to an EPS of 27.8 for the same period in 2018.

Revenues for the third quarter in 2019 decreased by 5% compared to Q3 2018 from BD101.5M (US$ 269.2M) to BD96.9M (US$257.0M). Revenues for the first nine months of 2019 were BD298.5M (US$791.8M), a decrease of 1% when compared to BD301.5M (US$799.7M) of revenues for the same period in 2018. Consolidated revenues have been impacted by the sale of Qualitynet in May 2019, whereby the company contributed an additional BD11.0M (US$29.2M) in revenues during the same period last year. Revenues in the home market of Bahrain have increased by 6% year-over-year boosted by revenues from fixed broadband, data communications and mobile, which are up year-on-year by 12%, 13% and 5% respectively.

Total comprehensive income attributable to equity holders for Q3 2019 reported at BD8.1M (US$21.5M) a decrease of 51% from BD16.4M (US$43.5M) for the third quarter of 2018. Total comprehensive income attributable to equity holders of the company is up by 10% for the first nine months of 2019 from BD38.8M (US$102.9M) to BD42.5M (US$112.7M).

Operating profit for the quarter is down by 28% to BD14.6M (US$38.7M) from BD20.0M (US$53.1M) in Q3 2018; while year-on-year operating profits decreased by 8% from BD60.5M (US$160.5M) in 2018 to BD55.6M (US$147.5M).

EBITDA for the third quarter of 2019 stands at BD31.6M (US$83.8M) compared to BD36.3M (US$96.3M) in Q3 2018, representing a decline of 13%. For the nine-month period, EBITDA decreased by 3% over the corresponding period of 2018 from BD109.2M (US$289.7M) to BD105.9M (US$280.9M) with a healthy EBITDA margin of 35%. EBITDA for the quarter was impacted by BD8.1M (US$21.5M) Life Beyond Employment (LBE) cost, which is a voluntary employee retirement programme. The programme will reduce future staff costs whilst simultaneously rewarding employees that wish to retire early. Adjusted EBITDA for the period without the LBE cost is 6% higher year-on-year.

Batelco’s balance sheet remains strong with total assets of BD964.5M (US$2,558.4M) as of 30 September 2019 compared to BD912.4M (US$2,420.2M) as of 31 December 2018, an increase of 6%. Net assets as of 30 September 2019 stand at BD496.3M (US$1,316.4M) compared to BD504.9M (US$1,339.3M) as of 31 December 2018, a decrease of 2%. The Company’s cash and bank balances are a substantial BD157.2M (US$417.0M), which reflects the interim dividend of 10 fils per share paid in August 2019. Total Equity attributable to equity holders of the company is BD459.2M (US$1,218.0M) compared to BD465.2M (US$1,234.0M) as of 31 December 2018, a decrease of 1%.

Financial and Operational Highlights

Financial and Operational Highlights

Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa
Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa

Batelco Chairman, Shaikh Abdulla bin Khalifa Al Khalifa announced the third quarter (Q3) 2019 financial results following the meeting of the Board of Directors on November 5th, at Batelco’s Hamala Headquarters.

The Chairman expressed the Board’s satisfaction with the company’s performance by announcing the financial results, saying: “We were pleased to announce revenues for the nine-month period, which are in line with the corresponding period of 2018, with the revenues positively boosted by strong performance in the home market of Bahrain, reflecting increased revenues specifically in the areas of fixed broadband, data communications and mobile.”

“One of Batelco’s most notable achievements in the third quarter of this year is the restructuring of the company and the successful completion of the separation into two independent entities, with the recent announcement of the launch of BNET, as well as the restructuring of international investments by establishing a dedicated division to focus on the investment strategy, to enhance the return on shareholder value. Accordingly, the sale of Kuwait’s Quality Net was carried out based on the changing telecommunications landscape in Kuwait.”

“Due to the absence of Qualitynet revenues, our consolidated revenues have been marginally impacted, as the subsidiary contributed BD11M during the corresponding period of 2018. However, we believe the sale came at the right time as it supports our future investment plans for Batelco and its subsidiaries and serves to optimise our portfolio of assets,” he added.

“Going forward, the Board of Directors will continue to prioritise efforts to achieve the highest possible returns for all stakeholders, while ensuring the long term success of the Company,” the Chairman said.

