Dialog outlines spending plan as profits soar

10 May 2006

Sri Lanka’s largest mobile operator Dialog Telekom plans to invest LKR15 billion (USD150 million) in an ‘aggressive’ infrastructure rollout, according to its annual report, the first since it listed on the Colombo Stock Exchange last year. In addition to expanding coverage and capacity of its GSM network, Dialog plans to invest in the development of 3G services, broadband internet services and fibre-optic infrastructure. Dialog reported net profit of LKR7.01 billion (USD68 million) for the financial year ended 31 December 2005, up 71% percent from LKR4.1 billion in 2004. Annual revenue rose by 58% to LKR18.03 billion.

Dialog’s net profits rose 39% year-on-year to LKR2.39 billion for the first quarter of 2006, boosted by expansion in international business and booming subscriber growth. 1Q revenues increased 55% to LKR5.95 billion as Dialog expanded network coverage and its range of value added services. Dialog had over 2.3 million subscribers at the end of March, representing a market share of over 60%.

Sri Lanka, Dialog Axiata