Beyon Achieves Net Profit Attributable to Equity Holders of BD17.6M in Q3 2023, an 8% YoY Increase

Manama, Bahrain: Beyon (Ticker: BEYON), announced net profit attributable to equity holders of the company for Q3 2023 of BD17.6M (US$46.7M), an 8% increase from BD16.3M (US$43.2M) for the corresponding quarter of 2022. Earnings per share (EPS) are 10.7 fils for the third quarter of 2023compared to 9.8 fils in Q3 2022. 

Total comprehensive income attributable to equity holders in Q3 2023 was reported at BD21.2M (US$56.2M), a 102% increase from BD10.5M (US$27.9M) in the third quarter of 2022, due to investment fair value changes.

Operating profit for the third quarter of 2023 increased by 14% to BD26.0M (US$69.0M) from BD22.8M (US$60.5M) in Q3 2022. EBITDA is also up by 8% and stands at BD43.2M (US$114.6M) in Q3 2023compared to BD40.1M (US$106.4M) in Q3 2022. Revenues for Q3 2023 increased by 6% to BD106.5M (US$282.5M) compared to BD100.6M (US$266.8M) in Q3 2022. 

For the first nine months of 2023, net profit attributable to equity holders of the company of BD55.5M (US$147.2M) increased by 3% compared to BD54.1M (US$143.5M) in 2022 despite the BD6.8M(US$18.0M) increase in interest expense during the period. Earnings per share (EPS) are 33.6 fils for the period compared to an EPS of 32.8 fils for the corresponding period in 2022. 

Total comprehensive income attributable to equity holders of the company during the period is up by 85% from BD36.2M (US$96.0M) in 2022 to BD66.8M (US$177.2M) in 2023.

Operating profits increased by 14% from BD69.6M (US$184.6M) during the period in 2022 to BD79.6M (US$211.1M) in 2023. Similarly, EBITDA increased by 6% from BD123.5M (US$327.6M) in 2022 to BD130.7M (US$346.7M) in 2023. The company maintained a healthy EBITDA margin of 41% during the period in 2023.

Revenues for the first nine months of the year of BD315.4M (US$836.6M) increased by 6% from BD298.3M (US$791.2M) of revenues in the corresponding period of 2022, mainly due to increases in mobile, wholesale and digital services. Beyon was able to grow its overall customer base by 5% YoY with increases in mobile customers of 16% in Batelco Bahrain and 6% in Umniah in Jordan.

Beyon’s balance sheet remains strong with total equity attributable to equity holders of the company of BD507.4M (US$1,345.9M) as of 30 September 2023, 2% higher than BD496.4M (US$1,316.7M) reported as of 31 December 2022. Total assets of BD1,142.2M (US$3,029.7M) as of 30 September 2023are 4% higher than total assets of BD1,101.2M (US$2,921.0M) as of 31 December 2022. Net assets as of 30 September 2023 which stand at BD554.6M (US$1,471.1M) 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 2023 interim dividend of 13.5 fils per share paid in August 2023, are a substantial BD215.1M (US$570.6M).

*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 third quarter (Q3) and the nine-month period ended 30 September 2023, following the meeting of the Board of Directors on 31 October, held at Beyon’s Hamala Headquarters.

“Beyon has succeeded in delivering on its strategic plans for its digital and core services, which has led to a solid set of financial results for the first nine months of the year and the Board of Directors is very pleased with the progress made. Net profit, operating profit and EBITDA are up by 3%, 14% and 6% respectively for the nine-month period, compared to the same period of 2022. We are pleased to deliver improved earnings per share of 33.6 fils for the period, increased from 32.8 fils for the corresponding period in 2022, which supports our commitment to deliver good value for our shareholders.”

“As part of our regional growth strategy, Beyon participated at GITEX GLOBAL, the world’s most prominent tech show and we were proud to have the largest ever representation by a Bahraini company at the iconic event. On the occasion, Beyon’s digital companies, Beyon Money, Beyon Cyber, Beyon Solutions and Beyon Connect showcased their portfolio of innovative digital products and services, which generated extensive engagement with players from the regional and international technology industry. Our attendance, which is another milestone achievement for Beyon, reiterates our commitment to take our digital products to the region and beyond. These initiatives form part of our ongoing focus to be a leader in the digital sector, in line with the Kingdom of Bahrain’s vision for the digital economy,” the Chairman added.

“Maintaining an enviable workplace environment is very important at Beyon as our team members are our greatest assets, and we were very proud that the many initiatives put in place to enhance work life experience has led to Beyon being highly ranked in the 2023 Best Workplaces in Asia list by Great Place To Work®,” he said.

Before concluding, Shaikh Abdulla extended his appreciation to Beyon’s management and team members for their contribution which supported a successful operational and financial third quarter.

Beyon CEO Mikkel Vinter said, “We have maintained the strong momentum set in the first half of 2023, and I’m pleased with the progress made over the recent busy months, with some excellent achievements by our digital and telecom businesses, helping to contribute to the improved financial performance.”

“The Beyon Digital companies’ list of accomplishments continues to grow with recent big news which includes Beyon Solutions acquisition of a controlling stake in INSOMEA, a regional cloud IT solutions consultancy, with the agreement signed at the Beyon stand during GITEX GLOBAL. Beyon Money has also achieved a significant milestone by being granted a licence to operate in the UAE, with plans in place to introduce services by the end of this year. Such achievements are important for us as part of the Beyon Group’s comprehensive plans to grow in scale and scope in the MENA region and further afield.”

“Elevating our customers’ digital experience has been a priority on the telco side of our business and during the quarter we took our digital shop initiative one step further by launching standalone digital shops at key locations in Bahrain, making our services more widely accessible. For business customers, we introduced a new online portal serving as a one-stop-shop to simplify the Enterprise journey enabling them to view, manage and add services conveniently. In line with our commitment to deliver the best services for customers, both initiatives are the first of their kind in Bahrain’s telecom sector,” he added.

Mr. Vinter concluded, “I extend appreciation to all Beyon’s team members who have gone the extra mile to ensure we keep on track in delivering on our strategic objectives. As we fast approach the end of another year, I am confident that we can add more successes to the lineup before the end of 2023.”

This press release, along with the full set of financial statements, is available on the Bahrain Bourse website and on Beyon website, www.beyon.com