Dialog Telekom reports plummeting net profit

14 Nov 2008

Sri Lanka’s largest mobile network operator by subscribers, Dialog Telekom, has posted an 86% fall in net profit for the nine months ended 30 September 2008, on the back of higher energy and network costs and spiralling inflation. Net profit in the January-September period slipped to LKR1.03 billion (USD9.36 million) from LKR7.3 billion during the same period of 2007. Overall group turnover for the period rose 9% to LKR27.4 billion. The results were hit by a rise in costs, driven mainly by inflation, up 24% year-on-year. Energy and network costs also rose 48% from a year ago. With more than five million subscribers at the end of September 2008, Dialog controls around 50% of Sri Lanka’s mobile market. Rivals include Mobitel Sri Lanka, Hutchison Telecommunications Lanka and Millicom International Cellular’s Tigo.

Sri Lanka, Dialog Axiata