Sri Lanka’s Dialog Axiata net down 53.8-pct in Sept amid forex loss
ECONOMYNEXT- Net profits at Sri Lankan telco Dialog Axiata Plc in the September 2018 quarter fell 53.8 percent from a year earlier to 1.7 billion rupees with a forex loss hitting the bottomline despite revenue growth, the firm said in an earnings release.
Earnings per share for the quarter were 21 cents. For the nine months to September, earnings per share were 91 cents, with net profits down 2.7 percent from a year earlier to 7.4 billion rupees. The firm’s shares closed trading on Friday at 11.70 rupees.
Revenue for the September quarter grew 15.4 percent from a year earlier to 28 billion rupees, while direct costs grew 21.5 percent to 15.5 billion rupees, leading to gross profits up 8.7 percent to 12.5 billion rupees.
Administrative costs grew 12 percent to 4.4 billion rupees.
Net finance costs grew 809.6 percent to 2.5 billion rupees. The firm has dollar borrowings.
"The Group was significantly impacted by non-cash, translational foreign exchange losses to the value of 1.8 billion rupees during the quarter, accruing from the depreciation of the rupee relative to the dollar," the firm said.
Long-term borrowings grew to 39.8 billion rupees, up 55.3 percent from the start of the year, while short-term borrowings fell 39.3 percent to 6.7 billion rupees.
In segment results, the firm’s operating profits from mobile services for the first 9 months of the year grew 24.2 percent from a year earlier to 12 billion rupees, while revenue grew 13.2 percent to 64.9 billion rupees.
Fixed broadband and telephony operating profits grew 0.5 percent to 1.5 billion rupees while revenue grew 33.5 percent to 10.2 billion rupees.
Operating losses of Dialog Television (DTV) fell 30.2 percent to 275 million rupees while revenue grew 25 percent to 5.5 billion rupees.
However, the firm said that a change in accounting standards with SLFRS 15 has affected the television segment.
"Post normalization for SLFRS 15 impact, DTV Revenue grew by 8 percent to be recorded at 4.9 billion rupees."
Dialog said its television subscriber base grew 15 percent during the period. (Colombo/Nov12/2018)