Dialog delivers!

10 August 2015 02:48 am - 0 - {{hitsCtrl.values.hits}}

A A A

2Q15 net up 12% to Rs.1.9bn, 1H15 net up 35% to Rs.3.9bn amid business expansion and cost control

Sri Lanka’s leading mobile telecommunications services provider, Dialog Axiata PLC saw its net profit for the quarter ended June 30, 2015 (2Q15) growing 12 percent to Rs.1.9 billion from a year ago, with earnings per share of 23 cents.

The positive results were achieved due to higher growth at top line level and better cost management, the interim results showed.

The top line grew by 6 percent or Rs.1 billion from a year ago to Rs.17.7 billion resulting in a gross profit of Rs.7.7 billion, up 5.5 percent year-on-year (yoy).
“The 2Q15 featured the impact of the industry-wide introduction of a 25 percent bonus on mobile prepaid domestic calls with effect from April 7, 2015,” the company said in a press statement.

The overheads were well contained and as a result the group’s operating profit was up 14 percent yoy to Rs. 2.4 billion.

Net finance cost rose by 37 percent yoy to Rs.125.9 million.

Dialog group in recent times diversified from its core business of communication services, telecommunication infrastructure services, media to build a digital empire which includes— but not limited to—digital commerce, electronic payments, digital health, education, navigation and enterprise.

Meanwhile, for the six months ended June 30, 2015 (1H15), the group posted a net profit of Rs.3.9 billion (earnings per share 48 cents), up 35 percent or Rs.1 billion from the same period last year.

The top line grew by 6 percent yoy to Rs.35.1 billion to earn a gross profit of Rs.15.5 billion, up 12 percent yoy.

The operating profit grew by 42 percent yoy to Rs.5.1 billion while widely used performance measure, Earnings Before Interest Tax Depreciation and Amortization (EBITDA) grew by 20 percent yoy to Rs.11.9 billion with an EBITDA margin of 33.9 percent.

During the 1H15 too, the net finance cost increased by a staggering 37 times to Rs.485 million from the same period last year.

However, the group has retired Rs.3.7 billion of borrowings during the period.

Dialog said it paid Rs.12 billion worth of government taxes during 1H15 which includes Rs.4.9 billion of direct taxes and Rs.7.1 billion of consumption taxes which included a telecom levy of Rs.5.6 billion.

The segmental results showed the mobile business which composed of 84 percent of the group revenue and EBITDA, increasing its revenues by 4 percent yoy to Rs.29.8 billion while the segment operating profit rising by 23 percent yoy to Rs.4.9 billion.

According to Dialog, this unit has earned a net profit of Rs.3.8 billion for the 1H’15.

During the 2Q15, consolidating its market leading position, Dialog crossed 10 million mobile subscribers.

Fixed telephony and broadband operation saw its top line improving 17 percent yoy to Rs.3.5 billion and the unit turned an operating profit of Rs.74 million from a loss of Rs.632 million, a year ago.

This broadband segment led by group subsidiary, Dialog Broadband Networks, posted a net profit of Rs.48 million compared to a net loss of Rs.655 million, the company said.

The group’s pay TV operations which crossed the 500,000 subscriber mark (534,000 as of end June) increased its top line by 27 percent yoy to Rs.2.8 billion but the operating profit declined by a similar percentage to Rs.178 million.

According to Dialog, this is due to the, “direct cost expansion accruing from product enhancements featuring the expansion of channel genres”.
During the 2Q15, the group has invested as much as Rs.3.6 billion on high-speed broadband infrastructure to support the group’s strategy to consolidate and grow its leadership in the broadband space.

As of June 30, 2015, the parent, Axiata Investments (Labuan) Limited held 83.32 percent stake in the company while the state-controlled private sector pension fund, the Employees Provident Fund held 2.18 percent stake being the third largest shareholder of the company

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Dialog delivers!

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Train fails to halt, crashes onto Colombo Fort platform

SL on alert on possible genocide allegations by Canada

Ranil Wickremesinghe caravan moves on despite barking dogs

Former MP Palitha Thewarapperuma dies from electrocution

Street food vendor arrested for verbally harassing foreigner

Two racing drivers arrested over Fox Hill tragedy

MIRROR CRICKET

TODAY'S HEADLINES