Sri Lanka’s Dialog Axiata June net up 15-pct to Rs1.9bn

ECONOMYNEXT – Sri Lankan mobile phone operator Dialog Axiata said the group’s June 2015 quarter net profit rose 15 percent to 1.9 billion rupees from a year ago and maintained its market leadership with subscribers crossing 10 million.

Sales of the group rose 6.6 percent to 17.7 billion rupees during the period with earnings per share at 23 cents compared with 20 cents the year before, a stock exchange filing said.

Group sales in the first half of 2015 rose six percent to 35.1 billion rupees from a year ago, a company statement said.

It said the group’s mobile business was impacted by the industry-wide introduction of a 25 percent bonus on Mobile Prepaid Domestic Calls since April 07, 2015.

“Robust revenue growth combined with operational efficiencies derived through cost management initiatives resulted in group EBITDA (earnings before interest, taxes, depreciation, and amortization) for 1H 2015 growing by 20 percent to reach 11.9 billion rupees.”

Group EBITDA margin for 1H 2015 was 33.9 percent.

On a Quarter-on-Quarter basis however, Group EBITDA declined by one percent to 5.9 billion rupees.

The Dialog Group paid 12 billion rupees to the government of Sri Lanka during 1H 2015, including direct taxes and levies as well as consumption taxes collected on behalf of the government.

Dialog Television (DTV), the digital pay television business of the group, saw revenue growing 25 percent in the first half of 2015 to reach 2.8 billion rupees.

“Notwithstanding robust revenue growth, EBITDA (of 516 million rupees) was constrained in growth to two percent,” Dialog Axiata said.

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This was due to direct cost expansion because of product enhancements featuring the expansion of channel types.

DTV net profit fell 49 percent to 114 million rupees in the first half of 2015.

DTV’s Pay TV subscriber base grew by 37 percent to 534,000 as at the end of June 2015.  (Colombo/August 7 2015)
 

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