Business Times

Dialog profits grow, cash flows improve and mobile phone subs reach 6.7 mln

Dialog Axiata PLC, Sri Lanka’s biggest mobile phone operator, said this week that group post-tax profit for the three quarters ending September 2010 was Rs. 3.77 billion while revenues rose to Rs 30.67 billion.

“The Dialog Group recorded a free cash flow of Rs. 7.30 billion in the same period,” the group said in a statement this week. The results included those of Dialog subsidiaries - Dialog Broadband Networks (Pvt.) Ltd and Dialog Television (Pvt.) Ltd (DTV).

The group posted a post tax profit of Rs. 1.69 billion for the 3rd Quarter, up 138% increase year-on-year. Dialog Group revenues were recorded at Rs. 30.67 billion for the nine months, up 16% YoY and 4% QoQ (quarter on quarter).

Dialog’s mobile subscriber base stood at 6.7 million as at end of September, up 6% YoY. “The 3rd Quarter of 2010 featured the transient impact of downward tariff adjustments in the mobile market, immediately following the introduction of floor rate regulations in July 2010. Accordingly, Core Mobile revenues (excluding interconnection income) which exhibited 13% growth YoY, declined marginally by 1.5% on an adjacent QoQ basis. Notwithstanding the transient impact of tariff adjustments across the sector, total revenues were bolstered by increased consumption of mobile voice and mobile broadband services, as well by interconnection income, resulting overall in a 4% growth in revenue on an adjacent QoQ basis,” the company said.

The 3rd Quarter featured the impact of several changes in the sector cost structure including but not limited to those accruing from the introduction of the domestic interconnection regime and the reduction in the international telecommunications levy from $0.038 per minute to $0.015 per minute.

DBN featuring the Fixed Telephony, Fixed Broadband and Data Transmission businesses of the Dialog Group recorded revenue of Rs. 604 million in Q3 2010, up 5% QoQ and 4% relative to Q3 2009.
Broadband and ISP revenues grew by 19% YoY, fuelled by the increase in usage of the corresponding services. DBN’s fixed line CDMA subscriber base increased by 4% YoY to reach 183,000. CDMA usages revenues grew by 3% YoY driven primarily by an increase in interconnection revenue.

The company said strong operating cash flows combined with a prudent and strategic approach to capital expenditure, underpinned the generation of free cash flow of Rs. 7.30 billion for the first nine months of 2010, a five-fold increase relative to the ngative free cash flow of Rs. 1.46 billion in the previous year.

“Positive free cash flows were directed towards de-leveraging the company’s balance sheet, resulting in a reduction of the group’s total debt outstanding by 12% YoY,” it said.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Kotelawala, GK depositors meet tomorrow
Selective tax holidays after the budget
French firm ‘open’ mind on Lankan fuel entry
Central Bank scrutinizes Harry J’s claims in HNB sale issue
Shell Gas deal still incomplete
PB Jayasundera to get wide administrative powers
Dust and chaos on the Galle Road
Comment - Working in the Middle East? It’s not worth it!
Feature - Potential for renewable energy in Sri Lanka
Govt. killing entrepreneurship spirit with unfair tax policies
F&G maturity default case fixed for ex-parte trial
Haycarb launches new log in new global re-positioning strategy
Sri Lanka on the map for ‘frontier’ stock markets
SL drawing a lot of foreign investment interest
Central Bank: Only a supervisor not a guarantor of deposits
National level e-waste management programme to be launched soon
Time to kick in fundamentals to the bear market
Colombo Dockyard builds second passenger ship for India
Janashakthi launches unique Sports Insurance Policy
Machinery, equipment exports see August earnings rise sharply
SriLankan launches Air Taxis
Government to formulate plan to list state entities after the budget
ICASL, ICAEW sign MOU
Only 27 of 35 finance companies are CBSL compliant
School accounts better than private sector ones
World’s largest BPO and KPO Certifications enter Sri Lanka
Hayleys launches Farmtrac 4-wheel locally
More and more companies eye the North for investment, business
Heladiv opens 10th and largest tea boutique in Beijing
Sri Lanka to tighten mobile phone regulations
MTI CEO briefs Bangladesh biz community
Fitch upholds HNB’s ‘AA-(lka)’ Stable
Investment Promotion Mission heads to Korea
JKH joins with TDG for freight forwarding
SEC ready with Share Option rules
Farmers using mobile for crop prices make more : Study
FCCISL helps 500 persons in war rehabilitation
Sri Lankan telephone directory goes electronic
CINEC awarded APAC Quality award
Virtusa supports reality TV enterprise competition
Rickmers Marine Agency Lanka gets ISO 9001 certified
One in 12 Lankans uses the Web
Dialog profits grow, cash flows improve and mobile phone subs reach 6.7 mln
Biyagama Hospital gets a facelift through Fonterra
SLT subscribers forced to pay more for telephone calls: Telecom expert
NDB Investment Bank structures largest securitisation in Sri Lanka
LEED project to help micro and small entrepreneurs in Vavuniya
Turning sand and dust into a money-spinner and a work of art
Change of stars at Burson-Marsteller

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution