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Tue 10 Nov 2015 03:14 PM

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Bahrain's Batelco posts 13% fall in Q3 net profit

Former monopoloy says it made net profit of $35.53m in the three months to September 30

Bahrain's Batelco posts 13% fall in Q3 net profit

Bahrain Telecommunications Co (Batelco) reported a 16 percent fall in third-quarter profit on Tuesday on declining revenue and losses from some overseas operations.

The former monopoly, which operates in 14 countries, made a net profit of 13.4 million dinars ($35.53 million) in the three months to June 30, versus 16 million dinars a year earlier, it said in a statement.

SICO Bahrain had forecast Batelco would make a quarterly profit of 13.6 million dinars.

Batelco made a net profit of 40.9 million dinars in the first nine months of 2015, the statement said, which was the same amount as a year earlier.

Third-quarter revenue fell to 93.9 million dinars from 97.3 million dinars, mirroring a 4 percent drop in nine-month revenue to 279.6 million dinars which the company said was due to "competitive pressures in key markets".

In Bahrain, Batelco vies with units of Kuwait's Zain and Saudi Telecom Co as well as about 10 Internet providers and this competition prompted the state-backed operator to expand abroad further.

Batelco's purchase of most of the islands division of Cable& Wireless in April 2013 has helped steady its earnings, with its overseas operations accounting for 58 percent of revenue in the first nine months of 2015.

The operator's Bahrain mobile subscriber base rose 10 percent year-on-year, helping its nine-month domestic profit increase 11 percent to 30.96 million dinars.

Profits from Jordan, Maldives and Guernsey, Jersey and Isle of Man also increased, but its "other countries" segment - which includes Yemen, Kuwait and Egypt - swung to a nine-month loss of 5.89 million dinars versus a profit of 1.08 million dinars a year earlier.

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