Batelco revenue falls 5% y-o-y in H1

7 Aug 2015

Bahrain-based Batelco Group has recorded revenue of BHD185.7 million (USD489 million) for the six months ending 30 June 2015, down 5% from BHD194.6 million in the same period one year earlier, mainly due to competitive pressures in key markets and currency translation. EBITDA fell 3% from BHD71.9 million to BHD69.8 million, although net profit increased 11% year-on-year, from BHD24.9 million to BHD27.5 million, thanks to cost savings, increased yield on invested cash, lower interest expense and non-recurrence of adjustments taken in 2014.

Batelco’s total customer base grew by 4% to reach 9.4 million at 30 June 2015, despite a marked decline in subscribers of its Yemen-based unit SabaFon over the second quarter due to the difficult operating environment in the country, negatively impacting profit. Revenues from overseas operations grew to represent 59% of the Group’s total revenues, against 57% in 1H14. Within its domestic market, Batelco’s mobile subscriptions increased by 2%, while its broadband customer base saw growth of 16%. The operator did not, however, provide a breakdown of subscriber figures.

‘We continue to operate smartly through synergising Group efforts,’ commented Batelco chairman Shaikh Hamad bin Abdulla Al Khalifa, adding: ‘Accordingly, our operations outside of Bahrain continue to generate over half of our revenues and profits which meets our expectations and efforts to offset the impact of ongoing and aggressive competition at home.’

Bahrain, Bahrain Telecommunications Company (Batelco), SabaFon