Batelco Group Announces Third Quarter Results
|Thursday, 27 October 2011 08:46|
Manama, Bahrain: Batelco Group (Ticker: BATELCO), the leading telecom operator in the Middle East of reference with operations across seven countries, today announced its results for the nine-month period ended 30 September 2011("the Period"), which were marked by the continued growth and diversification of its customer and revenue base from across the MENA region and India.
Financial and Subscriber Highlights
- Gross Revenues of BD 245.5M (US$ 651.2M) for the period;
- EBITDA of BD 93.0M (US$ 246.7M) representing a 38% margin;
- Consolidated Net Income of BD 56.5M (US$ 149.9M);
- Group subscriber base that now surpasses 11 million, an increase of 8% and 41% QonQ and YoY, respectively;
- Continued diversification of Group revenues with 37% of revenues and 29% of operating profit now sourced from markets outside Bahrain; and
- Cash and bank balance of BD 86.8M (US$ 230.2M).
For the period, the Group reported Net Income of BD 56.5M (US$ 149.9M) versus BD 66.0M (US$ 175.1M) for the corresponding period in 2010, down 14%. EBITDA for the period was BD 93.0M (US$ 246.7M), representing a 38% margin, versus EBITDA of BD 110.7M (US$ 293.6M) for the corresponding period. The Group's Gross Revenues stood at BD 245.5M (US$ 651.2M) for the period, down 4% from BD 256.1M (US$ 679.3M) year over year. In line with the Group's continued diversification, 37% of revenues and 29% of Operating Profit are now generated from markets outside of Bahrain.
Additionally, the Group reported Gross Revenues for Q3, 2011 of BD 82.3M (US$ 218.3M) down by 4% against BD 85.3M (US$ 226.3M) in Q3, 2010. For the same time frame, Net Revenues were down by 7% to BD 60.3M (US$ 160.0M) for 2011 in comparison to BD 65.1M (US$ 172.7M) for 2010. The Group additionally reported an operating profit of BD 18.9M (US$ 50.1M) for Q3, 2011 against BD 26.6M (US$ 70.6M) in 2010 and EBITDA of BD 28.3M (US$ 75.1M) in Q3, 2011 versus BD 36.5M (US$ 96.8M) for 2010.
The Group continues to strengthen its presence and customer base, which grew overall to more than 11 million subscribers by the end of Q3 up 41% from the corresponding period in 2010.
The Group's balance sheet continues to remain strong. The Group is free of debt and as of 30 September 2011 had substantial cash and bank balances of BD 86.8M (US$ 230.2M) reflecting 65% increase over the same period last year. This includes the impact of interim dividend (20 fils per share) announced and paid during the quarter. Earnings per share for the period stood at 39.2 fils.
Batelco Chairman, Shaikh Hamad Bin Abdulla Al Khalifa, announced the results at a Board Meeting held at Batelco Headquarters, stating that the Batelco Group had continued to deliver solid financial results and operating performance throughout the first nine months of 2011. "Since the end of Q2, we have added more than 800 thousand new subscribers to our customer base, which now exceeds 11 million across the MENA region and India. This increase underscores the ongoing growth of our business and the strength of our offering despite a year over year decline in the Group's revenues and profitability, which in line with market guidance have continued to be impacted throughout 2011 by significant and ongoing competitive pressures in Bahrain."