Batelco Q2 net profit rises 27.5%

MANAMA: Bahrain Telecommu-nications Co. (Batelco) has posted a 27.5 percent rise in second-quarter profit as cost savings, a higher yield on invested cash and lower interest expenses outweighed a decline in revenue.
Battle has arrested a sustained earnings decline, with profits up in five of the nine quarters since its acquisition of most of the islands division of Cable & Wireless.
Before that, Batelco’s profits fell in 16 of 18 quarters to the three months ending June 30, 2013.
Batelco made a net profit of 13.31 million dinars ($35.29 million) in the three months to June 30, up from 10.44 million a year earlier, it said in a statement.
SICO Bahrain had forecast Batelco would make a quarterly profit of 14.1 million dinars.
Revenue fell to 92.1 million dinars from 97.0 million which the company blamed on “competitive pressures in key markets” and adverse foreign currency movements.
For the half year the company made a net profit of 27.54 million dinars, up from 24.90 million.
Its board approved paying an interim dividend of 0.010 dinars per share.
In Bahrain, Batelco competes with units of Kuwait’s Zain and Saudi Telecom Co. as well as about 10 Internet providers.