Bahrain: Beyon net profit jumps 7% to $186.5mln in 2022

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Bahrain - Beyon, Bahrain’s leading telecom and technology powerhouse, has announced net profit attributable to equity holders of the company for Q4 2022 of BD16.2 million ($43 million), a 28% increase from BD12.7 million for the corresponding quarter of 2021. Earnings per share (EPS) are 9.8 fils for the fourth quarter of 2022 compared to 7.7 fils in Q4 2021.

For the full year of 2022, net profit was BD70.3 million ($186.5 million), an increase of 7% from BD65.9 million in 2021. Earnings per share (EPS) are 42.5 fils for the year compared to an EPS of 39.8 fils in 2021.

Beyon is the topco company of Batelco, the Beyon Digital Companies, and other international investments.

Total comprehensive income attributable to equity holders in Q4 2022 was reported at BD22.1 million ($58.6 million), a 97% increase from BD11.2 million in the fourth quarter of 2021, due to higher profit and foreign currency translation differences.

Revenues for Q4 2022 were BD104.6 million ($277.5 million) compared to BD103.3 million in Q4 2021, up by 1%. Operating profit for the fourth quarter of 2022 increased by 33% to BD24 million from BD18.1 million in Q4 2021, while EBITDA stood at BD41.8 million compared to BD37 million in Q4 2021, an increase of 13%.

Full year results

Total comprehensive income attributable to equity holders of the company for the year is down by 19% from BD71.7 million in 2021 to BD58.2 million in 2022, mainly due to the impact of foreign currency translation differences.

Revenues for the full year are BD402.8 million compared to BD399.6 million in 2021, up by 1%. Operating profits increased by 5% from BD89.2 million in 2021 to BD93.6 million in 2022. EBITDA increased by 1% from BD163 million in 2021 to BD165.4 million in 2022, with a healthy EBITDA margin of 41%.

Beyon’s balance sheet remains strong with total equity attributable to equity holders of the company of BD496.4 million ($1,316.7 million) as of December 31, 2022, 1% higher than BD489.6 million reported as of December 31, 2021. Total assets of BD1,101.2 million as of December 31 are 7% higher than total assets of BD1,030.6 million as of December 31, 2021. Net assets as of December 31, 2022 which stand at BD542.3 million are 2% higher than BD530.7 million reported as of December 31, 2021. The company’s cash and bank balances are a substantial BD253.8 million, which reflects the 2022 interim dividend of 13.5 fils per share paid in August 2022.

Cash dividend

Beyon is committed to delivering excellent returns to its shareholders and accordingly, the board of directors has recommended a full year cash dividend of BD53.9 million ($143 million), at a value of 32.5 fils per share to be agreed at the Annual General Meeting, of which 13.5 fils per share was already paid during the third quarter of 2022 with the remaining 19 fils to be paid following the AGM in March 2023, said the company.

Beyon Chairman Shaikh Abdulla bin Khalifa Al Khalifa, announcing the results at Beyon’s headquarters in Hamala, said: “The Board of Directors is pleased with the positive set of financial results for 2022 supported by a strong 4th quarter with net profits up by 28% over the corresponding quarter of 2021, resulting in a 7% increase in net profits year on year. The results reflect the continuous efforts in successfully executing the company’s digital transformation strategy, strengthening the core business and international connectivity services.

Milestone year

“2022 was a milestone year for the company with the launch of Beyon, the Topco company of Batelco, the Beyon Digital Companies, and our international investments. This historical change reflects our vision to transform from a telco focused business to a technology powerhouse, marking a major leap in our digital transformation journey and I’m immensely proud of the accomplishment. Going forward our ambitious plans include venturing into new digital verticals as well as taking the existing Beyon companies to new markets,” Shaikh Abdulla said.

Shaikh Abdulla concluded his report saying: “2023 is just the beginning of a new journey that will see Beyon grow in strength and stature, maintaining its leading role as Bahrain’s telecommunications provider of choice through Batelco, while the Company’s digital growth journey will continue, growing and developing each of the digital companies, and through planned expansion into new geographies as well as into new verticals. The future looks very bright, and I am confident that we have the right structure in place and a strong commitment from all team members to work hard to reach our goals.”

Beyon CEO Mikkel Vinter said: “I’m pleased with the performance for 2022. Beyon aims to become a name synonymous with innovation and digital efficiency, not only in Bahrain but across the region and beyond, and to that end we will be focussed on developing the connectivity as well as digital growth ambitions. On the connectivity front, we continue to deliver best-in-class solutions for consumers and the enterprise sector through Batelco in Bahrain, while also investing in world class data centers and cable solutions that meet the requirements of our global customers.”

Seeking opportunities

“With an ambition to become a major regional digital player, we develop the product portfolios at the Beyon Digital Companies and also look for partnership and acquisition opportunities to support the strategic goals. As part of that, Beyon Cyber recently announced its agreement to acquire a majority stake in DTS Solution, a leading regional cyber security advisory, consulting, and engineering firm, to ensure the delivery of industry leading cybersecurity products and services,” Vinter said.

“Beyon’s efforts towards sustainability and environmental protection were recognised during 2022 at the annual Global Telecoms Awards in London, with the company winning in the Climate Action Excellence category for our energy saving initiatives and a reduction in carbon footprint.”