Batelco Announces Q1 2022 Financial Results

April 28, 2022

Manama, Bahrain: Batelco (Ticker: BATELCO), announced net profit attributable to equity holders of the company for Q1 2022 of BD17.9M (US$47.5M), a 9% decrease from BD19.7M (US$52.3M) for the corresponding quarter of 2021.  The decline in net profit is mainly attributable to increased operational expenses associated with setting up new digital entities.  Earnings per share (EPS) are 10.8 fils for the first quarter of 2022 compared to 11.9 fils in Q1 2021.

Revenues for the first quarter in 2022 of BD98.5M (US$261.3M) decreased by 1% compared to BD99.7M (US$264.5M) in Q1 2021, mainly due to YoY reductions in datacoms and lower roaming revenue in Dhiraagu’s operation in the Maldives due to COVID.

Operating profit for Q1 2022 declined by 13% to BD22.1M (US$58.6M) from BD25.4M (US$67.4M) in Q1 2021.  EBITDA stands at BD40.6M (US$107.7M) in Q1 2022 compared to BD43.8M (US$116.2M) in Q1 2021, a decrease of 7%.  The company maintained a healthy EBITDA margin of 41% in Q1 2022.

Total comprehensive income attributable to equity holders in Q1 2022 was reported at BD12.9M (US$34.2M), a 57% decrease from BD29.9M (US$79.3M) in the first quarter of 2021, mainly due to foreign exchange translation differences and investment fair value changes.

Batelco’s balance sheet remains strong with total equity attributable to equity holders of the company of BD473.3M (US$1,255.4M) as of 31 March 2022, 3% lower than BD489.6M (US$1,298.7M) reported as of 31 December 2021. Total assets of BD1,036.0M (US$2,748.0M) as of 31 March 2022 have increased by 1% compared to total assets of BD1,030.6M (US$2,733.7M) as of 31 December 2021. Net assets as of 31 March 2022 which stand at BD513.2M (US$1,361.3M) are 3% lower than BD530.7M (US$1,407.7M) reported as of 31 December 2021. The Company’s cash and bank balances are a substantial BD235.4M (US$624.4M).

Financial and Operational Highlights

  Q1 2022 Q1 2021 Growth
Gross Revenues 98.5 261.3 99.7 264.5 -1
EBITDA 40.6 107.7 43.8 116.2 -7
Operating Profit 22.1 58.6 25.4 67.4 -13
Net Profit attributable to equity holders of the company 17.9 47.5 19.7 52.3 -9
Total Comprehensive income attributable to equity holders of the company 12.9 34.2 29.9 79.3 -57
Subscriber Base* 3.9M 3.8M +3
Contribution to Revenues by International Operations 54% 53% +1
Contribution to EBITDA by International Operations 55% 51% +4

*Excludes subscriber numbers from Sabafon, Batelco’s associate company in Yemen, and Etihad Atheeb Telecom, Batelco’s investment in Saudi Arabia.

Batelco Chairman Shaikh Abdulla bin Khalifa Al Khalifa announced the financial results for the first quarter of 2022 following a meeting of the Board of Directors on Thursday 28 April at Batelco Headquarters, Hamala, Kingdom of Bahrain.

“The Board of Directors has reviewed the performance of the company during the first quarter, including developments in key strategic initiatives, with a particular focus on progress made in Batelco’s digital growth strategy. We are pleased with the milestones achieved in the digital space and proud of the launch of three new digital brands during the first quarter. This is in line with the Board direction of leading the digital transformation in the sector as well as supporting the digital economy vision of Bahrain,” Shaikh Abdulla said.

“The Board also acknowledges the challenges faced by the company during Q1, which resulted from the increased competition due to the regulatory environment in the telecom sector. This as well as the increased operational expenses stemming from investments in transformational initiatives, including digital growth and the launch of new digital brands, had an impact on the financial results for the first quarter.”

The Board remain committed to creating shareholder value while setting the direction and polices that are important for the future of the company.”

“I would like to extend appreciation to our shareholders for their trust in our ambitious strategy, as delivering strong returns on their investment is top of our priority list,” Shaikh Abdulla added.

Shaikh Abdulla concluded by saying, “I value the commitment of my colleagues on the board, the management team, and all team members and extend my personal thanks for their efforts in the early months of the year.”

Operational Overview

Batelco CEO Mikkel Vinter said, “The first quarter of 2022 has been significant for us. This is a transformational year for the company, and we are confident in saying that we have started off with some solid achievements.”

“Our newly launched Beyon Connect has signed key agreements with Bahrain’s National Cyber Security Centre (NCSC), Real Estate Regulatory Authority (RERA) and the Survey & Land Registration Bureau (SLRB) amongst others, that are guaranteed to enhance the digital economy initiatives in Bahrain. We have also extended our digital initiatives regionally and entered into an agreement with Egypt Post.”

“Our digital strategy is important for the company, but we are also committed to enhancing our core business and meeting the needs of our customers.  We signed a new MoU with Ericsson to collaborate on next generation 5G technologies and innovations, to accelerate our 5G network development. For consumers we launched ‘Broadband in a Day’, which ensures that new customers applying for fiber can benefit from broadband connectivity instantly.”

“The company is also committed to becoming a sustainable corporate and produced its first ESG report during the first quarter which highlights our Environmental, Social and Governance activities and progress made during 2021, as well as outlining initiatives for 2022.”

Mr. Vinter concluded by thanking the Chairman Shaikh Abdulla and members of the Board for their invaluable support. “I would also like to thank all team members for their contribution to a very busy quarter and encourage everyone to work together to keep the momentum going as we strive to deliver our strategy successfully.”

This press release, along with the full set of financial statements, is available on the Bahrain Bourse website and on Batelco website,