Dialog earmarks USD150 million investment as profits surge 71%

24 Feb 2006

Sri Lankan mobile operator Dialog Telekom yesterday reported that its 2005 net profit leapt by 71% year-on-year to LKR7.01 billion (USD68.5 million), surpassing its own forecast of LKR6.24 billion. The company’s revenues rose by 58% y-o-y to LKR18.03 billion (USD176 million) helped by ‘consistent growth in both pre-paid and contract subscriber bases.’ On the back of the healthy financial results, Dialog said it will invest around USD150 million this year to expand its network. CEO Hans Wijeyasuriya told reporters that Dialog’s total number of GSM base stations will reach 900 in 2006, up from 600, and added that capital investment is being set aside for a proposed 3G network, mobile broadband services and fibre-optic backbone infrastructure. According to Wijeyasuriya, Dialog is currently carrying out W-CDMA network trials and hopes to obtain a commercial 3G licence by the end of the first quarter.

Dialog led the Sri Lankan wireless market with 1.925 million subscribers at the end of September 2005, after signing up 185,000 users in three months.

Sri Lanka, Dialog Axiata