Beyon Announces Q2 2023 and Half Year 2023 Financial Results with 6% YoY Increase in Revenues

Beyon announced net profit attributable to equity holders of the company for Q2 2023 of BD19.9M (US$52.8M), in line with BD20.0M (US$53.1M) for the corresponding quarter of 2022. Earnings per share (EPS) are 12.0 fils for the second quarter of 2023 compared to 12.1 fils in Q2 2022.

Total comprehensive income attributable to equity holders in Q2 2023 was reported at BD24.9M (US$66.0M), a 95% increase from BD12.8M (US$34.0M) in the second quarter of 2022, due to foreign exchange translation differences related to the appreciation of the British Pound and investment fair value changes.

Operating profit for the second quarter of 2023 increased by 13% to BD28.1M (US$74.5M) from BD24.7M (US$65.5M) in Q2 2022. EBITDA is up by 5% and stands at BD44.8M (US$118.8M) in Q2 2023 compared to BD42.9M (US$113.8M) in Q2 2022. Revenues for Q2 2023 increased by 6% to BD105.4M (US$279.6M) compared to BD99.2M (US$263.1M) in Q2 2022.

For the first six months of 2023, net profit attributable to equity holders of the company of BD37.9M (US$100.5M) remained stable compared to BD37.9M (US$100.5M) in 2022 despite the BD 4.8M increase in interest expense during the period due higher interest rates. Earnings per share (EPS) are 23.0 fils for the period compared to an EPS of 22.9 for H1 2022.

Total comprehensive income attributable to equity holders of the company is up by 78% from BD25.7M (US$68.2M) in H1 2022 to BD45.7M (US$121.2M) in H1 2023.

Operating profits increased by 14% from BD46.8M (US$124.1M) in H1 2022 to BD53.6M (US$142.2M) in H1 2023. Similarly, EBITDA increased by 5% from BD83.5M (US$221.5M) in H1 2022 to BD87.5M (US$232.1M) in H1 2023. The company maintained a healthy EBITDA margin of 42% in H1 2023.

Revenues for the first six months of the year of BD208.9M (US$554.1M) increased by 6% from BD197.7M (US$524.4M) of revenues in H1 2022, mainly due to increases in mobile, wholesale and digital services. Beyon was able to grow its overall customer base by 6% YoY with increases in mobile customers of 17% in Batelco Bahrain and 5% in Umniah in Jordan.

Beyon’s balance sheet remains strong with total equity attributable to equity holders of the company of BD508.9M (US$1,349.9M) as of 30 June 2023, 3% higher than BD496.4M (US$1,316.7M) reported as of 31 December 2022. Total assets of BD1,118.1M (US$2,965.8M) as of 30 June 2023 are 2% higher than total assets of BD1,101.2M (US$2,921.0M) as of 31 December 2022. Net assets as of 30 June 2023 which stand at BD555.0M (US$1,472.1M) are 2% higher than BD542.3M (US$1,438.5M) reported as of 31 December 2022. The Company’s cash and bank balances, which reflect the 2022 final dividend of 19.0 fils per share paid in April 2023, are a substantial BD221.5M (US$587.5M).

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 2023. This is in line with the 2022 interim dividend payment and the Board of Directors commitment to continuously deliver strong returns to shareholders.

Financial and Operational Highlights

 H1 2023H1 2022GrowthQ2 2023Q2 2022Growth
 BDMUS$MBDMUS$M%BDMUS$MBDMUS$M%
Gross Revenues208.9554.1197.7524.4+6105.4279.699.2263.1+6
EBITDA87.5232.183.5221.5+544.8118.842.9113.8+5
Operating Profit53.6142.246.8124.1+1428.174.524.765.5+13
Net Profit attributable to equity holders of the company37.9100.537.9100.519.952.820.053.1
Total Comprehensive income attributable to equity holders of the company45.7121.225.768.2+7824.966.012.834.0+95
Customer Base*4.2M4.0M+6    
Contribution to Revenues by International Operations52%53%-1%    
Contribution to EBITDA by International Operations52%53%-1%    

*Excludes subscriber numbers from Sabafon, Beyon’s associate company in Yemen, and Etihad Atheeb Telecom, Beyon’s investment in Saudi Arabia.

Beyon Chairman Shaikh Abdulla bin Khalifa Al Khalifa announced the financial results for the second quarter and first six months of 2023 following a meeting of the Board of Directors on Tuesday 25th July, at Beyon Campus, Hamala, Kingdom of Bahrain.

“Beyon continued to focus on the advancement of its digital growth and strengthening its core services, and the Board of Directors is pleased with the progress made in executing its strategic plans across the group, reflected by increased revenues, operating profit and EBITDA, of 6%, 13% and 5% respectively in Q2 compared to the same period of 2022. The Board of Directors is focussed on driving value for shareholders, and we remain committed to delivering good returns on their investment,” Shaikh Abdulla stated.

“During the second quarter, marking a key milestone in our transformation journey, the company’s ticker symbol was changed from BATELCO to BEYON. This aligns the information displayed at the Bahrain Bourse with the Beyon identity. Beyon also announced its biggest ever investment in digital infrastructure with a commitment of more than USD250M towards international and regional cable connectivity and building advanced data centre facilities. Such significant investment will grant Bahrain direct access to a global cable system with complete independency for the first time which will enhance Bahrain’s position as an international data hub. This will help to support the acceleration of Bahrain’s digital transformation and the growth of its digital economy in line with the Kingdom’s vision for 2030,” Shaikh Abdulla noted.

“Beyon made great progress with its efforts towards sustainability, and we are very proud that Beyon’s Data Centre at Beyon Data Oasis is the first green data centre in Bahrain, relying on clean energy generated from the Company’s Solar Park. This marks an unprecedented achievement in the local telecommunications and technology sector and we have set clear plans to continue with our sustainability efforts,” he added.

Before concluding his remarks, Shaikh Abdulla said, “I would like to offer my appreciation to our shareholders for their trust in our strategic plans and offer praise to the Company’s team members for their efforts which enabled us to make significant progress during a busy second quarter.”

Beyon CEO Mikkel Vinter said, “Beyon accelerated the momentum of the first quarter of 2023 leading to a number of important achievements in Q2. The business continues to perform well, and we have maintained our profitability despite the high interest rate environment.”

“We are delighted with the Beyon digital companies’ recent accomplishments which included excellent achievements at Beyon Money, with the Company launching Flexi Invest the first high yield and flexible investment solution in Bahrain and the MENA region. Strengthening its position as a financial super app, Beyon Money now allows customers to save and earn whilst having access to their money at any time.”

“On the connectivity side of the business, we are committed to delivering the highest quality of services for Bahrain’s consumers and businesses through Batelco and are proud to have maintained our position as Bahrain’s #1 network for the third year in a row by providing the fastest 5G mobile network experience with 100% nationwide coverage, as well as best video streaming experience and high voice quality, as per the recent Mobile Quality of Service Report from the Bahrain TRA.”

“In line with Batelco’s ongoing digital transformation of its customer journey, the Company’s Retail Shops have been revamped by adding a self-service digital zone at each location, designed to elevate the customer retail experience. To further benefit our customers, Batelco introduced Jawaher, its first digital loyalty programme that enables customers to earn loyalty points which can be redeemed for exciting rewards exclusively on the Batelco app.”

“I appreciate the efforts of Beyon’s team members which have led to these and many more successes. We have some exciting plans in place for the second half of the year and look forward with the support of the team to achieving many new milestones,” Mr. Vinter concluded.

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