Batelco Group's Q2 profit declines by 3.9%

Telco remains upbeat on customer growth from foreign operations.

Tags: BahrainBatelco Middle East Company
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Batelco Group's Q2 profit declines by 3.9% Batelco's profits remain under pressure for the second quarter of 2011. (Shutterstock)
By  Roger Field , Georgina Enzer Published  July 21, 2011

Batelco's profits continued to come under pressure in the second quarter of 2011 amid tough competition in Bahrain's telecoms sector.

Bahrain's incumbent telco, which faces competition from two mobile operators and numerous ISPs, saw its second quarter profit decline by 3.9% compared to the same period last year. The company posted a profit of BD22.3 million ($59.1m) compared to BD23.2 million in Q2 2010.

Revenue declined by 2.8% to reach BD82.6 million, compared with BD85 million in the same period last year.

The company's expenses increased almost 2% over the quarter, reaching BD59.7 million, driven mainly by a rise in HR costs.

Earnings per share were 26.9 fils and the board of directors approved an interim cash dividend of 20 fils per share.

Peter Kaliaropoulos, CEO, Batelco Group, said that the results remained consistent with market guidance.

He also pointed out that the telco's Q2 versus Q1 results delivered 2% growth in gross revenues, flat operating profit at BD22.7 million and growth in net profit.

"We continue to focus on executing our business strategy which is underpinned by growth in customer base and diversification of revenues and profits," he said.

The company also said that it had more than10.3 million customers across its operations.

Kaliaropoulos said that 37% of Batelco's revenues and 25% of its operating profit is generated from its foreign operations.

In other news, Batelco and Kingdom Holding Company moved a step closer to acquiring a 25% stake in Zain KSA after signing a non-binding term sheet with telco.

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