Bahrain telco Batelco's profit falls 17%

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Bahrain Telecommunications Co (Batelco) reported a 17 percent drop in first-quarter profit on Monday, due to tough competition in its domestic market.

Batelco, Bahrain's biggest telecom group, has now reported a fall in profits in 11 quarters out of 12 and has seen its market share eroded by rivals, such as Saudi Telecom affiliate Viva, which launched in 2010 and slashed prices to woo customers.

As well as three conventional mobile operators, Bahrain also has about 10 internet service providers and these may be allowed to launch mobile services should they win a auction to sell spectrum for next-generation networks.

"The decrease in profitability was mainly attributable to competitive pressures continuing in Bahrain," Batelco said in a statement.

Former monopoly Batelco said its domestic subscriber base shrank by 2 percent in the first quarter compared to the year-earlier period.

The group's deteriorating performance at home, where it competes with Kuwait's Zain and Saudi Telecom Co , has spurred it to expand abroad. The company completed the purchase of Cable & Wireless Communications' Monaco and Islands Division in April.

This deal puts Batelco in 10 new markets and will be included in the company's results from the second quarter, it said.

Batelco made a net profit of 13.4 million dinars ($35.5 million) in the three months to March 31, down from 16.1 million dinars in the year-earlier period.

Securities & Investment Co (SICO) forecast Batelco would make a quarterly profit of 12.4 million dinars.

First-quarter group revenue was 71 million dinars, Batelco said. This compares with 78 million dinars a year ago. Bahrain accounted for 58 percent of quarterly revenue.

Chairman Sheikh Hamad bin Abdulla al-Khalifa said Batelco was focused on preserving margins and strengthening cash flows and the bottom line.

Batelco 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.

Related:

Market Performance

Bahrain Telecommunications Company
0.37
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Making Connections: Lou Lou Khazen Baz

Making Connections: Lou Lou Khazen Baz

In the space of just two years Nabbesh has grown from a bold...

The politics of big data

The politics of big data

The UAE may be one of the fastest adopters of e-government initiatives...

Gateway to a new era

Gateway to a new era

Could Telr be the answer to start-ups’ prayers? The new three...

Most Popular
Most Discussed
  • 10
    UAE teens among the highest for obesity rates

    Everyone in UAE knows that biggest is best.

    UAE may not light up the international league tables in standard of living, education standards, press... more

    Friday, 29 August 2014 4:20 PM - Proud UAEer
  • 9
    Saudi Arabia seeks talks on hiring of Sri Lankan maids

    perhaps the unemployed saudi men or the millions of women who are not allowed to work could pick up a broom and start sweeping their own houses. more

    Sunday, 31 August 2014 3:28 PM - nice
  • 9
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew