Bahrain: Beyon reports $52.5mln net profit for Q2

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Bahrain Telecommunications Company (Beyon) has announced a net profit attributable to equity holders of the company for Q2 2024 of BD19.8 million ($52.5 million), in line with BD19.9 milllion for the corresponding quarter of 2023.

Earnings per share (EPS) are 12.0 fils for both the second quarter of 2024 and 2023, the company said.

Total comprehensive income attributable to equity holders in Q2 2024 was reported at BD17.4 million ($46.2 million), a 30% decrease from BD24.9 million ($66 million) in the second quarter of 2023, mainly due to exchange and investment fair value changes.

Operating profit in Q2 2024 increased by 2% to BD28.5 million from BD28.1 million in Q2 2023. EBITDA stands at BD45.2 million in Q2 2024 compared to BD44.8 million in Q2 2023, an increase of 1%. Revenues for the second quarter of 2024 increased by 7% to BD112.5 million ($298.4 million) compared to BD105.4 million ($279.6 million) in Q2 2023.

For the first six months of 2024, net profit attributable to equity holders of the company of BD38.6 million ($102.4 million) increased by 2% compared to BD37.9 million ($100.5 million). Total comprehensive income attributable to equity holders of the company is up by 25% from BD45.7 million in H1 2023 to BD57.1 million in H1 2024 mainly due to favourable investment fair value changes.

Operating profits increased by 4% from BD53.6 million in H1 2023 to BD55.6 million in H1 2024. Similarly, EBITDA increased by 2% from BD87.5 million in H1 2023 to BD89.2 million in H1 2024. The company maintained a healthy EBITDA margin of 40% in H1 2024.

Revenues for the first six months of the year of BD222.9 million increased by 7% from BD208.9 million of revenues in H1 2023, mainly due to increases in mobile, datacoms and digital services. Beyon was able to grow its overall customer base by 3% YoY with increases in mobile customers across all its operating companies.

Beyon’s balance sheet remains strong with total equity attributable to equity holders of the company of BD543.3 million ($1,441.1 million) as of 30 June 2024, 2% higher than BD532.3 million ($1,411.9 million) reported as of 31 December 2023. Total assets of BD1,186.3 million as of 30 June 2024 are 2% higher than total assets of BD1,165.4 million as of 31 December 2023. Net assets as of 30 June 2024 which stand at BD593.7 million are 2% higher than BD582.5 million reported as of 31 December 2023. The company’s cash and bank balances are a substantial BD174.8 million ($463.7 million), it said.

The Board of Directors approved an interim cash dividend for shareholders of 13.5 fils per share or 13.5% of paid-up capital for the six-month period of 2024. This is in line with the 2023 interim dividend payment and the Board of Directors commitment to continuously deliver strong returns to shareholders.

Beyon Chairman Shaikh Abdulla bin Khalifa Al Khalifa, who announced the financial results following a meeting of the Board of Directors on Monday, at Beyon’s Campus, Hamala, Bahrain, said: “The board is pleased that Beyon has maintained strong momentum during the second quarter, leading to a solid performance for the first six months of 2024, reflected by improved revenues and profit of 7% and 2% respectively. Earnings per share are 23.3 fils for the 6-month period, delivered in line with our commitment to providing strong returns on our shareholders’ investments and we remain focussed on increasing shareholder value,” Shaikh Abdulla stated.

Since the launch of Beyon’s digital companies, implementing a long-term strategy has led to numerous achievements, including the introduction of innovative products and services, signing key partnerships and international acquisitions. “In line with this, we are delighted that the financial results of the six-month period reflect the successful implementation of our strategy, and confirm the strength and competitiveness of our portfolio, including our digital companies, which have shown significant year-on-year growth.”

Shaikh Abdulla said that as part of efforts in the kingdom to enhance public-private sector cooperation, Beyon announced key partnerships with government entities aimed at enhancing the quality of services for citizens and residents. “Beyon Connect signed a significant partnership with the iGA (Information & eGovernment Authority) to support the launch of an enhanced eKey system, while Beyon’s subsidiary Total CX partnered with EWA (Electricity and Water Authority) to implement elevated contact centre services for EWA’s customers.”

Beyon CEO Mikkel Vinter said that Beyon’s management remained focussed on achieving growth across its digital companies while also enhancing telecoms and connectivity services across all operations, with the efforts reflected by the solid financial performance.

Digitisation of everyday activities is evident across all industries in line with streamlining processes and elevating customer experience. “At Batelco, as part of our ongoing digitisation journey, we introduced ‘Basma’, the first AI powered digital assistant in Bahrain’s telecom sector, developed to support Batelco’s customers with all their telecommunication needs around the clock,” Vinter said.

Batelco’s commitment to investing in delivering superior connectivity is also ongoing and this has led to the company being recognised in the recently published TRA Mobile Quality of Service Report which highlights Batelco’s excellence across all services including key areas of social media streaming, voice quality and 5G network speed, with 100% nationwide 5G coverage.

Looking at Beyon’s digital companies, Vinter continued: “I’m pleased with the good results achieved, driven by the successful implementation of key strategic goals. Among recent achievements, Beyon Solutions made significant progress with its growth aspirations, announcing an agreement to acquire a controlling stake in Link Development, a leading regional provider of software solutions for digital transformation,” he added