ECONOMYNEXT- Profits at Dialog Axiata Plc, a wireless mobile and fixed operator jumped 99.7 percent from a year earlier to 4.6 billion rupees, helped by higher contribution mobile and broad band revenues, despite higher capital cost in the face of Covid-19 pandemic, the company said.
The group reported earnings of 58 cents per share for the quarter. For the six months to June Dialog reported earnings of 86 cents per share on total profits that grew 85.9 percent to 7.1 billion rupees.
Dialog shares closed at 11.30 rupees on Thursday.
Gross profits for the June quarter grew 24.9 percent to 14.8 billion rupees, with revenues growing 16.1 percent to 35.1 billion rupees and direct costs growing at a higher 24.2 percent to 20.3 billion rupees.
Administrative costs for the quarter fell 1.5 percent to 5.2 billion rupees from a year earlier amid lockdowns in the period.
In the first half of 2021, Dialog posted 67.9 billion rupees in revenue, up 18.3 percent from a year earlier. Direct costs grew 19.3 percent to 39.1 billion rupees from a year earlier.
“The Group capital expenditure was ramped up in the first half of 2021 to meet the surge in data demand owing to partial lockdowns that prevailed during the period, that led to higher instances of Work and Learn from Home,” the company said in a statement.
As a result, the Capital expenditure rose 36 percent year-on-year to 6.5 billion rupees for first half while the total investments since start of the pandemic in the first quarter of 2020 has exceeded 35 billion rupees, it said.
The group’s mobile operations posted 44.3 billion in revenue during the first 6 months, up 13.6 percent from a year earlier, while operating profits was 9.3 billion rupees up from 7.2 billion rupees.
Fixed telephony and broadband revenue was up 32.3 percent to 18.8 billion rupees from a year earlier, while operating profits were 2.1 billion rupees up from a breakeven 21 million a year ago.
Year to date, subscribers for Dialog’s television business grew by 9 percent from a year earlier. Revenue from the segment during the first half grew 14.3 percent to 4.8 billion rupees from 2020.
TV operations lost 212 million rupees up from 558 million a year earlier.
Operating losses for the segment fell to 212.3 million rupees from a 558.8 million loss a year earlier. (COLOMBO, 5 August, 2021)