BATELCO Group, the international telecommunications company with operations across 16 countries, announced its financial results for six months ended June 30, 2013, which include results from the newly acquired Island Units (Dhiraagu, Channel Islands and Isle of Man, South Atlantic and Diego Garcia) from Cable and Wireless Communications (CWC) on 3rd April 2013. For the first six months of the year, the Group reported net profit of BD27 million ($71.6 million) versus BD34.6m ($91.8m) for the corresponding period in 2012, a decrease of 22 percent year over year and a 2 percent increase since last quarter. Profits for the period were impacted by a number of one off expenses associated with the acquisition and related financing. EBITDA for the period was BD56.6m ($150.1m), representing a healthy margin of 33 percent, compared to EBITDA of BD55.8m ($148.0m) for the corresponding period in 2012, a 1 percent increase year over year and a 58 percent increase quarter on quarter. The Group's gross revenue for the period, which stood at BD170.7m ($452.8m) was up 10 percent from BD155.3m ($411.9m), year over year and 40 percent quarter over quarter. Operating profit for the period was BD33.5m ($88.9m) versus BD38.5m ($102.1m) for the corresponding period in 2012 reflecting a 13 percent decline year over year but a 73 percent increase over the first quarter of 2013. In line with ongoing efforts to diversify revenues and maximize investments, the Group saw increased contributions from overseas markets both existing and through the 10 new markets added. At the end of the six-month period, 50 percent of revenues and 48 percent of EBITDA was attributable to operations outside of Bahrain. This is compared with 39 percent of Revenues and 35 percent of EBITDA in the first half of 2012 and 42 percent of revenues and 39 percent of EBITDA during the first quarter of 2013. The Group's balance sheet also remained strong. As of 30 June 2013, there was substantial cash balances of BD153.1m ($406.1m). Earnings per share were also healthy at 17.1 fils and the Board of Directors approved an interim cash dividend for shareholders of 10 fils per share for the six-month period. Batelco Chairman Sheikh Hamad Bin Abdulla Al Khalifa said “this was an accretive transaction that has enabled us to strengthen our financial performance and emerge as a more profitable and cash generative communications Group. “Diversification has long been an important part of our strategy and we've reached a milestone with half of our revenues and a considerably higher percentage of profits now being sourced from outside of our home market, where we are looking to continue to offset the impact of ongoing and aggressive competition.” He added: “With the ongoing integration of these businesses and following a number of one off expenses incurred during the quarter, we expect to see an even more positive contribution from our Island assets as we go forward. This, coupled with the progress we are making in improving our competitiveness across all existing operations, will enable us to deliver even stronger results for shareholders in the periods to come. Our commitment to shareholder value remains a priority and is reflected in yet another solid half year dividend today approved by the Board.” — SG
