Sri Lanka Dialog Axiata net profits up 21-pct in June quarter
ECONOMYNEXT- Profits at Dialog Axiata Plc, a wireless mobile and fixed operator grew 21 percent from a year earlier to 2.8 billion rupees from a year earlier, helped by higher mobile and broad band revenues, despite currency depreciation.
The group reported earnings of 35 cents per share for the quarter. For the six months to June Dialog reported earnings of 70 cents per share on total profits that grew 46 percent to 5.7 billion rupees.
Dialog shares closed at 14.20 rupees on Wednesday.
Gross profits for the June quarter grew 17 percent to 12.8 billion rupees, with revenues growing 15.6 percent to 26.6 billion rupees and direct costs growing at a slower 13.8 percent to 13.7 billion rupees.
Administrative costs for the quarter grew 32 percent to 5 billion rupees from a year earlier.
In the first half of 2018, Dialog posted 52.7 billion rupees in revenue, up 16.6 percent from a year earlier. Direct costs grew 14.7 percent to 27.5 billion rupees from a year earlier.
Dialog said that a new accounting standard on revenue contracts with customers, SLFRS 15, increased earnings before interest, tax, depreciation and amortization by 1.6 percent, or 1 billion rupees during the 6 months.
"Normalised for the positive impact from SLFRS 15, the EBITDA margin was recorded at 36.9 percent for 1H 2018. The impact on revenue from the adoption of the standard was not material."
The group’s mobile operations posted 42.9 billion in revenue during the first 6 months, up 15.2 percent from a year earlier, while operating profits grew 31.5 percent to 7.7 billion 2017.
Fixed telephony and broadband revenue was up 24.3 percent to 6.2 billion rupees from a year earlier, while operating profits grew 30.5 percent to 1.1 billion rupees from 2017.
Dialog said that it spent 11.2 billion rupees in capital expenditure during the first half of 2018, mainly on high-speed broadband public infrastructure.
Ookla, the global leader in mobile broadband network testing applications, recognized Dialog as having the fastest mobile broadband, the company said.
"Dialog mobile was conferred with 2018 Q1-Q2 Speedtest® Award by Ookla as the fastest Mobile Broadband Network in the country."
Year to date, subscribers for Dialog’s television business grew by 13 percent from a year earlier. Revenue from the segment during the first half grew 21.3 percent to 3.7 billion rupees from 2017.
Operating losses for the segment fell to 183.8 million rupees from a 353.5 million loss a year earlier. (COLOMBO, 9 August, 2018)