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Batelco Group net profits $130.8m

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Staff writer ▼ | February 18, 2015
Batelco Group announces 2014 financial results. Net profits of BD49.3m ($130.8m) jumped from from BD43.6m ($115.6m) for 2013, an increase of 13% year over year.
Batelco Group
Batelco Group   An increase of 13% year over year
Profits for the year were boosted by the inclusion of consolidated full year reporting for Batelco's Islands' Portfolio, as well as increased subscriber numbers in the home market and a number of the Group's operations. Cost reduction programmes across the Group, with substantial savings realised in Bahrain, also contributed to the double digit increase.

Net profits for the fourth quarter of 2014 increased by 23% compared to Q4 2013. However, there was a 47% reduction in quarterly profits in Q4 versus Q3 2014. Quarterly profits have declined mainly due to one off provisions.

EBITDA for the year was BD144.7m ($383.8m), representing a healthy margin of 37%, versus EBITDA of BD120.7m ($320.2m) and a margin of 33% for 2013. The increase in EBITDA was attributed to the positive impact of Batelco Group's overseas operations and improved performance in the home market due to cost containment initiatives. In line with net profits, EBITDA was down by 16% on the previous quarter, but up 3% from Q4 of last year.

The Group's Gross Revenues stood at BD389.7m ($1,033.7m) for the year versus BD370.6m ($983.0m) in the previous year, an increase of 5% year over year. Q4 2014 Gross Revenues were 2% lower over Q4, 2013 while reflecting no change since the last quarter. The Group's revenues continue to be affected by fierce competition across the Group, mainly in voice services.

Operating Profits increased by 24% YoY from BD62.8m ($166.6m) in 2013 to BD77.7m ($206.1m) in 2014. Q4 2014 operating profits were down by 30% on the last quarter but remained stable versus Q4 2013.

The Group ended the year with a strong balance sheet and financial position. As of 31 December 2014, net assets were BD579.1m ($1,536.1m) with substantial cash and bank balances of BD150.2m ($398.4m) and net debt of BD26.3m ($69.8m).

The group also reported that the board would recommend to the Annual General Assembly of Shareholders a full year cash dividend of BD41.58m ($110.29m), at a value of 25 fils per share, of which 10 fils per share was already paid during the third quarter of 2014 with the remaining 15 fils to be paid in cash following the AGM in March.