Batelco Group's First Half Net Profits Decline 18% on the Back of Lower Revenues

Batelco Group's First Half Net Profits Decline 18% on the Back of Lower Revenues Image Credit: Batelco

Bahrain-based global telecom group, Batelco reported a net profit of $USD60.2 million (22.7 million dinars) for the first six months of the year, an 18 percent decline compared to the corresponding period in 2015. The Operator also posted a 1.7 percent decline in net profit to $USD34.8 million($13.08 million dinars) in the three months ended June 30, partly due to one-off loss of the group’s investment in Sabafon, Yemen.

Batelco Group has direct and indirect investments across 14 geographies, including Bahrain, Jordan, Kuwait, Saudi Arabia, Yemen, Egypt, Guernsey, Jersey, Isle of Man, Maldives, Diego Garcia, St. Helena, Ascension Island and the Falkland Islands.

The Group’s gross revenues are down by 2 percent year-on-year (YoY) to $USD485.1 million (BD182.9 million) in the first halt of the year mainly due to competitive pressures in key markets. However, revenues have remained steady in the second quarter of 2016 compared to Q2 2015 and with a slight increase of 1 per cent since Q1 2016.

The group's overall customer base was down by 8% when compared with Q1 of 2015.

In the first quarter of 2016, the company launched its 4G high-speed Internet services for cosumers and its LTE fixed services for households and businesses, enhancing its coverage in Bahrin with over 1300 4G sites.  

 Ihab Hinnawi, CEO, Batelco Group
It is pleasing to note that our Maldives operator Dhiraagu posted YoY increases in mobile and Broadband customers of 10% and 17% respectively. The companies operating under the SURE brand in the Channel Islands, Isle of Man and in the South Atlantic and Diego Garcia also performed well, with their mobile and broadband customer bases increasing year over year.

Batelco Group Chairman, Shaikh Hamad Bin Abdulla Al Khalifa 
We continue to operate in challenging markets but are encouraged by the strength of the Group as a whole and we believe that by continuing to pool Group resources, technologies and expertise we can enhance competitiveness and performance. We continue to work on restructuring programmes throughout the Group with the aim of reducing operating costs and boosting efficiency and competitiveness as evidenced by the reduction in operating expenses.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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