Batelco Group Financial Results 2012

Manama, Bahrain: Batelco Group (Ticker: BATELCO), the leading telecom in the Middle East of reference with operations across six countries, today announced its results for the twelve-months ended 31 December 2012 (“the year”), which were marked by sound financial results and operating performance at its subsidiaries across the MENA region.

– Gross Revenues of BD304.7M (US$808.2M) for the year;

– EBITDA of BD101.8M (US$270.0M) representing a 33% margin for the full year; adjusted EBITDA normalised for one-offs was BD123.0M (US$326.0) at 40%;

– Consolidated Net Profit of BD60.3M (US$160.0M) for the year;

– Subscriber base of 7.8 million, an increase of 18% YoY, when normalized. This includes 17% growth in mobile customers and 52% growth of the broadband subscriber base;

– Continued diversification of Group revenues with 41% of revenues and 39% of EBITDA now sourced from markets outside Bahrain;

– Successful execution of growth strategy with announced plans to acquire equity interest in Cable & Wireless Communications’ (CWC) operations across 11 new markets to support greater diversification, revenue and subscriber growth;

– Progress on cost leadership, with the launch of restructuring programme, which will drive savings of BD20M annually from 2014 onwards;

– Significant cash and bank balances totaling BD95.0M (US$252.0M) at year end and low debt;

– Recommended cash dividends of BD36.0M (US$95.5M) for the full year, equivalent to 25 fils per share, marking ongoing ability to deliver value to shareholders; and 10% bonus share issue, awarding one extra share for every 10 shares currently held by the Company’s shareholders.

– A sound overall financial position as affirmed by a continued Investment Grade Credit Ratings from Fitch and Standard & Poor’s Ratings Services.

For 2012, the Group reported Net Profits of BD60.3M (US$160.0M) from BD80.0M (US$212.2M) for 2011. EBITDA for the year was BD101.8M (US$270.0M), representing 33% margin, versus EBITDA of BD126.0M (US$334.2M) for 2011. The decline was attributed to aggressive competitive conditions in Bahrain, restructuring costs for 2012 and 2013 and a number of one-off adjustments. Adjusted EBITDA normalised for one-offs was BD123.0M (US$326.0) at 40%.

The Group’s Gross Revenues stood at BD304.7M (US$808.2M) for the year versus BD327.0M (US$867.4M) in the previous year. In line with the Group’s continued diversification, 41% of revenues and 39% of EBITDA are now generated from markets outside of Bahrain where the Group continues to focus on strengthening its performance and reach.

The Group ended the year with a strong balance sheet and financial position. As of 31 December 2012, net assets were BD520.2M (US$1,379.8M) with net debt of BD18.4M (US$48.8M) and cash and bank balances of BD95.0M (US$252.0M).

The soundness of the Group’s financial health and performance were further underscored by the affirmation of its Investment Grade Credit Rating by leading global ratings agencies Fitch and Standard & Poor’s Ratings Services in November and December of 2012, respectively. This effectively positions Batelco to continue to pursue and support its growth and strategy for further diversification including its recently announced plans for the strategic acquisition of Cable & Wireless Communications’ (CWC) Monaco and Islands Division, which was approved by the shareholders of both companies in early January 2013, and which remains on track to close during the first quarter of the 2013.

Batelco Group Chairman, Shaikh Hamad Bin Abdulla Al Khalifa, announcing the 2012 financial results following a meeting of the Board of Directors at the Group’s Bahrain Headquarters, said:

“For 2012, Batelco Group continued to deliver sound financial results in line with the guidance provided and expectations for the year. As was noted in previous quarters, beyond aggressive competition in the Bahrain market and elsewhere in the region, our results for 2012 were also impacted by a number of one off charges including expenses associated with an extensive restructuring and cost rationalization programme at our Bahrain operations, the benefits of which include BD20M in annual savings starting 2014, which will help us to further strengthen our performance and financial results as we go forward. That said despite the decline in revenue and income year over year, our profits remained healthy as did our ability to deliver adequate returns to shareholders.“

“For 2012, we are pleased to announce the Board’s recommendation to the General Assembly for a sound shareholder dividend. Our strategy and ongoing efforts to achieve operational excellence and growth continue and ensures the Group provides shareholders with some of the highest dividend yields in our industry region wide.“

This press release has been issued by Batelco Corporate Affairs department.
For further information, please contact Batelco Public Relations Office
Public.Relations@btc.com.bh / Fax +973 17611898