The former monopoly made a net profit of 17.75 million dinars ($47.23 million), according to Reuters calculations. This compares with a profit of 19.3 million dinars in the same period a year ago. 

One analyst polled by Reuters forecast the firm would post a quarterly profit of 22 million dinars.

Revenue and profit were "impacted throughout 2011 by significant and ongoing competitive pressures in Bahrain", Batelco Chairman Sheikh Hamad Bin Abdulla Al-Khalifa said in a statement.  

Batelco competes against units of Kuwait's Zain and Saudi Telecom Co. in its home market.  

Batelco, which in September scrapped a joint purchase of a 25-percent stake in Zain Saudi, said revenues were 82.3 million dinars in the quarter, down from 85.3 million dinars a year earlier.

The group still wants to expand overseas, Chief Executive Sheikh Mohamed said in the statement.  

"Acquisitions of mobile and broadband operators in MENA (Middle East and North Africa) and India are important strategic growth drivers which would allow Batelco Group to grow and diversify its revenues," Mohamed said. "Acquisitions and partnerships with other operators to grow our scale and investments in ICT related opportunities are also important priorities." 

Batelco has interests in Egypt, Jordan, Kuwait, India, Yemen and Saudi Arabia, with these providing 37 percent of revenue in the first nine months of 2011, it said.  

The firm's shares closed 1 percent higher on the Bahrain bourse before the results were announced, trimming their year-to-date losses to 22.4 percent.    

According to Zain's 2010 annual report, Batelco had a 37 percent share of Bahrain's mobile subscribers, while the units of Zain and STC claimed 32 and 31 percent respectively.