Sri Lanka’s Dialog net up 2.5-pct in June
ECONOMYNEXT – Sri Lanka’s Dialog Axiata Plc said net profits rose 2.5 percent to 2.34 billion rupees in the June 2017 quarter from a year earlier, with a depreciating rupee adding to costs.
The group reported earnings of 29 cents for the quarter in interim accounts filed with the stock exchange.
For the six months to June, profits fell from 4.9 billion rupees to 3.92 billion rupees, with rupee depreciation hitting the group harder in the first quarter.
The Sri Lanka rupee fell 2.5 percent against the US dollar in the first quarter and 0.9 percent in the second quarter, the firm said.
Revenues rose 9.2 percent to 23.0 billion rupees in the June quarter from a year earlier, costs also rose 9.6 percent to 12.1 billion rupees and gross profits rose 8.75 percent to 10.89 billion rupees.
There was 4 percent revenue growth quarter-on-quarter and 7 percent growth year-to-date the firm said, despite economic activities being disrupted by floods. Dialog had provided 80 million rupees worth of flood aid and free services.
The core mobile firm brought 19 billion rupees for the six months from 12.4 million subscribers, with revenues up 4 percent.
Higher consumption taxes hurt revenue growth, the firm said. The group had provided 19.1 billion rupees in taxes to the government, with 5.7 billion rupees in direct taxes and levies, and 13.4 billion rupees in indirect taxes collected on behalf of the state. This worked out to about 42.2 percent of net revenues earned by the group.
Dialog TV had reached 910,000 subscribers by June 2017, revenues grew 1 percent quarter-on-quarter but was down 4 percent year-to-date to 3.0 billion rupees. Rupee depreciation had hurt forex-denominated input costs.
Net loss for the six months to June was 528 million rupees, up from 228 million rupees last year.
Dialog Broadband Networks increased year-to-date revenues 36 percent to 5.9 billion rupees, and net profits of 331 million rupees for the June quarter and 568 million for the first half compared to a loss of 40 million rupees last year.