Aug 13, 2008 (LBO) – Profits at Sri Lanka’s Dialog Telekom group, a unit of Telekom Malaysia, fell 78 percent in the June 2008 quarter to 537 million rupees, according to interim accounts filed with Colombo Stock Exchange.
The unit had lost 196.4 million for the six months, down from 349 million rupees for the same period last year.
Subscribers had grown 276 percent over the past year and 32 percent against the previous quarter.
Dialog says an under-penetrated pay TV market gives room for further expansion.
Group revenues in the June quarter grew 13 percent to 9.2 billion rupees, with the core mobile unit seeing 4.8 percent revenue growth to 8.3 billion rupees amid price cuts.
Dialog said customer spending was hit by inflation and its own costs rose 28 percent in the past year.
Energy costs grew 46 percent, network cost rose 49 percent and depreciation 62 percent while the company continued to invest in infrastructure.
Its customers had grown 31 percent to 4.8 million in the past year. Pre-paid customers increased 34 percent to 4.2 million, while post paid customers grew 14 percent to 590,000.
Dialog Broadband Networks (DBN) had acquired 112,000 fixed subscribers while its new WiMa