Batelco Group announced its financial results for the six months ended June 30, 2015. For the first six months of the year, the group reported net profit of BD27.5 million ($72.9 million).
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This compares to BD24.9 million ($66 million) for the corresponding period in 2014, an increase of 11% year over year, though a 7% decrease since last quarter.
The improved profits for the period are mainly due to cost savings in 2015, increased yield on invested cash, lower interest expense and non-recurrence of adjustments taken in 2014.
EBITDA for the period was BD69.8 million ($185.1 million), representing a healthy margin of 38%, compared to EBITDA of BD71.9 million ($190.7 million) for the corresponding period in 2014, a 3% decrease year over year and 4% quarter on quarter.
The Group's Gross Revenues for the period showed a decrease, down by 5% YoY and 2% QoQ to BD185.7 million ($492.6 million) from BD194.6 million ($516.2 million) mainly due to competitive pressures in key markets and currency translation.
Operating Profit for the period was BD36.1 million ($95.8 million) versus BD39.1 million ($103.7 million) for the corresponding period in 2014 reflecting an 8% decrease year over year and a 6% decrease over the first quarter of 2015.
While Batelco Group's overall subscriber numbers are up by 4% year on year, there has been a marked decline in the customer base in Sabafon, Yemen, since last quarter due to the difficult operating environment in the country, which has negatively impacted profits.
Nonetheless, Batelco's overseas operations overall remain strong and at the end of the six month period, 59% of Revenues and 56% of EBITDA were attributable to operations outside of Bahrain. This is compared with 57% of Revenues and 52% of EBITDA in the first half of 2014.
The Group's balance sheet remained strong; as of 30 June 2015 net assets were BD577.7 million ($1,532.4) with substantial cash balances of BD135.9 million ($360.5 million).
Earnings per share were 16.6 fils and the Board of Directors approved an interim cash dividend for shareholders of 10 fils per share for the six month period. ■