26/07/2014 08:08 AST
Batelco Group reported a net profit of BD24.9 million ($66m) for the first six months of this year against BD25.3m for the corresponding period in 2013.
This was a slight decrease of one per cent year-over-year and a 28pc decrease since last quarter.
Profits for the period were impacted by continued competition in core markets and one-off adjustments. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the period was BD71.9m, representing a healthy margin of 37pc, compared to EBITDA of BD56.6m for the corresponding period in 2013, a 27pc increase year-on-year and a 11pc decrease quarter on quarter.
The group's gross revenue for the period, which stood at BD194.6m, was up 14pc from BD170.7m year-over-year and 1pc decrease quarter-over-quarter.
Operating profit for the period was BD39.1m versus BD30.9m for the corresponding period in 2013, reflecting a 27pc improvement year-over-year and a 20pc decrease over the first quarter of 2014.
The positive impact of Batelco's overseas operations, particularly in Dhiraagu Maldives and Sure Channel Islands and Isle of Man, continues to boost the group's bottom line.
At the end of the six-month period, 57pc of revenues and 54pc of EBITDA were attributable to operations outside of Bahrain.
This is compared with 51pc of revenues and 48pc of EBITDA in the first half of 2013 and 57pc of revenues and 54pc of EBITDA during the first quarter of 2014.
The group's balance sheet remained strong. As of June 30 this year, net assets were BD584.8m with substantial cash balances of BD121.9m.
Earnings per share were 15 fils and the board approved an interim cash dividend for shareholders of 10 fils per share for the six-month period.
Commenting on the results for the first half following the meeting of the board, Batelco chairman Shaikh Hamad bin Abdulla Al Khalifa said the group was pleased with the advances it has made, which have supported the increase in revenues and operating profit over the first half of 2013.
The group's diversification and expansion continues to positively boost revenues and subscriber numbers, he said.
It is now one year since we included our Island Portfolio contribution, reported for the first time in the 2013 second quarter results.
Over half of our revenues and profits are now generated from outside of our home market, which meets our expectations and aims to offset the impact of ongoing and aggressive competition at home.
We will remain focused on our efforts to pool group resources, technologies and expertise wherever possible as this has directly enhanced our competitiveness and performance across our markets of operation,Ó Shaikh Hamad added.
Batelco Group chief executive Alan Whelan said the group's good progress during the first half of the year was in line with expectations and the result of tremendous efforts by its management and staff.
The group's subscriber base stands at 9m customers, a rise of 4pc year-on-year.
This reflects impressive gains made over the past year in the key markets of Bahrain and Jordan as well as across the majority of the group's subsidiaries and affiliates.
Year-on-year, the broadband customer base has increased by 7pc to reach around 287,000 customers, which represents a 1pc increase since the previous quarter.
Mobile subscriber numbers grew by 5pc year-over-year and now stands at 8.5m.
Fixed line subscriber numbers remained flat since the first quarter and showed a small decline of 3pc year-over-year as demand across most of Batelco's markets reduces due to the growing preference for mobile services.
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