(MENAFN) Bahrain Telecommunications Co (Batelco) posted eight percent decline quarterly profits, as its subscriber base continued to contract shrunk, and losses generated from its Yemeni unit, Reuters reported.
The state-backed company said it made a USD42.5 million net profit in the first quarter, down from USD46.14 million a year earlier.
Batelco also reported four percent decline in first-quarter revenue to USD205.66 million from a year earlier.
Batelco's total subscriber base fell to 6.9 million from 11 million in the fourth-quarter of 2011, which it said was mainly due it excluding Indian affiliate S Tel.
Batelco, in February, sold back its 43 percent stake in S Tel to its Indian partner for USD175 million after India's Supreme Court ordered licenses held by eight operators including S Tel to be revoked following a 2G telecoms scandal.
Home mobile subscriber base fell 1 percent, giving it a market share of 44 percent, while fixed broadband subscribers dropped 21 percent, the company said.
Batelco's Yemeni unit (Sabafon), which claims to have been the victim of a deadly government vendetta, posted a 6 percent drop in subscribers. Batelco took a write-off of BD2m on the Yemeni affiliate in the first quarter.
The firm's cash and bank balances fell 6 percent from a year earlierUSD162.9 million, as its Jordanian unit (Umniah) paid USD70 million for a 3G license in January.