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Batelco sees profit fall 22% in H1

Overseas operations accounted for 50% of the group's revenues in first half of 2013

Batelco sees profit fall 22% in H1

Batelco, Bahrain's incumbent telecom operator, posted a net profit of BD27m ($71.6m) for the first half of 2012, marking a 22% decline compared to the same period last year.

Batelco said that various one-off expenses related to its acquisition of various companies from Cable & Wireless Communications (CWC) earlier in the year had dented its H1 profits.

EBITDA for the period was BD56.6m ($150.1m), representing a margin of 33%, compared to EBITDA of BD55.8M for the corresponding period in 2012.

The group's gross revenue for the first half of the year was BD170.7m ($452.8m), up 10% from the same period last year.

Batelco's overseas operations increased their contribution to the group's revenues and EBITDA. In the first half of the year, 50% of revenues and 48% of EBITDA was attributable to operations outside of Bahrain, the telco said. This is compared with 39% of revenues and 35% of EBITDA in the first half of 2012.

Batelco Group's subscriber base grew to 8.6m customers, a rise of 24%, year on year.

Shaikh Hamad Bin Abdulla Al Khalifa, chairman, Batelco, said: "We're pleased to announce our results for the first half of the year, which were enhanced by the inclusion, for the first time, of our recently acquired Islands businesses. As we have said, this was an accretive transaction that has enabled us to strengthen our financial performance and emerge as a more profitable and cash-generative communications group."

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