Manama: Batelco reported net profits, attributable to equity holders, of BD51.6million (US$136.9million) for the full year 2019.
The company in a statement announcing the financials said the 2019 net profits were up 3% from BD50.1million (US$132.9million) in 2018, mainly due to the 4% increase in operating profit and the BD28.4M (US$75.3million) gain on the sale of Qualitynet in May 2019. Earnings per share (EPS) are 4.5 fils for the fourth quarter of 2019 compared to 2.4 fils in Q4 2018 resulting in an EPS of 31.2 fils for the year compared to an EPS of 30.2 for 2018.
Directors has recommended a full year cash dividend of BD45.7million (US$121.2million), at a value of 27.5 fils per share to be agreed at the Annual General Meeting, of which 10 fils per share was already paid during the third quarter of 2019 with the remaining 17.5 fils to be paid following the AGM in March 2020.
Shaikh Abdulla bin Khalifa Al Khalifa Batelco announced the financials following a meeting of the Board of Directors held at Batelco Headquarters, Kingdom of Bahrain.
“I am pleased to announce strong financial results which is a result of effective implementation of strategic initiatives, robust operational performance and solid financial discipline. Delivering value for our shareholders is a priority for us and we are proud to announce improved earnings during the 4th quarter leading to increased EPS for the year,” Shaikh Abdulla said.
“2019 was a milestone year for Batelco,” Shaikh Abdulla noted, “In May we announced the completion of Batelco’s legal separation process as part of Bahrain’s 4th National Telecommunication Plan, and the creation of an infrastructure company for National Broadband, remaining under the full ownership of Batelco. In October the official launch of BNET B.S.C, Bahrain’s National Broadband Network was announced.”
“Having restructured our organisation following the separation of the Company, we have embarked on a new journey to create a transformed Batelco for this new decade.”
“Our achievements in 2019 have provided us with a solid platform to move forward. We have a new and powerful strategy in place and strong teams which we are confident will allow us to seize market opportunities in support of our goals. We look forward to seeing the strategy executed in line with our vision, and are confident we have the right elements in place to drive growth and meet our shareholders’ expectations,” Shaikh Abdulla added.
Batelco announced net profits attributable to equity holders of the company for Q4 2019 of BD7.4million (US$19.6M), an 82% increase from BD4.1million (US$10.9million) for the corresponding period of 2018 when net profits were impacted due to one-off charges.
Total comprehensive income attributable to equity holders for Q4 2019 was reported at BD13.8million (US$36.6million) an increase of 204% from BD4.6million (US$12.2million) for the fourth quarter of 2018. Total comprehensive income attributable to equity holders of the company is up by 30% for the full year 2019 from BD43.3million (US$114.9million) to BD56.3M (US$149.3million).
Revenues for the fourth quarter in 2019 decreased by 1% compared to Q4 2018 from BD104.4m (US$ 276.9m) to BD102.9m (US$272.9m). Revenues for the full year 2019 were BD401.5m (US$1,065m), a decrease of 1% when compared to BD405.9m (US$1,076.7m) of revenues in 2018.
Consolidated revenues have been impacted by the sale of Qualitynet, whereby the company contributed an additional BD11m (US$29.2m) of revenues in 2018. However, revenues in the home market of Bahrain have increased by 5% year-over-year boosted by revenues from fixed broadband, data communications and mobile services.
Operating profit for the quarter is up by 62% to BD19.9m (US$52.8m) from BD12.3m (US$32.6m) in Q4 2018; while year-on-year operating profits increased by 4% from BD72.7m (US$192.8m) in 2018 to BD75.5m (US$200.3m) in 2019. The increased operating profits are mainly due to a reduction in depreciation and amortization charges of 6% in 2019.
EBITDA for the fourth quarter of 2019 stands at BD35.7m (US$94.7m) compared to BD33.6m (US$89.1m) in Q4 2018, representing an increase of 6%. For the full year, EBITDA decreased by 1% in 2019 from BD142.8m (US$378.8m) to BD141.7m (US$375.9m) retaining a healthy EBITDA margin of 35%. EBITDA for the year was impacted by BD11.1m (US$29.4m) voluntary employee retirement programme cost. Adjusted EBITDA for the year without the voluntary employee retirement cost is 7% higher year-on-year, driven by the 5% YoY reduction in operating expenses.
