Batelco's home revenue may be in decline - it fell 12 percent in the nine months to Sept. 30, accounting for 60 percent of group earnings - but it is buying a CWC division facing similar difficulties.
Monaco and Islands had revenue of $586 million in the year ending March 31, down from $605 million a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell over the same period to $186 million from $207 million. Monaco, the Maldives and Guernsey provided 90 percent of the unit's EBITDA in the previous financial year. CWC's effective stake in its Monaco and Islands division is about 65 percent, the analyst said, meaning Batelco will be working with local shareholders in the various units.
"The key question is whether this deal will add incremental value for shareholders," added the Middle East telecoms analyst.
"These new units may offer data revenue growth, but is the netearnings growing, and if yes, by how much?"