* Q2 profit 641 mln riyals vs 722 mln riyals a yr ago

* Q2 revenue 8.4 bln riyals vs 7.99 bln riyals a yr ago

* Operator blames FX losses in Algeria, Indonesia

* Kuwait, Oman units also reported profit declines

By Matt Smith

DUBAI, July 31 - Qatar Telecom QTEL.QA (Qtel) reported an 11.3-percent fall in quarterly profit on Tuesday, citing the impact of foreign exchange losses at its Indonesian and Algerian units and weaker profits in Kuwait and Oman.

The former monopoly, which operates in 16 countries across the Middle East, Africa and Asia, had second-quarter net profit of 641 million riyals ($176.03 million) in the three months to June 30. That is down from 722 million riyals in the year-ago period.

One analyst forecast Qtel would have profit of 713 million riyals, in a Reuters poll. ID:nLDE86200V

Quarterly revenue was 8.4 billion riyals, up from 7.99 billion riyals last year. Half-year revenue was 16.4 billion riyals, up 6.1 percent.

"Net profit for the period was impacted by adverse foreign exchange movement in Indonesia and Algeria," Qtel said in a statement.

The Algerian dinar DZD= has fallen 11 percent against the dollar - to which the Qatari riyal is pegged - since April 30, slumping to its lowest level in at least eight years, while the Indonesia rupiah IDR= has dropped 4.6 percent against the dollar in 2012, according to Reuters data.

Qtel said half-year revenue at Indonesia unit Indosat rose in local currency terms, but fell 2.2 percent to 4.1 billion riyals.

Qtel's domestic operations had half-year revenue of 3.1 billion riyals, up 7.2 percent from a year ago.

Qtel owns 52.5 percent of Kuwait-based Wataniya NMTC.KW , which last week reported a 49-percent drop in second-quarter profit. Qtel has bid to buy the 47.5 percent stake in Wataniya that it does not own. ID:nL6E8HQ9SU

"In Kuwait, the group saw an increase in competition during the second quarter, coupled with a decrease in SMS (text) revenues as customers begin to adopt messaging applications on smartphones," Qtel said on Tuesday.

Omani unit Nawras on Monday also blamed a move by customers to cheaper Internet-based call and text message services for a 3-percent drop in quarterly profit that missed estimates.

ID:nL6E8IU8IY

Iraqi unit Asiacell posted a 17.5 percent rise in half-year revenue to 3.3 billion riyals.

Qtel in June agreed a $1.47 billion deal to double its stake in Asiacell to 60 percent, while that month it also submitted an undisclosed bid for the remaining shares it does not own in Wataniya. ID:nL6E8HQ9SU

($1 = 3.6415 Qatar riyals)

(Reporting by Matt Smith; Editing by Amran Abocar)

((matt.smith1@thomsonreuters.com)(00971506354039)(Reuters Messaging: matt.smith1.thomsonreuters.com@reuters.net))

Keywords: QATAR TELECOM/RESULTS