News & Media

Batelco Group Announces First Quarter Financial Results for 2019 – Personal


Batelco (Ticker: BATELCO), the regional telecommunications group with operations throughout 14 nations, right now introduced its monetary outcomes for the quarter ended 31 March 2019 (Q1) and a promising begin to the yr with enchancment in its general efficiency in comparison with the primary quarter of 2018.

Monetary Highlights 

  • Internet Revenue attributable to fairness holders of the corporate of BD14.6M, up 11% from BD13.1M internet revenue in Q1 2018.
  • Complete complete revenue attributable to fairness holders of the corporate of BD17.3M, up 19% from BD14.5M in Q1 2018.
  • Working Revenue of BD21.9M, up eight% from BD20.3M in Q1 2018.
  • EBITDA of BD38.6M, up 6% from BD36.6M in Q1 2018.
  • Revenues of BD101.2M, up 2% from BD99.5M in Q1 2018.
  • EPS of eight.eight fils in comparison with 7.9 fils in Q1 2018.

Group Monetary Evaluate

Batelco introduced internet income attributable to fairness holders of the corporate for the primary quarter of 2019 of BD14.6M (US$38.7M) up from BD13.1M (US$34.7M) for the corresponding interval of 2018, a rise of 11%.  Equally, complete complete revenue attributable to fairness holders of the corporate of BD17.3M (US$45.9M) in Q1 2019 elevated 19% from BD14.5M (US$38.5M) in Q1 2018.

The Group’s working revenue for Q1 2019 elevated by eight% to BD21.9M (US$58.1M) from BD20.3M (US$53.8M) in Q1 2018. 

EBITDA for the primary quarter of 2019 stands at BD38.6M (US$102.4M) in comparison with BD36.6M (US$97.1M) in Q1 2018, representing a rise of 6% and EBITDA margin of 38%.  The improved EBITDA is bolstered by the income good points and a 2% discount in direct prices.

The Group continues to report income progress with Q1 2019 revenues of BD101.2M (US$268.4M) 2% larger than Q1 2018 revenues of BD99.5M (US$263.9M).  Revenues proceed to be positively impacted by robust efficiency at Batelco Bahrain, Umniah in Jordan and Dhiraagu within the Maldives.

The Group’s stability sheet continues to be robust with complete belongings of BD974.4M (US$2,584.6M) as of 31 March 2019 in comparison with BD912.4M (US$2,420.2M) as of 31 December 2018.  Internet belongings as of 31 March 2019 stand at 492.3M (US$1,305.8M) in comparison with BD504.9M (US$1,339.3M) as of 31 December 2018.  The Group’s money and financial institution balances are a considerable BD154.9M (US$410.9M).

Complete fairness attributable to fairness holders of the corporate as of 31 March 2019 is BD450.0M (US$1,193.6M) in comparison with BD465.2M (US$1,234.0M) as of 31 December 2018.  Earnings per share (EPS) is eight.eight fils for Q1 2019 in comparison with 7.9 fils for the corresponding interval of 2018.

Batelco Chairman, Shaikh Abdulla bin Khalifa Al Khalifa who introduced the Q1 2019 monetary outcomes following the assembly of the Board of Administrators on Might 2nd at Batelco’s Headquarters stated that he was very happy with the robust begin to 2019 with double digit proportion enchancment in internet income over the primary quarter of 2018. 

“We’re delighted to proceed to ship rising revenues and income holding consistent with our improved monetary achievements throughout 2018. The profitable implementation of our strategic plans throughout the Batelco Group has established a really sound platform which our groups proceed to construct on.

“Funding in Fibre and Knowledge, two key areas of our focus, has helped to generate good progress in revenues, whereas our internet income have been boosted by 11% year-on-year supported by value containment programmes,” Shaikh Abdulla stated. 

Monetary and Operational Highlights

  Q1 2019 Q1 2018 Progress %
Gross Revenues 101.2 268.four 99.5 263.9 +2
EBITDA 38.6 102.four 36.6 97.1 +6
Working Revenue 21.9 58.1 20.three 53.eight +eight
Internet Revenue attributable to fairness holders of the corporate 14.6 38.7 13.1 34.7 +11
Complete Complete Revenue attributable to fairness holders of the corporate 17.three 45.9 14.5 38.5 +19
Subscriber Base eight.four million 9.three million -10
Contribution to Revenues by Worldwide Operations 59% 61% -2
Contribution to EBITDA by Worldwide Operations 56% 52% +four

Group Operational Assessment

Batelco Group CEO Ihab Hinnawi stated that robust operational performances throughout the Group led to the very promising begin to the yr mirrored in elevated gross revenues and internet income.

“Intense competitors within the telecommunication markets we function in proceed to current challenges. Nevertheless, progress in key areas together with in our digital providers, which improved by 12% year-on-year, supported the constructive income contribution.”

“Batelco was delighted to announce some main achievements within the first quarter, most notably an settlement between Umniah and the Jordan Electrical Energy Firm to create the most important fibre aerial community within the Kingdom of Jordan,” he stated.

Mr. Hinnawi continued by saying, “The strong execution of our strategic plans throughout all our OPCOS proved to be fruitful all through 2018 and the development has continued in the course of the first quarter of 2019. We’re inspired by the constructive efficiency and can stay focussed on our goals with emphasis on digitisation initiatives, buyer expertise programmes and on making a leaner and extra agile organisation.

