Is BlackBerry (BB) Halal to invest in?
Table of Contents
How much of BlackBerry’s revenue comes from haram?
BlackBerry is a software company that provides intelligent security software and services to enterprises and governments worldwide. The company leverages machine learning to deliver innovative cybersecurity solutions.
The company earns its revenue from the following segments:
Software and Services:
Includes revenue generated from software and services created, marketed, and sold by Blackberry. Some of these services include:
- BlackBerry Spark: Includes revenue generated from the company’s core software, which enables secure endpoint communications in a zero trust environment.
- BlackBerry Internet of Things (IoT) Solutions: Includes revenue generated from BlackBerry QNX, a global provider of real-time operating systems. In addition, this segment includes BlackBerry AtHoc and BlackBerry Alert which provide secure critical event management solutions.
Licensing and Other:
Includes revenue generated from the management and monetization of the company’s global patent portfolio. Additionally, the company generates revenue from service access fees (SAF) charged to subscribers using the company’s legacy BlackBerry 7 and prior BlackBerry operating systems.
The contributions from each of BlackBerry’s revenue segments in their latest annual report were as follows:
Practical Islamic Finance concludes:
None of BlackBerry’s revenue comes from anything inherently haram.
Does BlackBerry rely on interest to operate?
| Year-to-Date for period ended 8/31/2021 | Fiscal year ended 2/28/2021 | Fiscal year ended 2/29/2020 | |
|---|---|---|---|
| Interest Income (net) | – | – | – |
| Total Revenue | $349,000 | $893,000 | $1,040,000 |
| Interest Expense (net) | $3,000 | $15,000 | $23,000 |
| Total Expenses | $485,000 | $991,000 | $1,223,000 |
| Interest Income (net) / Revenue | – | – | – |
| Interest Expense (net) / Total Expense | 0.62% | 1.51% | 1.88% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in BlackBerry’s operations.
What is BlackBerry’s Environmental, Social, and Governance (ESG) impact?
Environment
No notable environmental highlights.
Social
BlackBerry has an average Glassdoor rating of 3.5 out of 5.0 from over 2,800 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
BlackBerry has a net positive ESG impact.
Comfort Rating
From BlackBerry’s business, financials, and ESG reviews, Practical Islamic Finance rates BlackBerry stock as:
Comfortable to invest in from a Halal perspective.
Sources
Corporate Responsibility Report 2015-2016