Wed, 30 Nov 2022 Today's Paper

VAT on telecom services hits Dialog as March profits fall 42%

12 May 2017 09:35 am - 0     - {{hitsCtrl.values.hits}}

A A A

The application of increased Value Added Tax (VAT) on telecom services has begun to bite into the revenues and profits of the country’s largest mobile telecommunication provider which has over 12 million subscribers, the interim results showed. 
During the first full quarter since the imposition of the 15 percent VAT on telecom services since November last year, Dialog Axiata PLC saw its net profit falling by as much as 42 percent to Rs.1.55 billion or 19 cents a share as the performance was also impacted by higher depreciation, finance cost and forex losses. 
“….consumer spending was restrained by increased consumption taxes on communication services spanning mobile, fixed, broadband and pay television”, the company said in an earnings release. 
Dialog’s top-line grew by just under 5 percent year-on-year (YoY) to Rs.22.2 billion, but the operating profit fell by 14 percent YoY to Rs.2.89 billion due to heavy distribution and administrative costs, which captured the depreciation and forex losses. 
According to the segmental information, the group’s cash cow, the mobile operations, saw its operating profit falling to Rs.2.69 billion from Rs.3.62 billion during the same quarter last year. 
The segment revenue slightly increased to Rs.18.5 billion from Rs.18.1 billion from a year ago. Meanwhile, the fixed telephony and broadband business of the group turned an operating profit of Rs.403.7 million from a loss of Rs.97.5 million. The revenue rose slightly under a billion rupees to Rs.2.91 billion.  
The group’s pay television business expanded its losses up to Rs.200 million from Rs.164.3 million a year ago. The revenues edged down to Rs.1.49 billion from Rs.1.58 billion a year ago.  

This was despite the total subscriber base expanding to 866,000 by the end of March. 
Meanwhile, the net finance cost also rose to Rs.892.5 million during the quarter under review from Rs.323.8 million YoY.
During the quarter, the Dialog Group paid as much as Rs.10.5 billion in taxes to the government, an increase of 28 percent from the same period last year. 
This included Rs.3.6 billion of direct taxes and levies and Rs.6.9 billion of consumption taxes collected on behalf of the state. 
By the end of March 31, 2017, Dialog’s Malaysian parent, Axiata Investments (Labuan) Limited held 83.32 percent stake followed by the Employees’ Provident Fund with 2.22 percent stake and Norges Bank with 1.27 percent stake. 

 


Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

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.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Sending Money,Online Books, Delivery Service, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop Sri Lanka

POLICE ON TRIAL: Exercising Authority without Accountability

Although armed with the power of the State and empowered to use force against

Downfall and death of LTTE’s Mahathaya

The Liberation Tigers of Tamil Eelam (LTTE) ceased to exist as a functioning

Rishi Sunak; why SL did not have a Tamil or Muslim as President?

Britain now has a British Asian, Hindu Prime Minister, though Rishi Sunak is

How and why MGR launched ADMK 50 years ago

17 October 1972 was a Tuesday. Fifty years ago on that auspicious day, a new