Batelco CEO - Mikkel Vinter
Batelco CEO Mikkel Vinter

Batelco CEO Mikkel Vinter stated that the quarter has been marked by restructuring and reorganising management and staff and redesigning the business model and strategic direction to be prepared for the new journey ahead.

“The separation is a milestone in Batelco’s history and provides us with the opportunity to refocus on redesigning the Company’s strategy and business model to create new revenue streams such as delivering leading edge digital solutions for the business, government and consumer sectors, supported by an exceptional customer experience, while optimising cost efficiency.”

“Furthermore, we have introduced a new programme called Life Beyond Employment (LBE), which was launched with the aim of restructuring the workforce and rewarding those who have served the company over many years,” he added.

Looking Forward

Before concluding the meeting, Batelco Chairman Shaikh Abdulla extended appreciation to all the teams involved in the major restructure of Batelco.

“We have achieved a major milestone with the launch of BNET allowing both new entities to now forge ahead with establishing their individual footprints on the local and regional markets.”

“It is crucial that we remain focussed on meeting the needs of our diverse customer base, by delivering top quality and competitively priced products and solutions that prioritise their evolving requirements. We believe we have the right management and staff teams in place along with clear strategies, positioning us well for the last quarter of the year, and preparing the operational platform for 2020,” Shaikh Abdulla 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


5 Common Retinol Myths Busted!

Retinol, which is basically Vitamin A, improves collagen production in the skin, skin elasticity and fights signs of skin ageing such as wrinkles and...

Apexification – Tooth Maturation Technique

Tooth decay is a common dental condition occurring in children, teens and adults. When you eat or drink foods containing sugars, the bacteria in...

Fuddruckers opens its doors at Park Plaza in Diplomatic Area

Mr. Naser Abdulhameed Alnaser, Principal-Investments representative at Venture Capital Bank graced the ribbon cutting ceremony for the opening. This is the seventh location in...

Batelco Hosts Special Event to Mark Launch of Apple Watch Series 5 Cellular at Capital Club in Presence of Business Customers and Partners

Batelco, the leading digital solutions provider in the Kingdom of Bahrain held an exclusive event to mark the launch of Apple Watch Series 5...

Malabar Gold and Diamond’s new showroom opened

Malabar Gold and Diamonds 6th showroom in Maharashtra and the 2nd showroom in Pune is inaugurated by their Brand Ambassador & Bollywood Actor Anil...

Cadastral Survey Services are Available Online

If you were planning on submitting a land survey request but you were worried about the time and effort spent on tracking the progress...

BRAVE International Combat Week: The Stage Set for KHK World Championship

The Kingdom of Bahrain is ready to be the center of the world as the BRAVE International Combat Week officially gets underway this Sunday...

Marriott International hosted Global Appreciation Week at The Westin City Centre Bahrain

Marriott International in Bahrain with five participating hotels in Bahrain, The Westin City Centre Bahrain, Le Meridien City Centre Bahrain, Sheraton Bahrain Hotel, Marriott...

Hamza Kooheji, a pioneer and star for MMA in Bahrain

Aptly nicknamed "The Pride of Bahrain", Hamza Kooheji has been one of the stalwarts of the Kingdom around the world since he first made...

iGA Participates in Gulf Data Marathon (Datathon) in Oman

The Information & eGovernment Authority (iGA) participated in the Gulf Data Marathon (Datathon), hosted by the Sultanate of Oman. Datathon is the first activity...

What are non-technology components of AI and ML by Dr. Jassim Haji

There is a wide perception that Artificial Intelligence and Machine Learning is only about programming and Data science, but what are the other essential...

Gulf Air Strengthens Boutique Strategy by Adding More Premium Leisure Destinations in 2020

Gulf Air - the Kingdom of Bahrain’s national carrier – in line with its boutique strategy to add premium leisure destinations to its delicate...

Batelco Announces Support of Fifth IRONMAN 70.3 Middle East Championship in Bahrain

As part of its commitment to the sports sector, Batelco announced that it will be a Platinum Sponsor and Exclusive Telecom Partner of the...

Bin Hindi Informatics employee receives Samsung top ranking

Bin Hindi Informatics, Samsung service center staff Mr. Arun Kumar has been ranked No.2 in the MENA technical championship 2019 held by Samsung MENA...

Al Hawaj announces 3 Hot Days Winners

Three major cash prizes and 27 other special prizes were given to winners when Al Hawaj and Credimax held its "3 Hot Days" promotion...