Batelco Bahrain Highlights

Batelco Bahrain CEO Mohamed Bubashait stated that Batelco’s efficient fibre supply and complete portfolio of digital services continues to bolster buyer numbers within the Kingdom of Bahrain, mirrored by a rise of four% in fastened line clients and 13% in Broadband clients, yr over yr. In the course of the first quarter of 2019, Batelco’s fastened line and glued broadband buyer bases grew by 1% and four% respectively, in comparison with December 2018.

“Our concentrate on delivering an distinctive buyer expertise, backed up by the provisioning of progressive and in-demand services that really addresses our clients evolving wants, continues to pay dividends.”

Batelco’s plans for superior infrastructure and progressive providers have made super progress in the course of the first quarter of the yr, supported by means of partnerships with main worldwide organisations.

“Batelco signed a milestone partnership with Ericsson to launch 5G within the Kingdom of Bahrain. The supply of 5G, which can begin in phases in key places, will meet rising knowledge visitors calls for and ship high-quality enhanced cellular broadband and glued wi-fi entry experiences,” stated Mr. Bubashait.

Moreover, Batelco introduced the launch of Manama-IX (Manama Web Change) in partnership with AMS-IX, the world’s main Web Change, following the signing of a key settlement between each events.

“This partnership introduces AMS-IX experience to help the operation of Manama-IX because it serves community operators and content material suppliers from a complete built-in platform situated in International Zone, the carrier-neutral knowledge transit-and-hub, lately launched by Batelco to deal with ever-growing knowledge motion calls for and permit service suppliers to satisfy in a strong ecosystem,” Mr. Bubashait added.

We’re very happy with such a productive begin to 2019; going ahead our efforts will proceed to be targeted on enhancing the digital lives of individuals and the continual improvement of subsequent era communications networks that assist to help the expansion of the digital financial system.

Worldwide Highlights

For Q1 2019, 59% of Revenues and 56% of EBITDA have been attributable to operations outdoors of Bahrain, in contrast with 61% of Revenues and 52% of EBITDA in Q1 2018.  Throughout the Group, quite a lot of operations delivered improved operational efficiency.

  • Jordan (Umniah): Umniah continues to spearhead digital transformation within the Jordanian market, delivering an built-in array of options to satisfy the wants of varied shopper demographics. Through the first quarter of 2019, the corporate signed a landmark settlement with the Jordan Electrical Energy Firm (JEPCO) to determine a brand new firm that may ship the infrastructure for a large-scale fiber optic community servicing the areas operated by JEPCO.  This can ship wholesale high-bandwidth web providers to telecom corporations and repair suppliers.  In Q1 2019, Umniah’s broadband subscribers elevated by 26% over Q1 2018 and a couple of% over This fall 2018.   
  • Maldives (Dhiraagu): Dhiraagu reported 1% income improve in the course of the first quarter in comparison with the identical interval in 2018 pushed by progress in broadband and enterprise. The corporate achieved a key milestone with FTTH reaching 75% of households whereas extending the service to further islands.  The service is now obtainable in 57 islands throughout the nation.  All through the quarter, Dhiraagu continued to speed up its digital transformation by means of digitalizing buyer processes to streamline the digital buyer expertise.  Fastened broadband subscribers elevated by 22% because the first quarter of 2018.
  • Channel Islands, Isle of Man, South Atlantic & Diego Garcia (Positive Group): Positive Group efficiently accomplished a serious IT transformation program with the improve of its billing, CRM and enterprise intelligence platforms, which lays the inspiration to additional improve the corporate’s market main buyer expertise. Within the Isle of Man, Positive’s extremely aggressive propositions and market main community, using the newest fibre and 4G cellular know-how, continues to drive each market share and income progress.  Positive’s subsequent era voice providers, an improve to conventional ISDN providers, has inspired giant enterprise clients to modify to Positive on account of its reliability, flexibility and worth.  Within the Channel Islands Positive continued to draw broadband clients with a singular mixture of limitless broadband and greatest buyer expertise, with many present clients additionally selecting to improve and benefit from superfast broadband.  Within the South Atlantic, the growing take up of 4G LTE within the Falklands continues to drive vital will increase in knowledge utilization as clients profit from the a lot quicker speeds and broader protection throughout the islands.  In Diego Garcia, Positive has just lately improved the broadband expertise having upgraded residential, enterprise providers and public wifi to satisfy new license obligations.  Cellular and glued broadband clients throughout the Positive Group elevated by three% since Q1 2018.
  • Kuwait (High quality Internet): On 9 April 2019 Batelco introduced that a Share Buy Settlement (SPA) was signed with Kuwait Telecommunications Firm (VIVA) to promote its 90% stake QualityNet.  The worth consideration might be decided upon completion of the complete switch of shares and the fulfilment of the phrases, circumstances and covenants agreed between the events within the SPA.  QualityNet’s shares will probably be transferred to VIVA after acquiring the required regulatory approvals within the State of Kuwait.

Wanting Ahead

Batelco Chairman Shaikh Abdulla prolonged appreciation to administration and employees throughout Batelco’s community of operations for delivering a quick paced and profitable first quarter of the yr which witnessed necessary operational achievements and pleasing monetary outcomes.

“We’ve got properly deliberate methods in place throughout the Group of corporations which our groups proceed to execute efficiently. We’re in a great place and based mostly on this sound platform we aspire to realize additional momentum going ahead,” he concluded.