Mobile data and voice services power Dialog June quarter

Dialog Axiata PLC reported some robust top and bottom-line performances in the three months ended in June from some solid performance in its key mobile operations segment, driven by the revenues in the data and voice segments.

Sri Lanka’s largest mobile operator by revenues and subscribers reported a revenue of Rs.44.13 billion for the April-June period, the company’s fiscal second quarter, up 7.7 percent from the same period a year ago.

This was achieved despite the strategic scaling down of low-margin international wholesale business, which amounted to Rs.10.0 billion for the six months ending June 30.

For the quarter, the group reported earnings before interest, tax, depreciation and amortisation (EBITDA) – its key operational cash performance matrix – of Rs.20.8 billion, reflecting both revenue growth and operational efficiencies.

The EBITDA margin has also expanded to 46.3 percent, rising by 13.5 percent from the same period in 2024, which the company said was able to surpass the pre-crisis levels.

The mobile operation brought as much as Rs.34.23 billion in revenues in the quarter, which rose by 31.2 percent from a year ago.

This segment also reported an operating profit of Rs.7.48 billion for the three months, sharply expanding from Rs.1.52 billion reported.

The EBITDA for the mobile segment was recorded at Rs.15.3 billion for the quarter, the company said.

Meanwhile, its television business reported revenues of Rs.3.25 billion, up by a modest 9.1 percent from a year ago.

The company is the market leader in the digital pay television market, with a subscriber base exceeding 1.6 million as of end-June.  

“Growth was supported by higher subscription and advertising revenues,” the company said in a statement. The television segment managed to significantly narrow its operating losses in the quarter to Rs.67.39 million, from a loss of Rs. 292.20 million reported in the same period last year.

Dialog Broadband Networks, encompassing the group’s fixed telecommunications, broadband and international businesses, reported revenues of Rs.6.65 billion for the quarter, down 44.2 percent from a year ago. 

“This decline was primarily due to the scaling down of low-margin international wholesale operations,” the company said.

However, the operating profit rose by 31.0 percent to Rs.1.52 billion from a year ago.

The company reported earnings of 55 cents a share or Rs.5.07 billion for the June quarter, from a loss of Rs.1.57 billion incurred in the same period last year.

The bottom line was also supported by the lower net finance cost of Rs.2.52 billion for the quarter, compared to Rs.2.98 billion a year ago as the finance cost declined while the net foreign exchange losses on the company’s foreign currency borrowings also fell substantially.

Malaysia’s Axiata Investments (Labuan) Limited held a 73.75 percent stake in Dialog while Bharti Airtel Limited held another 10.36 percent stake in the company as at end-June.