Dialog Downturn

Oct 30, 2007 (LBO) – Consolidated net profits of Sri Lanka’s top celco Dialog Telekom fell 6.9 percent to 2.43 billion rupees, while revenues rose 29 percent to 8.55 billion in the September quarter, the firm’s latest results showed. Losses at its new pay TV division dragged down profits, while at company level profits from mobile operations were up 9.36 percent to 2.81 billion rupees.

At company level, revenues grew 26 percent over the same quarter to reach 8.2 billion rupees.

“The high profit growth we have seen in the past seems to be slowing. We have seen the trend from the first quarter of this year,” says Channa Amaratunga from Boston Capital.

The company said it was still adding subscribers which were up 1.1 million for the past 12 months to reach 3.96 million by September. This was a 40 percent increase.

The prepaid segment had increased by 46 percent to 3.44 million from 2.36 million and the postpaid subscriber base had expanded 10 percent to 520,000 from 480,000.

In the first 9-months of the year group profits were down 3.2 percent to 7.3 billion rupees while revenues were up 26 percent to 23.9 billion rupees.

Dialog said its pay TV division earned revenues of 479 million during the f