Dialog Telekom swings to Q1 net profit

11 May 2010

Sri Lanka’s largest cellco by subscribers Dialog Telekom has reported consolidated group net income of LKR705 million (USD6.2 million) in the three months ended 31 March 2010, compared to a net loss of LKR1.86 billion a year earlier. The performance was driven by its core mobile operations swinging to a three-month net operating profit (EBIT) of LKR820 million from a loss of LKR931 million in the corresponding quarter of 2009, and the group’s international services provider Dialog Global posting EBIT of LKR648 million in Q1 2010, up from LKR585 million in the year-ago quarter. The company, a subsidiary of Malaysia’s Axiata, posted 1Q10 group external revenues that rose by 10.1% y-o-y to LKR9.8 billion, including core turnover of LKR6.44 billion, up from LKR6.03 billion in 1Q09. Pay-TV division Dialog TV reduced the size of its EBIT losses from LKR270 million in 1Q09 to LKR84 million in 1Q10, whilst fixed telephony and data (including WiMAX) subsidiary Dialog Broadband Networks (NBN) is also yet to turn a profit, posting an operating loss of LKR179 million in the period under review, an improvement from LKR242 million in losses a year earlier. The group’s overall net losses in previous periods were partly due to spikes in network rollout and start-up costs at its mobile and various other units, as well as tough competition which led to heavy tariff cuts.

Sri Lanka, Dialog Axiata