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BATM Advanced Communications Ltd on Monday reported a decline in profit during the first half of its current financial year despite top line growth, as the firm looks to its second half with optimism. The Hod Hasharon, Israel-based provider of network infrastructure, cybersecurity and diagnostic technologies said pretax profit was $564,000 for the six months that ended June 30, down 74% from $2.2 million the year before. This was despite revenue rising 2.5% to $60.4 million from $58.9 million, as total operating expenses increased 18% to $18.7 million from $15.9 million. Adjusted earnings before interest, tax, depreciation and amortisation declined 30% to $4.0 million from $5.7 million. Gross margin edged up to 32.7% against 31.7% a year earlier. ‘This has been an excellent six months of progress towards our strategic goals. The action that we took last year is beginning to deliver results, with a return to growth in BATM Networks and for our proprietary products in BATM Diagnostics as well as an improvement in gross margin in all of our core divisions. We achieved a major milestone in BATM Cyber with the delivery of our first encryption platform for the commercial markets,’ said Chief Executive Officer Moti Nagar. ‘At the same time, we continued to execute on our strategy to become a more focused business with the sale of three non-core activities during the period. Accordingly, we exited the first half of 2025 in a much stronger position than when we entered. With positive momentum having continued into the second half, we are on track to deliver year-on-year growth for the full year.’ BATM expects to post an on-year increase in revenue and adjusted Ebitda for the full year, driven largely by ‘strong growth’ projected for its Networks unit. Full-year revenue within its Cyber segment, on the other hand, is anticipated ‘slightly lower’ due to a one-off contribution in 2024 from an unnamed, long-standing government defence department customer. In BATM Diagnostics, the firm is ‘encouraged’ by interest for the division’s products and ‘sustained growth’ in third-party product sales. The company is continuing to pursue potential merger and acquisition opportunities, as well as disposals of non-core activities as part of efforts to streamline its business model. Shares in BATM Advanced Communications were down 3.4% at 14.40 pence in London on Monday afternoon. The stock is down 30% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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