Dialog posts fifth straight quarterly loss

12 Nov 2009

Sri Lanka’s largest mobile operator by users, Dialog Telekom, has posted its fifth quarterly net loss in a row, LKR439 million (USD3.8 million), for July-September 2009, compared to three-month losses of LKR193 million a year earlier. Nine-month net losses reached just under LKR10 billion, compared to a net profit of just over LKR1 billion in January-September 2008, as group turnover for the first three quarters of 2009 fell by 4.7% to LKR26.2 billion. The results were blamed on revenue erosion from fierce competition in Sri Lanka’s mobile market as well as the financial performance of the cellco’s broadband and TV operations, which are taking longer to break even than was previously anticipated. The company reported that it had managed only to partially offset these negative effects by reducing operating costs in the third quarter by 1% compared to April-June.

Sri Lanka, Dialog Axiata