The Company stated that its profits were impacted by a number of one off expenses associated with the acquisition and related financing. EBITDA for the period was BD56.6million (US$150.1m), representing a healthy margin of 33%, compared to EBITDA of BD55.8m (US$148.0m) for the corresponding period in 2012, a 1% increase year over year and a 58% increase quarter on quarter.
The half yearly financials include results from the newly acquired Island Units (Dhiraagu, Channel Islands & Isle of Man, South Atlantic and Diego Garcia) from Cable & Wireless Communications (CWC) on 3rd April 2013.
“We’re pleased to announce our results for the first half of the year, which were enhanced by the inclusion, for the first time, of our recently acquired Islands businesses. As we have said, this was an accretive transaction that has enabled us to strengthen our financial performance and emerge as a more profitable and cash generative communications Group. Diversification has long been an important part of our strategy and we’ve reached a milestone with half of our revenues and a considerably higher percentage of profits now being sourced from outside of our home market, where we are looking to continue to offset the impact of ongoing and aggressive competition,” Batelco Chairman, Shaikh Hamad Bin Abdulla Al Khalifa, said.
“With the ongoing integration of these businesses and following a number of one off expenses incurred during the quarter, we expect to see an even more positive contribution from our Island assets as we go forward. This, coupled with the progress we are making in improving our competitiveness across all existing operations, will enable us to deliver even stronger results for shareholders in the periods to come. Our commitment to shareholder value remains a priority and is reflected in yet another solid half year dividend today approved by the Board,” he added.
The Group’s balance sheet also remained strong. As of 30 June 2013, there were substantial cash balances of BD153.1m (US$406.1m). Earnings per share were also healthy at 17.1 fils and the Board of Directors approved an interim cash dividend for shareholders of 10 fils per share for the six month period.
Operationally, the Group made considerable progress during the first half of the year and second quarter, achieving organic growth and growth through its recently completed acquisition. For the period, the Group’s subscriber base grew to 8.6 million customers, a rise of 24% year on year and 13% since last quarter. This reflected gains made over the past six months in a number of key existing markets of operation including Bahrain, Jordan, Yemen and Kuwait as well as the addition of approximately 573,000 acquired Islands customers in the form of mobile, broadband and fixed line subscribers.
The Group’s gross revenue for the period, which stood at BD170.7m (US$452.8M) were up 10% from BD155.3m (US$411.9m), year over year and 40% quarter over quarter. Operating Profit for the period was BD33.5m (US$88.9m) versus BD38.5M (US$102.1m) for the corresponding period in 2012 reflecting a 13% decline year over year but a 73% increase over the first quarter of 2013.
“This has been an exciting quarter and a strong first half of the year. We will work hard in the months ahead to further build on the progress that has been achieved. We continue to focus on strengthening our performance in our home market and in our overseas markets of operations – both long standing investments and in our newly acquired businesses. With an expanded customer base, network and revenue streams, we are confident that we are better positioned than ever to serve our customers and our shareholders alike,” Shaikh Hamad while highlighting the growth momentum, said.