* Q4 profit 8.4 mln dinars vs 6.9 mln dinars a yr ago

* Q4 revenue 97.8 mln dinars vs 99.4 mln dinars a yr ago

* 2014 profit 49.3 mln dinars vs 43.6 mln dinars in 2013

* Proposes increase in annual dividend to 25 fils/shr

(Recasts, adds details)

By Matt Smith

DUBAI, Feb 16 (Reuters) – Bahrain Telecommunications Co
(Batelco) reported a 22 percent increase in
fourth-quarter profit on Monday, upping its annual dividend
thanks to cost cuts and a boost to the bottom line at its
domestic and some foreign operations.

The former monopoly, which operates in 14 territories, has
now posted rising profits in four of the six quarters since its
$570 million acquisition of the islands division of Cable
Wireless.

Before that deal, its biggest ever, Batelco’s profit fell in
16 of 17 quarters to the three months ending June 30, 2013.

Batelco made a net profit of 8.4 million dinars ($22.28
million) in final three months of 2014, up from 6.9 million
dinars a year earlier, Reuters calculated based on a company
financial statement published on Monday.

SICO Bahrain forecast that Batelco would post quarterly
profit of 15.3 million dinars.

Batelco’s fourth-quarter revenue was 97.8 million dinars,
down from 99.4 million dinars a year ago, Reuters calculated.

Domestically, Batelco competes with units of Kuwait’s Zain
and Saudi Telecom as well as about 10
internet providers.

Such fierce competition on an island of about 1.3 million
people prompted the state-backed operator to expand abroad,
completing the Cable Wireless deal in April 2013, though some
parts of its original proposal subsequently fell foul of
regulators.

The company also owns Jordanian telecoms operator Umniah,
plus minority stakes in Yemeni mobile operator Sabafon and
companies in Kuwait and Saudi Arabia.

Batelco’s 2014 annual profit rose 13 percent year on year to
49.3 million dinars, it said in the statement.

It recommended a dividend of 25 fils per share for 2014, up
from 19 fils in 2013, according to Reuters calculations.

Annual domestic profit rose 6.4 percent to 37.8 million
dinars despite falling income, while profits at its Jordan and
Maldives units jumped 41 and 47 percent respectively.

Batelco attributed the annual increase to cost cutting
across its operations, particularly in Bahrain, though it warned
that “revenues continues to be affected by fierce competition
across the group, mainly in voice services”.

Batelco’s 2014 revenue rose 5 percent to 389.7 million
dinars, with operations outside Bahrain providing 58 percent of
the total.

The group’s subscriber base rose 6 percent year-on-year to
about 9.5 million.
($1 = 0.3770 Bahraini dinars)

(Editing by David Goodman)