ECONOMYNEXT – Dialog Finance , the fin-tech unit of Sri Lanka’s top mobile phone operator Dialog Axiata, lost 39 million rupees in the September 2018 quarter, according to interim accounts filed with the stock exchange.
The finance company, known as Colombo Trust Finance, had made a profit of two million rupees the year before in the September 2017 quarter when it was bought by Dialog Axiata from Cargills group for just over a billion rupees.
The loss per share for the September 2018 quarter was 2.17 rupees. In the six months to September 2018 Dialog Finance’s loss per share was 97 cents. The share last traded at 40 rupees.
Dialog Finance’s net interest income rose 53 percent to 43 million rupees in the September 2018 quarter from the year before, with interest income up 22 percent to 64.4 million rupees and interest expenses down 13 percent to 21.3 million rupees.
Impairment provisions for bad loans also shot up to 63 million rupees from less than a million rupees over the same period.
The accounts showed fee and commission income shot up to 21 million rupees from just over half-million rupees the previous year.
Dialog Axiata has said its acquisition of the finance company will help expand its business into mainstream digital financial services, with a focus on increasing the affordability and
encouraging adoption of digital devices and services.
Dialog entered financial services in 2012 with its eZ Cash mobile payments service which has over 2.8 million mobile payment subscribers across Etisalat, Hutch and Dialog mobile networks.
(COLOMBO, 21 November 2018)