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Batelco Q3 net profit up 4% to $43.2m

November 1, 2022
telecom

Batelco, Bahrain’s leading telecom provider, has announced a net profit attributable to equity holders of BD16.3 million ($43.2 million) for Q3 2022, a 4% increase from BD15.7 million ($41.6 million) for the corresponding quarter of 2021.

Earnings per share (EPS) was 9.8 fils for the third quarter of 2022 compared to 9.5 fils in Q3 2021.

Total comprehensive income attributable to equity holders in Q3 2022 was reported at BD10.5 million, a 22% decrease from BD13.4 million in the third quarter of 2021, mainly due to the impact of foreign currency translation differences as a result of the devaluation of the British Pound, the company said.

Revenues for Q3 2022 of BD100.6 million ($266.8 million) are up by 2% compared to BD98.2 million in Q3 2021. Operating profit for the third quarter of 2022 increased by 5% to BD22.8 million from BD21.8 million in Q3 2021, while EBITDA stands at BD40.1 million in Q3 2022 compared to BD40.6 million in Q3 2021, a decrease of 1%.

For the first nine months of 2022, net profit attributable to equity holders of the company of BD54.1 million ($143.5 million) increased by 2% from BD53.2 million in 2021. Earnings per share (EPS) are 32.8 fils for the period compared to an EPS of 32.2 fils for the period in 2021.

Total comprehensive income attributable to equity holders of the company for the first nine months of the year is down 40% from BD60.6 million ($160.7 million) in 2021 to BD36.2 million ($96 million) in 2022, mainly due to foreign exchange translation differences and investment fair value changes, the company said.

Revenues for the first nine months of the year of BD298.3 million ($791.2M) are 1% higher than BD296.4 million of revenues in 2021. Operating profits decreased by 2% from BD71 million ($188.3 million) during the period in 2021 to BD69.6 million ($184.6 million) in 2022 due to increases in operating expenses. EBITDA decreased by 2% from BD126 million ($334.2 million) in 2021 to BD123.5 million ($327.6 million) in 2022. The company maintained a healthy EBITDA margin of 41% in for the first nine months of 2022.

Batelco’s balance sheet remains strong with total equity attributable to equity holders of the company of BD474.4 million ($1,258.4 million) as of 30 September 2022, 3% lower than BD489.6 million ($1,298.7 million) reported as of December 31, 2021.

Total assets of BD1,032.1 million ($2,737.7 million) as of September 30, 2022 are in line with total assets of BD1,030.6 million ($2,733.7 million) as of December 31, 2021. Net assets as of September 30 2022 which stand at BD517.6 million ($1,372.9 million) are 2% lower than BD530.7 million ($1,407.7 million) reported as of December 31, 2021.

The company’s cash and bank balances are a substantial BD217.1 million ($575.9 million), which reflects the 2022 interim dividend of 13.5 fils per share paid in August 2022, it said.

Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa announced the financial results following the meeting of the Board of Directors at Batelco’s Hamala Headquarters.

“The Board of Directors is pleased with the financial results for the third quarter of 2022, with net profits up by 4% in comparison to Q3 of 2021, resulting in 2% increase in net profits for the first nine months of the year. Earnings per share are also higher for the nine-month period in comparison to the first nine months of 2021. The positive results reflect the Company’s efforts to meet our stakeholders’ expectations and supports the Board of Directors commitment to deliver ongoing value on shareholder investment,” he said.

“Batelco continued to focus on the core business to enhance its network and expand global connectivity. We are pleased to see the progress being made by the Beyon brands in line with our digital growth strategy. As part of expanding its footprint overseas, Beyon Cyber, the Group’s advanced cyber security company signed an MOU with the government of the Maldives during the visit of H.E. Ibrahim Mohamed Solih, President of the Republic of the Maldives, to the Kingdom of Bahrain.”

Batelco CEO Mikkel Vinter said: “Q3 revenues from key international investments were impacted by the currency exchange rate, particularly the weakening British Pound, however our team accelerated the efforts in other key business areas including mobile and adjacent services, which led to improved revenue growth for the period.

“Elevating the customer digital experience is at the heart of our service development, and we have further enhanced the Batelco app, enabling advanced features and improved user experience. We have also opened an innovative, first of its kind in Bahrain new digital shop, which enables customers to complete 90% of all Batelco transactions completely digitally.”

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