Batelco Group was able to maintain stable revenues and a robust EBITDA margin for the nine-month period ended 30 September 2016 (“the period”).
Gross revenues for the period stood at $724.1 million. EBITDA was $279 million representing a 39% margin. Consolidated net profit was BD5 million ($86.2 million) for the period. Markets outside of Bahrain contributed 59% of revenues and 55% of EBITDA.
For the nine-month period, the group’s Gross Revenues are down marginally by 2% YoY mainly due to competitive pressures in key markets. Gross revenues declined by 4% YoY in Q3 2016.
EBITDA for the period witnessed a 2% decline YoY. EBITDA decreased by 8% in the Q3. Throughout the period, the group continued its cost containment programmes resulting in a 3% YTD reduction in expenditure compared to the same period last year. The group continues to sustain its robust EBITDA margin of 39%.
The Group ended the nine month period with Net Profit of BD32.5 million ($86.2 million), a 21% decline YoY. Q3 2016 net profit reported a decrease of 27% . The reduced net profits for the period were impacted by increased finance costs due to borrowings in the group’s operation in Jordan, one-off items recorded in 2015 and share of loss of the group’s investments.
The Board noted that the group’s efforts are focussed on transforming operations to achieve a competitive edge and long-term operational excellence.
Across the group, the overall subscriber numbers are down by 6% YoY, mainly as a result of decreases in Batelco Bahrain and Sabafon mobile subscribers due to market pressure. However broadband subscriber numbers have increased by 16% YoY with particularly strong input from the home market of Bahrain, which has seen a 29% YoY increase in subscribers. This growth is mainly attributable to the take up of fibre services which are now widely available across Bahrain.
During the period, a number of overseas markets delivered positive results due to the rollout of new and enhanced solutions to exceed their customers’ expectations.
Batelco had a strong presence as part of the Bahrain Pavilion at GITEX 2016 where the Company was supported by a number of key partners including Ericsson and Sophos. During the week Batelco signed an MOU with Ericsson to collaborate on the development of 5G and Internet of Things (IoT) use cases.
Batelco also announced a platinum partnership agreement with Sophos, an IT security and data protection company. The signing is in line with Batelco’s efforts to provide relevant security solutions for Bahrain’s enterprise sector. Additionally, in collaboration with Ericsson and Net4Things, a leading company enabling end-to-end IoT solutions, a variety of Cloud and Sustainability Smart Solutions were demonstrated at the Batelco Stand including Connected Print and smart solutions for homes and hospitals.
Meanwhile, as part of Batelco’s network expansion plans to deliver super-fast Internet services all over the Kingdom, Fibre services were launched during the quarter for Durrat Al Bahrain.
Batelco will continue to give high priority to its Corporate Social Responsibility (CSR) programme.
Key among Batelco’s priorities for the last quarter of the year is a sharp focus on its customers at home and overseas to ensure that provisioning exceeds their expectations.
