MANAMA: Batelco Group, the regional Telecommunications Group with operations across 14 countries, reported a net profit of BD14.5m in the Q1 of 2014 up 110% compared with the last quarter.
The net profits were up 8% versus BD13.4m when compared to the corresponding period in 2013. Earnings per share for the first quarter are 8.7 fils.
In keeping with recent trends, the financial results and operational performance were positively boosted by improved performance in the home market of Bahrain as well as throughout the Group’s overseas markets,” the Group in a statement said.
“This is an encouraging set of results. It is the 4th quarter that our expanded group operation has been included and we are pleased to note that our investment continues to deliver positive financial and operational results,” Commenting on the results for Q1 2014 following the meeting of the board of directors on 30th April, Batelco Group Chairman, Shaikh Hamad Bin Abdulla Al Khalifa, said.
“It is important that we keep up the progress we are making across the group whilst continuing to focus on improving the products and services we provide to our customers in all markets of operation. By pooling of Group resources, technologies and expertise, the Batelco Group aims to further enhance competitiveness and performance in all markets of operation,” Shaikh Hamad, said.
Batelco Chairman Shaikh Hamad continued by extending a warm welcome to Batelco Group’s newly appointed CEO Alan Whelan who joined the Group at the beginning of April, wishing him well and assuring him of his and the Board of Directors’ support as he takes on the challenging role to grow the Batelco Group’s operations, subscriber base and presence in its markets of operation.
“We have started the year in a positive fashion and are optimistic for the future. Our grand plans for 2014 include the roll out of superfast 4G LTE for four of our international operations – Dhiraagu and SURE Telecom in Guernsey, Jersey and the Isle of Man. This is in line with our strategy to extend our expertise across our entire Group to deliver greater benefits for our customers wherever they may live.”
“Our achievements and ongoing success are a reflection of the strong leadership by our executive teams, supported by tremendous efforts by our employees across all markets to retain our customers’ loyalties and improve the way we develop and deliver services.”
“We remain committed to delivering innovation, customer service and value and are confident in our ability to strengthen our financial and operational performance throughout 2014,” Shaikh Hamad, added.
The Group’s gross revenues stood at BD97.6m for the period, up from BD71.0m, an increase of 37% year-over-year and 2% decline over the previous quarter.
EBITDA for the period was BD38.1m, representing a margin of 39%, versus Ebitda of BD21.9m and a margin of 31% for the corresponding period in 2013. The increase in EBITDA was 17% from the previous quarter.
The increased profits and EBITDA for the period were attributed to the ongoing positive impact of the Batelco Group’s overseas operations as well as pleasing performance in the home market. The positive impact of Batelco’s Group operations continues to boost the bottom line with 57% of revenues and 54% of EBITDA generated from markets outside of Bahrain.
The Group’s balance sheet remained strong; as of 31 March 2014, net assets were BD599m with substantial cash and bank balances of BD197.7m.
In November 2013 Batelco commenced a buyback of its US$650 million seven year Reg S bond offering, with BD17.2m repurchased during the first quarter of 2014.
In addition, in April 2014 Batelco repurchased a further BD49.5m of its bonds through an open market tender offer. This important transaction has afforded Batelco the opportunity to deploy excess liquidity in realizing interest savings and managing debt levels and furthermore demonstrates the Group’s commitment and focus on maintaining financial discipline.