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Batelco Q1 net profit jumps 6% to $52.3m

April 29, 2021
telecom

Batelco, Bahrain’s leading telecom provider, has announced a net profit attributable to equity holders of the company for Q1 2021 of BD19.7 million ($52.3 million), a 6% increase from BD18.5 million ($49.1 million) 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) was 11.9 fils for the first quarter of 2021 compared to 11.2 fils in Q1 2020, the telecom company said.

Total comprehensive income attributable to equity holders for Q1 2021 reported at BD29.9 million, an increase of 151% from BD11.9 million for the first quarter of 2020.

Revenues for the first quarter in 2021 of BD99.7 million, an increase of 2% compared to BD97.6 million 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 BD25.4 million from BD24.5 million in Q1 2020. EBITDA for the first quarter of 2021 stood at BD43.8 million compared to BD41.6 million in Q1 2020, an increase of 5% with a healthy EBITDA margin of 44%.

Batelco’s balance sheet remains strong with total equity attributable to equity holders of the company of BD470.3 million, 1% lower than BD473.2 million reported as of 31 December 2020, the company said. Total assets of BD1,016.1 million as of March 31, 2021 increased by 2% compared to total assets of BD992.2 million as of December 31, 2020. Net assets as of March 31, 2021, which stands at BD511.7 million are in line with BD512.1 million reported as of December 31, 2020. The Company’s cash and bank balances are a substantial BD200.2 million, it said.

Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa, announcing the results following a virtual Board meeting today (April 28), said: “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.

“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.

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 Speedtest by Ookla as Bahrain’s Top-Rated Mobile Network, an achievement we are proud of.

“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.”

Vinter continued: “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,” Vinter concluded.

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