Sri Lanka’s Dialog Axiata Sept profits down on higher operating costs
ECONOMYNEXT- Net profits at Sri Lankan telco Dialog Axiata fell 14.3 percent to 1.47 billion rupees in the September quarter due to higher operating costs, interim financials showed.
Dialog Axiata posted 18 cents in earnings per share for the September quarter, and 1.03 rupees in earnings per share for the nine months ending in September. Dialog Axiata closed trading at 12.50 rupees a share on Wednesday.
Revenue for the September quarter grew at a slower 4 percent from a year earlier to 29.1 billion rupees due to rising competition and gradual recovery in sales from the Easter Sunday attacks, the firm said in an earnings review.
Cost of sales grew at a faster 6 percent to 16.4 billion rupees, leading to gross profits growing 1.3 percent to 12.6 billion rupees.
Rising operating costs resulted in operating profits falling 19.1 percent to 3.8 billion rupees.
Net foreign exchange losses fell 49 percent to 967.9 million rupees due to the rupee depreciating at a slower rate in the quarter from a year earlier.
Finance costs grew 50.2 percent to 967.9 million rupees.
Long-term borrowings at Dialog fell to 39.4 billion at end-September from 40.8 billion rupees at end-March, while short-term borrowings grew to 10.6 billion rupees from 9 billion rupees.
Dialog said it invested 13.9 billion rupees over the nine month period to improve high-speed broadband infrastructure.
Group revenue for the 9 months grew 8 percent to 87.2 billion rupees.
Revenue from mobile operations fell 5 percent to 61.6 billion rupees due to a fall in international wholesale revenue, the firm said.
Fixed telephony and mobile broadband revenue grew 8.7 percent to 19 billion rupees due to the transfer of wholesale business.
The television business revenue grew 18.5 percent to 6.5 billion rupees with a 25 percent growth in subscriptions, while the loss-making unit’s net losses fell to 335 million rupees from a 394 million rupees a year earlier. (Colombo/Nov07/2019)
Economic Intelligence Unit of the Ceylon Chamber of Commerce
Jehan Perera - Executive Director National Peace Council