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Beyon's 2023 revenue soars to US$1.1 billion; net profit up 2pc

Bahrain Telecommunications Company (Beyon) has announced solid results for FY 2023 with a net profit of BD72 million (US$191 million), up 2% compared to the previous year's results of BD70.3 million (US$186.5 million), while its revenue surged 5% to hit BD424.9 million (US$1.12 billion) over the previous year's results of BD402.8 million (US$1,06 billion).

Announcing the results for the 12-month period ended December 31, 2023, Beyon said the net profit attributable to equity holders of the company grew 2% over the previous year. Earnings per share (EPS) stood at 43.6 fils for the year compared to an EPS of 42.5 for the corresponding period in 2022.

The growth in its revenue for FY 20233 was mainly due to increases in mobile, wholesale and digital services, it stated.

Total comprehensive income attributable to equity holders of the company during the year was up by 57% from BD58.2 million ($154.4 million) in 2022 to BD91.6 million ($243 million) in 2023 resulting from foreign exchange translation differences and investment fair value changes.

The operating profits for the year increased by 11% from BD93.6 million ($248.3 million) in 2022 to BD104 million ($275.9 million) in 2023. Similarly, ebitda was up 3% from BD165.4 million ($438.7 million) in 2022 to BD171.1 million ($453.8 million) in 2023. The company maintained a healthy EBITDA margin of 40% in 2023.

During the 12-month period, Beyon was able to grow its overall customer base by 2% YoY with increases in mobile customers of 11% in Batelco Bahrain, 5% in Umniah in Jordan and 3% in Sure Group.

Its balance sheet remains strong with total equity attributable to equity holders of the company of BD532.3 million ($1.4 billion) as of 31 December 2023, 7% higher than BD496.4 million ($1.3 million) reported as of 31 December 2022.

Total assets of BD1.16 billion ($3.01 billion) as of December 31, 2023 are 6% higher than total assets of BD1.1 billion ($2.9 billion) as of 31 December 2022. Net assets as of December 31, 2023 which stand at BD582.5 million ($1.5 billion) are 7% higher over the 2022 figures.

The company’s cash and bank balances, which reflect the 2023 interim dividend of 13.5 fils per share paid in August 2023, are a substantial BD235.8 million ($625.5 million).

Unveiling the Q4 results, Beyon said its net profit attributable to equity holders of the company stood at BD16.5 million ($43.8 million), up 2% over BD16.2 million ($43 million) the previous year. Earnings per share (EPS) are 10.0 fils for the fourth quarter of 2023 compared to 9.8 fils in Q4 2022.

Beyon's total comprehensive income attributable to equity holders for the period surged 12% to hit BD24.8 million ($65.8 million) over the previous year, mainly due to investment fair value changes.

Operating profit in Q4 2023 increased by 2% to BD24.4 million ($64.7 million) from BD24 million ($63.7 million) in Q4 2022, while its ebitda for Q4 fell 3% to BD40.4 million ($107.2 million) from BD41.8 million ($110.9 million) the year before.

The Bahraini group said its revenues for the fourth quarter of 2023 increased by 5% to BD109.5 million ($290.5 million) compared to BD104.6 million ($277.5 million) in Q4 2022.

Impressed with the results, Beyon's board of directors has recommended a full year cash dividend of BD64.7 million ($171.6 million), (at a value of 39.0 fils per share) following a board meeting at Beyon’s headquarters in Hamala.

This includes the regular dividend of 32.5 fils per share plus an additional special dividend of 6.5 fils per share.

The final announcement will be made after the shareholders approval at the Annual General Meeting. The 2023 interim dividend of 13.5 fils per share was already paid during the third quarter of 2023 with the remaining 25.5 fils to be paid following the AGM in March 2024, it stated.

On the solid performance, Beyon Chairman Shaikh Abdulla bin Khalifa Al Khalifa said: "While Beyon continues on its transformation journey, we are still achieving excellent results reflected by a 5% increase in revenues year over year and improved Earnings per Share of 43.6 fils for the year compared to an EPS of 42.5 for 2022."

"The Board of Directors is pleased with the solid performance which emphasizes the importance placed on meeting shareholders’ expectations," he stated.

"Beyon has an ambitious strategy to grow outside of Bahrain through strategic acquisitions and partnerships and by taking our digital brands into new regional and international markets. The Board of Directors is proud of the good progress achieved which includes acquisitions by Beyon Cyber and Beyon Solutions, while Beyon Connect established a joint venture in partnership with Egypt Post, and Beyon Money entered the UAE market," remarked Shaikh Abdulla.

"To support the acceleration of Bahrain’s digital transformation, Beyon undertook its biggest investment ever in advanced data centres and subsea cables, including becoming a consortium partner in the SMW6 cable," he stated.

"These achievements are possible due to the establishment of an ecosystem that encourages the growth of the digital sector and the economic prosperity in the Kingdom of Bahrain under the leadership of His Majesty King Hamad bin Isa Al Khalifa and with the support of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister," said Shaikh Abdulla.

"Whilst we engage in expansion and development of new services, sustainability continues to be important, and we remain committed to supporting the Kingdom’s vision of achieving zero carbon neutrality by 2060. In line with this, we were pleased to announce the completion of the second phase of Beyon Solar Park, and our Data Centre at Beyon Data Oasis became the first in Bahrain to rely entirely on clean energy generated from our Solar Park," he stated.

On the future outlook, he said: "Looking ahead we will continue our journey, focusing on implementing the next steps in our transformation strategy. The success of the past year gives us confidence that we are on the right path and that we have created a solid platform to achieve our goals."

Beyon CEO Mikkel Vinter said: "We are pleased with the progress made during 2023 with many notable achievements, taking us closer to our vision of being a technology powerhouse."

"During 2023, Beyon’s management team continued our ambitious regional expansion plans via organic growth plus strategic partnerships and acquisitions. In line with this, Beyon Money launched its innovative customer-focused financial services in the UAE, taking a range of its value-added services to this important regional market," he noted.

"Additionally, we were pleased to boost our portfolio through carefully selected acquisitions, adding cybersecurity services from DTS Solution, a leading regional Cyber Security Advisory firm, and specialised cloud IT solutions from Insomea, a leading regional cloud IT solution consultancy and managed services provider, specialized in Microsoft technology," he added.