Bahrain's Batelco suffers slump in H1 net profit

Performance weighed by one-off expenses related to acquisitions and related financing
By Reuters
Tue 30 Jul 2013 06:41 PM

Bahrain Telecommunications Co (Batelco) posted a 22 percent fall in net profit in the first half of the year weighed down by one-off expenses related to acquisitions and related financing, it said in a statement on Tuesday.

The former monopoly, which has reported declining profits in past several quarters, said first-half net profit fell to $71.6m compared with $91.8m for the same period last year.

"Profits for the period were impacted by a number of one off expenses associated with the acquisition and related financing," Batelco said in the statement.

The operator, seeking to offset declining domestic profit and revenue, in April completed the $570 million purchase of Cable & Wireless Communications' Monaco and Islands Division.

Batelco competes with units of Kuwait's Zain and Saudi Telecom Co in Bahrain, while it also owns Jordanian telecoms operator Umniah, 27 percent of Yemeni mobile operator Sabafon, minority stakes in internet providers in Kuwait and Saudi Arabia and is also active in Egypt.

The telco said its board approved an interim dividend of 10 fils per share.

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