August 20, 2014 / 2:00 PM / 3 years ago

Bosnia's BH Telecom posts 25 pct profit fall

SARAJEVO, Aug 20 (Reuters) - Bosnia’s BH Telecom posted a 25 percent fall in first-half net profit on Wednesday, citing the weak economy and ever-increasing competition in the Balkan country.

The state-owned company said the fall to 43.8 million Bosnian marka ($30 million) of net profit on revenue down 1.2 percent at 268.3 million marka was also attributable to the struggle to keep up with fast-changing technology and internet-based services such as Skype.

“The lower profit is an effect of negative macroeconomic trends caused by recession over the previous years in the countries of euro zone and the region that have continued this year,” BH Telecom said on its website.

Sarajevo-based BH Telecom, which is 90 percent state-owned and operates mainly in parts of Bosnia’s autonomous Federation dominated by Muslim Bosniaks, kept its dividend unchanged at 1.73 marka per share.

Its main rival m:tel, owned by Serbia’s state-owned Telekom Srbija and based in the country’s autonomous Serb Republic, last month posted first-half net profit up 3 percent to 45.9 million marka on revenue also up 3 percent.

HT Mostar, based in the mainly Croat-populated areas of Bosnia, reported a 63 percent slide in first-half net profit to 2.35 million marka, on revenue down 6.5 percent at 114.2 million marka. (1$ = 1.465 Bosnian marka)

Reporting by Daria Sito-Sucic; Editing by David Goodman

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