Nov 01, 2012 (LBO) – Profits at Dialog Axiata, Sri Lanka’s largest cellco surged 273 percent to 4.7 billion rupees in the September 2012 quarter from a year earlier, partly due to a tax reversal, interim accounts showed. Dialog has opted for a 2.0 percent tax based on turnover at the end of a tax holiday given by Sri Lanka’s investment promotion agency triggering a reversal of a 2.4 billion rupee tax provision, accounts filed with Colombo Stock Exchange said.
But profits at pre-tax level in the group which also has fixed access and pay television services rose 61 percent to 2.4 billion rupees in the September quarter, from a year earlier.
Group revenues rose 25 percent to 11.5 billion rupees, costs rose at a faster 39 percent to 8.4 billion rupees but gross profits also grew 9.6 percent to 6.0 billion rupees.
The group reported earnings of 59 cents for the quarter. In the nine months to September 2012 Dialog Axiata reported earnings of 63 cents on profits of 5.0 billion rupees, up from 3.5 billion rupees a year earlier.
The stock closed at 7.80 rupees on Wednesday.
The results include operations of Suntel, a fixed access provider it bought.
A segmented breakdown of revenue shows that core