Dialog’s revenues fall after prices slashed, profits drop on new business costs and FX effects

21 May 2009

Dialog Telekom, Sri Lanka’s largest cellco by subscribers, has reported that it added 337,000 net new mobile customers in the quarter ended March 2009, taking its total GSM user base to 5.85 million, up 29% year-on-year. However, overall group revenue in the three months fell 5% to LKR8.4 billion (USD73 million) from a year ago, due to significant price cuts, and increased costs related to new business areas and a LKR286 million foreign exchange deficit resulted in a net consolidated loss of LKR1.86 billion. Dialog, a subsidiary of Malaysia-based Axiata (formerly TM International), revealed that its broadband and fixed line unit Dialog Broadband Networks (DBN) posted a quarterly loss of LKR437 million, while pay-TV division Dialog Television (DTV) lost LKR303 million. DBN‘s combined CDMA and broadband subscriber base grew by 149% year-on-year to 182,000 at the end of March 2009, whilst DTV’s pay-TV subscribers increased by 68% to 130,000.

Sri Lanka, Dialog Axiata